INTERACTIVE BROKERS GRO-CL A (IBKR) Stock Fundamental Analysis
NASDAQ:IBKR - Nasdaq - US45841N1072 - Common Stock
We assign a fundamental rating of 4 out of 10 to IBKR. IBKR was compared to 224 industry peers in the Capital Markets industry. There are concerns on the financial health of IBKR while its profitability can be described as average. IBKR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IBKR was profitable.
IBKR had a positive operating cash flow in the past year.
IBKR had positive earnings in each of the past 5 years.
Each year in the past 5 years IBKR had a positive operating cash flow.
1.2 Ratios
IBKR's Return On Assets of 0.47% is on the low side compared to the rest of the industry. IBKR is outperformed by 74.43% of its industry peers.
With an excellent Return On Equity value of 16.84%, IBKR belongs to the best of the industry, outperforming 81.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.62%, IBKR is in the better half of the industry, outperforming 79.91% 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 6.66%.
The last Return On Invested Capital (8.62%) for IBKR is above the 3 year average (7.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 16.84% | ||
| ROIC | 8.62% |
ROA(3y)0.36%
ROA(5y)0.3%
ROE(3y)14.31%
ROE(5y)12.81%
ROIC(3y)7.81%
ROIC(5y)6.92%
1.3 Margins
IBKR's Profit Margin of 7.72% is on the low side compared to the rest of the industry. IBKR is outperformed by 65.30% of its industry peers.
In the last couple of years the Profit Margin of IBKR has remained more or less at the same level.
IBKR has a better Operating Margin (38.41%) than 65.30% of its industry peers.
In the last couple of years the Operating Margin of IBKR has declined.
Looking at the Gross Margin, with a value of 49.85%, IBKR is in line with its industry, outperforming 48.40% of the companies in the same industry.
IBKR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.41% | ||
| PM (TTM) | 7.72% | ||
| GM | 49.85% |
OM growth 3Y-7.99%
OM growth 5Y-4.64%
PM growth 3Y-0.64%
PM growth 5Y1.35%
GM growth 3Y-13.16%
GM growth 5Y-5.85%
2. Health
2.1 Basic Checks
The number of shares outstanding for IBKR has been increased compared to 1 year ago.
The number of shares outstanding for IBKR has been increased compared to 5 years ago.
IBKR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.45, we must say that IBKR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.45, IBKR is doing worse than 69.41% of the companies in the same industry.
The Debt to FCF ratio of IBKR is 1.83, which is an excellent value as it means it would take IBKR, only 1.83 years of fcf income to pay off all of its debts.
IBKR's Debt to FCF ratio of 1.83 is amongst the best of the industry. IBKR outperforms 84.93% of its industry peers.
IBKR has a Debt/Equity ratio of 4.07. This is a high value indicating a heavy dependency on external financing.
IBKR has a worse Debt to Equity ratio (4.07) than 83.56% of its industry peers.
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 | 0.45 |
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 45.21% 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 45.21% 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 impressive 20.83% 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 22.04% on average per year.
Looking at the last year, IBKR shows a very strong growth in Revenue. The Revenue has grown by 25.62%.
The Revenue has been growing by 27.13% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)20.83%
EPS 3Y33.92%
EPS 5Y22.04%
EPS Q2Q%12.9%
Revenue 1Y (TTM)25.62%
Revenue growth 3Y46.38%
Revenue growth 5Y27.13%
Sales Q2Q%16.51%
3.2 Future
IBKR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.19% yearly.
Based on estimates for the next years, IBKR will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y21.63%
EPS Next 2Y11.01%
EPS Next 3Y9.51%
EPS Next 5Y2.19%
Revenue Next Year18%
Revenue Next 2Y10.73%
Revenue Next 3Y9.65%
Revenue Next 5Y4.21%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
IBKR is valuated quite expensively with a Price/Earnings ratio of 28.50.
Based on the Price/Earnings ratio, IBKR is valued a bit more expensive than the industry average as 70.32% of the companies are valued more cheaply.
IBKR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.94.
A Price/Forward Earnings ratio of 26.88 indicates a quite expensive valuation of IBKR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IBKR indicates a slightly more expensive valuation: IBKR is more expensive than 70.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of IBKR to the average of the S&P500 Index (24.11), we can say IBKR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 26.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IBKR is valued a bit cheaper than 67.58% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IBKR indicates a somewhat cheap valuation: IBKR is cheaper than 72.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.72 | ||
| EV/EBITDA | 21.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.32
PEG (5Y)1.29
EPS Next 2Y11.01%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
IBKR has a yearly dividend return of 0.53%, which is pretty low.
IBKR's Dividend Yield is slightly below the industry average, which is at 9.45.
Compared to an average S&P500 Dividend Yield of 2.28, IBKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of IBKR has a limited annual growth rate of 0.22%.
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)0.22%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
IBKR pays out 10.89% of its income as dividend. This is a sustainable payout ratio.
The dividend of IBKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP10.89%
EPS Next 2Y11.01%
EPS Next 3Y9.51%
INTERACTIVE BROKERS GRO-CL A
NASDAQ:IBKR (1/17/2025, 8:07:12 PM)
After market: 190.09 0 (0%)190.09
+1.93 (+1.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.34%
Inst Owner Change-0.1%
Ins Owners3.03%
Ins Owner Change-14.47%
Market Cap80.32B
Analysts85
Price Target199.47 (4.93%)
Short Float %1.57%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.4
Dividend Growth(5Y)0.22%
DP10.89%
Div Incr Years1
Div Non Decr Years11
Ex-DateN/A
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)15.18%
PT rev (3m)30.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.17%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 26.88 | ||
| P/S | 8.89 | ||
| P/FCF | 8.72 | ||
| P/OCF | 8.68 | ||
| P/B | 19.38 | ||
| P/tB | 19.38 | ||
| EV/EBITDA | 21.69 |
EPS(TTM)6.67
EY3.51%
EPS(NY)7.07
Fwd EY3.72%
FCF(TTM)21.8
FCFY11.47%
OCF(TTM)21.9
OCFY11.52%
SpS21.39
BVpS9.81
TBVpS9.81
PEG (NY)1.32
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 16.84% | ||
| ROCE | 23.22% | ||
| ROIC | 8.62% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 10.16% | ||
| OM | 38.41% | ||
| PM (TTM) | 7.72% | ||
| GM | 49.85% | ||
| FCFM | 101.94% |
ROA(3y)0.36%
ROA(5y)0.3%
ROE(3y)14.31%
ROE(5y)12.81%
ROIC(3y)7.81%
ROIC(5y)6.92%
ROICexc(3y)9.12%
ROICexc(5y)8.3%
ROICexgc(3y)9.5%
ROICexgc(5y)8.61%
ROCE(3y)18.56%
ROCE(5y)16.54%
ROICexcg growth 3Y18.86%
ROICexcg growth 5Y2.43%
ROICexc growth 3Y18.3%
ROICexc growth 5Y2.16%
OM growth 3Y-7.99%
OM growth 5Y-4.64%
PM growth 3Y-0.64%
PM growth 5Y1.35%
GM growth 3Y-13.16%
GM growth 5Y-5.85%
F-Score5
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 | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.45 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)116.12%
Cap/Depr(5y)141.22%
Cap/Sales(3y)1.65%
Cap/Sales(5y)1.97%
Profit Quality(3y)1221.5%
Profit Quality(5y)1877.25%
High Growth Momentum
Growth
EPS 1Y (TTM)20.83%
EPS 3Y33.92%
EPS 5Y22.04%
EPS Q2Q%12.9%
EPS Next Y21.63%
EPS Next 2Y11.01%
EPS Next 3Y9.51%
EPS Next 5Y2.19%
Revenue 1Y (TTM)25.62%
Revenue growth 3Y46.38%
Revenue growth 5Y27.13%
Sales Q2Q%16.51%
Revenue Next Year18%
Revenue Next 2Y10.73%
Revenue Next 3Y9.65%
Revenue Next 5Y4.21%
EBIT growth 1Y17.98%
EBIT growth 3Y34.69%
EBIT growth 5Y21.23%
EBIT Next Year17.94%
EBIT Next 3Y8.57%
EBIT Next 5Y2.79%
FCF growth 1Y159.71%
FCF growth 3Y-17.54%
FCF growth 5Y14.14%
OCF growth 1Y155.45%
OCF growth 3Y-17.42%
OCF growth 5Y14.04%