INTERACTIVE BROKERS GRO-CL A (IBKR) Stock Fundamental Analysis
NASDAQ:IBKR - Nasdaq - US45841N1072 - Common Stock - Currency: USD
Overall IBKR gets a fundamental rating of 5 out of 10. We evaluated IBKR against 233 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 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.
IBKR had positive earnings in each of the past 5 years.
IBKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.50%, IBKR is not doing good in the industry: 70.39% of the companies in the same industry are doing better.
IBKR's Return On Equity of 17.61% is amongst the best of the industry. IBKR outperforms 82.40% of its industry peers.
IBKR has a better Return On Invested Capital (9.16%) than 83.26% 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 7.84%.
The 3 year average ROIC (8.63%) for IBKR is below the current ROIC(9.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 17.61% | ||
| ROIC | 9.16% |
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 (8.32%) than 64.38% of its industry peers.
In the last couple of years the Profit Margin of IBKR has grown nicely.
The Operating Margin of IBKR (40.73%) is better than 70.82% 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 51.83%, IBKR is in line with its industry, outperforming 57.51% of the companies in the same industry.
IBKR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.73% | ||
| PM (TTM) | 8.32% | ||
| GM | 51.83% |
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
Based on the Altman-Z score of 0.24, we must say that IBKR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.24, IBKR is not doing good in the industry: 72.53% of the companies in the same industry are doing better.
The Debt to FCF ratio of IBKR is 1.77, which is an excellent value as it means it would take IBKR, only 1.77 years of fcf income to pay off all of its debts.
IBKR has a better Debt to FCF ratio (1.77) than 85.84% of its industry peers.
IBKR has a Debt/Equity ratio of 3.76. This is a high value indicating a heavy dependency on external financing.
IBKR has a worse Debt to Equity ratio (3.76) than 84.55% 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 | 3.76 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 0.24 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.98 indicates that IBKR may have some problems paying its short term obligations.
IBKR has a Current ratio (0.98) which is comparable to the rest of the industry.
A Quick Ratio of 0.98 indicates that IBKR may have some problems paying its short term obligations.
IBKR has a Quick ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
IBKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.05%, which is quite impressive.
The Earnings Per Share has been growing by 28.12% on average over the past years. This is a very strong growth
IBKR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.91%.
The Revenue has been growing by 29.85% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, IBKR will show a small growth in Earnings Per Share. The EPS will grow by 6.04% on average per year.
IBKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y5.35%
EPS Next 2Y5.75%
EPS Next 3Y7.8%
EPS Next 5Y6.04%
Revenue Next Year7.11%
Revenue Next 2Y6.53%
Revenue Next 3Y6.26%
Revenue Next 5Y6%
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
IBKR is valuated quite expensively with a Price/Earnings ratio of 29.79.
IBKR's Price/Earnings ratio is a bit more expensive when compared to the industry. IBKR is more expensive than 71.24% of the companies in the same industry.
IBKR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.15.
The Price/Forward Earnings ratio is 27.60, which means the current valuation is very expensive for IBKR.
Based on the Price/Forward Earnings ratio, IBKR is valued a bit more expensive than 66.52% of the companies in the same industry.
IBKR's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.79 | ||
| Fwd PE | 27.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IBKR is valued cheaply inside the industry as 93.99% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IBKR indicates a rather cheap valuation: IBKR is cheaper than 88.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.45 | ||
| EV/EBITDA | 4.89 |
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)5.57
PEG (5Y)1.06
EPS Next 2Y5.75%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, IBKR is not a good candidate for dividend investing.
IBKR's Dividend Yield is slightly below the industry average, which is at 8.00.
Compared to an average S&P500 Dividend Yield of 2.42, IBKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of IBKR is nicely growing with an annual growth rate of 15.85%!
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)15.85%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
13.62% of the earnings are spent on dividend by IBKR. This is a low number and sustainable payout ratio.
IBKR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.62%
EPS Next 2Y5.75%
EPS Next 3Y7.8%
55.41
+1.45 (+2.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.13%
Inst Owner Change1.09%
Ins Owners2.85%
Ins Owner Change-9.31%
Market Cap23.42B
Analysts85
Price Target53.27 (-3.86%)
Short Float %N/A
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.85
Dividend Growth(5Y)15.85%
DP13.62%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.52%
Min EPS beat(2)-4.15%
Max EPS beat(2)7.19%
EPS beat(4)1
Avg EPS beat(4)-0.83%
Min EPS beat(4)-5.6%
Max EPS beat(4)7.19%
EPS beat(8)2
Avg EPS beat(8)-1.93%
EPS beat(12)4
Avg EPS beat(12)-1.08%
EPS beat(16)5
Avg EPS beat(16)-1.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)2.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)2.08%
Revenue beat(8)2
Avg Revenue beat(8)-0.74%
Revenue beat(12)6
Avg Revenue beat(12)12.67%
Revenue beat(16)7
Avg Revenue beat(16)8.7%
PT rev (1m)-73.68%
PT rev (3m)-77.67%
EPS NQ rev (1m)-75.06%
EPS NQ rev (3m)-75.67%
EPS NY rev (1m)-74.78%
EPS NY rev (3m)-75.48%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.79 | ||
| Fwd PE | 27.6 | ||
| P/S | 2.46 | ||
| P/FCF | 2.45 | ||
| P/OCF | 2.43 | ||
| P/B | 5.2 | ||
| P/tB | 5.2 | ||
| EV/EBITDA | 4.89 |
EPS(TTM)1.86
EY3.36%
EPS(NY)2.01
Fwd EY3.62%
FCF(TTM)22.65
FCFY40.88%
OCF(TTM)22.78
OCFY41.1%
SpS22.56
BVpS10.65
TBVpS10.65
PEG (NY)5.57
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 17.61% | ||
| ROCE | 23.42% | ||
| ROIC | 9.16% | ||
| ROICexc | 10.23% | ||
| ROICexgc | 10.61% | ||
| OM | 40.73% | ||
| PM (TTM) | 8.32% | ||
| GM | 51.83% | ||
| FCFM | 100.39% |
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 | 3.76 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 4.28 | ||
| Cap/Depr | 81.54% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 0.94 | ||
| Cash Conversion | 243.73% | ||
| Profit Quality | 1207.06% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.24 |
F-Score6
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 Y5.35%
EPS Next 2Y5.75%
EPS Next 3Y7.8%
EPS Next 5Y6.04%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%14.8%
Revenue Next Year7.11%
Revenue Next 2Y6.53%
Revenue Next 3Y6.26%
Revenue Next 5Y6%
EBIT growth 1Y22.37%
EBIT growth 3Y27.4%
EBIT growth 5Y27.03%
EBIT Next Year13.68%
EBIT Next 3Y5.11%
EBIT Next 5Y7.13%
FCF growth 1Y1022.16%
FCF growth 3Y14.24%
FCF growth 5Y27.33%
OCF growth 1Y946.2%
OCF growth 3Y13.95%
OCF growth 5Y26.76%