IBEX

IBEX is a profitable, steadily growing customer-experience BPO trading at a distinctly undemanding valuation: 13.6x diluted EPS and 0.8x sales for a business that grew FY2025 revenue 9.8% to $558M, lifted operating income 18.2% to $46.6M, and converted it into $45.7M of operating cash flow (+27.2%). The five-year revenue arc ($443M→$558M) is consistent, net income has climbed every year to $36.9M, and ROE is a genuinely high 27.4%. Management attributes the margin improvement to mix-shift into higher-margin offshore/nearshore regions — a trend the MD&A frames as a tailwind, since cost-focused clients are actively moving work offshore where IBEX is expanding capacity.

The EPS story needs a clear eye: diluted EPS jumped 28.3% to $2.36, but roughly two-thirds of that is buyback mechanics, not operating growth — share count fell 20.8% as the company spent $78M repurchasing stock (up 261.9%). Retiring shares near 13x earnings is accretive and shareholder-friendly, but it drained cash to just $15.3M (-75.5%) and cut equity 19%, pushing liabilities/equity to 1.03x. That is a thin cash cushion for a labor-intensive, low-margin (8.3% operating, 6.6% net) operator, and it means future buybacks likely throttle back to the modest $15M 2025 authorization rather than repeating this year's pace.