IBEX (IBEX) Predictability Rank

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What is IBEX Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

IBEX Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

IBEX Predictability Rank Related Terms

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IBEX (IBEX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » IBEX Ltd (NAS:IBEX) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

IB7:Germany

Address

Crawford House, 50 Cedar Avenue, Hamilton, BMU, HM 11

Website

https://www.ibex.co

IBEX Ltd is an end-to-end provider of technology-enabled customer lifecycle experience (CLX) solutions to optimize customer acquisition, engagement, expansion, and experience for its clients. IBEX operates through the Business process outsourcing segment. Its services cover three areas: Digital and omni-channel Customer Experience (ibex Connect), Digital Marketing and E-Commerce (ibex Digital) and Digital CX surveys and analytics (ibex CX). It caters to a broad range of industries, such as telecommunications, cable, financial services, and healthcare.

Executives

Taylor C Greenwald	officer: Chief Financial Officer	C/O SYNCHRONOSS TECHNOLOGIES, INC., 200 CROSSING BOULEVARD, 3RD FLOOR, BRIDGEWATER NJ 08807
Michael Joseph Darwal	officer: Interim CFO and EVP, IR	1717 PENNSYLVANIA AVENUE NW, SUITE 825, WASHINGTON DC 20006
Resource Group International Ltd	director, 10 percent owner	CRAWFORD HOUSE,, 50 CEDAR AVENUE, HAMILTON D0 HM 11
Pinebridge Global Emerging Markets Partners Ii, L.p.	director, 10 percent owner	65 EAST 55TH STREET, NEW YORK NY 10022
Robert Thomas Dechant	director, officer: Chief Executive Officer	350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Kevin Clowe	10 percent owner	C/O PINEBRIDGE GEM II G.P., L.P., 65 EAST 55TH STREET, NEW YORK NY 10022
Pierre Mellinger	10 percent owner	C/O PINEBRIDGE GEM II G.P., L.P., 65 EAST 55TH STREET, NEW YORK NY 10022
Mohammedulla Khaishgi	director	1717 PENNSYLVANIA AVENUE NW, SUITE 825, WASHINGTON DC 20006
John Leone	director, 10 percent owner	1717 PENNSYLVANIA AVENUE NW, SUITE 825, WASHINGTON DC 20006
James Dominic Ferrato	officer: Chief Information Officer	1717 PENNSYLVANIA AVENUE NW, SUITE 825, WASHINGTON DC 20006
Paul Joseph Inson	officer: Chief People Officer	1717 PENNSYLVANIA AVENUE NW, SUITE 825, WASHINGTON DC 20006
David Martin Afdahl	officer: Chief Operating Officer	1717 PENNSYLVANIA AVENUE NW, SUITE 825, WASHINGTON DC 20006
Julie K Casteel	officer: Chief Sales/Marketing Officer	1717 PENNSYLVANIA AVENUE NW, SUITE 825, WASHINGTON DC 20006
Jeffrey Hays Cox	officer: President of IBEX Digital	1717 PENNSYLVANIA AVENUE NW, SUITE 825, WASHINGTON DC 20006
Bruce Neil Dawson	officer: Chief Sales and CS Officer	1717 PENNSYLVANIA AVENUE NW, SUITE 825, WASHINGTON DC 20006