77.58 USD
+0.37 (+0.48%)
77.3304 USD
-0.25 (-0.32%)
We assign a fundamental rating of 4 out of 10 to IBKR. IBKR was compared to 238 industry peers in the Capital Markets industry. IBKR has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- 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 73.95% of its industry peers.
- IBKR has a Return On Equity of 17.96%. This is amongst the best in the industry. IBKR outperforms 83.19% of its industry peers.
- IBKR's Return On Invested Capital of 7.44% is fine compared to the rest of the industry. IBKR outperforms 79.41% of its industry peers.
- IBKR had an Average Return On Invested Capital over the past 3 years of 8.82%. This 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's Profit Margin of 9.06% is on the low side compared to the rest of the industry. IBKR is outperformed by 65.55% of its industry peers.
- IBKR's Profit Margin has improved in the last couple of years.
- IBKR's Operating Margin of 44.58% is amongst the best of the industry. IBKR outperforms 81.09% of its industry peers.
- In the last couple of years the Operating Margin of IBKR has declined.
- IBKR's Gross Margin of 54.41% is fine compared to the rest of the industry. IBKR outperforms 63.45% of its industry peers.
- In the last couple of years the Gross Margin of IBKR has declined.
| 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
- IBKR has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, IBKR has more shares outstanding
- IBKR has a worse debt/assets ratio than last year.
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 40.34% 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 Debt to FCF ratio of 1.75. This is amongst the best in the industry. IBKR outperforms 87.39% 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.
- The Debt to Equity ratio of IBKR (5.47) is worse than 84.45% 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.
- IBKR has a Current ratio of 0.97. This is comparable to the rest of the industry: IBKR outperforms 41.60% of its industry peers.
- 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.
- Measured over the past years, IBKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.78% on average per year.
- IBKR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.18%.
- IBKR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.28% yearly.
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.
- Based on estimates for the next years, IBKR will show a small growth in Revenue. The Revenue will grow by 5.32% on average per year.
EPS Next Y8.68%
EPS Next 2Y10.02%
EPS Next 3Y8.83%
EPS Next 5Y7.59%
Revenue Next Year8.9%
Revenue Next 2Y8.92%
Revenue Next 3Y6.21%
Revenue Next 5Y5.32%
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
- IBKR is valuated quite expensively with a Price/Earnings ratio of 35.26.
- Based on the Price/Earnings ratio, IBKR is valued a bit more expensive than the industry average as 75.63% 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.
- IBKR is valuated quite expensively with a Price/Forward Earnings ratio of 32.45.
- Based on the Price/Forward Earnings ratio, IBKR is valued a bit more expensive than 69.33% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of IBKR to the average of the S&P500 Index (24.26), we can say IBKR is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.26 | ||
| Fwd PE | 32.45 |
4.2 Price Multiples
- 66.81% of the companies in the same industry are more expensive than IBKR, based on the Enterprise Value to EBITDA ratio.
- IBKR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IBKR is cheaper than 81.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.23 | ||
| EV/EBITDA | 27.52 |
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)4.06
PEG (5Y)1.18
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 6.10, 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
- The dividend of IBKR is nicely growing with an annual growth rate of 15.84%!
- 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
- 13.63% 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.
DP13.63%
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%.