Interactive Brokers Group, Inc.
Interactive Brokers Group, Inc. Fundamental Analysis
Interactive Brokers Group, Inc. (IBKR) shows moderate financial fundamentals with a PE ratio of 33.43, profit margin of 9.62%, and ROE of 19.88%. The company generates $10.2B in annual revenue with strong year-over-year growth of 19.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze IBKR's fundamental strength across five key dimensions:
Efficiency Score
WeakIBKR struggles to generate sufficient returns from assets.
Valuation Score
WeakIBKR trades at a premium to fair value.
Growth Score
ExcellentIBKR delivers strong and consistent growth momentum.
Financial Health Score
ModerateIBKR shows balanced financial health with some risks.
Profitability Score
ModerateIBKR maintains healthy but balanced margins.
Key Financial Metrics
Is IBKR Expensive or Cheap?
P/E Ratio
IBKR trades at 33.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IBKR's PEG of 4.99 indicates potential overvaluation.
Price to Book
The market values Interactive Brokers Group, Inc. at 6.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.59 times EBITDA. This signals the market has high growth expectations.
How Well Does IBKR Make Money?
Net Profit Margin
For every $100 in sales, Interactive Brokers Group, Inc. keeps $9.62 as profit after all expenses.
Operating Margin
Core operations generate 85.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.88 in profit for every $100 of shareholder equity.
ROA
Interactive Brokers Group, Inc. generates $0.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Interactive Brokers Group, Inc. generates strong operating cash flow of $16.04B, reflecting robust business health.
Free Cash Flow
Interactive Brokers Group, Inc. generates strong free cash flow of $15.98B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $35.88 in free cash annually.
FCF Yield
IBKR converts 12.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How IBKR Stacks Against Its Sector Peers
| Metric | IBKR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.43 | 18.86 | Worse (Expensive) |
| ROE | 19.88% | 847.00% | Weak |
| Net Margin | 9.62% | 4202.00% | Weak |
| Debt/Equity | 0.00 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.61 | 667.17 | Weak Liquidity |
| ROA | 0.48% | -21543.00% (disorted) | Weak |
IBKR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Interactive Brokers Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
154.93%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
230.19%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
130.40%
Industry Style: Value, Dividend, Cyclical
High Growth