INTERACTIVE BROKERS GRO-CL A (IBKR) Stock Fundamental Analysis
NASDAQ:IBKR - Nasdaq - US45841N1072 - Common Stock - Currency: USD
Taking everything into account, IBKR scores 5 out of 10 in our fundamental rating. IBKR was compared to 231 industry peers in the Capital Markets industry. Both the profitability and the financial health of IBKR get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year IBKR had a positive cash flow from operations.
Each year in the past 5 years IBKR has been profitable.
Each year in the past 5 years IBKR had a positive operating cash flow.
1.2 Ratios
IBKR has a Return On Assets of 0.50%. This is in the lower half of the industry: IBKR underperforms 71.43% of its industry peers.
With an excellent Return On Equity value of 17.64%, IBKR belongs to the best of the industry, outperforming 83.98% of the companies in the same industry.
IBKR's Return On Invested Capital of 8.81% is amongst the best of the industry. IBKR outperforms 84.42% 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 7.13%.
The 3 year average ROIC (8.63%) for IBKR is below the current ROIC(8.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 17.64% | ||
| ROIC | 8.81% |
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
Looking at the Profit Margin, with a value of 8.05%, IBKR is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of IBKR has grown nicely.
IBKR has a better Operating Margin (39.41%) than 69.70% of its industry peers.
In the last couple of years the Operating Margin of IBKR has declined.
IBKR has a Gross Margin (50.53%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of IBKR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.41% | ||
| PM (TTM) | 8.05% | ||
| GM | 50.53% |
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
The Debt to FCF ratio of IBKR is 1.87, which is an excellent value as it means it would take IBKR, only 1.87 years of fcf income to pay off all of its debts.
IBKR has a Debt to FCF ratio of 1.87. This is amongst the best in the industry. IBKR outperforms 82.68% of its industry peers.
IBKR has a Debt/Equity ratio of 3.80. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IBKR (3.80) is worse than 82.68% 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 | 3.8 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.01 indicates that IBKR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.01, IBKR is in line with its industry, outperforming 44.59% of the companies in the same industry.
IBKR has a Quick Ratio of 1.01. This is a normal value and indicates that IBKR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.01, IBKR is in line with its industry, outperforming 48.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
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.
Measured over the past years, IBKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.12% on average per year.
The Revenue has grown by 15.91% in the past year. This is quite good.
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 decrease by -1.76% on average over the next years.
IBKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.22% yearly.
EPS Next Y3.79%
EPS Next 2Y4.88%
EPS Next 3Y6.06%
EPS Next 5Y-1.76%
Revenue Next Year5.23%
Revenue Next 2Y5.23%
Revenue Next 3Y6.26%
Revenue Next 5Y2.22%
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
A Price/Earnings ratio of 24.86 indicates a rather expensive valuation of IBKR.
Compared to the rest of the industry, the Price/Earnings ratio of IBKR indicates a slightly more expensive valuation: IBKR is more expensive than 63.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.12, IBKR is valued at the same level.
With a Price/Forward Earnings ratio of 23.36, IBKR is valued on the expensive side.
62.77% of the companies in the same industry are cheaper than IBKR, based on the Price/Forward Earnings ratio.
IBKR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 23.36 |
4.2 Price Multiples
74.03% of the companies in the same industry are more expensive than IBKR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IBKR is valued a bit cheaper than the industry average as 77.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.99 | ||
| EV/EBITDA | 19.76 |
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)6.57
PEG (5Y)0.88
EPS Next 2Y4.88%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
IBKR has a yearly dividend return of 0.73%, which is pretty low.
In the last 3 months the price of IBKR has falen by -20.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
IBKR's Dividend Yield is slightly below the industry average, which is at 8.46.
With a Dividend Yield of 0.73, IBKR pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 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
12.19% of the earnings are spent on dividend by IBKR. This is a low number and sustainable payout ratio.
DP12.19%
EPS Next 2Y4.88%
EPS Next 3Y6.06%
184.49
+4.7 (+2.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.47%
Inst Owner Change1.03%
Ins Owners2.72%
Ins Owner Change-15.34%
Market Cap77.97B
Analysts85
Price Target201.85 (9.41%)
Short Float %1.79%
Short Ratio0.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.85
Dividend Growth(5Y)15.85%
DP12.19%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.8%
Min EPS beat(2)-5.6%
Max EPS beat(2)7.19%
EPS beat(4)1
Avg EPS beat(4)-0.14%
Min EPS beat(4)-5.6%
Max EPS beat(4)7.19%
EPS beat(8)2
Avg EPS beat(8)-2.2%
EPS beat(12)4
Avg EPS beat(12)-0.93%
EPS beat(16)6
Avg EPS beat(16)-0.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)2.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)2.08%
Revenue beat(8)3
Avg Revenue beat(8)6.7%
Revenue beat(12)6
Avg Revenue beat(12)12.68%
Revenue beat(16)8
Avg Revenue beat(16)10.72%
PT rev (1m)-15.39%
PT rev (3m)-14.17%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)3.31%
EPS NY rev (1m)-3.36%
EPS NY rev (3m)-2.87%
Revenue NQ rev (1m)1.42%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 23.36 | ||
| P/S | 8.32 | ||
| P/FCF | 8.99 | ||
| P/OCF | 8.94 | ||
| P/B | 18.22 | ||
| P/tB | 18.22 | ||
| EV/EBITDA | 19.76 |
EPS(TTM)7.42
EY4.02%
EPS(NY)7.9
Fwd EY4.28%
FCF(TTM)20.53
FCFY11.13%
OCF(TTM)20.64
OCFY11.19%
SpS22.18
BVpS10.13
TBVpS10.13
PEG (NY)6.57
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 17.64% | ||
| ROCE | 21.88% | ||
| ROIC | 8.81% | ||
| ROICexc | 9.89% | ||
| ROICexgc | 10.59% | ||
| OM | 39.41% | ||
| PM (TTM) | 8.05% | ||
| GM | 50.53% | ||
| FCFM | 92.52% |
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-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 4.32 | ||
| Cap/Depr | 73.13% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 0.88 | ||
| Cash Conversion | 231.9% | ||
| Profit Quality | 1149.01% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | N/A |
F-Score7
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 Y3.79%
EPS Next 2Y4.88%
EPS Next 3Y6.06%
EPS Next 5Y-1.76%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%14.8%
Revenue Next Year5.23%
Revenue Next 2Y5.23%
Revenue Next 3Y6.26%
Revenue Next 5Y2.22%
EBIT growth 1Y20.4%
EBIT growth 3Y27.4%
EBIT growth 5Y27.03%
EBIT Next Year6.36%
EBIT Next 3Y-3.03%
EBIT Next 5Y-0.03%
FCF growth 1Y92.99%
FCF growth 3Y14.24%
FCF growth 5Y27.33%
OCF growth 1Y91.99%
OCF growth 3Y13.95%
OCF growth 5Y26.76%