75.45 USD
-0.03 (-0.04%)
75.9 USD
+0.45 (+0.6%)
Taking everything into account, IBKR scores 4 out of 10 in our fundamental rating. IBKR was compared to 237 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.
- Each year in the past 5 years IBKR has been profitable.
- IBKR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- IBKR has a worse Return On Assets (0.46%) than 74.26% of its industry peers.
- With an excellent Return On Equity value of 17.96%, IBKR belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
- 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 worse Profit Margin (9.06%) than 65.82% of its industry peers.
- IBKR's Profit Margin has improved in the last couple of years.
- The Operating Margin of IBKR (44.58%) is better than 81.01% 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 54.41%, IBKR is in the better half of the industry, outperforming 63.29% of the companies in the same industry.
- 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
- Based on the Altman-Z score of 0.51, 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 0.51, IBKR is in line with its industry, outperforming 40.08% 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.
- The Debt to FCF ratio of IBKR (1.75) is better 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 worse Debt to Equity ratio (5.47) than 84.39% 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 | 5.47 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 0.51 |
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 41.77% 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.
- 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.
- The Earnings Per Share has been growing by 29.78% on average over the past years. This is a very strong growth
- The Revenue has grown by 11.18% in the past year. This is quite good.
- Measured over the past years, IBKR shows a very strong growth in Revenue. The Revenue has been growing by 33.28% on average per year.
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
- Based on estimates for the next years, IBKR will show a small growth in Earnings Per Share. The EPS will grow by 7.59% on average per year.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 34.30, which means the current valuation is very expensive for IBKR.
- 75.95% of the companies in the same industry are cheaper than IBKR, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of IBKR to the average of the S&P500 Index (28.60), we can say IBKR is valued inline with the index average.
- A Price/Forward Earnings ratio of 31.56 indicates a quite expensive valuation of IBKR.
- Based on the Price/Forward Earnings ratio, IBKR is valued a bit more expensive than the industry average as 69.62% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, IBKR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.3 | ||
| Fwd PE | 31.56 |
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 67.09% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, IBKR is valued cheaper than 81.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.01 | ||
| EV/EBITDA | 26.87 |
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.
PEG (NY)3.95
PEG (5Y)1.15
EPS Next 2Y10.02%
EPS Next 3Y8.83%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.42%, IBKR is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.87, IBKR is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, IBKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
- On average, the dividend of IBKR grows each year by 15.84%, which is quite nice.
- IBKR has paid a dividend for at least 10 years, which is a reliable track record.
- IBKR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.84%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
- IBKR pays out 13.63% of its income as dividend. This is a 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%.