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 233 industry peers in the Capital Markets industry. IBKR has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
IBKR had a positive operating cash flow in the past year.
In the past 5 years IBKR has always been profitable.
In the past 5 years IBKR always reported a positive cash flow from operatings.
1.2 Ratios
IBKR has a worse Return On Assets (0.50%) than 70.39% of its industry peers.
With an excellent Return On Equity value of 17.61%, IBKR belongs to the best of the industry, outperforming 82.40% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.16%, IBKR belongs to the top of the industry, outperforming 83.26% 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 7.84%.
The last Return On Invested Capital (9.16%) for IBKR is above the 3 year average (8.63%), which is a sign of increasing profitability.
| 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
IBKR has a Profit Margin of 8.32%. This is in the lower half of the industry: IBKR underperforms 64.38% of its industry peers.
IBKR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 40.73%, IBKR is in the better half of the industry, outperforming 70.82% of the companies in the same industry.
IBKR's Operating Margin has declined in the last couple of years.
IBKR has a Gross Margin (51.83%) which is in line with its industry peers.
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
Compared to 1 year ago, IBKR has more shares outstanding
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
IBKR has an Altman-Z score of 0.25. 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 0.25, IBKR is doing worse than 72.53% of the companies in the same industry.
IBKR has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
IBKR has a better Debt to FCF ratio (1.77) than 85.84% of its industry peers.
A Debt/Equity ratio of 3.76 is on the high side and indicates that IBKR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.76, IBKR is doing worse than 84.55% of the companies in the same industry.
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 | 3.76 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 0.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.98 indicates that IBKR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, IBKR is in line with its industry, outperforming 40.77% of the companies in the same industry.
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.
With a Quick ratio value of 0.98, IBKR perfoms like the industry average, outperforming 45.06% of the companies in the same industry.
| 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.
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.
IBKR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.91%.
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 Y5.35%
EPS Next 2Y5.75%
EPS Next 3Y7.8%
EPS Next 5Y6.04%
Revenue Next Year7.11%
Revenue Next 2Y6.53%
Revenue Next 3Y6.26%
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
A Price/Earnings ratio of 31.30 indicates a quite expensive valuation of IBKR.
72.53% of the companies in the same industry are cheaper than IBKR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.28, IBKR is valued at the same level.
A Price/Forward Earnings ratio of 29.00 indicates a quite expensive valuation of IBKR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IBKR indicates a slightly more expensive valuation: IBKR is more expensive than 69.53% of the companies listed in the same industry.
IBKR is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.3 | ||
| Fwd PE | 29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IBKR is valued cheaper than 93.99% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IBKR is valued cheaper than 87.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.57 | ||
| EV/EBITDA | 5.34 |
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.
IBKR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.85
PEG (5Y)1.11
EPS Next 2Y5.75%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
IBKR has a yearly dividend return of 0.60%, which is pretty low.
IBKR's Dividend Yield is slightly below the industry average, which is at 8.00.
Compared to an average S&P500 Dividend Yield of 2.42, IBKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of IBKR is nicely growing with an annual growth rate of 15.85%!
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
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 2Y5.75%
EPS Next 3Y7.8%
58.22
+1.9 (+3.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.13%
Inst Owner Change1.09%
Ins Owners2.85%
Ins Owner Change-9.31%
Market Cap24.60B
Analysts85
Price Target53.27 (-8.5%)
Short Float %N/A
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)-73.68%
PT rev (3m)-77.67%
EPS NQ rev (1m)-75.06%
EPS NQ rev (3m)-75.67%
EPS NY rev (1m)-74.78%
EPS NY rev (3m)-75.48%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.3 | ||
| Fwd PE | 29 | ||
| P/S | 2.58 | ||
| P/FCF | 2.57 | ||
| P/OCF | 2.56 | ||
| P/B | 5.47 | ||
| P/tB | 5.47 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)1.86
EY3.19%
EPS(NY)2.01
Fwd EY3.45%
FCF(TTM)22.65
FCFY38.9%
OCF(TTM)22.78
OCFY39.12%
SpS22.56
BVpS10.65
TBVpS10.65
PEG (NY)5.85
PEG (5Y)1.11
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 | 0.25 |
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 Y5.35%
EPS Next 2Y5.75%
EPS Next 3Y7.8%
EPS Next 5Y6.04%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y47.23%
Revenue growth 5Y29.85%
Sales Q2Q%14.8%
Revenue Next Year7.11%
Revenue Next 2Y6.53%
Revenue Next 3Y6.26%
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%