Ellie Mae has a near unassailable position in the mortgage market, offering a one-stop-shop solution for its varied customers. Headwinds from the refi market are set to continue, but growth is nevertheless returning to the company on the back of innovation and increasing uptake by corporate customers. Valuations, albeit still steep, have come down, and […]
Entries Tagged as 'ELLI'
April 13th, 2018 · No Comments
October 31st, 2017 · Comments Off on Ellie Mae: Growing In A Declining Industry
The company has a near unassailable market position and keeps on gaining market share. However, we think for the foreseeable future, tailwinds and headwinds (mostly from the mortgage market) will roughly cancel each other out. Therefore, we see the shares as range-bound, at least for now. There is also downside risk if the bond market […]
October 5th, 2017 · Comments Off on SaaS Is King
The SaaS business model in enterprise software is clearly a very attractive business model commanding some prime valuations. It offers multiple growth avenues, and when done right, platforms can establish themselves as the de facto standard which enables increasing returns to kick in. Here we look at three such companies. Source: SaaS Is King | […]
August 2nd, 2017 · Comments Off on Ellie Mae’s Quarterly Miss, An Inflection Point?
The danger for expensive growth stocks is always an earnings miss, especially when accompanied by a considerable guidance reduction. This is exactly what happened to Ellie Mae, and the recovery from this won’t be easy or fast. One positive factoid, seats are still increasing, at least part of the underlying growth mechanics are still there. […]
May 1st, 2017 · Comments Off on Ellie Mae Is Too Expensive
Ellie Mae has one of the best business models we have come across. But the law of big numbers and some headwinds in the mortgage market is slowing growth and exposing a valuation that is too rich. This could change if they land a big bank as a customer, which would be a breakthrough. Ellie […]
March 11th, 2017 · Comments Off on Ellie Mae Remains A Good Company That’s Terrifically Valued
Shares of Ellie Mae sold off after the Trump victory as people feared higher mortgage rates would cut their growth. But the company has demonstrated before that they can grow even with headwinds from the market, so the worries were overblown. They are also investing to service even more of the mortgage origination market; this […]
December 22nd, 2016 · Comments Off on Sell-Off In Ellie Mae Provides An Opportunity
The shares of mortgage software provider Ellie Mae have sold off strongly on rising bond yields. While the shares are still anything but cheap (especially on a GAAP basis), we think the sell-off is a little overdone. It remains to be seen how far bond yields will rise, to what extent that will slow the […]
September 1st, 2016 · Comments Off on 5 Reasons To Buy Ellie Mae
May 13th, 2016 · Comments Off on Should You Still Buy Ellie Mae?
January 13th, 2016 · Comments Off on Ellie Mae Does It Again – Ellie Mae, Inc. (NYSE:ELLI) | Seeking Alpha
Ellie Mae streamlines and automates the mortgage origination market for ever more clients. The company has a habit of beating estimates and increasing guidance, and it didn’t disappoint in Q3. The shares sold off nevertheless, probably on interest rate worries. These are overdone, in our view, and the sell-off provides an opportunity. Source: Ellie Mae […]