Interactive Brokers (IBKR) AI Stock Analysis

• Market Cap: $27.72B
• Dividend Yield: 0.8%
• Average Volume (3M): 8.18M
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.33
• Revenue Growth: 12.30%
• EPS Growth: 20.76%
• Country: US
• Employees: 3,027
• Sector: Financial
• Sector Strength: 70
• Industry: Investment - Banking & Investment Services
• EPS (TTM): 0.51
• Shares Outstanding: 445,246,980
• 10 Day Avg. Volume: 5,574,606
• 30 Day Avg. Volume: 8,183,124
• PEG Ratio: 1.13
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 2.20
• Enterprise Value/Market Cap: -0.98
• Enterprise Value/Revenue: -2.84
• Enterprise Value/Gross Profit: -3.19
• Enterprise Value/Ebitda: -3.27
• 1Y Price Target: $69.50
• Price Target Upside: 11.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 78 Outperform
• Price Target: $71.00 ▲(13.64% Upside)

Interactive Brokers' strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust revenue growth, high profitability margins, and strategic advancements in trading platforms are key strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators show only mild bullish momentum. Challenges in the cryptocurrency space and interest rate sensitivity are notable risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for IBKR's services, enhancing its market position and supporting long-term expansion.

Client Growth

Significant client growth expands IBKR's user base, driving future revenue and solidifying its competitive advantage in the brokerage industry.

Cash Flow Generation

Strong cash flow generation enhances IBKR's financial flexibility, enabling strategic investments and sustaining operational stability.

Negative Factors

Cryptocurrency Market Share

Limited market share in the growing cryptocurrency sector may constrain IBKR's growth opportunities and competitive positioning in this emerging market.

Execution Cost Differences

Higher execution costs during overnight trading could impact profitability and deter clients, affecting IBKR's competitive edge in global markets.

S&P 400 Replacement

Removal from the S&P 400 may reduce visibility and attractiveness to index-focused investors, potentially impacting stock liquidity and investor perception.

Interactive Brokers Business Overview & Revenue Model

Company Description

Interactive Brokers (IBKR) is a leading online brokerage firm that provides trading and investment services to individual and institutional clients worldwide. Established in 1978, the company specializes in a wide array of financial products, including stocks, options, futures, foreign exchange, and fixed income. IBKR is known for its advanced trading technology, low-cost structure, and extensive market access, catering to both self-directed investors and professional traders.

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 exhibits a strong financial position with robust revenue growth, high profitability margins, and efficient cash flow generation. The low leverage and solid return on equity further enhance its financial stability. While the equity ratio suggests a high asset base, the overall financial health is commendable, positioning the company well for future growth.

Income Statement

Interactive Brokers has demonstrated strong revenue growth with a TTM revenue growth rate of 1.77%, indicating a positive trajectory. The company maintains high profitability margins, with a gross profit margin of 88.87% and an EBIT margin of 85.76% in the TTM period. The net profit margin is also healthy at 8.73%. These metrics reflect robust operational efficiency and profitability.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.0017 in the TTM period, indicating minimal leverage and financial risk. The return on equity is solid at 18.88%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a high asset base compared to equity.

Cash Flow

The cash flow statement shows impressive free cash flow growth of 57.62% in the TTM period, highlighting strong cash generation capabilities. The free cash flow to net income ratio is nearly 1, indicating efficient conversion of net income to cash. The operating cash flow to net income ratio is lower, suggesting room for improvement in operational cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.60B	9.32B	7.79B	4.19B	2.94B	2.42B
Gross Profit	8.53B	8.29B	6.87B	3.41B	2.31B	1.80B
EBITDA	8.33B	7.99B	6.60B	3.11B	2.09B	1.59B
Net Income	838.00M	755.00M	600.00M	380.00M	308.00M	195.00M
Balance Sheet
Total Assets	181.47B	150.14B	128.25B	115.14B	109.11B	95.68B
Cash, Cash Equivalents and Short-Term Investments	4.69B	3.63B	3.75B	3.44B	2.40B	4.29B
Total Debt	21.24B	16.26B	11.36B	8.96B	11.80B	9.96B
Total Liabilities	162.96B	133.54B	114.18B	103.53B	98.89B	86.68B
Stockholders Equity	4.83B	4.28B	3.58B	2.85B	2.40B	1.95B
Cash Flow
Free Cash Flow	15.09B	8.68B	4.50B	3.90B	5.82B	8.02B
Operating Cash Flow	15.14B	8.72B	4.54B	3.97B	5.90B	8.07B
Investing Cash Flow	-85.00M	-44.00M	-52.00M	-67.00M	-188.00M	-50.00M
Financing Cash Flow	-919.00M	-833.00M	-624.00M	-470.00M	-523.00M	-229.00M

Interactive Brokers Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 62.48
• 50DMA: Negative
• 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 Neutral. The current price of 62.48 is below the 20-day moving average (MA) of 62.59, below the 50-day MA of 62.76, and above the 200-day MA of 51.75, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 59.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBKR.

Interactive Brokers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBKR	78 Outperform	$27.72B	32.65	19.15%	0.80%	12.30%	20.76%
GS	77 Outperform	238.17B	17.34	12.54%	1.65%	3.53%	45.85%
MS	76 Outperform	250.05B	17.75	12.81%	2.41%	6.36%	45.50%
TW	73 Outperform	27.61B	45.01	9.16%	0.39%	27.97%	28.39%
SCHW	68 Neutral	167.18B	24.80	12.28%	1.15%	4.64%	54.26%
LPLA	65 Neutral	26.94B	23.03	22.03%	0.36%	29.23%	13.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.