📊 IBEX Key Takeaways
Is IBEX Ltd (IBEX) a Good Investment?
IBEX demonstrates a fortress balance sheet with zero meaningful debt, exceptional liquidity (1.95x current ratio), and strong returns on equity (23.4%) and assets (12.6%). However, revenue growth of 9.8% coupled with flat net income (-0.0% YoY) indicates margin compression or rising operational costs that must be monitored, though the debt-free structure and strong liquidity provide a substantial margin of safety.
IBEX shows solid fundamentals with low leverage, strong liquidity, and respectable profitability (9.2% operating margin, 15.7% ROE) alongside nearly 10% revenue growth. However, flat net income, weak free cash flow due to elevated capex, and softer cash conversion temper the growth quality. Evidence of margin expansion translating into stronger, sustainable FCF would justify a more constructive stance.
Why Buy IBEX Ltd Stock? IBEX Key Strengths
- Debt-free balance sheet with only $572K long-term debt and $15.4M cash
- Exceptional liquidity position with 1.95x current and quick ratios
- Strong double-digit returns: ROE of 23.4% and ROA of 12.6%
- Consistent revenue growth of 9.8% YoY in services/data processing segment
- Shareholder-friendly capital allocation reflected in 28.3% EPS growth despite flat net income
- Debt-light balance sheet with strong liquidity (1.83x current ratio)
- Healthy profitability for the sector (9.2% operating margin, 15.7% ROE)
- Solid revenue growth (+9.8% YoY) with high interest coverage (37.1x)
IBEX Stock Risks: IBEX Ltd Investment Risks
- Margin compression: net income flat YoY while revenue grows 9.8% indicates operational leverage failure or rising costs
- Low free cash flow margin of 2.0% limits reinvestment and shareholder distribution capacity
- High capital intensity with $24.6M CapEx consuming 259% of $9.5M free cash flow
- Net profit margin of 7.8% is modest for a services company and must not erode further
- Operating cash flow of $34.2M only 91% of reported net income, suggesting quality-of-earnings concerns
- Weak free cash flow and high capex intensity (0.9% FCF margin)
- Flat net income despite revenue growth suggests margin pressure or rising costs
- EPS growth likely driven by share count changes rather than core earnings growth
Key Metrics to Watch
- Net profit margin trend: must stabilize above 7.8% or improve with revenue growth
- Free cash flow yield: monitor whether FCF margin improves toward 4-5% range
- Operating expense ratio: track SG&A and cost of revenues as percentage of sales for efficiency gains
- Capital expenditure intensity: evaluate whether $24.6M annual CapEx is sustaining or expansion-related
- Revenue per employee and operating margin: assess pricing power and operational efficiency in competitive market
- Free cash flow margin and capex intensity
- Operating margin trend vs. revenue growth
IBEX Ltd (IBEX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.0% FCF margin may limit capital allocation flexibility.
IBEX Profit Margin, ROE & Profitability Analysis
IBEX vs Technology Sector: How IBEX Ltd Compares
How IBEX Ltd compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is IBEX Ltd Stock Overvalued? IBEX Valuation Analysis 2026
Based on fundamental analysis, IBEX Ltd has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
IBEX Ltd Balance Sheet: IBEX Debt, Cash & Liquidity
IBEX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: IBEX Ltd's revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $1.67 reflects profitable operations.
IBEX Revenue Growth, EPS Growth & YoY Performance
IBEX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $140.7M | $10.5M | $0.73 |
| Q2 2026 | $140.7M | $9.3M | $0.57 |
| Q1 2026 | $129.7M | $7.5M | $0.43 |
| Q3 2025 | $126.8M | $10.3M | $0.57 |
| Q2 2025 | $132.6M | $6.1M | $0.33 |
| Q1 2025 | $124.6M | $7.4M | $0.39 |
| Q3 2024 | $126.8M | $10.3M | $0.57 |
| Q2 2024 | $132.6M | $6.1M | $0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IBEX Ltd Dividends, Buybacks & Capital Allocation
IBEX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for IBEX Ltd (CIK: 0001720420)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IBEX
What is the AI rating for IBEX?
IBEX Ltd (IBEX) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IBEX's key strengths?
Claude: Debt-free balance sheet with only $572K long-term debt and $15.4M cash. Exceptional liquidity position with 1.95x current and quick ratios. ChatGPT: Debt-light balance sheet with strong liquidity (1.83x current ratio). Healthy profitability for the sector (9.2% operating margin, 15.7% ROE).
What are the risks of investing in IBEX?
Claude: Margin compression: net income flat YoY while revenue grows 9.8% indicates operational leverage failure or rising costs. Low free cash flow margin of 2.0% limits reinvestment and shareholder distribution capacity. ChatGPT: Weak free cash flow and high capex intensity (0.9% FCF margin). Flat net income despite revenue growth suggests margin pressure or rising costs.
What is IBEX's revenue and growth?
IBEX Ltd reported revenue of $479.8M.
Does IBEX pay dividends?
IBEX Ltd does not currently pay dividends.
Where can I find IBEX SEC filings?
Official SEC filings for IBEX Ltd (CIK: 0001720420) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IBEX's EPS?
IBEX Ltd has a diluted EPS of $2.54.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IBEX a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, IBEX Ltd has a BUY rating with 71% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is IBEX stock overvalued or undervalued?
Valuation metrics for IBEX: ROE of 23.4% (sector avg: 22%), net margin of 7.8% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy IBEX stock in 2026?
Our dual AI analysis gives IBEX Ltd a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IBEX's free cash flow?
IBEX Ltd's operating cash flow is $34.2M, with capital expenditures of $24.6M. FCF margin is 2.0%.
How does IBEX compare to other Technology stocks?
Vs Technology sector averages: Net margin 7.8% (avg: 18%), ROE 23.4% (avg: 22%), current ratio 1.95 (avg: 2.5).