Interactive Brokers Group (NasdaqGS:IBKR) - Share price, News & Analysis

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

IBKR ($58.13) is trading above our estimate of [[fair value]] ($49.7)

IBKR fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

IBKR Stock Overview

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

Rewards

Price-To-Earnings ratio (20.8x) is below the Capital Markets industry average (29.6x)

Earnings are forecast to grow 26.13% per year

Earnings have grown 27.5% per year over the past 5 years

Risk Analysis

No risks detected for IBKR from our risk checks.

Interactive Brokers Group Competitors

Raymond James Financial

NYSE:RJF

US$20.1b

LPL Financial Holdings

NasdaqGS:LPLA

US$15.4b

NasdaqGS:XP

US$11.1b

Stifel Financial

NYSE:SF

US$6.3b

Price History & Performance

Summary of all time highs, changes and price drops for Interactive Brokers Group
Historical stock prices
Current Share Price	US$58.13
52 Week High	US$82.83
52 Week Low	US$52.18
Beta	0.76
1 Month Change	-5.00%
3 Month Change	-14.46%
1 Year Change	-11.08%
3 Year Change	8.21%
5 Year Change	52.09%
Change since IPO	85.72%

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

	IBKR	US Capital Markets	US Market
7D	4.0%	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 Movement	5.2%
Capital Markets Industry Average Movement	0.5%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

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

Founded	Employees	CEO	Website
1977	2,683	Milan Galik	https://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 Cap	US$24.36b
Earnings (TTM)	US$274.00m
Revenue (TTM)	US$2.52b

20.8x

P/E Ratio

2.3x

P/S Ratio

Is IBKR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IBKR income statement (TTM)
Revenue	US$2.52b
Cost of Revenue	US$272.00m
Gross Profit	US$2.25b
Other Expenses	US$1.97b
Earnings	US$274.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.79
Gross Margin	89.20%
Net Profit Margin	10.88%
Debt/Equity Ratio	109.1%

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.

The above table shows the n/a ratio for IBKR. This is calculated by dividing IBKR's market cap by their current preferred multiple.
What is IBKR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$24.36b

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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.8x

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.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.5x
RJF Raymond James Financial	13.3x	9.2%	US$20.1b
LPLA LPL Financial Holdings	33.1x	41.0%	US$15.4b
XP XP	15.6x	15.8%	US$11.1b
SF Stifel Financial	8x	2.4%	US$6.3b
IBKR Interactive Brokers Group	20.8x	26.1%	US$24.4b

Forward PE

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 Ratio	20.8x
Fair PE Ratio	20.2x

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)

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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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31