INTERACTIVE BROKERS GRO-CL A (IBKR) Stock Fundamental Analysis
NASDAQ:IBKR - Nasdaq - US45841N1072 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to IBKR. IBKR was compared to 225 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
In the past year IBKR was profitable.
In the past year IBKR had a positive cash flow from operations.
In the past 5 years IBKR has always been profitable.
IBKR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.47%, IBKR is doing worse than 73.97% of the companies in the same industry.
With an excellent Return On Equity value of 16.84%, IBKR belongs to the best of the industry, outperforming 80.82% of the companies in the same industry.
The Return On Invested Capital of IBKR (8.25%) is better than 80.82% of its industry peers.
IBKR had an Average Return On Invested Capital over the past 3 years of 8.63%. This is in line with the industry average of 6.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 16.84% | ||
| ROIC | 8.25% |
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 (7.72%) than 65.30% of its industry peers.
IBKR's Profit Margin has improved in the last couple of years.
IBKR's Operating Margin of 38.41% is fine compared to the rest of the industry. IBKR outperforms 65.75% of its industry peers.
IBKR's Operating Margin has declined in the last couple of years.
The Gross Margin of IBKR (49.85%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of IBKR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.41% | ||
| PM (TTM) | 7.72% | ||
| GM | 49.85% |
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.
Compared to 5 years ago, IBKR has more shares outstanding
IBKR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.53, we must say that IBKR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.53, IBKR is not doing good in the industry: 67.58% of the companies in the same industry are doing better.
IBKR has a debt to FCF ratio of 1.83. This is a very positive value and a sign of high solvency as it would only need 1.83 years to pay back of all of its debts.
IBKR has a better Debt to FCF ratio (1.83) than 84.47% of its industry peers.
A Debt/Equity ratio of 4.07 is on the high side and indicates that IBKR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.07, IBKR is doing worse than 84.02% of the companies in the same industry.
Although IBKR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.07 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 0.53 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.97 indicates that IBKR may have some problems paying its short term obligations.
With a Current ratio value of 0.97, IBKR perfoms like the industry average, outperforming 45.21% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that IBKR may have some problems paying its short term obligations.
IBKR has a Quick ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
IBKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.09%, which is quite impressive.
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.
IBKR shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.58%.
IBKR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.85% yearly.
EPS 1Y (TTM)25.09%
EPS 3Y28.17%
EPS 5Y28.12%
EPS Q2Q%33.55%
Revenue 1Y (TTM)20.58%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%23.93%
3.2 Future
Based on estimates for the next years, IBKR will show a decrease in Earnings Per Share. The EPS will decrease by -0.25% on average per year.
Based on estimates for the next years, IBKR will show a small growth in Revenue. The Revenue will grow by 2.22% on average per year.
EPS Next Y7.1%
EPS Next 2Y7.95%
EPS Next 3Y7.93%
EPS Next 5Y-0.25%
Revenue Next Year6.69%
Revenue Next 2Y6.97%
Revenue Next 3Y7.76%
Revenue Next 5Y2.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.46 indicates a quite expensive valuation of IBKR.
Based on the Price/Earnings ratio, IBKR is valued a bit more expensive than 73.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. IBKR is around the same levels.
IBKR is valuated quite expensively with a Price/Forward Earnings ratio of 28.45.
IBKR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IBKR is more expensive than 71.69% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, IBKR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 28.45 |
4.2 Price Multiples
IBKR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IBKR is cheaper than 66.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IBKR is valued a bit cheaper than 70.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.03 | ||
| EV/EBITDA | 25.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.29
PEG (5Y)1.08
EPS Next 2Y7.95%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, IBKR is not a good candidate for dividend investing.
IBKR's Dividend Yield is slightly below the industry average, which is at 10.00.
With a Dividend Yield of 0.43, IBKR pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of IBKR has a limited annual growth rate of 0.22%.
IBKR has paid a dividend for at least 10 years, which is a reliable track record.
IBKR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.22%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
10.89% of the earnings are spent on dividend by IBKR. This is a low number and sustainable payout ratio.
DP10.89%
EPS Next 2Y7.95%
EPS Next 3Y7.93%
218.73
-7.27 (-3.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.34%
Inst Owner Change1.96%
Ins Owners3.03%
Ins Owner Change-14.47%
Market Cap92.42B
Analysts85
Price Target235.17 (7.52%)
Short Float %2.23%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.4
Dividend Growth(5Y)0.22%
DP10.89%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.19%
Min EPS beat(2)-5.6%
Max EPS beat(2)-0.78%
EPS beat(4)0
Avg EPS beat(4)-2.84%
Min EPS beat(4)-5.6%
Max EPS beat(4)-0.78%
EPS beat(8)2
Avg EPS beat(8)-1.96%
EPS beat(12)3
Avg EPS beat(12)-1.63%
EPS beat(16)6
Avg EPS beat(16)-0.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)-0.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)-0.62%
Revenue beat(8)3
Avg Revenue beat(8)14.35%
Revenue beat(12)5
Avg Revenue beat(12)12.17%
Revenue beat(16)8
Avg Revenue beat(16)11.55%
PT rev (1m)17.9%
PT rev (3m)36.78%
EPS NQ rev (1m)7.88%
EPS NQ rev (3m)7.88%
EPS NY rev (1m)8.72%
EPS NY rev (3m)9.02%
Revenue NQ rev (1m)7.23%
Revenue NQ rev (3m)7.23%
Revenue NY rev (1m)2.84%
Revenue NY rev (3m)6.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 28.45 | ||
| P/S | 10.23 | ||
| P/FCF | 10.03 | ||
| P/OCF | 9.99 | ||
| P/B | 22.3 | ||
| P/tB | 22.3 | ||
| EV/EBITDA | 25.97 |
EPS(TTM)7.18
EY3.28%
EPS(NY)7.69
Fwd EY3.52%
FCF(TTM)21.8
FCFY9.97%
OCF(TTM)21.9
OCFY10.01%
SpS21.39
BVpS9.81
TBVpS9.81
PEG (NY)4.29
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 16.84% | ||
| ROCE | 21.18% | ||
| ROIC | 8.25% | ||
| ROICexc | 9.25% | ||
| ROICexgc | 9.65% | ||
| OM | 38.41% | ||
| PM (TTM) | 7.72% | ||
| GM | 49.85% | ||
| FCFM | 101.94% |
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)10.56%
ROICexgc(5y)9.2%
ROCE(3y)20.13%
ROCE(5y)18.26%
ROICexcg growth 3Y12.68%
ROICexcg growth 5Y6.74%
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 Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.07 | ||
| Debt/FCF | 1.83 | ||
| Debt/EBITDA | 4.76 | ||
| Cap/Depr | 64.18% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 0.85 | ||
| Cash Conversion | 261.59% | ||
| Profit Quality | 1319.77% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.53 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.09%
EPS 3Y28.17%
EPS 5Y28.12%
EPS Q2Q%33.55%
EPS Next Y7.1%
EPS Next 2Y7.95%
EPS Next 3Y7.93%
EPS Next 5Y-0.25%
Revenue 1Y (TTM)20.58%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%23.93%
Revenue Next Year6.69%
Revenue Next 2Y6.97%
Revenue Next 3Y7.76%
Revenue Next 5Y2.22%
EBIT growth 1Y17.98%
EBIT growth 3Y27.4%
EBIT growth 5Y27.03%
EBIT Next Year2.7%
EBIT Next 3Y-4.19%
EBIT Next 5Y1.5%
FCF growth 1Y341.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y331.47%
OCF growth 3YN/A
OCF growth 5YN/A