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IBEX (IBEX)
NASDAQ:IBEX
US Market

IBEX (IBEX) AI Stock Analysis

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IB

IBEX

(NASDAQ:IBEX)

Rating:74Outperform
Price Target:
$31.00
▲(3.54%Upside)
IBEX's overall score is primarily driven by its strong earnings call results, highlighting record revenue and strategic market expansion. Although cash flow efficiency poses a challenge, the company's stable financial health and positive technical indicators support a favorable outlook. The reasonable valuation and absence of a dividend yield reflect a focus on growth reinvestment.
Positive Factors
Market Share
IBEX is recognized as a market share gainer with a clean balance sheet, margin expansion, and inexpensive valuation.
Revenue Growth
Revenue re-accelerated to mid-single-digits in FH1-25 and to +11% in the March quarter.
Negative Factors
Industry Skepticism
Investors may continue to be somewhat skeptical on the industry over the intermediate term, capping the upside potential.

IBEX (IBEX) vs. SPDR S&P 500 ETF (SPY)

IBEX Business Overview & Revenue Model

Company DescriptionIBEX (IBEX) is a leading global provider specializing in customer engagement solutions and business process outsourcing (BPO). The company delivers high-quality customer service, technical support, sales, and digital marketing services across various industry sectors, including telecommunications, healthcare, financial services, and technology. IBEX focuses on leveraging innovative technology and analytics to enhance customer experiences and drive operational efficiency for its clients.
How the Company Makes MoneyIBEX generates revenue primarily through its customer engagement and BPO services. The company earns money by entering into contracts with businesses across various sectors, providing them with outsourced customer service and support functions. These contracts often involve fixed fees, variable fees based on performance metrics, or a combination of both. Additionally, IBEX may receive bonuses or additional compensation for meeting or exceeding certain service level agreements (SLAs). Strategic partnerships with technology providers and investment in digital platforms and analytics also contribute to revenue by enabling more efficient service delivery and opening up new market opportunities.

IBEX Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2025)
|
% Change Since: 16.68%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements including record revenue and growth, successful entry into the India market, and strong performance in high-margin regions. However, challenges such as the decline in fintech revenue and adjusted EBITDA margin were noted. Despite some challenges, the overall sentiment is positive with increased full-year guidance and strategic investments in AI and market expansion.
Q3-2025 Updates
Positive Updates
Record Revenue and Growth
IBEX achieved record quarterly revenue of $140.7 million, marking an 11% increase from the previous year, the highest revenue for a quarter in the company's history.
Double-Digit Organic Revenue Growth
The company returned to double-digit organic revenue growth at 11%, the best growth in more than two years.
Strategic Entry into India
IBEX successfully entered the India market with a major strategic milestone, enhancing client delivery options and providing future growth opportunities.
Strong Performance in High-Margin Regions
Offshore revenue grew by 19% year over year, and higher margin integrated omnichannel revenue grew by 16% year over year.
AI Solutions and New Client Wins
IBEX's Wave iX AI solutions pipeline is robust, with over 75 opportunities and nine deployments expected in fiscal Q4. The company won four key new logo opportunities in the quarter.
Increased Full-Year Guidance
IBEX raised full-year guidance on both revenue and EBITDA and launched a new $15 million share repurchase program.
Negative Updates
Fintech Revenue Decline
Revenue from the fintech vertical declined by 12%, with exposure decreasing to 10.8% of total revenue from 13.7% the previous year.
Adjusted EBITDA Margin Decline
Adjusted EBITDA margin decreased to 13.8% from 15.1% in the prior year, impacted by higher selling, general, and administrative expenses related to investments in India.
Decreased Free Cash Flow
Free cash flow decreased to $3.6 million compared to $9.7 million in the prior year quarter, due to increased capital expenditures for expansion.
Company Guidance
In the third quarter of fiscal year 2025, IBEX reported a remarkable achievement with a record revenue of $140.7 million, marking an 11% increase from the previous year. The company also delivered an adjusted EBITDA of $19.4 million with a margin of 13.8%, while expanding its gross margin by 50 basis points. A significant milestone was achieved with IBEX's strategic entry into the Indian market, furthering its client delivery capabilities. The company witnessed strong growth in its offshore regions, with offshore revenues now comprising 51% of total revenue, up from 48% the previous year. Additionally, its digital and omnichannel services, which grew by 16% year over year, now represent 81% of IBEX's overall business. IBEX also announced an increase in its revenue guidance for the full fiscal year, raising expectations to a range of $540 to $545 million. The company continues to exhibit strong performance across various verticals, including health tech, travel, transportation, logistics, and retail and e-commerce, despite a decline in the fintech vertical. With a robust pipeline of AI opportunities and strategic investments, IBEX is well-positioned for continued growth and profitability.

IBEX Financial Statement Overview

Summary
The company demonstrates strong growth and profitability with a solid income statement, stable balance sheet, and room for improvement in cash flow efficiency. The income statement is robust with a healthy EBIT margin and net profit margin, while the balance sheet shows moderate leverage and efficient use of equity. However, the cash flow analysis indicates a need for better cash conversion and generation.
Income Statement
78
Positive
The Income Statement shows consistent revenue growth, with a TTM revenue increase of 5.33% compared to the previous year. Gross Profit Margin improved to 30.89% TTM, indicating efficient cost management. The EBIT Margin of 8.81% and EBITDA Margin of 12.37% are healthy, reflecting strong operational performance. Net Profit Margin stands at 6.93%, showing profitability. Overall, the company demonstrates solid growth and profitability, though there is room to enhance EBIT margins further.
Balance Sheet
70
Positive
The Balance Sheet is stable with a Debt-to-Equity Ratio of 0.74, indicating a moderate level of leverage. The Equity Ratio of 45.21% TTM suggests a balanced capital structure, providing financial stability. Return on Equity is 29.88% TTM, showcasing efficient use of equity to generate profits. While debt levels are manageable, maintaining strong equity growth will be crucial for future leverage flexibility.
Cash Flow
65
Positive
Cash Flow analysis reveals a slight decline in Free Cash Flow, with a Free Cash Flow to Net Income Ratio of 0.53 TTM, indicating moderate cash generation relative to earnings. The Operating Cash Flow to Net Income Ratio is slightly below 1 at 0.95 TTM, suggesting a need for improved cash conversion. Although cash flow is stable, enhancing cash generation efficiency could further strengthen financial resilience.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue535.67M508.57M523.12M493.57M443.66M405.13M
Gross Profit165.47M152.03M148.13M119.60M100.40M128.88M
EBITDA66.28M60.96M60.10M52.80M51.53M47.17M
Net Income37.11M33.66M31.58M21.46M2.85M7.77M
Balance Sheet
Total Assets156.28M293.90M293.32M290.14M274.29M195.24M
Cash, Cash Equivalents and Short-Term Investments11.96M62.72M57.43M48.83M57.84M21.87M
Total Debt55.90M67.02M78.90M104.74M112.52M105.97M
Total Liabilities131.50M128.10M143.36M189.85M193.63M179.09M
Stockholders Equity24.78M165.80M149.96M100.29M80.66M16.15M
Cash Flow
Free Cash Flow19.72M27.05M22.91M24.21M5.07M46.45M
Operating Cash Flow35.15M35.90M41.86M50.13M25.90M51.72M
Investing Cash Flow-15.44M-8.86M-19.04M-24.89M-20.17M-4.83M
Financing Cash Flow-57.58M-21.73M-13.61M-33.28M30.43M-33.87M

IBEX Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.94
Price Trends
50DMA
27.91
Positive
100DMA
26.36
Positive
200DMA
23.31
Positive
Market Momentum
MACD
0.41
Negative
RSI
65.06
Neutral
STOCH
88.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBEX, the sentiment is Positive. The current price of 29.94 is above the 20-day moving average (MA) of 28.97, above the 50-day MA of 27.91, and above the 200-day MA of 23.31, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 88.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBEX.

IBEX Risk Analysis

IBEX disclosed 49 risk factors in its most recent earnings report. IBEX reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

IBEX Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$400.37M13.1426.18%5.35%52.98%
IIIII
68
Neutral
$246.32M33.258.09%3.61%-12.26%
64
Neutral
$448.27M2.0330.92%-14.38%
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
54
Neutral
$238.21M-73.85%1.20%-9.86%-2426.25%
UIUIS
53
Neutral
$313.41M192.24%-1.72%82.15%
TLTLS
52
Neutral
$225.60M-38.32%-21.83%-67.07%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IBEX
IBEX
30.63
14.88
94.48%
III
Information Services Group
5.11
2.24
78.05%
TTEC
TTEC Holdings
5.17
-0.46
-8.17%
UIS
Unisys
4.53
0.05
1.12%
CNDT
Conduent
2.80
-0.49
-14.89%
TLS
Telos
3.25
-0.44
-11.92%

IBEX Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
IBEX Announces $15 Million Share Repurchase Plan
Positive
May 8, 2025

On May 8, 2025, IBEX Limited announced a new $15 million share repurchase plan, set to begin on May 12, 2025, reflecting the company’s confidence in its financial stability and growth trajectory. The company reported record financial results for the third fiscal quarter ending March 31, 2025, with an 11% increase in revenue and a strategic expansion into India, marking a significant milestone in its operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 14, 2025