International Bancshares Corporation Fundamental Analysis (NASDAQ: IBOC)
International Bancshares Corporation Fundamental Analysis (NASDAQ: IBOC)
International Bancshares Corporation (NASDAQ: IBOC) shows moderate financial fundamentals with a PE ratio of 10.85, profit margin of 38.81%, and ROE of 12.67%. The company generates $1.1B in annual revenue with weak year-over-year growth of 1.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.8/100 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 IBOC's fundamental strength across five key dimensions:
Efficiency Score
WeakIBOC struggles to generate sufficient returns from assets.
Valuation Score
ModerateIBOC shows balanced valuation metrics.
Growth Score
WeakIBOC faces weak or negative growth trends.
Financial Health Score
ModerateIBOC shows balanced financial health with some risks.
Profitability Score
ModerateIBOC maintains healthy but balanced margins.
Key Financial Metrics
Is IBOC Expensive or Cheap?
P/E Ratio
IBOC trades at 10.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IBOC's PEG of 71.81 indicates potential overvaluation.
Price to Book
The market values International Bancshares Corporation at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.64 times EBITDA. This is generally considered low.
How Well Does IBOC Make Money?
Net Profit Margin
For every $100 in sales, International Bancshares Corporation keeps $38.81 as profit after all expenses.
Operating Margin
Core operations generate 49.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.67 in profit for every $100 of shareholder equity.
ROA
International Bancshares Corporation generates $2.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
International Bancshares Corporation generates strong operating cash flow of $470.03M, reflecting robust business health.
Free Cash Flow
International Bancshares Corporation generates strong free cash flow of $452.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.28 in free cash annually.
FCF Yield
IBOC converts 10.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
71.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How IBOC Stacks Against Its Sector Peers
| Metric | IBOC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.85 | 21.07 | Better (Cheaper) |
| ROE | 12.67% | 647.00% | Weak |
| Net Margin | 38.81% | -1594.00% (disorted) | Strong |
| Debt/Equity | 0.22 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.86 | 912.43 | Weak Liquidity |
| ROA | 2.43% | -579.00% (disorted) | Weak |
IBOC outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews International Bancshares Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.66%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
152.13%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
64.67%
Industry Style: Value, Dividend, Cyclical
High Growth