76.59 USD
-0.99 (-1.28%)
We assign a fundamental rating of 4 out of 10 to IBKR. IBKR was compared to 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.
- IBKR had a positive operating cash flow in the past year.
- Each year in the past 5 years IBKR has been profitable.
- Of the past 5 years IBKR 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of IBKR (0.46%) is worse than 74.26% of its industry peers.
- IBKR's Return On Equity of 17.96% is amongst the best of the industry. IBKR outperforms 83.12% of its industry peers.
- IBKR has a better Return On Invested Capital (7.44%) than 79.32% 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 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 17.96% | ||
| ROIC | 7.44% |
ROA(3y)0.48%
ROA(5y)0.41%
ROE(3y)17.58%
ROE(5y)15.79%
ROIC(3y)8.82%
ROIC(5y)8.09%
1.3 Margins
- IBKR has a Profit Margin of 9.06%. This is in the lower half of the industry: IBKR underperforms 65.82% of its industry peers.
- IBKR's Profit Margin has improved in the last couple of years.
- IBKR has a Operating Margin of 44.58%. This is amongst the best in the industry. IBKR outperforms 81.01% of its industry peers.
- IBKR's Operating Margin has declined in the last couple of years.
- IBKR has a better Gross Margin (54.41%) than 63.29% of its industry peers.
- IBKR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.58% | ||
| PM (TTM) | 9.06% | ||
| GM | 54.41% |
OM growth 3Y-2.19%
OM growth 5Y-2.01%
PM growth 3Y0.49%
PM growth 5Y3.71%
GM growth 3Y-6.15%
GM growth 5Y-6.5%
2. Health
2.1 Basic Checks
- The number of shares outstanding for IBKR has been increased compared to 1 year ago.
- Compared to 5 years ago, IBKR has more shares outstanding
- The debt/assets ratio for IBKR is higher compared to a year ago.
2.2 Solvency
- IBKR has an Altman-Z score of 0.52. This is a bad value and indicates that IBKR is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.52, IBKR is in line with its industry, outperforming 40.51% of the companies in the same industry.
- IBKR has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
- IBKR has a better Debt to FCF ratio (1.75) than 87.34% of its industry peers.
- IBKR has a Debt/Equity ratio of 5.47. This is a high value indicating a heavy dependency on external financing.
- IBKR has a Debt to Equity ratio of 5.47. This is amonst the worse of the industry: IBKR underperforms 84.39% 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 | 5.47 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 0.52 |
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.
- The Current ratio of IBKR (0.97) is comparable to the rest of the industry.
- IBKR has a Quick Ratio of 0.97. This is a bad value and indicates that IBKR is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of IBKR (0.97) 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
- The Earnings Per Share has grown by an impressive 22.56% over the past year.
- IBKR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.78% yearly.
- Looking at the last year, IBKR shows a quite strong growth in Revenue. The Revenue has grown by 11.18% in the last year.
- The Revenue has been growing by 33.28% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)22.56%
EPS 3Y29.63%
EPS 5Y29.78%
EPS Q2Q%28.08%
Revenue 1Y (TTM)11.18%
Revenue growth 3Y36.65%
Revenue growth 5Y33.28%
Sales Q2Q%17.28%
3.2 Future
- IBKR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.59% yearly.
- The Revenue is expected to grow by 5.30% on average over the next years.
EPS Next Y8.68%
EPS Next 2Y10.02%
EPS Next 3Y8.83%
EPS Next 5Y7.59%
Revenue Next Year10.88%
Revenue Next 2Y10.86%
Revenue Next 3Y10.86%
Revenue Next 5Y5.3%
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 34.81 indicates a quite expensive valuation of IBKR.
- Based on the Price/Earnings ratio, IBKR is valued a bit more expensive than the industry average as 76.37% of the companies are valued more cheaply.
- IBKR is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 32.03, the valuation of IBKR can be described as expensive.
- Based on the Price/Forward Earnings ratio, IBKR is valued a bit more expensive than 69.62% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, IBKR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.81 | ||
| Fwd PE | 32.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IBKR is valued a bit cheaper than 66.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, IBKR is valued cheaply inside the industry as 81.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.13 | ||
| EV/EBITDA | 27.66 |
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)4.01
PEG (5Y)1.17
EPS Next 2Y10.02%
EPS Next 3Y8.83%
5. Dividend
5.1 Amount
- IBKR has a yearly dividend return of 0.41%, which is pretty low.
- IBKR's Dividend Yield is slightly below the industry average, which is at 5.87.
- Compared to an average S&P500 Dividend Yield of 1.81, IBKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
- On average, the dividend of IBKR grows each year by 15.84%, 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)15.84%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
- 13.63% of the earnings are spent on dividend by IBKR. This is a low number and sustainable payout ratio.
- The dividend of IBKR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.63%
EPS Next 2Y10.02%
EPS Next 3Y8.83%
INTERACTIVE BROKERS GRO-CL A / IBKR FAQ
Can you provide the ChartMill fundamental rating for INTERACTIVE BROKERS GRO-CL A?
ChartMill assigns a fundamental rating of 4 / 10 to IBKR.
Can you provide the valuation status for INTERACTIVE BROKERS GRO-CL A?
ChartMill assigns a valuation rating of 2 / 10 to INTERACTIVE BROKERS GRO-CL A (IBKR). This can be considered as Overvalued.
How profitable is INTERACTIVE BROKERS GRO-CL A (IBKR) stock?
INTERACTIVE BROKERS GRO-CL A (IBKR) has a profitability rating of 5 / 10.
What is the earnings growth outlook for INTERACTIVE BROKERS GRO-CL A?
The Earnings per Share (EPS) of INTERACTIVE BROKERS GRO-CL A (IBKR) is expected to grow by 8.68% in the next year.
Is the dividend of INTERACTIVE BROKERS GRO-CL A sustainable?
The dividend rating of INTERACTIVE BROKERS GRO-CL A (IBKR) is 5 / 10 and the dividend payout ratio is 13.63%.