How does IBEX LTD (NASDAQ:IBEX) stack up against Peter Lynch’s investment principles?

With a strategy that emphasized steady earnings growth and a strong market position, Peter Lynch sought out long-term winners. We put IBEX LTD (NASDAQ:IBEX) to the test against his stock-picking rules.

Following Peter Lynch’s approach: Does IBEX LTD (NASDAQ:IBEX) fit the bill?

• IBEX showcases a robust Return on Equity (ROE) of 33.92%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• At a Debt/Equity ratio of 0.3, IBEX seems well-positioned to sustain growth while keeping debt in check.
• IBEX has achieved 25.59 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• A PEG ratio of 0.4 positions IBEX as a well-valued growth stock in today’s market.
• A Current Ratio of 1.44 suggests that IBEX is in a solid financial position to handle short-term market fluctuations.

Zooming in on the fundamentals.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall IBEX gets a fundamental rating of 6 out of 10. We evaluated IBEX against 81 industry peers in the IT Services industry. While IBEX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IBEX is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make IBEX a good candidate for value investing.

For an up to date full fundamental analysis you can check the fundamental report of IBEX

Every day, new Affordable Growth stocks can be found on ChartMill in our Peter Lynch screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.