INTERACTIVE BROKERS GRO-CL A (IBKR)
US45841N1072 - Common Stock
IBKR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 220 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 not valued too expensively and it also shows 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 each of the past 5 years.
1.2 Ratios
IBKR has a worse Return On Assets (0.50%) than 73.73% of its industry peers.
IBKR has a Return On Equity of 17.34%. This is amongst the best in the industry. IBKR outperforms 82.95% of its industry peers.
With an excellent Return On Invested Capital value of 8.96%, IBKR belongs to the best of the industry, outperforming 81.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IBKR is significantly below the industry average of 17.69%.
The last Return On Invested Capital (8.96%) for IBKR is above the 3 year average (7.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 17.34% | ||
| ROIC | 8.96% |
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 has a worse Profit Margin (7.88%) than 66.36% 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 (39.37%) than 66.36% of its industry peers.
IBKR's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 49.80%, IBKR perfoms like the industry average, outperforming 47.47% of the companies in the same industry.
IBKR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.37% | ||
| PM (TTM) | 7.88% | ||
| GM | 49.8% |
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.
The debt/assets ratio for IBKR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.22, we must say that IBKR is in the distress zone and has some risk of bankruptcy.
IBKR's Altman-Z score of 0.22 is on the low side compared to the rest of the industry. IBKR is outperformed by 71.43% of its industry peers.
IBKR has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as IBKR would need 2.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.37, IBKR is in the better half of the industry, outperforming 78.34% of the companies in the same industry.
A Debt/Equity ratio of 4.00 is on the high side and indicates that IBKR has dependencies on debt financing.
IBKR has a worse Debt to Equity ratio (4.00) than 83.41% 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 | 4 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 0.22 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
IBKR has a Current Ratio of 0.99. This is a bad value and indicates that IBKR is not financially healthy enough and could expect problems in meeting its short term obligations.
IBKR's Current ratio of 0.99 is in line compared to the rest of the industry. IBKR outperforms 41.01% of its industry peers.
A Quick Ratio of 0.99 indicates that IBKR may have some problems paying its short term obligations.
IBKR has a Quick ratio (0.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
IBKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.12%, which is quite impressive.
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 38.50%.
IBKR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.13% yearly.
EPS 1Y (TTM)28.12%
EPS 3Y33.92%
EPS 5Y22.04%
EPS Q2Q%33.33%
Revenue 1Y (TTM)38.5%
Revenue growth 3Y46.38%
Revenue growth 5Y27.13%
Sales Q2Q%21.24%
3.2 Future
IBKR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.01% 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 Y22.45%
EPS Next 2Y10.73%
EPS Next 3Y8.56%
EPS Next 5Y0.01%
Revenue Next Year15.6%
Revenue Next 2Y8.64%
Revenue Next 3Y7.82%
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 rather expensively with a Price/Earnings ratio of 18.94.
The rest of the industry has a similar Price/Earnings ratio as IBKR.
IBKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.65.
Based on the Price/Forward Earnings ratio of 17.41, the valuation of IBKR can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as IBKR.
When comparing the Price/Forward Earnings ratio of IBKR to the average of the S&P500 Index (21.38), we can say IBKR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 17.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IBKR is valued a bit cheaper than 76.96% of the companies in the same industry.
75.58% of the companies in the same industry are more expensive than IBKR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.02 | ||
| EV/EBITDA | 2.72 |
4.3 Compensation for Growth
IBKR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.84
PEG (5Y)0.86
EPS Next 2Y10.73%
EPS Next 3Y8.56%
5. Dividend
5.1 Amount
IBKR has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 8.86, IBKR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.26, IBKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
The dividend of IBKR has a limited annual growth rate of 0.22%.
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)0.22%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
8.66% 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.
DP8.66%
EPS Next 2Y10.73%
EPS Next 3Y8.56%
INTERACTIVE BROKERS GRO-CL A
NASDAQ:IBKR (9/6/2024, 8:20:23 PM)
After market: 122.54 0 (0%)122.54
-3.52 (-2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 17.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.84
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 17.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 39.37% | ||
| PM (TTM) | 7.88% | ||
| GM | 49.8% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)28.12%
EPS 3Y33.92%
EPS 5Y
EPS Q2Q%
EPS Next Y22.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)38.5%
Revenue growth 3Y46.38%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y