INTERACTIVE BROKERS GRO-CL A (IBKR)
US45841N1072 - Common Stock
We assign a fundamental rating of 5 out of 10 to IBKR. IBKR was compared to 206 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 not valued too expensively and it also shows 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.
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
With a Return On Assets value of 0.48%, IBKR is not doing good in the industry: 73.40% of the companies in the same industry are doing better.
IBKR has a Return On Equity of 16.99%. This is amongst the best in the industry. IBKR outperforms 81.77% of its industry peers.
With an excellent Return On Invested Capital value of 9.70%, IBKR belongs to the best of the industry, outperforming 83.25% of the companies in the same industry.
IBKR had an Average Return On Invested Capital over the past 3 years of 6.39%. This is below the industry average of 9.56%.
The 3 year average ROIC (6.39%) for IBKR is below the current ROIC(9.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 16.99% | ||
| ROIC | 9.7% |
ROA(3y)0.27%
ROA(5y)0.26%
ROE(3y)12.07%
ROE(5y)12.09%
ROIC(3y)6.39%
ROIC(5y)6.59%
1.3 Margins
IBKR's Profit Margin of 8.01% is on the low side compared to the rest of the industry. IBKR is outperformed by 63.55% of its industry peers.
IBKR's Profit Margin has improved in the last couple of years.
IBKR has a Operating Margin of 40.90%. This is in the better half of the industry: IBKR outperforms 70.94% of its industry peers.
In the last couple of years the Operating Margin of IBKR has remained more or less at the same level.
With a Gross Margin value of 52.84%, IBKR perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
In the last couple of years the Gross Margin of IBKR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.9% | ||
| PM (TTM) | 8.01% | ||
| GM | 52.84% |
OM growth 3Y3.61%
OM growth 5Y-1.26%
PM growth 3Y13.64%
PM growth 5Y17.54%
GM growth 3Y1.19%
GM growth 5Y-2.08%
2. Health
2.1 Basic Checks
The number of shares outstanding for IBKR has been increased compared to 1 year ago.
Compared to 5 years ago, IBKR has more shares outstanding
Compared to 1 year ago, IBKR has an improved debt to assets ratio.
2.2 Solvency
IBKR has an Altman-Z score of 0.33. This is a bad value and indicates that IBKR is not financially healthy and even has some risk of bankruptcy.
IBKR has a worse Altman-Z score (0.33) than 74.38% of its industry peers.
IBKR has a debt to FCF ratio of 5.03. This is a neutral value as IBKR would need 5.03 years to pay back of all of its debts.
IBKR has a better Debt to FCF ratio (5.03) than 67.00% of its industry peers.
A Debt/Equity ratio of 3.10 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 3.10, IBKR is doing worse than 81.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 0.33 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.00 indicates that IBKR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, IBKR is in line with its industry, outperforming 40.89% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that IBKR should not have too much problems paying its short term obligations.
IBKR has a Quick ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.62% over the past year.
The Earnings Per Share has been growing by 27.06% on average over the past years. This is a very strong growth
Looking at the last year, IBKR shows a very strong growth in Revenue. The Revenue has grown by 123.35%.
The Revenue has been growing by 17.38% on average over the past years. This is quite good.
EPS 1Y (TTM)54.62%
EPS 3Y24.77%
EPS 5Y27.06%
EPS growth Q2Q43.52%
Revenue 1Y (TTM)123.35%
Revenue growth 3Y17.16%
Revenue growth 5Y17.38%
Revenue growth Q2Q86.82%
3.2 Future
IBKR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.28% yearly.
The Revenue is expected to grow by 9.74% on average over the next years. This is quite good.
EPS Next Y44.49%
EPS Next 2Y26.42%
EPS Next 3Y15.78%
EPS Next 5Y6.28%
Revenue Next Year40.17%
Revenue Next 2Y23.51%
Revenue Next 3Y14.14%
Revenue Next 5Y9.74%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 14.16, which indicates a correct valuation of IBKR.
IBKR's Price/Earnings ratio is in line with the industry average.
IBKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.05.
With a Price/Forward Earnings ratio of 12.10, IBKR is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IBKR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.08, IBKR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.16 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IBKR is valued cheaper than 81.77% of the companies in the same industry.
IBKR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IBKR is cheaper than 63.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.99 | ||
| EV/EBITDA | 9.78 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IBKR has a very decent profitability rating, which may justify a higher PE ratio.
IBKR's earnings are expected to grow with 15.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)0.52
EPS Next 2Y26.42%
EPS Next 3Y15.78%
5. Dividend
5.1 Amount
IBKR has a yearly dividend return of 0.50%, which is pretty low.
Compared to an average industry Dividend Yield of 7.84, IBKR is paying slightly less dividend.
With a Dividend Yield of 0.50, IBKR pays less dividend than the S&P500 average, which is at 2.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
The dividend of IBKR decreases each year by -0.24%.
IBKR has paid a dividend for at least 10 years, which is a reliable track record.
IBKR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-0.24%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
IBKR pays out 7.12% of its income as dividend. This is a sustainable payout ratio.
DP7.12%
EPS Next 2Y26.42%
EPS Next 3Y15.78%
INTERACTIVE BROKERS GRO-CL A
NASDAQ:IBKR (12/1/2023, 7:02:58 PM)
After market: 78.3 +0.16 (+0.2%)78.14
+0.3 (+0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-17 2023-10-17/amc
Earnings (Next)01-15 2024-01-15/amc
Inst Owners22.07%
Inst Owner Change1.3%
Ins Owners1.09%
Ins Owner Change12.73%
Market Cap33.35B
Analysts82.67
Price Target109.91 (40.66%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Dividend Growth(5Y)-0.24%
DP7.12%
Div Incr Years0
Div Non Decr Years9
Ex-Date11-30 2023-11-30 (0.1)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.56%
Min EPS beat(2)-7.64%
Max EPS beat(2)0.53%
EPS beat(4)2
Avg EPS beat(4)-1.09%
Min EPS beat(4)-7.64%
Max EPS beat(4)9.12%
Revenue beat(2)2
Avg Revenue beat(2)76.46%
Min Revenue beat(2)71.71%
Max Revenue beat(2)81.22%
Revenue beat(4)4
Avg Revenue beat(4)68.37%
Min Revenue beat(4)57.26%
Max Revenue beat(4)81.22%
PT rev (1m)-0.23%
PT rev (3m)-0.69%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)1.7%
EPS NY rev (1m)0%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)3.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.16 | ||
| Fwd PE | 12.1 | ||
| P/S | 4.64 | ||
| P/FCF | 15.99 | ||
| P/OCF | 15.55 | ||
| P/B | 9.84 | ||
| P/tB | 9.84 | ||
| EV/EBITDA | 9.78 |
EPS(TTM)5.52
EY7.06%
EPS(NY)6.46
Fwd EY8.26%
FCF(TTM)4.89
FCFY6.25%
OCF(TTM)5.03
OCFY6.43%
SpS16.85
BVpS7.94
TBVpS7.94
PEG (NY)0.32
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 16.99% | ||
| ROCE | 21.85% | ||
| ROIC | 9.7% | ||
| ROICexc | 11.55% | ||
| ROICexgc | 12.1% | ||
| OM | 40.9% | ||
| PM (TTM) | 8.01% | ||
| GM | 52.84% | ||
| FCFM | 29% |
ROA(3y)0.27%
ROA(5y)0.26%
ROE(3y)12.07%
ROE(5y)12.09%
ROIC(3y)6.39%
ROIC(5y)6.59%
ROICexc(3y)7.65%
ROICexc(5y)8.07%
ROICexgc(3y)7.94%
ROICexgc(5y)8.35%
ROCE(3y)15.96%
ROCE(5y)15.23%
ROICexcg growth 3Y7.63%
ROICexcg growth 5Y6.72%
ROICexc growth 3Y7.04%
ROICexc growth 5Y6.36%
OM growth 3Y3.61%
OM growth 5Y-1.26%
PM growth 3Y13.64%
PM growth 5Y17.54%
GM growth 3Y1.19%
GM growth 5Y-2.08%
F-Score6
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 5.03 | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 92.19% | ||
| Cap/Sales | 0.82% | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | 71.36% | ||
| Profit Quality | 362.15% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 0.33 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)130.67%
Cap/Depr(5y)153.84%
Cap/Sales(3y)2.11%
Cap/Sales(5y)2.16%
Profit Quality(3y)2342.38%
Profit Quality(5y)2001.97%
Growth
EPS 1Y (TTM)54.62%
EPS 3Y24.77%
EPS 5Y27.06%
EPS growth Q2Q43.52%
EPS Next Y44.49%
EPS Next 2Y26.42%
EPS Next 3Y15.78%
EPS Next 5Y6.28%
Revenue 1Y (TTM)123.35%
Revenue growth 3Y17.16%
Revenue growth 5Y17.38%
Revenue growth Q2Q86.82%
Revenue Next Year40.17%
Revenue Next 2Y23.51%
Revenue Next 3Y14.14%
Revenue Next 5Y9.74%
EBIT growth 1Y74.91%
EBIT growth 3Y21.39%
EBIT growth 5Y15.91%
EBIT Next Year66.3%
EBIT Next 3Y17.69%
EBIT Next 5Y11.13%
FCF growth 1Y-80.68%
FCF growth 3Y14.58%
FCF growth 5Y30.33%
OCF growth 1Y-80.26%
OCF growth 3Y14.17%
OCF growth 5Y30.09%