IBEX LTD (IBEX) Stock Fundamental Analysis
NASDAQ:IBEX - Nasdaq - BMG4690M1010 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to IBEX. IBEX was compared to 82 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making IBEX a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on IBEX. These ratings could make IBEX a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year IBEX was profitable.
IBEX had a positive operating cash flow in the past year.
In the past 5 years IBEX has always been profitable.
Each year in the past 5 years IBEX had a positive operating cash flow.
1.2 Ratios
IBEX has a better Return On Assets (13.56%) than 91.46% of its industry peers.
Looking at the Return On Equity, with a value of 33.92%, IBEX belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.86%, IBEX belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IBEX is significantly below the industry average of 22.65%.
The last Return On Invested Capital (19.86%) for IBEX is above the 3 year average (12.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.56% | ||
| ROE | 33.92% | ||
| ROIC | 19.86% |
ROA(3y)9.84%
ROA(5y)7.66%
ROE(3y)20.09%
ROE(5y)24.99%
ROIC(3y)12.81%
ROIC(5y)12.8%
1.3 Margins
IBEX has a Profit Margin of 7.08%. This is in the better half of the industry: IBEX outperforms 68.29% of its industry peers.
In the last couple of years the Profit Margin of IBEX has grown nicely.
Looking at the Operating Margin, with a value of 9.22%, IBEX is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
IBEX's Operating Margin has improved in the last couple of years.
IBEX has a Gross Margin (30.76%) which is in line with its industry peers.
IBEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.22% | ||
| PM (TTM) | 7.08% | ||
| GM | 30.76% |
OM growth 3Y29.52%
OM growth 5Y35.17%
PM growth 3Y30.84%
PM growth 5Y17.25%
GM growth 3Y17.46%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IBEX is creating value.
IBEX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IBEX has been reduced compared to 5 years ago.
IBEX has a worse debt/assets ratio than last year.
2.2 Solvency
IBEX has an Altman-Z score of 3.92. This indicates that IBEX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.92, IBEX is doing good in the industry, outperforming 63.41% of the companies in the same industry.
The Debt to FCF ratio of IBEX is 1.31, which is an excellent value as it means it would take IBEX, only 1.31 years of fcf income to pay off all of its debts.
IBEX has a Debt to FCF ratio of 1.31. This is in the better half of the industry: IBEX outperforms 74.39% of its industry peers.
IBEX has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.30, IBEX perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 3.92 |
ROIC/WACC2.21
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.44 indicates that IBEX should not have too much problems paying its short term obligations.
IBEX has a Current ratio (1.44) which is in line with its industry peers.
A Quick Ratio of 1.44 indicates that IBEX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.44, IBEX perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
IBEX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
IBEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.80%, which is quite impressive.
Measured over the past years, IBEX shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.59% on average per year.
Looking at the last year, IBEX shows a small growth in Revenue. The Revenue has grown by 1.67% in the last year.
IBEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
EPS 1Y (TTM)35.8%
EPS 3Y18.32%
EPS 5Y25.59%
EPS Q2Q%34.09%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y4.68%
Revenue growth 5Y6.66%
Sales Q2Q%6.07%
3.2 Future
IBEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.73% yearly.
Based on estimates for the next years, IBEX will show a small growth in Revenue. The Revenue will grow by 4.57% on average per year.
EPS Next Y21.73%
EPS Next 2Y18.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.85%
Revenue Next 2Y4.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
IBEX is valuated reasonably with a Price/Earnings ratio of 10.48.
Compared to the rest of the industry, the Price/Earnings ratio of IBEX indicates a rather cheap valuation: IBEX is cheaper than 89.02% of the companies listed in the same industry.
IBEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
A Price/Forward Earnings ratio of 8.38 indicates a reasonable valuation of IBEX.
IBEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. IBEX is cheaper than 92.68% of the companies in the same industry.
IBEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
91.46% of the companies in the same industry are more expensive than IBEX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IBEX is valued cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.75 | ||
| EV/EBITDA | 4.59 |
4.3 Compensation for Growth
IBEX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IBEX has an outstanding profitability rating, which may justify a higher PE ratio.
IBEX's earnings are expected to grow with 18.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.41
EPS Next 2Y18.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IBEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.04
+0.55 (+2.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners83.79%
Inst Owner Change-1.19%
Ins Owners10.11%
Ins Owner Change-132.22%
Market Cap330.28M
Analysts82.5
Price Target26.52 (5.91%)
Short Float %1.79%
Short Ratio1.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.93%
Min EPS beat(2)7.33%
Max EPS beat(2)14.54%
EPS beat(4)4
Avg EPS beat(4)15.54%
Min EPS beat(4)7.33%
Max EPS beat(4)31.98%
EPS beat(8)6
Avg EPS beat(8)9%
EPS beat(12)9
Avg EPS beat(12)15.24%
EPS beat(16)11
Avg EPS beat(16)13.17%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)1.58%
Max Revenue beat(2)2.45%
Revenue beat(4)2
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-2.08%
Max Revenue beat(4)2.45%
Revenue beat(8)2
Avg Revenue beat(8)-1.88%
Revenue beat(12)3
Avg Revenue beat(12)-1.9%
Revenue beat(16)4
Avg Revenue beat(16)-1.89%
PT rev (1m)0%
PT rev (3m)10.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.84%
EPS NY rev (1m)0%
EPS NY rev (3m)4.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.63 | ||
| P/FCF | 12.75 | ||
| P/OCF | 8.75 | ||
| P/B | 3.03 | ||
| P/tB | 3.4 | ||
| EV/EBITDA | 4.59 |
EPS(TTM)2.39
EY9.54%
EPS(NY)2.99
Fwd EY11.94%
FCF(TTM)1.96
FCFY7.84%
OCF(TTM)2.86
OCFY11.43%
SpS39.55
BVpS8.26
TBVpS7.36
PEG (NY)0.48
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.56% | ||
| ROE | 33.92% | ||
| ROCE | 29.72% | ||
| ROIC | 19.86% | ||
| ROICexc | 22.17% | ||
| ROICexgc | 23.79% | ||
| OM | 9.22% | ||
| PM (TTM) | 7.08% | ||
| GM | 30.76% | ||
| FCFM | 4.96% |
ROA(3y)9.84%
ROA(5y)7.66%
ROE(3y)20.09%
ROE(5y)24.99%
ROIC(3y)12.81%
ROIC(5y)12.8%
ROICexc(3y)17.21%
ROICexc(5y)17.42%
ROICexgc(3y)18.84%
ROICexgc(5y)20.06%
ROCE(3y)15.96%
ROCE(5y)15.95%
ROICexcg growth 3Y4.28%
ROICexcg growth 5Y9.56%
ROICexc growth 3Y7.35%
ROICexc growth 5Y13.69%
OM growth 3Y29.52%
OM growth 5Y35.17%
PM growth 3Y30.84%
PM growth 5Y17.25%
GM growth 3Y17.46%
GM growth 5YN/A
F-Score6
Asset Turnover1.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 65.42% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 44.5 | ||
| Cash Conversion | 57.01% | ||
| Profit Quality | 70.08% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 3.92 |
F-Score6
WACC8.98%
ROIC/WACC2.21
Cap/Depr(3y)96.17%
Cap/Depr(5y)91.5%
Cap/Sales(3y)3.54%
Cap/Sales(5y)3.32%
Profit Quality(3y)72.8%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.8%
EPS 3Y18.32%
EPS 5Y25.59%
EPS Q2Q%34.09%
EPS Next Y21.73%
EPS Next 2Y18.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.67%
Revenue growth 3Y4.68%
Revenue growth 5Y6.66%
Sales Q2Q%6.07%
Revenue Next Year4.85%
Revenue Next 2Y4.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.62%
EBIT growth 3Y35.57%
EBIT growth 5Y44.18%
EBIT Next Year86.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.31%
OCF growth 3Y30.7%
OCF growth 5Y74.8%