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Interactive Brokers Group (IBKR)
:IBKR
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Interactive Brokers
(NASDAQ:IBKR)81Outperform
Positive Factors
Account Growth
Account growth remained strong with a 28% year-over-year increase, indicating continued customer interest and engagement.
International Expansion
IBKR is actively expanding its international presence by adding new account types, foreign language options, and launching new asset classes.
Negative Factors
Financial Performance
Total non-interest expenses were significantly above estimates due to higher General and Administrative costs, including one-time charges.
Interactive Brokers (IBKR) vs. S&P 500 (SPY)
Market Cap
$82.84B
Dividend Yield0.51%
Average Volume (3M)2.25M
Price to Earnings (P/E)28.3
Beta (1Y)0.80
Revenue Growth19.54%
EPS Growth22.23%
CountryUS
Employees2,932
SectorFinancial
Sector Strength93
IndustryCapital Markets
Share Statistics
EPS (TTM)6.92
Shares Outstanding108,931,620
10 Day Avg. Volume2,721,799
30 Day Avg. Volume2,253,656
Financial Highlights & Ratios
PEG Ratio1.27
Price to Book (P/B)N/A
Price to Sales (P/S)4.12
Price to Cash Flow (P/CF)2.90
P/FCF Ratio1.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$234.88Price Target Upside19.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Interactive Brokers Business Overview & Revenue Model
Company DescriptionInteractive Brokers (IBKR) is a leading global brokerage firm that operates within the financial services sector. It provides automated trade execution and custody services to institutional and individual investors across various financial instruments, including stocks, options, futures, forex, bonds, and funds worldwide. The company is renowned for its advanced trading platforms, offering clients direct market access to over 150 global markets in multiple countries and currencies.
How the Company Makes MoneyInteractive Brokers makes money primarily through commissions and fees associated with trading activities. The company charges commissions on trades executed by its clients in various financial instruments, such as equities, options, futures, and forex. Additionally, Interactive Brokers generates revenue from interest income on margin loans provided to clients, who borrow funds to increase their buying power. The company also earns from fees for market data subscriptions, software usage, and account maintenance. Another significant revenue stream is the interest earned on segregated client funds and its proprietary investment activities. Moreover, Interactive Brokers benefits from partnerships with financial institutions and offers white-label solutions, further diversifying its income sources. The firm's competitive pricing, high-speed trading execution, and comprehensive platform contribute significantly to attracting and retaining a large and active client base.
Interactive Brokers Financial Statement Overview
Summary
Interactive Brokers demonstrates robust revenue growth and profitability metrics, which are significant strengths. However, challenges such as the recent negative EBITDA and the drop in operating cash flow highlight areas that require careful management. The company's balance sheet remains strong, with no debt and improving equity ratios.Income Statement
Interactive Brokers shows a solid financial performance with high gross and net profit margins. Recent revenue growth has been strong, with a noticeable increase from the previous year. However, the negative EBITDA margin is a concern that needs addressing.85
Very Positive
Balance Sheet
The company's balance sheet is stable with no debt and a healthy equity ratio. Return on equity has been improving, reflecting effective use of shareholders' equity. However, the relatively low stockholders' equity compared to total assets is a potential risk.78
Positive
Cash Flow
The cash flow statement indicates fluctuations, with operating cash flow dropping to zero recently. While free cash flow has shown growth in past years, the current lack of positive operating cash flow is a concern that needs monitoring.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.18B | 4.42B | 3.17B | 2.75B | 2.24B | Gross Profit |
| 5.18B | 3.51B | 3.17B | 2.75B | 2.24B | EBIT |
| 4.18B | 3.58B | 2.10B | 1.82B | 1.38B | EBITDA |
| -1.15B | 6.68B | 3.20B | 2.12B | 1.60B | Net Income Common Stockholders |
| 755.00M | 600.00M | 380.00M | 308.00M | 195.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.63B | 3.75B | 3.44B | 2.45B | 4.29B | Total Assets |
| 150.52B | 128.42B | 115.14B | 108.95B | 95.68B | Total Debt |
| 14.00M | 11.36B | 8.96B | 11.80B | 9.96B | Net Debt |
| -3.62B | 7.61B | 5.52B | 9.35B | 5.66B | Total Liabilities |
| 133.92B | 114.36B | 103.53B | 98.73B | 86.68B | Stockholders Equity |
| 4.28B | 3.58B | 2.85B | 2.40B | 1.95B |
| Cash Flow | Free Cash Flow | |||
| 8.68B | 4.50B | 3.90B | 5.82B | 8.02B | Operating Cash Flow |
| 8.72B | 4.54B | 3.97B | 5.90B | 8.07B | Investing Cash Flow |
| -44.00M | -52.00M | -67.00M | -188.00M | -50.00M | Financing Cash Flow |
| -833.00M | -624.00M | -470.00M | -523.00M | -229.00M |
Interactive Brokers Technical Analysis
Neutral
196.69
Price Trends
203.54
Negative
186.43
Positive
155.51
Positive
Market Momentum
-2.71
Positive
38.42
Neutral
18.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBKR, the sentiment is Neutral. The current price of 196.69 is below the 20-day moving average (MA) of 218.63, below the 50-day MA of 203.54, and above the 200-day MA of 155.51, indicating a neutral trend. The MACD of -2.71 indicates Positive momentum. The RSI at 38.42 is Neutral, neither overbought nor oversold. The STOCH value of 18.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBKR.
Interactive Brokers Risk Analysis
Interactive Brokers disclosed 38 risk factors in its most recent earnings report. Interactive Brokers reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Interactive Brokers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $82.84B | 28.30 | 19.20% | 0.51% | 19.54% | 22.23% | |
81 Outperform | $699.73B | 12.67 | 17.28% | 1.92% | 17.07% | 21.78% | |
77 Outperform | $196.32B | 15.32 | 13.16% | 2.98% | 9.17% | 53.77% | |
74 Outperform | $181.34B | 14.33 | 11.95% | 2.02% | 14.80% | 77.97% | |
73 Outperform | $140.11B | 25.13 | 13.30% | 1.36% | 1.87% | 17.63% | |
71 Outperform | $1.06B | ― | 11.11% | ― | ― | ― | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% |
* Financial Sector Average
Performance Comparison
IBKR
Interactive Brokers
196.69
87.40
79.97%
JPM
JPMorgan Chase & Co.
251.53
66.24
35.75%
MS
Morgan Stanley
123.75
40.84
49.26%
SCHW
Charles Schwab
76.74
9.59
14.28%
GS
Goldman Sachs Group
593.07
211.91
55.60%
AMTD
AMTD IDEA Group
1.02
-0.71
-41.04%
Interactive Brokers Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: 2.13% | Next Earnings Date: Apr 22, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with record account growth, financial performance, and innovative product enhancements. However, challenges in securities lending and concerns over cryptocurrency regulations were noted.Highlights
Record Account Growth
Interactive Brokers added 775,000 accounts in 2024, with 217,000 added in Q4 alone, marking a record number of annual additions.
Increased Client Equity
Client equity rose by 33% to $568 billion, surpassing half a trillion dollars for the first time.
Record Financial Performance
Quarterly pretax income exceeded $1 billion for the first time, with a GAAP pretax margin of 75%. Full-year net revenues surpassed $5 billion with a 71% pretax margin, the highest in the brokerage industry.
Innovative Product Enhancements
Introduced multiple new products and features, including a generative AI commentary builder, a tax loss harvesting tool, and expanded trading hours for various asset classes.
International Expansion
Launched trading on the Saudi Exchange and expanded offerings in Europe with accounts like PEA in France.
Lowlights
Challenges in Securities Lending
Securities lending faced challenges due to fewer hard-to-borrow names and a dip in typical drivers like IPOs and market volatility.
Uncertain Crypto Regulations
Concerns about unclear regulatory environment for cryptocurrencies, which may affect future offerings.
Litigation Expenses
General and administrative expenses increased by 49% primarily due to a one-time litigation expense.
Company Guidance
During the IBKR Fourth Quarter 2024 earnings call, the company provided impressive guidance, highlighting significant growth metrics. Interactive Brokers added a record 775,000 accounts in 2024, with 217,000 in the fourth quarter alone. Client equity surged by 33% to $568 billion, surpassing $0.5 trillion for the first time. The company achieved a record quarterly pretax income exceeding $1 billion, with a GAAP pretax margin of 75%. For 2024, net revenues topped $5 billion, with a pretax margin of 71%, recognized as the highest in the brokerage industry. The firm expanded its product offerings, including new liquidity providers for options and support for overnight trading. Additionally, they demonstrated a strong global presence, with the majority of accounts based outside the U.S. and applications translated into 13 languages. The company remains optimistic about continued growth and innovation in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.