Interactive Brokers (IBKR) AI Stock Analysis

• Market Cap: $27.94B
• Dividend Yield: 0.42%
• Average Volume (3M): 5.14M
• Price to Earnings (P/E): 32.7
• Beta (1Y): 1.29
• Revenue Growth: 12.30%
• EPS Growth: 20.76%
• Country: US
• Employees: 3,027
• Sector: Financial
• Sector Strength: 71
• Industry: Financial - Capital Markets
• EPS (TTM): 0.51
• Shares Outstanding: 445,246,980
• 10 Day Avg. Volume: 4,209,099
• 30 Day Avg. Volume: 5,139,345
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.97
• Enterprise Value/Revenue: -2.89
• Enterprise Value/Gross Profit: -3.25
• Enterprise Value/Ebitda: -3.35
• 1Y Price Target: $67.92
• Price Target Upside: 7.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: $74.00 ▲(16.90% Upside)

Interactive Brokers' strong financial performance and positive earnings call sentiment drive its overall score. The stock's bullish momentum is balanced by its high valuation, suggesting potential near-term volatility. While there are challenges in certain areas, the company remains well-positioned for growth.

Positive Factors

Organic Growth

Interactive Brokers Group is experiencing robust organic growth and has expanded its digital asset offering.

Revenue Performance

The company reported record highs in commission revenues, net interest income, total net revenue, and pre-tax income.

Negative Factors

Earnings Pressure

Earnings per share estimates have been lowered due to reduced trading volume and margin loan balances, despite higher customer credit balances.

Valuation Concerns

IBKR is trading near the upper end of the historic valuation range, indicating a balanced risk/reward at current levels.

Interactive Brokers Business Overview & Revenue Model

Company Description

Interactive Brokers Group, Inc. operates as an automated electronic broker in the United States and internationally. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies. It also offers custody and service accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, the company provides custody, prime brokerage, securities, and margin lending services. It serves institutional and individual customers through electronic exchanges and market centers. Interactive Brokers Group, Inc. was founded in 1977 and is headquartered in Greenwich, Connecticut.

How the Company Makes Money

Interactive Brokers generates revenue through several key streams, primarily focusing on commissions and fees from trading activities. The company charges clients a small commission for each trade executed on its platform, which varies based on the type of security and the client's trading volume. Additionally, IBKR earns interest income from its clients' margin loans, utilizing the funds that clients borrow to trade on margin. The company's revenue model also includes custodial fees and payment for order flow, where it receives compensation for directing orders to specific market makers. Significant partnerships with financial institutions and market makers further enhance IBKR's revenue potential, allowing the company to leverage its technology and trading volume to optimize earnings.

Interactive Brokers Financial Statement Overview

Summary

Interactive Brokers demonstrates strong financial performance with impressive growth in revenue and profitability, efficient cost management, low leverage, and robust cash flow generation. The company is well-positioned within the financial sector, showing both growth potential and financial stability.

Income Statement

Interactive Brokers has demonstrated strong growth in revenue and profitability. The TTM data shows a robust gross profit margin of 85.3% and a net profit margin of 12.5%. Revenue growth is impressive at 22.65% year-over-year from 2024 to the TTM. EBIT and EBITDA margins are also strong at 67.2% and 68.7%, respectively, indicating efficient cost management and high profitability. The consistent upward trajectory in revenue and profit margins showcases the company's solid financial performance.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.0027, indicating minimal leverage. The return on equity (ROE) is a robust 17.6%, showcasing effective utilization of shareholders’ funds. The equity ratio stands at 2.9%, which is relatively low, suggesting a higher reliance on liabilities for financing. Despite this, the company's strong equity growth and sufficient liquidity position it well within the industry.

Cash Flow

Interactive Brokers exhibits strong cash flow generation, with a significant free cash flow growth rate of 10.34% from 2024 to TTM. The operating cash flow to net income ratio is high at 12.13, indicating excellent cash conversion efficiency. The free cash flow to net income ratio is also robust at 12.07, highlighting the company's ability to generate substantial free cash flow relative to net income. This strength in cash flow supports the company's strategic flexibility and financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.43B	9.32B	7.79B	4.19B	2.94B	2.42B
Gross Profit	8.38B	8.29B	6.87B	3.41B	2.31B	1.80B
EBITDA	8.11B	7.99B	6.60B	3.11B	2.09B	1.59B
Net Income	793.00M	755.00M	600.00M	380.00M	308.00M	195.00M
Balance Sheet
Total Assets	157.67B	150.14B	128.25B	115.14B	109.11B	95.68B
Cash, Cash Equivalents and Short-Term Investments	3.50B	3.63B	3.75B	3.44B	2.40B	4.29B
Total Debt	12.00M	14.00M	11.36B	8.96B	11.80B	9.96B
Total Liabilities	140.19B	133.54B	114.18B	103.53B	98.89B	86.68B
Stockholders Equity	4.50B	4.28B	3.58B	2.85B	2.40B	1.95B
Cash Flow
Free Cash Flow	9.57B	8.68B	4.50B	3.90B	5.82B	8.02B
Operating Cash Flow	9.63B	8.72B	4.54B	3.97B	5.90B	8.07B
Investing Cash Flow	-57.00M	-44.00M	-52.00M	-67.00M	-188.00M	-50.00M
Financing Cash Flow	-921.00M	-833.00M	-624.00M	-470.00M	-523.00M	-229.00M

Interactive Brokers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 63.3 is below the 20-day moving average (MA) of 64.10, above the 50-day MA of 60.41, and above the 200-day MA of 50.59, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 52.64 is Neutral, neither overbought nor oversold. The STOCH value of 45.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBKR.

Interactive Brokers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBKR	80 Outperform	$27.94B	32.73	19.15%	0.42%	12.30%	20.76%
GS	77 Outperform	$223.65B	16.35	12.78%	1.60%	3.53%	45.85%
MS	76 Outperform	$235.70B	16.77	14.13%	2.53%	6.36%	45.50%
SCHW	74 Outperform	$174.61B	25.80	15.59%	1.09%	4.64%	54.26%
TW	73 Outperform	$29.84B	49.33	9.51%	0.35%	27.97%	28.39%
Sector *	68 Neutral	$17.69B	11.82	10.30%	3.73%	9.66%	0.42%
LPLA	66 Neutral	$28.84B	24.79	29.46%	0.33%	29.23%	13.45%

Interactive Brokers Corporate Events

Interactive Brokers Removes Shares from SEC Registration

On July 30, 2025, Interactive Brokers Group, Inc. announced the removal of 3,836,000 shares of its common stock from its shelf Registration Statement filed with the SEC. This action, supported by a legal opinion from Dechert LLP, may impact the company’s stock availability and market strategy.

The most recent analyst rating on (IBKR) stock is a Buy with a $41.25 price target. To see the full list of analyst forecasts on Interactive Brokers stock, see the IBKR Stock Forecast page.