INTERACTIVE BROKERS GRO-CL A (IBKR) Stock Fundamental Analysis
NASDAQ:IBKR - Nasdaq - US45841N1072 - Common Stock - Currency: USD
Taking everything into account, IBKR scores 5 out of 10 in our fundamental rating. IBKR was compared to 227 industry peers in the Capital Markets industry. Both the profitability and the financial health of IBKR get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, IBKR is valued expensive at the moment.
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.
Each year in the past 5 years IBKR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IBKR (0.50%) is worse than 72.69% of its industry peers.
Looking at the Return On Equity, with a value of 17.64%, IBKR belongs to the top of the industry, outperforming 83.26% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.81%, IBKR belongs to the best of the industry, outperforming 84.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IBKR is in line with the industry average of 7.09%.
The last Return On Invested Capital (8.81%) for IBKR is above the 3 year average (8.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 17.64% | ||
| ROIC | 8.81% |
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's Profit Margin of 8.05% is on the low side compared to the rest of the industry. IBKR is outperformed by 67.84% of its industry peers.
IBKR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 39.41%, IBKR is doing good in the industry, outperforming 69.16% of the companies in the same industry.
In the last couple of years the Operating Margin of IBKR has declined.
IBKR has a Gross Margin (50.53%) which is comparable to the rest of the industry.
IBKR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.41% | ||
| PM (TTM) | 8.05% | ||
| GM | 50.53% |
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.
The debt/assets ratio for IBKR is higher compared to a year ago.
2.2 Solvency
IBKR has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.87, IBKR belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
IBKR has a Debt/Equity ratio of 3.80. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.80, IBKR is doing worse than 82.38% 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 | 3.8 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
IBKR has a Current Ratio of 1.01. This is a normal value and indicates that IBKR is financially healthy and should not expect problems in meeting its short term obligations.
IBKR's Current ratio of 1.01 is in line compared to the rest of the industry. IBKR outperforms 45.37% of its industry peers.
IBKR has a Quick Ratio of 1.01. This is a normal value and indicates that IBKR is financially healthy and should not expect problems in meeting its short term obligations.
IBKR has a Quick ratio of 1.01. This is comparable to the rest of the industry: IBKR outperforms 48.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.05% 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.
IBKR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.91%.
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)23.05%
EPS 3Y28.17%
EPS 5Y28.12%
EPS Q2Q%14.63%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%14.8%
3.2 Future
IBKR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.76% yearly.
IBKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.22% yearly.
EPS Next Y3.79%
EPS Next 2Y4.88%
EPS Next 3Y6.06%
EPS Next 5Y-1.76%
Revenue Next Year6.12%
Revenue Next 2Y6.08%
Revenue Next 3Y5.57%
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
Based on the Price/Earnings ratio of 21.22, the valuation of IBKR can be described as rather expensive.
IBKR's Price/Earnings ratio is a bit more expensive when compared to the industry. IBKR is more expensive than 61.23% of the companies in the same industry.
IBKR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.94 indicates a rather expensive valuation of IBKR.
Based on the Price/Forward Earnings ratio, IBKR is valued a bit more expensive than the industry average as 60.35% of the companies are valued more cheaply.
IBKR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.22 | ||
| Fwd PE | 19.94 |
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 77.09% 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 77.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.67 | ||
| EV/EBITDA | 16.28 |
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)5.6
PEG (5Y)0.75
EPS Next 2Y4.88%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, IBKR is not a good candidate for dividend investing.
The stock price of IBKR dropped by -28.09% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
IBKR's Dividend Yield is slightly below the industry average, which is at 8.41.
With a Dividend Yield of 0.80, IBKR pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
On average, the dividend of IBKR grows each year by 15.85%, which is quite nice.
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)15.85%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
12.19% of the earnings are spent on dividend by IBKR. This is a low number and sustainable payout ratio.
DP12.19%
EPS Next 2Y4.88%
EPS Next 3Y6.06%
157.48
+3.97 (+2.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.47%
Inst Owner Change0.47%
Ins Owners2.72%
Ins Owner Change-15.34%
Market Cap66.56B
Analysts85
Price Target238.57 (51.49%)
Short Float %2.94%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend0.85
Dividend Growth(5Y)15.85%
DP12.19%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.8%
Min EPS beat(2)-5.6%
Max EPS beat(2)7.19%
EPS beat(4)1
Avg EPS beat(4)-0.14%
Min EPS beat(4)-5.6%
Max EPS beat(4)7.19%
EPS beat(8)2
Avg EPS beat(8)-2.2%
EPS beat(12)4
Avg EPS beat(12)-0.93%
EPS beat(16)6
Avg EPS beat(16)-0.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)2.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)2.08%
Revenue beat(8)3
Avg Revenue beat(8)6.7%
Revenue beat(12)6
Avg Revenue beat(12)12.68%
Revenue beat(16)8
Avg Revenue beat(16)10.72%
PT rev (1m)-1.54%
PT rev (3m)19.6%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)12.75%
EPS NY rev (1m)-3.09%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)1.42%
Revenue NQ rev (3m)8.92%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.22 | ||
| Fwd PE | 19.94 | ||
| P/S | 7.1 | ||
| P/FCF | 7.67 | ||
| P/OCF | 7.63 | ||
| P/B | 15.55 | ||
| P/tB | 15.55 | ||
| EV/EBITDA | 16.28 |
EPS(TTM)7.42
EY4.71%
EPS(NY)7.9
Fwd EY5.02%
FCF(TTM)20.53
FCFY13.03%
OCF(TTM)20.64
OCFY13.11%
SpS22.18
BVpS10.13
TBVpS10.13
PEG (NY)5.6
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 17.64% | ||
| ROCE | 21.88% | ||
| ROIC | 8.81% | ||
| ROICexc | 9.89% | ||
| ROICexgc | 10.59% | ||
| OM | 39.41% | ||
| PM (TTM) | 8.05% | ||
| GM | 50.53% | ||
| FCFM | 92.52% |
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-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 4.32 | ||
| Cap/Depr | 73.13% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 0.88 | ||
| Cash Conversion | 231.9% | ||
| Profit Quality | 1149.01% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | N/A |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)89.16%
Cap/Depr(5y)108.11%
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)23.05%
EPS 3Y28.17%
EPS 5Y28.12%
EPS Q2Q%14.63%
EPS Next Y3.79%
EPS Next 2Y4.88%
EPS Next 3Y6.06%
EPS Next 5Y-1.76%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%14.8%
Revenue Next Year6.12%
Revenue Next 2Y6.08%
Revenue Next 3Y5.57%
Revenue Next 5Y2.22%
EBIT growth 1Y20.4%
EBIT growth 3Y27.4%
EBIT growth 5Y27.03%
EBIT Next Year6.36%
EBIT Next 3Y-3.03%
EBIT Next 5Y-0.03%
FCF growth 1Y92.99%
FCF growth 3Y14.24%
FCF growth 5Y27.33%
OCF growth 1Y91.99%
OCF growth 3Y13.95%
OCF growth 5Y26.76%