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IBKR

Interactive Brokers Group NasdaqGS:IBKR Stock Report

Last Price

US$58.13

Market Cap

US$24.4b

7D

4.0%

1Y

-11.1%

Updated

27 Jun, 2022

Data

Company Financials +
IBKR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance3/6
Financial Health4/6
Dividends0/6

IBKR Stock Overview

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

Interactive Brokers Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Interactive Brokers Group
Historical stock prices
Current Share PriceUS$58.13
52 Week HighUS$82.83
52 Week LowUS$52.18
Beta0.76
1 Month Change-5.00%
3 Month Change-14.46%
1 Year Change-11.08%
3 Year Change8.21%
5 Year Change52.09%
Change since IPO85.72%

Recent News & Updates

May 21

Interactive Brokers: Relatively Safe In The Storm

IBKR is a very good example of a company only being as good as its valuation, and the long-term upside. While the company looked good months back, it's now dropped about 15% since my last article, which is somewhat less than the overall index drop. IBKR is now cheaper than it has been for several years. The upside in the company is now more than 15%, even on a 15X forward P/E. I'll show you why this is attractive.

Shareholder Returns

IBKRUS Capital MarketsUS Market
7D4.0%6.3%6.3%
1Y-11.1%-18.3%-18.8%

Return vs Industry: IBKR exceeded the US Capital Markets industry which returned -18% over the past year.

Return vs Market: IBKR exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is IBKR's price volatile compared to industry and market?
IBKR volatility
IBKR Average Weekly Movement5.2%
Capital Markets Industry Average Movement0.5%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: IBKR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IBKR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19772,683Milan Galikhttps://www.interactivebrokers.com

Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. The company specializes in executing, clearing, and settling trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), metals, and cryptocurrencies. It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors.

Interactive Brokers Group Fundamentals Summary

How do Interactive Brokers Group's earnings and revenue compare to its market cap?
IBKR fundamental statistics
Market CapUS$24.36b
Earnings (TTM)US$274.00m
Revenue (TTM)US$2.52b

20.8x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IBKR income statement (TTM)
RevenueUS$2.52b
Cost of RevenueUS$272.00m
Gross ProfitUS$2.25b
Other ExpensesUS$1.97b
EarningsUS$274.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.79
Gross Margin89.20%
Net Profit Margin10.88%
Debt/Equity Ratio109.1%

How did IBKR perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

14%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IBKR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IBKR?

Other financial metrics that can be useful for relative valuation.

IBKR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does IBKR's PE Ratio compare to its peers?

IBKR PE Ratio vs Peers
The above table shows the PE ratio for IBKR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.5x
RJF Raymond James Financial
13.3x9.2%US$20.1b
LPLA LPL Financial Holdings
33.1x41.0%US$15.4b
XP XP
15.6x15.8%US$11.1b
SF Stifel Financial
8x2.4%US$6.3b
IBKR Interactive Brokers Group
20.8x26.1%US$24.4b

Price-To-Earnings vs Peers: IBKR is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (17.5x).


Price to Earnings Ratio vs Industry

How does IBKR's PE Ratio compare vs other companies in the US Capital Markets Industry?

Price-To-Earnings vs Industry: IBKR is good value based on its Price-To-Earnings Ratio (20.8x) compared to the US Capital Markets industry average (29.6x)


Price to Earnings Ratio vs Fair Ratio

What is IBKR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IBKR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: IBKR is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).


Share Price vs Fair Value

What is the Fair Price of IBKR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IBKR ($58.13) is trading above our estimate of fair value ($49.7)

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


Price to Earnings Growth Ratio

PEG Ratio: IBKR is good value based on its PEG Ratio (0.8x)


Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBKR's forecast earnings growth (26.1% per year) is above the savings rate (1.9%).

Earnings vs Market: IBKR's earnings (26.1% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: IBKR's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IBKR's revenue (18% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: IBKR's revenue (18% per year) is forecast to grow slower than 20% 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


Discover growth companies

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


27.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IBKR has high quality earnings.

Growing Profit Margin: IBKR's current net profit margins (10.9%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: IBKR's earnings have grown significantly by 27.5% per year over the past 5 years.

Accelerating Growth: IBKR's earnings growth over the past year (7%) is below its 5-year average (27.5% per year).

Earnings vs Industry: IBKR earnings growth over the past year (7%) underperformed the Capital Markets industry 80.5%.


Return on Equity

High ROE: IBKR's Return on Equity (13.5%) is considered low.


Discover strong past performing companies

Financial Health

How is Interactive Brokers Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IBKR's short term assets ($113.5B) exceed its short term liabilities ($103.6B).

Long Term Liabilities: IBKR's short term assets ($113.5B) exceed its long term liabilities ($327.0M).


Debt to Equity History and Analysis

Debt Level: IBKR has more cash than its total debt.

Reducing Debt: IBKR's debt to equity ratio has increased from 77% to 109.1% over the past 5 years.

Debt Coverage: IBKR's debt is well covered by operating cash flow (37.5%).

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


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.69%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IBKR's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: IBKR's dividend (0.69%) is low compared to the top 25% of dividend payers in the US market (4.23%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

13.1yrs

Average management tenure


CEO

Milan Galik (54 yo)

7.67yrs

Tenure

US$12,289,397

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 ($USD12.29M) is about average for companies of similar size in the US market ($USD13.43M).

Compensation vs Earnings: Milan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: IBKR's management team is seasoned and experienced (13.1 years average tenure).


Board Members

Experienced Board: IBKR's board of directors are seasoned and experienced ( 10.2 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 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$24.364b
  • Market Cap: US$5.712b
  • Shares outstanding: 418.14m
  • Website: https://www.interactivebrokers.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.