IBEX (IBEX) AI Stock Analysis

• Market Cap: $413.61M
• Dividend Yield: N/A
• Average Volume (3M): 132.08K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.77
• Revenue Growth: 5.35%
• EPS Growth: 52.98%
• Country: US
• Employees: 33,000
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 0.82
• Shares Outstanding: 13,372,404
• 10 Day Avg. Volume: 92,307
• 30 Day Avg. Volume: 132,084
• PEG Ratio: 0.85
• Price to Book (P/B): 31.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -67.57
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.73
• Enterprise Value/Ebitda: 1.13
• 1Y Price Target: $30.50
• Price Target Upside: -1.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: $35.00 ▲(13.16%Upside)

IBEX's overall stock score of 78 reflects strong earnings call results and positive technical indicators. The company's strategic expansion and revenue growth are significant strengths, although cash flow efficiency and fintech revenue decline present risks. Reasonable valuation metrics support investment potential.

Positive Factors

Market Position

IBEX is seen 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

Growth Expectations

Growth expectations are high, with aspirations of over 10% year-over-year growth through Gen AI tools and continued execution.

Industry Skepticism

Investors may continue to be somewhat skeptical on the industry over the intermediate term, capping the upside potential.

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

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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	535.67M	508.57M	523.12M	493.57M	443.66M	405.13M
Gross Profit	165.47M	152.03M	148.13M	119.60M	100.40M	128.88M
EBITDA	66.28M	60.96M	60.10M	52.80M	51.53M	47.17M
Net Income	37.11M	33.66M	31.58M	21.46M	2.85M	7.77M
Balance Sheet
Total Assets	156.28M	293.90M	293.32M	290.14M	274.29M	195.24M
Cash, Cash Equivalents and Short-Term Investments	11.96M	62.72M	57.43M	48.83M	57.84M	21.87M
Total Debt	55.90M	67.02M	78.90M	104.74M	112.52M	105.97M
Total Liabilities	131.50M	128.10M	143.36M	189.85M	193.63M	179.09M
Stockholders Equity	24.78M	165.80M	149.96M	100.29M	80.66M	16.15M
Cash Flow
Free Cash Flow	19.72M	27.05M	22.91M	24.21M	5.07M	46.45M
Operating Cash Flow	35.15M	35.90M	41.86M	50.13M	25.90M	51.72M
Investing Cash Flow	-15.44M	-8.86M	-19.04M	-24.89M	-20.17M	-4.83M
Financing Cash Flow	-57.58M	-21.73M	-13.61M	-33.28M	30.43M	-33.87M

IBEX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.93
• 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 30.93 is above the 20-day moving average (MA) of 29.89, above the 50-day MA of 29.18, and above the 200-day MA of 24.04, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 79.59 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	78 Outperform	$413.61M	13.57	26.18%	―	5.35%	52.98%
CNDT	64 Neutral	$457.98M	2.07	30.92%	―	-14.38%	―
III	58 Neutral	$226.08M	30.51	8.09%	3.84%	-12.26%	―
TTEC	54 Neutral	$260.69M	―	-73.85%	1.10%	-9.86%	-2426.25%
UIS	54 Neutral	$317.67M	―	192.24%	―	-1.72%	82.15%
Sector *	51 Neutral	AU$1.66B	2.46	-31.66%	3.59%	16.55%	-7.79%
TLS	50 Neutral	$216.05M	―	-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.