Interactive Brokers Group, Inc. Fundamental Analysis
Interactive Brokers Group, Inc. Fundamental Analysis
Interactive Brokers Group, Inc. (IBKR) shows weak financial fundamentals with a PE ratio of 40.27, profit margin of 9.77%, and ROE of 19.89%. The company generates $10.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
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
ModerateIBKR shows balanced valuation metrics.
Growth Score
ModerateIBKR shows steady but slowing expansion.
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 40.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IBKR's PEG of 1.44 indicates fair valuation.
Price to Book
The market values Interactive Brokers Group, Inc. at 7.48 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.95 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 $9.77 as profit after all expenses.
Operating Margin
Core operations generate 86.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.89 in profit for every $100 of shareholder equity.
ROA
Interactive Brokers Group, Inc. generates $0.47 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 $16.76B, reflecting robust business health.
Free Cash Flow
Interactive Brokers Group, Inc. generates strong free cash flow of $16.68B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $37.63 in free cash annually.
FCF Yield
IBKR converts 10.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
16927.92
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
0.04
vs 25 benchmark
How IBKR Stacks Against Its Sector Peers
| Metric | IBKR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.27 | 21.20 | Worse (Expensive) |
| ROE | 19.89% | 613.00% | Weak |
| Net Margin | 9.77% | -16892.00% (disorted) | Weak |
| Debt/Equity | 5.73 | 0.90 | Weak (High Leverage) |
| Current Ratio | 16927.92 | 934.07 | Strong Liquidity |
| ROA | 0.47% | -847.00% (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
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical