INTERACTIVE BROKERS GRO-CL A (IBKR) Stock Fundamental Analysis
USA - NASDAQ:IBKR - US45841N1072 - Common Stock
64.92 USD
+2.58 (+4.14%)
65.0412 USD
+0.12 (+0.19%)
Overall IBKR gets a fundamental rating of 5 out of 10. We evaluated IBKR against 237 industry peers in the Capital Markets industry. While IBKR is still in line with the averages on profitability rating, there are concerns on its financial health. IBKR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IBKR had positive earnings in the past year.
In the past year IBKR had a positive cash flow from operations.
Each year in the past 5 years IBKR has been profitable.
In the past 5 years IBKR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.46%, IBKR is doing worse than 72.15% of the companies in the same industry.
With an excellent Return On Equity value of 17.37%, IBKR belongs to the best of the industry, outperforming 83.97% of the companies in the same industry.
IBKR has a Return On Invested Capital of 8.06%. This is amongst the best in the industry. IBKR outperforms 83.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IBKR is in line with the industry average of 7.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 17.37% | ||
| ROIC | 8.06% |
ROA(3y)0.43%
ROA(5y)0.36%
ROE(3y)15.91%
ROE(5y)14.12%
ROIC(3y)8.63%
ROIC(5y)7.49%
1.3 Margins
IBKR has a worse Profit Margin (8.57%) than 62.45% of its industry peers.
IBKR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 42.00%, IBKR is in the better half of the industry, outperforming 72.57% of the companies in the same industry.
IBKR's Operating Margin has declined in the last couple of years.
IBKR has a Gross Margin of 53.08%. This is in the better half of the industry: IBKR outperforms 61.18% of its industry peers.
IBKR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42% | ||
| PM (TTM) | 8.57% | ||
| GM | 53.08% |
OM growth 3Y-13.47%
OM growth 5Y-2.17%
PM growth 3Y-8.42%
PM growth 5Y4.9%
GM growth 3Y-15.7%
GM growth 5Y-4.85%
2. Health
2.1 Basic Checks
IBKR has more shares outstanding than it did 1 year ago.
IBKR has more shares outstanding than it did 5 years ago.
IBKR has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of IBKR is 1.41, which is an excellent value as it means it would take IBKR, only 1.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.41, IBKR belongs to the top of the industry, outperforming 88.19% of the companies in the same industry.
A Debt/Equity ratio of 4.40 is on the high side and indicates that IBKR has dependencies on debt financing.
The Debt to Equity ratio of IBKR (4.40) is worse than 84.81% of its industry peers.
Even though the debt/equity ratio score it not favorable for IBKR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.4 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.96 indicates that IBKR may have some problems paying its short term obligations.
With a Current ratio value of 0.96, IBKR perfoms like the industry average, outperforming 40.51% of the companies in the same industry.
IBKR has a Quick Ratio of 0.96. This is a bad value and indicates that IBKR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, IBKR is in line with its industry, outperforming 44.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.01% over the past year.
Measured over the past years, IBKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.12% on average per year.
The Revenue has grown by 13.18% in the past year. This is quite good.
Measured over the past years, IBKR shows a very strong growth in Revenue. The Revenue has been growing by 29.85% on average per year.
EPS 1Y (TTM)19.01%
EPS 3Y28.17%
EPS 5Y28.12%
EPS Q2Q%15.91%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%14.73%
3.2 Future
Based on estimates for the next years, IBKR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.78% on average per year.
The Revenue is expected to grow by 6.00% on average over the next years.
EPS Next Y14.95%
EPS Next 2Y10.85%
EPS Next 3Y11.35%
EPS Next 5Y8.78%
Revenue Next Year13.35%
Revenue Next 2Y9.93%
Revenue Next 3Y9.5%
Revenue Next 5Y6%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 33.81, which means the current valuation is very expensive for IBKR.
Based on the Price/Earnings ratio, IBKR is valued a bit more expensive than the industry average as 71.73% of the companies are valued more cheaply.
IBKR's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 29.43 indicates a quite expensive valuation of IBKR.
Based on the Price/Forward Earnings ratio, IBKR is valued a bit more expensive than the industry average as 70.04% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, IBKR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.81 | ||
| Fwd PE | 29.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IBKR indicates a somewhat cheap valuation: IBKR is cheaper than 68.78% of the companies listed in the same industry.
IBKR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IBKR is cheaper than 78.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.31 | ||
| EV/EBITDA | 24.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IBKR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of IBKR may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)1.2
EPS Next 2Y10.85%
EPS Next 3Y11.35%
5. Dividend
5.1 Amount
IBKR has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 7.96, IBKR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, IBKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of IBKR is nicely growing with an annual growth rate of 15.84%!
IBKR has been paying a dividend for at least 10 years, so it has a reliable track record.
IBKR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.84%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
IBKR pays out 13.84% of its income as dividend. This is a sustainable payout ratio.
IBKR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.84%
EPS Next 2Y10.85%
EPS Next 3Y11.35%
64.92
+2.58 (+4.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.28%
Inst Owner Change286.81%
Ins Owners2.82%
Ins Owner Change-0.01%
Market Cap110.35B
Analysts82.5
Price Target67.77 (4.39%)
Short Float %3.94%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend0.21
Dividend Growth(5Y)15.84%
DP13.84%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.03%
Min EPS beat(2)-4.15%
Max EPS beat(2)8.22%
EPS beat(4)2
Avg EPS beat(4)1.41%
Min EPS beat(4)-5.6%
Max EPS beat(4)8.22%
EPS beat(8)3
Avg EPS beat(8)0.05%
EPS beat(12)5
Avg EPS beat(12)0.47%
EPS beat(16)6
Avg EPS beat(16)-0.44%
Revenue beat(2)1
Avg Revenue beat(2)2.31%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)6.86%
Revenue beat(4)2
Avg Revenue beat(4)1.09%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)6.86%
Revenue beat(8)3
Avg Revenue beat(8)0.28%
Revenue beat(12)6
Avg Revenue beat(12)13.06%
Revenue beat(16)7
Avg Revenue beat(16)8.22%
PT rev (1m)0.5%
PT rev (3m)-67.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-71.72%
EPS NY rev (1m)9.09%
EPS NY rev (3m)-72.49%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)8.09%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)6.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.81 | ||
| Fwd PE | 29.43 | ||
| P/S | 11.28 | ||
| P/FCF | 7.31 | ||
| P/OCF | 7.29 | ||
| P/B | 22.87 | ||
| P/tB | 22.87 | ||
| EV/EBITDA | 24.11 |
EPS(TTM)1.92
EY2.96%
EPS(NY)2.21
Fwd EY3.4%
FCF(TTM)8.88
FCFY13.67%
OCF(TTM)8.91
OCFY13.72%
SpS5.75
BVpS2.84
TBVpS2.84
PEG (NY)2.26
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 17.37% | ||
| ROCE | 21.61% | ||
| ROIC | 8.06% | ||
| ROICexc | 9.13% | ||
| ROICexgc | 9.61% | ||
| OM | 42% | ||
| PM (TTM) | 8.57% | ||
| GM | 53.08% | ||
| FCFM | 154.26% |
ROA(3y)0.43%
ROA(5y)0.36%
ROE(3y)15.91%
ROE(5y)14.12%
ROIC(3y)8.63%
ROIC(5y)7.49%
ROICexc(3y)10.04%
ROICexc(5y)8.79%
ROICexgc(3y)10.44%
ROICexgc(5y)9.12%
ROCE(3y)20.13%
ROCE(5y)18.26%
ROICexcg growth 3Y11.37%
ROICexcg growth 5Y5.99%
ROICexc growth 3Y11.53%
ROICexc growth 5Y5.84%
OM growth 3Y-13.47%
OM growth 5Y-2.17%
PM growth 3Y-8.42%
PM growth 5Y4.9%
GM growth 3Y-15.7%
GM growth 5Y-4.85%
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.4 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 60.22% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 0.99 | ||
| Cash Conversion | 360.46% | ||
| Profit Quality | 1800.36% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | N/A |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)61.77%
Cap/Depr(5y)74%
Cap/Sales(3y)0.95%
Cap/Sales(5y)1.5%
Profit Quality(3y)974.74%
Profit Quality(5y)1785.06%
High Growth Momentum
Growth
EPS 1Y (TTM)19.01%
EPS 3Y28.17%
EPS 5Y28.12%
EPS Q2Q%15.91%
EPS Next Y14.95%
EPS Next 2Y10.85%
EPS Next 3Y11.35%
EPS Next 5Y8.78%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%14.73%
Revenue Next Year13.35%
Revenue Next 2Y9.93%
Revenue Next 3Y9.5%
Revenue Next 5Y6%
EBIT growth 1Y20.75%
EBIT growth 3Y27.4%
EBIT growth 5Y27.03%
EBIT Next Year21.97%
EBIT Next 3Y13.08%
EBIT Next 5Y9.93%
FCF growth 1Y329.71%
FCF growth 3Y14.24%
FCF growth 5Y27.33%
OCF growth 1Y322.99%
OCF growth 3Y13.95%
OCF growth 5Y26.76%