NasdaqGS:IBKR

Stock Analysis Report

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Executive Summary

Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. More Details


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Interactive Brokers Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IBKR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IBKR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.4%

IBKR

3.5%

US Capital Markets

2.1%

US Market


1 Year Return

6.9%

IBKR

11.5%

US Capital Markets

19.8%

US Market

Return vs Industry: IBKR underperformed the US Capital Markets industry which returned 11.4% over the past year.

Return vs Market: IBKR underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

IBKRIndustryMarket
7 Day-1.4%3.5%2.1%
30 Day9.6%13.2%8.1%
90 Day-1.2%9.5%6.0%
1 Year7.6%6.9%14.3%11.5%22.5%19.8%
3 Year-5.9%-7.7%30.2%20.2%46.5%36.8%
5 Year26.1%21.1%87.2%64.0%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Interactive Brokers Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Interactive Brokers Group undervalued compared to its fair value and its price relative to the market?

24.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IBKR ($52.64) is trading above our estimate of fair value ($30.29)

Significantly Below Fair Value: IBKR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IBKR is poor value based on its PE Ratio (24.2x) compared to the US Capital Markets industry average (23.1x).

PE vs Market: IBKR is poor value based on its PE Ratio (24.2x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: IBKR is poor value based on its PEG Ratio (19.9x)


Price to Book Ratio

PB vs Industry: IBKR is good value based on its PB Ratio (2.6x) compared to the US Capital Markets industry average (4.7x).


Next Steps

Future Growth

How is Interactive Brokers Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBKR's forecast earnings growth (1.2% per year) is below the savings rate (2.2%).

Earnings vs Market: IBKR's earnings (1.2% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: IBKR's earnings are forecast to grow, but not significantly.

Revenue vs Market: IBKR's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: IBKR's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IBKR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Interactive Brokers Group performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBKR has high quality earnings.

Growing Profit Margin: IBKR's current net profit margins (8%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: IBKR's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: IBKR's earnings growth over the past year (5%) is below its 5-year average (21.6% per year).

Earnings vs Industry: IBKR earnings growth over the past year (5%) exceeded the Capital Markets industry 3%.


Return on Equity

High ROE: IBKR's Return on Equity (12.8%) is considered low.


Next Steps

Financial Health

How is Interactive Brokers Group's financial position?


Financial Position Analysis

Short Term Liabilities: IBKR's short term assets ($84.2B) exceed its short term liabilities ($75.9B).

Long Term Liabilities: IBKR's short term assets ($84.2B) exceed its long term liabilities ($240.0M).


Debt to Equity History and Analysis

Debt Level: IBKR's debt to equity ratio (74.8%) is considered high.

Reducing Debt: IBKR's debt to equity ratio has reduced from 84.3% to 74.8% over the past 5 years.

Debt Coverage: IBKR's debt is well covered by operating cash flow (61.9%).

Interest Coverage: Insufficient data to determine if IBKR's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Interactive Brokers Group current dividend yield, its reliability and sustainability?

0.76%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: IBKR's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: IBKR's dividend (0.76%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: IBKR is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: IBKR is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: IBKR is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IBKR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.9yrs

Average management tenure


CEO

Milan Galik (53 yo)

1.08yrs

Tenure

US$8,365,000

Compensation

Mr. Milan Galik has been Chief Executive Officer of Interactive Brokers Group, Inc. since October 1, 2019. Mr. Galik has been the President of Interactive Brokers Group, Inc., and IBG LLC since October 201...


CEO Compensation Analysis

Compensation vs Market: Milan's total compensation ($USD8.37M) is about average for companies of similar size in the US market ($USD10.79M).

Compensation vs Earnings: Milan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Milan Galik
President1.08yrsUS$8.37m1.07%
$ 234.5m
Paul Brody
CFO, Treasurer14yrsUS$5.19m0.78%
$ 171.8m
Thomas A. Frank
Executive VP & Chief Information Officer21.33yrsUS$2.09m2.07%
$ 453.2m
Denis Mendonca
Chief Accounting Officer4.83yrsno data0.0094%
$ 2.1m
Nancy Stuebe
Director of Investor Relationsno datano datano data

10.9yrs

Average Tenure

56.5yo

Average Age

Experienced Management: IBKR's management team is seasoned and experienced (10.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Milan Galik
President1.08yrsUS$8.37m1.07%
$ 234.5m
Paul Brody
CFO, Treasurer14yrsUS$5.19m0.78%
$ 171.8m
John Damgard
Independent Director1.92yrsUS$83.33k0.00085%
$ 186.5k
Gary Katz
Independent Director3.83yrsUS$100.00k0.00056%
$ 122.8k
Thomas Peterffy
Founder & Chairman14yrsUS$800.00k10.76%
$ 2.4b
Earl Nemser
Independent Vice Chairman14yrsUS$1.66m0.067%
$ 14.8m
Lawrence Harris
Lead Independent Directorno dataUS$125.00k0.069%
$ 15.1m
Nicole Yuen
Independent Director0.33yrno datano data
Philip Uhde
Independent Director1.58yrsUS$108.33k0.12%
$ 26.3m
William Peterffy
Director0.58yrno datano data

3.8yrs

Average Tenure

60yo

Average Age

Experienced Board: IBKR's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Interactive Brokers Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Interactive Brokers Group, Inc.
  • Ticker: IBKR
  • Exchange: NasdaqGS
  • Founded: 1977
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Implied Market Cap: US$21.937b
  • Market Cap: US$4.778b
  • Shares outstanding: 416.73m
  • Website: https://www.interactivebrokers.com

Number of Employees


Location

  • Interactive Brokers Group, Inc.
  • One Pickwick Plaza
  • Greenwich
  • Connecticut
  • 6830
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IBKRNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDMay 2007
KY6DB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2007
IBKR *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMay 2007

Biography

Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. It specializes in executing and clearing trades in securities, futures, foreign exchange instruments, bonds, and mutual...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:46
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.