IBEX (IBEX) AI Stock Analysis

• Market Cap: $385.66M
• Dividend Yield: N/A
• Average Volume (3M): 179.77K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.73
• Revenue Growth: 5.35%
• EPS Growth: 52.98%
• Country: US
• Employees: 33,000
• Sector: Technology
• Sector Strength: 75
• Industry: Information Technology Services
• EPS (TTM): 0.82
• Shares Outstanding: 13,372,404
• 10 Day Avg. Volume: 229,457
• 30 Day Avg. Volume: 179,774
• PEG Ratio: 0.75
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.50
• Price Target Upside: 5.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: $35.00 ▲( 21.36% Upside)

IBEX's stock score reflects its solid financial performance, positive earnings call, and strategic corporate actions. The company's robust profitability, strategic market expansion, and attractive valuation position it well for future growth. Technical indicators suggest caution in the short term, but the long-term outlook remains positive.

Positive Factors

Financial Strategy

IBEX's $70 million share repurchase announcement could be accretive to annualized EPS, signaling confidence in its financial strategy.

Growth Strategy

IBEX continues to execute its land and expand strategy, significantly increasing revenue in the years following each new cohort of wins.

Market Share

IBEX is gaining market share by leveraging low-cost regions like Pakistan, which offer high-quality delivery and provide a margin uplift.

Negative Factors

Automation Impact

The impact of automation over time poses challenges, although IBEX has managed growth well so far.

Industry Skepticism

Investors may remain somewhat skeptical about the industry, which could cap the upside potential despite IBEX's performance.

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 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 Financial Statement Overview

Summary

IBEX demonstrates strong financial performance with solid profitability metrics such as a 48.74% Gross Profit Margin and a 7.08% Net Profit Margin. The balance sheet is stable with a moderate debt-to-equity ratio of 0.87 and a high ROE of 33.92%. Cash flow generation is stable with an Operating Cash Flow to Net Income Ratio of 1.02, despite a slight decline in free cash flow growth. Overall, the financial health supports sustainable operations.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
521.73M	508.57M	523.12M	493.57M	443.66M	405.13M
	Gross Profit
155.60M	152.23M	148.13M	119.60M	100.40M	128.88M
	EBIT
45.17M	39.43M	40.48M	29.80M	23.33M	19.51M
	EBITDA
67.49M	60.96M	73.96M	52.80M	51.53M	47.17M
	Net Income Common Stockholders
36.95M	33.66M	31.58M	21.46M	2.85M	7.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.21M	62.72M	57.43M	48.83M	57.84M	21.87M
	Total Assets
272.50M	293.90M	293.32M	290.14M	274.29M	195.24M
	Total Debt
94.41M	67.02M	78.90M	104.74M	112.52M	105.97M
	Net Debt
74.20M	4.30M	21.47M	55.91M	54.67M	84.10M
	Total Liabilities
163.56M	128.10M	143.36M	189.85M	193.63M	179.09M
	Stockholders Equity
108.94M	165.80M	149.96M	100.29M	80.66M	16.15M
Cash Flow		Free Cash Flow
25.90M	27.05M	22.91M	24.21M	5.07M	46.45M
	Operating Cash Flow
37.76M	35.90M	41.86M	50.13M	25.90M	51.72M
	Investing Cash Flow
-11.86M	-8.86M	-19.04M	-24.89M	-20.17M	-4.83M
	Financing Cash Flow
-54.71M	-21.73M	-13.61M	-33.28M	30.43M	-33.87M

IBEX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 28.84 is above the 20-day moving average (MA) of 26.90, above the 50-day MA of 25.30, and above the 200-day MA of 21.60, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 45.23 is Neutral, 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	77 Outperform	$385.66M	12.66	26.18%	―	5.35%	52.98%
III	68 Neutral	$226.08M	30.51	8.09%	3.78%	-12.26%	―
Sector *	61 Neutral	$11.41B	10.19	-7.05%	2.95%	7.46%	-10.52%
CNDT	58 Neutral	$385.16M	1.74	30.92%	―	-14.38%	―
UIS	56 Neutral	$346.10M	―	192.24%	―	-1.72%	82.15%
TTEC	56 Neutral	$250.65M	―	-73.85%	1.15%	-9.86%	-2426.25%
TLS	47 Neutral	$192.53M	―	-38.32%	―	-21.83%	-67.07%

IBEX Corporate Events

IBEX Announces $15 Million Share Repurchase Plan

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.