IBEX (IBEX) AI Stock Analysis

• Market Cap: $323.20M
• Dividend Yield: N/A
• Average Volume (3M): 161.54K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.91
• Revenue Growth: 1.65%
• EPS Growth: 35.92%
• Country: US
• Employees: 33,000
• Sector: Technology
• Sector Strength: 62
• Industry: Information Technology Services
• EPS (TTM): 2.12
• Shares Outstanding: 13,191,924
• 10 Day Avg. Volume: 99,214
• 30 Day Avg. Volume: 161,544
• PEG Ratio: 0.32
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.81
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.00
• Price Target Upside: 6.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

IBEX's overall stock score reflects its robust financial performance and strong earnings call outcomes, highlighted by record revenue growth and strategic initiatives in AI. While technical indicators suggest a cautious short-term outlook, the company's attractive valuation and positive guidance underscore its potential for long-term growth.

Positive Factors

Growth Strategy

The company continues to execute its land and expand strategy, significantly increasing revenue in the subsequent years after each new cohort of wins.

Market Position

IBEX is seen as a market share gainer with a clean balance sheet, margin expansion, and inexpensive valuation.

Negative Factors

Industry Trends

IBEX has seen automation impacts over time and have grown well over time.

Market Stability

Industry trends seem to be stabilizing, and margin trends have been good as revenue mix trending toward higher-margin services/geos.

IBEX Business Overview & Revenue Model

Company Description

IBEX Limited provides end-to-end technology-enabled customer lifecycle experience solutions in the United States and internationally. The company provides ibex Connect, a customer engagement solution that comprises customer service, technical support, revenue generation, and other value-added outsourced back-office services through the CX model, which integrates voice, email, chat, SMS, social media, and other communication applications; ibex Digital, a customer acquisition solution that includes digital marketing, e-commerce technology, and platform solutions; and ibex CX, a customer experience solution, which provides a suite of proprietary software tools to measure, monitor, and manage its clients' customer experience. As of October 1, 2021, the company operated 33 customer engagement and three customer acquisition delivery centers. It serves banking and financial services, delivery and logistics, health tech and wellness, high tech, retail and e-commerce, streaming and entertainment, travel and hospitality, and utility industries. The company was formerly known as IBEX Holdings Limited and changed its name to IBEX Limited in September 2019. The company was incorporated in 2017 and is headquartered in Washington, District of Columbia. IBEX Limited is a subsidiary of The Resource Group International Limited.

How the Company Makes Money

IBEX generates revenue primarily through its outsourcing services, where it partners with businesses to handle customer support, sales, and other back-office functions. The company earns money by entering into contracts with clients to provide tailored BPO solutions, charging fees based on service level agreements, transaction volumes, or a combination of both. Key revenue streams include customer service and support, technical support, and sales outsourcing. Significant factors contributing to IBEX's earnings include its global delivery model, which allows it to leverage cost efficiencies, and strategic partnerships with technology providers to enhance service offerings.

IBEX Financial Statement Overview

Summary

IBEX demonstrates strong profitability with impressive margins and a solid balance sheet. Despite minor concerns about revenue decline and negative free cash flow growth, overall financial health is strong, supporting operational sustainability and growth prospects.

Income Statement

IBEX has shown a strong performance in the TTM period with a Gross Profit Margin of 48.74% and a Net Profit Margin of 7.08%. The Revenue Growth Rate from the last annual report to TTM is 2.58%, indicating consistent growth. EBIT Margin stands at 8.66% and EBITDA Margin at 11.80%, showcasing solid profitability. A slight decline in revenue compared to the previous year is a minor concern but overall, the company demonstrates robust profitability supported by healthy margins.

Balance Sheet

The company maintains a Debt-to-Equity Ratio of 0.87, reflecting moderate leverage. Return on Equity (ROE) is 33.92%, indicating efficient use of equity to generate profits. The Equity Ratio is 39.97%, showing a stable financial position with a substantial equity base. Despite a decrease in total assets, the company's financial health remains sound with balanced leverage.

Cash Flow

Operating Cash Flow to Net Income Ratio is 1.02, pointing to good cash generation relative to income. Free Cash Flow to Net Income Ratio is 0.70, reflecting adequate free cash flow generation. Although the Free Cash Flow Growth Rate is negative at -4.24%, the company still generates sufficient cash flows to support its operations and investments. Overall, cash flow stability is solid with minor fluctuations.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
508.57M	523.12M	493.57M	443.66M	405.13M
	Gross Profit
152.23M	148.13M	119.60M	100.40M	128.88M
	EBIT
39.43M	40.48M	29.80M	23.33M	19.51M
	EBITDA
60.96M	73.96M	52.80M	51.53M	47.17M
	Net Income Common Stockholders
33.66M	31.58M	21.46M	2.85M	7.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.72M	57.43M	48.83M	57.84M	21.87M
	Total Assets
293.90M	293.32M	290.14M	274.29M	195.24M
	Total Debt
67.02M	78.90M	104.74M	112.52M	105.97M
	Net Debt
4.30M	21.47M	55.91M	54.67M	84.10M
	Total Liabilities
128.10M	143.36M	189.85M	193.63M	179.09M
	Stockholders Equity
165.80M	149.96M	100.29M	80.66M	16.15M
Cash Flow		Free Cash Flow
27.05M	22.91M	24.21M	5.07M	46.45M
	Operating Cash Flow
35.90M	41.86M	50.13M	25.90M	51.72M
	Investing Cash Flow
-8.86M	-19.04M	-24.89M	-20.17M	-4.83M
	Financing Cash Flow
-21.73M	-13.61M	-33.28M	30.43M	-33.87M

IBEX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 24.5 is above the 20-day moving average (MA) of 23.71, below the 50-day MA of 24.67, and above the 200-day MA of 20.68, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 55.41 is Neutral, neither overbought nor oversold. The STOCH value of 92.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBEX.

IBEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBEX	79 Outperform	$323.20M	11.54	27.88%	―	1.65%	35.92%
III	61 Neutral	$176.61M	64.55	2.86%	4.96%	-14.93%	-54.76%
Sector *	59 Neutral	$10.72B	10.37	-6.60%	3.02%	7.37%	-11.29%
TTEC	49 Neutral	$191.69M	―	-75.62%	1.50%	-10.32%	-3860.81%
CNDT	48 Neutral	$344.70M	0.99	48.63%	―	-9.83%	―
UIS	44 Neutral	$282.85M	―	192.24%	―	-0.35%	55.51%
TLS	44 Neutral	$199.90M	―	-36.71%	―	-25.52%	-46.44%

IBEX Corporate Events

IBEX Completes $70 Million Share Purchase Transaction

IBEX Limited has successfully completed a financial transaction involving the purchase of 3,562,341 common shares from The Resource Group International Limited for $70 million. The transaction was settled with $45 million in cash and a $25 million convertible promissory note, which was fully paid off using credit lines from HSBC, leading to the termination of the note.