INTERACTIVE BROKERS GRO-CL A (IBKR) Stock Fundamental Analysis
NASDAQ:IBKR - Nasdaq - US45841N1072 - Common Stock - Currency: USD
IBKR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 233 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 valied quite expensively at the moment, while 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.
In the past 5 years IBKR has always been profitable.
Each year in the past 5 years IBKR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IBKR (0.50%) is worse than 70.09% of its industry peers.
IBKR has a Return On Equity of 17.61%. This is amongst the best in the industry. IBKR outperforms 82.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.16%, IBKR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IBKR is in line with the industry average of 7.86%.
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
With a Profit Margin value of 8.32%, IBKR is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of IBKR has grown nicely.
IBKR's Operating Margin of 40.73% is fine compared to the rest of the industry. IBKR outperforms 70.94% of its industry peers.
In the last couple of years the Operating Margin of IBKR has declined.
With a Gross Margin value of 51.83%, IBKR perfoms like the industry average, outperforming 57.69% 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
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 0.54, we must say that IBKR is in the distress zone and has some risk of bankruptcy.
IBKR has a worse Altman-Z score (0.54) than 64.10% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.77, IBKR belongs to the best of the industry, outperforming 85.90% of the companies in the same industry.
A Debt/Equity ratio of 3.76 is on the high side and indicates that IBKR has dependencies on debt financing.
The Debt to Equity ratio of IBKR (3.76) is worse than 84.19% 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 | 3.76 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 0.54 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
IBKR has a Current Ratio of 0.98. 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 0.98 is in line compared to the rest of the industry. IBKR outperforms 41.45% of its industry peers.
IBKR has a Quick Ratio of 0.98. 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 Quick ratio of 0.98 is in line compared to the rest of the industry. IBKR outperforms 45.73% of 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.
IBKR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.12% yearly.
Looking at the last year, IBKR shows a quite strong growth in Revenue. The Revenue has grown by 15.91% in the last year.
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
The Earnings Per Share is expected to grow by 6.04% on average over the next years.
The Revenue is expected to grow by 6.00% on average over the next years.
EPS Next Y5.37%
EPS Next 2Y6.4%
EPS Next 3Y8.01%
EPS Next 5Y6.04%
Revenue Next Year7.19%
Revenue Next 2Y6.65%
Revenue Next 3Y6.18%
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.
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
Based on the Price/Earnings ratio of 31.51, the valuation of IBKR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of IBKR indicates a slightly more expensive valuation: IBKR is more expensive than 70.94% of the companies listed in the same industry.
IBKR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 28.84, the valuation of IBKR can be described as expensive.
IBKR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IBKR is more expensive than 68.80% of the companies in the same industry.
IBKR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.51 | ||
| Fwd PE | 28.84 |
4.2 Price Multiples
IBKR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IBKR is cheaper than 68.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IBKR is valued a bit cheaper than 76.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.35 | ||
| EV/EBITDA | 24.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
IBKR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.86
PEG (5Y)1.12
EPS Next 2Y6.4%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
IBKR has a yearly dividend return of 0.54%, which is pretty low.
IBKR's Dividend Yield is slightly below the industry average, which is at 7.77.
Compared to an average S&P500 Dividend Yield of 2.35, IBKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of IBKR grows each year by 15.85%, 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)15.85%
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.
The dividend of IBKR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.62%
EPS Next 2Y6.4%
EPS Next 3Y8.01%
58.6
-0.32 (-0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.13%
Inst Owner Change0.01%
Ins Owners2.85%
Ins Owner Change-2.58%
Market Cap99.05B
Analysts82.5
Price Target53.27 (-9.1%)
Short Float %N/A
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)-74.09%
PT rev (3m)-77.67%
EPS NQ rev (1m)-75.05%
EPS NQ rev (3m)-75.7%
EPS NY rev (1m)-74.78%
EPS NY rev (3m)-75.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.51 | ||
| Fwd PE | 28.84 | ||
| P/S | 10.39 | ||
| P/FCF | 10.35 | ||
| P/OCF | 10.29 | ||
| P/B | 22 | ||
| P/tB | 22 | ||
| EV/EBITDA | 24.2 |
EPS(TTM)1.86
EY3.17%
EPS(NY)2.03
Fwd EY3.47%
FCF(TTM)5.66
FCFY9.66%
OCF(TTM)5.69
OCFY9.72%
SpS5.64
BVpS2.66
TBVpS2.66
PEG (NY)5.86
PEG (5Y)1.12
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 | 0.54 |
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 Y5.37%
EPS Next 2Y6.4%
EPS Next 3Y8.01%
EPS Next 5Y6.04%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%14.8%
Revenue Next Year7.19%
Revenue Next 2Y6.65%
Revenue Next 3Y6.18%
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%