Ibex Global Solutions reports 117% EBITDA growth and 29.8% Revenue growth
29 Sep 2015 • About Ibex Global Solutions (
$IBEX) • By InTwits
Ibex Global Solutions reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ibex Global Solutions is a fast growth stock: FY2015 revenue growth was 29.8%, 5 year revenue CAGR was 22.5% at FY2015 ROIC 21.7%
- EBITDA Margin is expanding: 7.6% in FY2015 vs. 4.5% in FY2014 vs. 3.1% in FY2011
- EBITDA Margin is quite volatile: 7.6% in FY2015, 4.5% in FY2014, 3.0% in FY2013, 0.9% in FY2012, 3.1% in FY2011
- Ibex Global Solutions has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has highly profitable business model: ROIC is at 21.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.0x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ibex Global Solutions ($IBEX) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 97.1 | 104.3 | 141.5 | 184.0 | 238.8 | 29.8% |
| Gross Profit | 17.5 | 13.6 | 20.8 | 28.2 | 38.8 | 37.3% |
| SG&A | | | | 23.3 | 30.0 | 28.6% |
| EBITDA | 3.0 | 0.9 | 4.2 | 8.3 | 18.1 | 117.3% |
| Net Income | -2.2 | -4.2 | -15.5 | 0.8 | 6.4 | 701.6% |
Balance Sheet
|
|---|
| Cash | 0.8 | 1.9 | 10.7 | 4.0 | 3.0 | -24.8% |
| Short Term Debt | 11.3 | 12.7 | 20.7 | 19.5 | 10.2 | -47.8% |
| Long Term Debt | 0.2 | 0.7 | 0.3 | 7.0 | 11.4 | 62.2% |
Cash flow
|
|---|
| Capex | 0.9 | 0.5 | 1.5 | 2.8 | 1.7 | -39.3% |
Ratios
|
|---|
| Revenue growth | 12.1% | 7.4% | 35.7% | 30.0% | 29.8% | |
| EBITDA growth | -38.0% | -70.4% | 369.6% | 100.0% | 117.3% | |
| Gross Margin | 18.0% | 13.0% | 14.7% | 15.3% | 16.2% | 0.9% |
| EBITDA Margin | 3.1% | 0.9% | 3.0% | 4.5% | 7.6% | 3.1% |
| Net Income Margin | -2.3% | -4.0% | -11.0% | 0.4% | 2.7% | 2.3% |
| SG&A, % of revenue | | | | 12.7% | 12.6% | -0.1% |
| CAPEX, % of revenue | 0.9% | 0.4% | 1.1% | 1.5% | 0.7% | -0.8% |
| ROIC | -1.5% | -6.7% | 5.0% | 9.1% | 21.7% | 12.7% |
| ROE | -10.5% | -22.0% | -76.7% | 3.5% | 26.5% | 23.0% |
| Net Debt/EBITDA | 3.5x | 12.8x | 2.5x | 2.7x | 1.0x | -1.7x |
Revenue and profitability
Ibex Global Solutions's Revenue jumped on 29.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.1 pp from 4.5% to 7.6% in FY2015.
Gross Margin increased slightly on 0.89 pp from 15.3% to 16.2% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased on 2.3 pp from 0.43% to 2.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.72%. Ibex Global Solutions showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at high and attractive ROIC (21.72%) and ROE (26.50%). ROIC jumped on 12.7 pp from 9.1% to 21.7% in FY2015. ROE jumped on 23.0 pp from 3.5% to 26.5% in FY2015.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 1.7x from 2.7x to 1.0x in FY2015. Debt dropped on 18.6% in FY2015 while cash dropped on 24.8% in FY2015.
Valuation
Ibex Global Solutions's trades at EV/EBITDA 3.8x and P/E 7.8x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Support Services
Below we provide Ibex Global Solutions benchmarking against other companies in Support Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Petards Group ($PEG) | 6.5% | -25.7% | -30.6% | 115.1% | |
| Optimal Payments ($OPAY) | 107.9% | 39.9% | 41.5% | 44.0% | |
| 1Spatial ($SPA) | | 98.7% | 131.4% | 42.7% | 13.5% |
| Inspired Energy ($INSE) | 32.9% | 83.8% | 44.8% | 42.2% | |
| Interquest Group ($ITQ) | 7.8% | -6.8% | 2.0% | 31.2% | |
| |
|---|
| Median (54 companies) | 7.8% | 6.6% | 5.6% | 4.7% | 3.4% |
|---|
| Ibex Global Solutions ($IBEX) | | 7.4% | 35.7% | 30.0% | 29.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspired Energy ($INSE) | | 94.6% | 86.8% | 78.7% | |
| Ienergizer Ltd ($IBPO) | 48.1% | 56.2% | 78.4% | 76.8% | 72.7% |
| Vianet Group ($VNET) | 53.1% | 53.3% | 51.3% | 58.8% | 69.2% |
| Prime People ($PRP) | 57.6% | 63.4% | 58.3% | 57.7% | 61.4% |
| Murgitroyd Group ($MUR) | 59.9% | 58.4% | 61.4% | 57.6% | 55.4% |
| |
|---|
| Median (48 companies) | 29.0% | 28.8% | 28.6% | 29.8% | 37.0% |
|---|
| Ibex Global Solutions ($IBEX) | 18.0% | 13.0% | 14.7% | 15.3% | 16.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northgate ($67GX) | | 41.2% | 40.4% | 40.6% | 39.4% |
| 21St Century Technology ($C21) | 11.4% | 13.4% | -0.2% | 36.0% | |
| Vp ($VP.) | 24.4% | 23.9% | 24.5% | 24.2% | 26.2% |
| Ienergizer Ltd ($IBPO) | 34.5% | 27.6% | 27.8% | 23.6% | 17.1% |
| Capital Drilling Ltd ($CAPD) | 26.3% | 24.1% | 15.7% | 21.7% | |
| |
|---|
| Median (54 companies) | 7.6% | 6.8% | 6.5% | 6.9% | 10.6% |
|---|
| Ibex Global Solutions ($IBEX) | 3.1% | 0.9% | 3.0% | 4.5% | 7.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vp ($VP.) | 15.5% | 21.4% | 17.7% | 21.6% | 25.7% |
| Norish ($NSH) | 5.0% | 10.2% | 1.4% | 15.4% | |
| Capital Drilling Ltd ($CAPD) | 20.5% | 18.9% | 4.9% | 13.9% | |
| Falkland Islands Hldgs ($FKL) | 2.6% | 3.7% | 6.8% | 12.9% | 11.9% |
| Augean ($AUG) | 11.2% | 9.8% | 15.9% | 12.3% | |
| |
|---|
| Median (54 companies) | 0.9% | 1.1% | 1.0% | 1.0% | 1.3% |
|---|
| Ibex Global Solutions ($IBEX) | 0.9% | 0.4% | 1.1% | 1.5% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 21St Century Technology ($C21) | 16.2% | 20.3% | -2.9% | 45.6% | |
| Petards Group ($PEG) | 25.6% | 35.5% | -78.0% | 24.7% | |
| Driver Group ($DRV) | 6.5% | 18.7% | 27.9% | 24.0% | |
| Optimal Payments ($OPAY) | -2.9% | 7.1% | 27.7% | 23.8% | |
| Premier Farnell ($PFLA) | | 33.2% | 21.0% | 23.2% | 18.5% |
| |
|---|
| Median (54 companies) | 9.9% | 10.1% | 8.0% | 10.0% | 11.4% |
|---|
| Ibex Global Solutions ($IBEX) | -1.5% | -6.7% | 5.0% | 9.1% | 21.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspired Energy ($INSE) | -0.8x | 0.8x | 0.6x | 19.4x | |
| Mitsubishi Corp ($MBC) | 7.2x | 9.9x | 15.9x | 14.3x | 12.5x |
| Nature Group ($NGR) | -0.6x | -0.5x | -0.4x | 6.6x | |
| Ceps ($CEPS) | 4.1x | | 3.0x | 6.6x | |
| Redhall Group ($RHL) | | 22.8x | 5.8x | 6.6x | |
| |
|---|
| Median (52 companies) | 0.6x | 0.8x | 0.5x | 0.6x | 0.8x |
|---|
| Ibex Global Solutions ($IBEX) | 3.5x | 12.8x | 2.5x | 2.7x | 1.0x |
