IBEX (IBEX) AI Stock Analysis

• Market Cap: $375.49M
• Dividend Yield: N/A
• Average Volume (3M): 143.84K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.98
• Revenue Growth: 12.86%
• EPS Growth: 54.95%
• Country: US
• Employees: 33,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.87
• Shares Outstanding: 13,405,520
• 10 Day Avg. Volume: 104,877
• 30 Day Avg. Volume: 143,843
• PEG Ratio: 0.36
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 15.65
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 2.39
• Enterprise Value/Ebitda: 5.88
• 1Y Price Target: $40.00
• Price Target Upside: 39.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.38
• Revenue Forecast (FY): $613.64M

• Rating: 72 Outperform
• Price Target: $31.00 ▲(8.32% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by improving fundamentals and a notably upbeat earnings call with raised guidance. Valuation is supportive at a ~12.3 P/E, while weaker technical momentum and some cash-flow/working-capital and vertical-mix risks temper the overall rating.

Positive Factors

Profitability improvement & strong ROE

IBEX has delivered multi-year margin and profitability gains with TTM net margin and EBIT expansion versus FY2021. A ~32% ROE reflects durable operating leverage and capital efficiency, supporting sustained cash generation and reinvestment capacity if revenue holds, strengthening long-term return potential.

Upward guidance and record quarterly results

Management raised FY guidance after record revenue and margin improvement, signaling durable operational momentum. Upward revisions reflect executable contracts and secular demand, giving management visibility to invest in capacity and technology while reinforcing medium-term revenue and EBITDA growth trajectories.

Higher-value mix: HealthTech, digital services, AI & offshore scale

Rapid HealthTech growth, a rising digital/omnichannel mix and offshore expansion create durable competitive advantages: higher-margin service mix, scalable lower-cost delivery, and differentiated AI capabilities. This structural shift supports sustainable margins and client stickiness across industries.

Negative Factors

Cash-flow variability and recent negative FCF

IBEX shows solid but inconsistent cash conversion: TTM operating cash is positive but free cash flow fell and a recent quarter produced an outflow. With higher planned CapEx for expansion, this variability could constrain funding flexibility, elevate reliance on working-capital management, and limit optionality during downturns.

Rising client concentration

Top-10 clients now account for a majority of revenue, increasing exposure to contract renewals, price pressure, or client-specific shocks. Higher concentration reduces revenue diversification and ups the stakes of client retention, potentially amplifying volatility in revenue and margins if any large relationships weaken.

Material telecom vertical contraction

A steep telecom decline reflects structural headwinds in a legacy vertical, reducing overall diversification and requiring replacement growth from other sectors. If not offset by faster uptake in HealthTech or digital services, this permanent shrinkage could depress growth rates and pressure margins tied to higher-cost legacy work.

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 makes money by providing outsourced CX and BPO services to enterprise clients under service contracts, earning fees for operating customer-interaction and support programs on the client’s behalf. Revenue is primarily generated from (a) customer contact services (e.g., handling inbound/outbound calls, chat, email, and other digital interactions for customer care, technical support, and sales/retention) and (b) business process/back-office services (e.g., transaction processing and other non-voice support work tied to customer operations). Client engagements are commonly priced using volume- and effort-based commercial terms—such as per hour (agent time), per interaction/contact, per transaction, and/or program-based minimum commitments—sometimes supplemented by performance-based incentives tied to service levels or outcomes (e.g., quality metrics, conversion/sales results, or retention performance). Earnings are driven by the scale and duration of client programs, agent utilization and productivity, service mix (voice vs. digital and higher-value work), and the company’s ability to manage labor and delivery costs. Significant partnerships or specific client relationships contributing to earnings are not available (null).

IBEX Financial Statement Overview

Summary

Multi-year profitability improvement and generally rising revenue support the score, with leverage trending healthier and strong ROE. The main offset is cash-flow variability: recent free-cash-flow softness and less consistent cash conversion versus earnings.

Income Statement

TTM (Trailing-Twelve-Months) revenue of ~$603M is growing at a mid-single-digit pace (+4.1%), building on a multi-year upward trend despite a brief dip in FY2024. Profitability has improved meaningfully versus earlier years, with TTM gross margin ~30.6%, EBIT margin ~8.9%, and net margin ~7.1% (up from ~3.0% in FY2021). The main watch-out is that growth is not consistently strong year-to-year, making results more “steady improver” than high-growth.

Balance Sheet

Leverage looks reasonable in TTM (Trailing-Twelve-Months), with debt-to-equity ~0.46 and total debt (~$64M) down versus prior years, reflecting a healthier capital structure than FY2021–FY2022 when leverage was higher. Equity has also strengthened versus FY2022. Return on equity is notably high in TTM (~32%), which is a positive, but it can also signal the business is operating with a relatively lean equity base—worth monitoring if profitability softens.

Cash Flow

Cash generation is solid, with TTM (Trailing-Twelve-Months) operating cash flow of ~$59M and free cash flow of ~$29M. However, free cash flow declined (~-6.1%) in the latest TTM period, and free cash flow is only about ~58% of net income, suggesting cash conversion is good but not consistently strong. Operating cash flow coverage is improving versus earlier years, but still indicates that cash flow has not always tracked accounting earnings tightly.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	603.27M	558.27M	508.57M	523.12M	492.85M	443.39M
Gross Profit	178.43M	172.58M	152.03M	148.13M	118.88M	108.14M
EBITDA	72.43M	64.80M	60.96M	60.10M	38.77M	31.16M
Net Income	44.32M	36.86M	33.66M	31.58M	21.46M	13.09M
Balance Sheet
Total Assets	295.80M	273.21M	293.90M	293.32M	294.18M	274.29M
Cash, Cash Equivalents and Short-Term Investments	15.46M	15.35M	62.72M	57.43M	48.83M	57.84M
Total Debt	64.34M	69.75M	67.02M	78.90M	105.54M	112.52M
Total Liabilities	141.28M	138.91M	128.10M	143.36M	180.72M	193.63M
Stockholders Equity	154.51M	134.31M	165.80M	149.96M	113.46M	80.66M
Cash Flow
Free Cash Flow	29.28M	27.29M	27.05M	22.91M	14.09M	-4.75M
Operating Cash Flow	59.08M	45.67M	35.90M	41.86M	40.01M	16.08M
Investing Cash Flow	-29.80M	-18.38M	-8.86M	-19.04M	-25.92M	-20.82M
Financing Cash Flow	-33.96M	-74.66M	-21.73M	-13.61M	-22.13M	40.90M

IBEX Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBEX, the sentiment is Negative. The current price of 28.62 is below the 20-day moving average (MA) of 28.95, below the 50-day MA of 32.71, and below the 200-day MA of 33.52, indicating a bearish trend. The MACD of -1.02 indicates Negative momentum. The RSI at 32.51 is Neutral, neither overbought nor oversold. The STOCH value of 9.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IBEX.

IBEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBEX	72 Outperform	$375.49M	10.52	31.85%	―	12.86%	54.95%
INOD	69 Neutral	$1.42B	50.36	35.11%	―	73.57%	56.21%
TSSI	65 Neutral	$304.12M	10.94	38.06%	―	91.66%	7.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TASK	54 Neutral	$940.03M	10.43	18.33%	―	19.88%	51.03%
HCKT	52 Neutral	$334.51M	42.13	10.27%	2.41%	0.68%	-67.84%
UIS	45 Neutral	$162.01M	2.63	126.78%	―	-4.93%	18.65%