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Interactive Brokers (IBKR)
NASDAQ:IBKR
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Interactive Brokers
(NASDAQ:IBKR)
73Outperform
Positive Factors
Account Growth
Positive momentum across IBKR's net new account growth has remained elevated.
Financial Performance
Total adjusted net revenues exceeded expectations, driven by a significant gain from a partial sale of IBKR's stake in Tiger Brokers.
International Expansion
Interactive Brokers is actively expanding its international presence by adding new account types, foreign language options, and launching new asset classes.
Negative Factors
Earnings
Earnings per share estimates have been lowered due to reduced trading volume and margin loan balances, despite higher customer credit balances.
Margin Loans
Margin loans declined by 12% while client cash balances continued to grow, indicating a shift in client behavior.
Revenue
Revenues came in lower than expected driven by lower NII.
Interactive Brokers (IBKR) vs. S&P 500 (SPY)
Market Cap
$72.41B
Dividend Yield0.55%
Average Volume (3M)2.67M
Price to Earnings (P/E)24.7
Beta (1Y)1.08
Revenue Growth15.28%
EPS Growth23.59%
CountryUS
Employees2,998
SectorFinancial
Sector Strength88
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)1.88
Shares Outstanding108,931,620
10 Day Avg. Volume2,891,311
30 Day Avg. Volume2,671,948
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.64
Price to Cash Flow (P/CF)2.60
P/FCF Ratio1.60
Enterprise Value/Market Cap-0.50
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-6.99
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$204.43Price Target Upside12.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Interactive Brokers Business Overview & Revenue Model
Company DescriptionInteractive 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. In addition, it offers custody, prime brokerage, securities, and margin lending services. The company serves institutional and individual customers through approximately 150 electronic exchanges and market centers. Interactive Brokers Group, Inc. was founded in 1977 and is headquartered in Greenwich, Connecticut.
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 Key Performance Indicators (KPIs)
Any
Total Customer Accounts
Indicates the total number of customer accounts, reflecting the company's ability to attract and retain clients. A growing number suggests increasing market share and potential for higher revenue through trading commissions and fees.
Indicates the total number of customer accounts, reflecting the company's ability to attract and retain clients. A growing number suggests increasing market share and potential for higher revenue through trading commissions and fees.
Data provided by:
Main Street Data
Main Street DataInteractive 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
Positive
181.55
Price Trends
175.26
Positive
187.13
Negative
164.83
Positive
Market Momentum
0.26
Negative
59.44
Neutral
93.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBKR, the sentiment is Positive. The current price of 181.55 is above the 20-day moving average (MA) of 164.38, above the 50-day MA of 175.26, and above the 200-day MA of 164.83, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 59.44 is Neutral, neither overbought nor oversold. The STOCH value of 93.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $154.96B | 25.27 | 14.12% | 1.23% | 2.32% | 37.66% | |
77 Outperform | $33.54B | 60.84 | 9.14% | 0.30% | 28.86% | 29.26% | |
73 Outperform | $72.41B | 24.74 | 19.26% | 0.55% | 15.28% | 23.59% | |
73 Outperform | $26.68B | 23.77 | 42.26% | 0.36% | 23.20% | 2.38% | |
71 Outperform | $174.38B | 12.68 | 13.88% | 3.08% | 6.57% | 55.54% | |
66 Neutral | $153.67B | 12.20 | 12.27% | 2.08% | 2.89% | 68.64% | |
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% |
* Financial Sector Average
Performance Comparison
IBKR
Interactive Brokers
181.55
60.33
49.77%
LPLA
LPL Financial
333.56
62.15
22.90%
MS
Morgan Stanley
120.22
28.37
30.89%
SCHW
Charles Schwab
83.11
7.32
9.66%
GS
Goldman Sachs Group
566.10
132.01
30.41%
TW
Tradeweb Markets
141.86
32.98
30.29%
Interactive Brokers Earnings Call Summary
Earnings Call Date:Apr 15, 2025
(Q1-2025)
| % Change Since: 4.68%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with record account growth, strong financial performance, increased dividends, and significant trading volume growth. However, challenges such as market volatility, a decline in margin loans, and M&A difficulties indicated some areas of concern.Q1-2025 Updates
Positive Updates
Record Account Growth
In Q1 2025, Interactive Brokers added 279,000 new accounts, marking a 32% total account growth, with faster growth internationally. This outpaced the previous record set during the meme stock phenomenon in Q1 2021.
Strong Financial Performance
Quarterly commission revenue reached a record half a billion dollars for the first time, with a pre-tax profit margin of 74%. The adjusted pre-tax margin reached 70% or more for the eighth time.
Increased Dividend and Stock Split
The company increased its quarterly dividend to 32 cents and announced a four-for-one stock split to enhance stock liquidity and affordability for shareholders.
Impressive Trading Volume Growth
Options contract volumes grew by 25%, futures by 16%, and stock share volumes by 47%. Overall trading volumes significantly outpaced industry growth.
Overnight Trading Volume Surge
Overnight trading volumes increased by 250% year-over-year, highlighting the expansion of trading hours and product offerings.
Negative Updates
Market Volatility Impact
There was a noticeable market downturn, with the S&P 500 ending the quarter down 5%, and a 9% decline from February peaks due to factors such as AI developments and tariff talks.
Margin Loan Decline
Margin loans decreased by approximately 10-12% due to market volatility and a shift towards less risky positions by clients.
Challenges in M&A Acquisition
The company faced difficulties in closing a significant acquisition due to the inability to acquire 100% ownership, resulting in a stalled M&A strategy.
Company Guidance
During the Interactive Brokers Group First Quarter 2025 earnings call, several key metrics were highlighted. The company reported a record addition of 279,000 new accounts, marking a 32% total account growth, with international accounts expanding at an even faster pace. Client credit balances reached a record $125.2 billion, a 19% increase, and client equity rose 23% to $573.5 billion compared to 2024, despite a 1% drop in market conditions. Commission revenues hit a record half a billion dollars, contributing to total net revenues, with options contract volumes up 25%, futures up 16%, and stock share volumes up 47%. The adjusted pretax profit margin was an industry-leading 74%, marking the eighth time it reached 70% or more. Interactive Brokers announced an increased quarterly dividend of 32 cents and a four-for-one stock split to enhance liquidity. The company remains open to M&A opportunities but noted the lack of suitable acquisitions at favorable prices. Additionally, the introduction of new products, such as Canadian savings accounts and additional cryptocurrencies, highlights the company's ongoing expansion and innovation efforts.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.