One-glance verdict
Undervalued
$68.91 our estimate vs market $44.00
Wall Street consensus: $42.00 (-39.1% lower than our fair-value estimate)
36% below our estimate, below the bear case
Fundamentals snapshot
IBEX Limited
IBEX · NGM · Technology · Information Technology Services
Current price
$44.00
52-week range
$25.94 - $45.28
Market cap
$584.26M
Balance sheet
Healthy
58.72x Strong cushion
Net debt $29.88M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 15.4% last year.
- Reward Returns 30.4% on equity, ahead of 80% of its peers.
- Risk Net debt grew 39.1% over 3 years.
- Risk Stock trades 18.2% above its 5-year average P/E.
What this company does
IBEX Limited
IBEX gets paid by other companies to handle their customer service, from answering support calls to managing online chats. When you contact a big brand for help, you might actually be talking to an IBEX employee instead of someone from that brand. This matters because many large businesses outsource these tasks, so IBEX's revenue (the total money it brings in from sales) depends on its ability to win and keep these valuable client contracts.
How the company got here
IBEX was developed within a venture capital firm called The Resource Group, which was started in the early 2000s to invest in the business process outsourcing industry (a fancy way of saying they help other companies with their customer-facing tasks). After a series of acquisitions and reorganizations, the company as it is known today was formed in 2017. In 2020, IBEX had its initial public offering (IPO), which is when a private company first sells shares of stock to the public, and began trading on the Nasdaq stock exchange. Since then, the company has focused on expanding its operations globally to serve its clients.
What it actually does
Think about the last time you contacted a company for help with a product or service. You might have been talking to an IBEX employee. IBEX provides customer support for other companies, handling everything from phone calls and emails to online chat and social media interactions. They also help companies find new customers through digital marketing and online sales support. Essentially, IBEX is the behind-the-scenes team that helps many well-known brands build and maintain relationships with their customers.
ibex Connect
This is the core of IBEX's business and makes up the largest part of its revenue. When you need help from a company, like technical support for your new gadget or assistance with a billing question, ibex Connect is often the service you're using. Companies pay IBEX to have their team of professionals answer customer inquiries through various channels like phone, email, and chat. This allows other businesses to focus on their main products while IBEX handles the customer service side of things.
ibex Digital
This part of the company focuses on helping brands find new customers. They use digital marketing techniques, like online advertising and social media campaigns, to reach potential buyers. For example, if you see an online ad for a product you've been searching for, it might have been placed by the ibex Digital team. Companies pay for these services to increase their sales and grow their customer base.
ibex CX
This is a smaller but important part of the business that provides tools to measure and improve the customer's experience. Think of it as the quality control department for customer interactions. They use special software to track customer satisfaction and identify areas where service can be improved. Companies use this information to make sure they are keeping their customers happy and loyal.
What management is betting on now
IBEX is heavily focused on using artificial intelligence (AI) to improve its services and become more efficient. They are partnering with AI technology companies to create solutions that can handle simple customer requests automatically, freeing up their human employees to focus on more complex issues. The company is also concentrating on expanding its business with clients in fast-growing industries like health technology and e-commerce. Another key priority is to continue growing in international markets to better serve their global clients.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$4.13M
FY2025 Q2
$-3.18M
FY2025 Q3
$3.56M
FY2025 Q4
$22.78M
FY2026 Q1
$8.03M
FY2026 Q2
$-5.09M
FY2026 Q3
$6.59M
FY2026 Q4
$21.66M
Revenue
$164.27M
Net income
$8.75M
Diluted EPS
0.59
Operating cash flow
$24.82M
Free cash flow
$21.66M
Fetching…
Sources
Revenue
$164.41M
Net income
$13.32M
Diluted EPS
0.89
Operating cash flow
$11.86M
Free cash flow
$6.59M
Fetching…
Sources
Revenue
$164.22M
Net income
$12.22M
Diluted EPS
0.83
Operating cash flow
$6.64M
Free cash flow
$-5.09M
Fetching…
Sources
Revenue
$151.18M
Net income
$12.04M
Diluted EPS
0.82
Operating cash flow
$15.67M
Free cash flow
$8.03M
Fetching…
Sources
Revenue
$147.14M
Net income
$9.60M
Diluted EPS
0.63
Operating cash flow
$27.94M
Free cash flow
$22.78M
Fetching…
Sources
Revenue
$140.74M
Net income
$10.47M
Diluted EPS
0.73
Operating cash flow
$8.83M
Free cash flow
$3.56M
Fetching…
Sources
Revenue
$140.68M
Net income
$9.27M
Diluted EPS
0.57
Operating cash flow
$1.14M
Free cash flow
$-3.18M
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Sources
Revenue
$129.72M
Net income
$7.53M
Diluted EPS
0.43
Operating cash flow
$7.76M
Free cash flow
$4.13M
Fetching…
Sources
Is it cheap or expensive?
Fair value $68.91 vs current price $44.00
Wall Street consensus is the average analyst price target: $42.00 (-39.1% lower than our fair-value estimate).
Our most-likely fair value is $68.91 a share — about 56.6% above today's price of $44.00, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $29.9M. Interest coverage 58.7x.
Net debt
$29.88M
Interest coverage
58.72x
IBEX Limited's profit covers its interest bill about 58.7 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
IBEX
BASELINE
IBEX Limited
Total debt $62.44M Interest coverage 58.72x This is the baseline the peer rows are being compared against.
Total debt $546.35M Interest coverage 7.68x -87% vs IBEX Carries about 7.6x less debt cushion than IBEX.
Total debt $5.50B Interest coverage 2.10x -96% vs IBEX Carries about 28.0x less debt cushion than IBEX.
Total debt $851.00M Interest coverage -1.21x -100% vs IBEX This peer has almost no interest-payment cushion compared with IBEX.
Total debt $933.37M Interest coverage 1.34x -98% vs IBEX Carries about 43.8x less debt cushion than IBEX.
What you should know
The case for and against IBEX
3 Rewards
3 Risks
Rewards
-
Revenue grew 15.4% last year.
-
Returns 30.4% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
-
Net debt grew 39.1% over 3 years.
-
Stock trades 18.2% above its 5-year average P/E.
-
Insider ownership is only 7.0% (peer median: 20.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.06x
Forward P/E
10.77x
P/B
3.44x
P/S
0.91x
EV/EBITDA
8.05x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
29.3%
Operating margin
7.4%
Net margin
7.2%
ROE
30.4%
ROA
12.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.37x
Current ratio
2.10x
Quick ratio
1.84x
Total debt
$62.44M
Total cash
$32.57M
Growth
How the business has been compounding
Revenue TTM
$644.08M
Revenue 5Y CAGR
6.9%
EPS TTM
3.13
EPS 5Y CAGR
24.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$59.00M
Free CF TTM
$31.19M
FCF margin
4.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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