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Ibex Ltd (IBEX)
:IBEX
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IBEX
(NASDAQ:IBEX)
78Outperform
Positive Factors
Growth Strategy
IBEX's strong sales momentum is turning into accelerating growth.
Market Position
IBEX is seen as a market share gainer with a clean balance sheet, margin expansion, and inexpensive valuation.
Negative Factors
Automation Impact
IBEX has seen automation impacts over time and have grown well over time.
Industry Trends
Industry trends seem to be stabilizing, and margin trends have been good as revenue mix trending toward higher-margin services/geos.
IBEX (IBEX) vs. S&P 500 (SPY)
Market Cap
$321.22M
Dividend YieldN/A
Average Volume (3M)244.98K
Price to Earnings (P/E)11.5
Beta (1Y)0.98
Revenue Growth1.65%
EPS Growth35.92%
CountryUS
Employees33,000
SectorTechnology
Sector Strength44
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.12
Shares Outstanding13,191,924
10 Day Avg. Volume222,737
30 Day Avg. Volume244,981
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)N/A
Price to Sales (P/S)0.64
Price to Cash Flow (P/CF)72.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside6.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
IBEX Business Overview & Revenue Model
Company DescriptionIBEX 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 MoneyIBEX 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.82
Very Positive
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.76
Positive
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.79
Positive
| 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 |
| 254.36M | 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 | ||||
| 11.96M | 62.72M | 57.43M | 48.83M | 57.84M | 21.87M | Total Assets |
| 156.28M | 293.90M | 293.32M | 290.14M | 274.29M | 195.24M | Total Debt |
| 55.90M | 67.02M | 78.90M | 104.74M | 112.52M | 105.97M | Net Debt |
| 43.94M | 4.30M | 21.47M | 55.91M | 54.67M | 84.10M | 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 | ||||
| 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
Neutral
24.35
Price Trends
24.45
Negative
22.46
Positive
19.95
Positive
Market Momentum
0.09
Positive
44.26
Neutral
32.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBEX, the sentiment is Neutral. The current price of 24.35 is below the 20-day moving average (MA) of 24.94, below the 50-day MA of 24.45, and above the 200-day MA of 19.95, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 32.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.78B | 17.56 | 22.15% | 1.22% | 6.46% | -16.94% | |
79 Outperform | $7.60B | 38.96 | 21.80% | ― | 12.74% | 9.92% | |
78 Outperform | $321.22M | 11.47 | 27.88% | ― | 1.65% | 35.92% | |
72 Outperform | $3.66B | 14.26 | 6.34% | 2.23% | 21.67% | -17.91% | |
62 Neutral | $2.10B | ― | -2.21% | ― | 14.44% | 84.58% | |
57 Neutral | $20.97B | 10.32 | -14.01% | 2.49% | 4.46% | -23.38% | |
45 Neutral | $169.06M | ― | -75.62% | 16.38% | -10.32% | -3860.81% |
* Technology Sector Average
Performance Comparison
IBEX
IBEX
24.35
9.35
62.33%
EXLS
Exlservice Holdings
47.21
15.85
50.54%
G
Genpact
50.38
18.26
56.85%
TTEC
TTEC Holdings
3.29
-6.87
-67.62%
FIVN
Five9
27.15
-34.20
-55.75%
CNXC
Concentrix
55.64
-6.27
-10.13%
IBEX Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 10.23% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call presented strong revenue growth and profitability improvements, driven by strategic client wins and AI solutions. Despite some challenges in specific verticals and increased capital expenditures, the company's overall trajectory is positive with continued investments in growth and diversification.Highlights
Record Revenue and Growth
IBEX achieved its highest quarterly revenue in history at $140.7 million, up 6.1% from the previous year, marking the highest growth in two years.
Improved Profitability
Adjusted EBITDA margin expanded by 100 basis points to 11.8% from the prior year, with record Q2 adjusted net income of $9.6 million, up 20% from the prior year.
Strong EPS Performance
Adjusted EPS increased by 36% to $0.59 compared to the previous year.
Strategic Client Wins and AI Solutions
Closed five new logos in the quarter, including both traditional agent and generative AI deployments. Significant wins with WaveIX AI solutions for translation and automation.
Share Repurchase and Board Enhancements
Repurchased 3.6 million shares from TRGI, eliminating controlled company status under NASDAQ. Added three new members to the board with strong industry and AI expertise.
Lowlights
Decline in FinTech Revenue
FinTech vertical revenue declined by 15%, impacted by changes in client payment support models and geographic shifts.
Increased Capital Expenditures
Capital expenditures increased to $4.3 million or 3.1% of revenue, up from $2.9 million or 2.2% of revenue in the prior year quarter.
Net Cash Position Decrease
Net cash position decreased due to the share repurchase, moving from $60.8 million in net cash to $13.7 million in net debt.
Revenue Concentration in Largest Client
Largest client accounted for 12% of revenue, indicating some level of dependency on a single client.
Company Guidance
During the IBEX second quarter fiscal year 2025 earnings call, the company reported record Q2 revenue of $140.7 million, marking a 6.1% increase from the previous year. This growth was driven by significant expansions in key verticals such as health tech (31%), travel transportation and logistics (17%), and retail and e-commerce (4%), although offset by a 15% decline in FinTech. The adjusted EBITDA margin improved by 100 basis points to 11.8%, with adjusted net income rising 20% to $9.6 million and adjusted EPS increasing 36% to $0.59. The company highlighted strong offshore revenue growth of 14% year-over-year and a focus on high-margin omnichannel services. Additionally, IBEX's strategic initiatives, including new client wins and the WaveIX AI solutions, have reinforced its market position, leading to increased revenue retention and client diversification. The company also executed a $70 million strategic share repurchase, reducing its diluted share count and enhancing financial independence. Looking forward, IBEX raised its fiscal year revenue guidance to $525-$535 million and adjusted EBITDA to $68-$69 million, underlining confidence in continued growth and margin expansion.IBEX Corporate Events
Private Placements and Financing
IBEX Completes $70 Million Share Purchase Transaction
Neutral
Jan 13, 2025
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.
Executive/Board ChangesBusiness Operations and Strategy
IBEX Board Changes to Enhance AI and CX Strategy
Positive
Jan 6, 2025
IBEX Limited announced the appointment of Karen Batungbacal to its Board of Directors, effective January 20, 2025. Batungbacal, an experienced leader in the Philippines BPO and shared services market, is expected to aid in guiding IBEX’s growth and innovation, particularly in customer experience (CX) with AI. The announcement also included the resignation of Shuja Keen from the Board, although he will continue to contribute to IBEX’s AI initiative in an advisory capacity. These changes reflect IBEX’s ongoing strategy to redefine CX and expand in key markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.