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International Bancshares (IBOC)
:IBOC

International Bancshares (IBOC) AI Stock Analysis

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International Bancshares

(NASDAQ:IBOC)

Rating:80Outperform
Price Target:
International Bancshares Corporation shows strong financial performance and attractive valuation, supported by solid corporate actions like stock buybacks and dividend increases. The technical analysis indicates potential for further positive movement, although some fluctuation in cash flow growth and operational profit transparency need monitoring. Overall, the stock is well-positioned with room for appreciation.

International Bancshares (IBOC) vs. SPDR S&P 500 ETF (SPY)

International Bancshares Business Overview & Revenue Model

Company DescriptionInternational Bancshares Corporation, a financial holding company, provides commercial and retail banking services. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. As of February 28, 2022, the company had 170 branch facilities and 263 ATMs serving 76 communities in Texas and Oklahoma. International Bancshares Corporation was founded in 1966 and is headquartered in Laredo, Texas.
How the Company Makes MoneyInternational Bancshares Corporation generates revenue primarily through the interest income earned on loans and investment securities. The bank's loan portfolio, which includes commercial, real estate, and consumer loans, is a significant contributor to its interest earnings. Additionally, IBOC earns non-interest income through service charges on deposit accounts, fees from banking services such as wealth management and insurance, and gains from the sale of investment securities. The company also benefits from strategic partnerships and community engagements that enhance its service offerings and customer reach. IBOC's earnings are supported by its focus on efficient operations and risk management, ensuring sustainable financial performance in its competitive markets.

International Bancshares Financial Statement Overview

Summary
International Bancshares exhibits strong financial health with solid revenue growth, efficient cost management, and a prudent balance sheet. The cash flow remains robust, although there are fluctuations in free cash flow growth. Overall, the company is well-positioned financially with minor concerns in operational profit transparency.
Income Statement
78
Positive
International Bancshares has demonstrated strong revenue and profit growth. The gross profit margin has remained consistently high, indicating efficient cost management. However, EBIT and EBITDA margins were not applicable for the most recent year, which slightly affects transparency in operational profitability.
Balance Sheet
83
Very Positive
The company's balance sheet is robust with a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is healthy, showing a solid capital structure. The high return on equity suggests efficient use of shareholder funds to generate profits.
Cash Flow
75
Positive
Cash flow performance is strong, with consistent free cash flow generation and a solid operating cash flow to net income ratio. However, the variability in free cash flow growth highlights potential fluctuations in cash generation capacity.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
930.87M833.64M974.09M674.76M593.60M538.47M
Gross Profit
877.45M833.64M974.09M674.76M593.60M538.47M
EBIT
381.63M508.72M525.81M420.80M322.33M211.76M
EBITDA
449.98M531.24M545.46M404.46M347.36M0.00
Net Income Common Stockholders
408.73M409.17M411.77M300.23M253.92M167.32M
Balance SheetCash, Cash Equivalents and Short-Term Investments
0.005.34B651.06M6.51B7.42B5.08B
Total Assets
0.0015.74B15.07B15.50B16.05B14.03B
Total Debt
0.00119.41M119.61M145.59M570.78M570.97M
Net Debt
0.00-233.24M-531.45M-1.94B-2.64B-1.43B
Total Liabilities
13.37B12.94B12.62B13.46B570.78M570.97M
Stockholders Equity
2.90B2.80B2.45B2.04B2.31B2.18B
Cash FlowFree Cash Flow
335.54M459.80M446.94M368.73M281.29M298.41M
Operating Cash Flow
343.15M473.95M474.43M387.94M291.68M305.13M
Investing Cash Flow
-906.03M-985.06M-1.07B-992.03M-915.89M-343.70M
Financing Cash Flow
378.21M212.71M-843.89M-517.43M1.84B1.78B

International Bancshares Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price62.95
Price Trends
50DMA
61.83
Positive
100DMA
63.14
Negative
200DMA
63.28
Negative
Market Momentum
MACD
0.89
Positive
RSI
49.59
Neutral
STOCH
31.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBOC, the sentiment is Neutral. The current price of 62.95 is below the 20-day moving average (MA) of 63.32, above the 50-day MA of 61.83, and below the 200-day MA of 63.28, indicating a neutral trend. The MACD of 0.89 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 31.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBOC.

International Bancshares Risk Analysis

International Bancshares disclosed 32 risk factors in its most recent earnings report. International Bancshares 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 3 New Risks
1.
Failure to successfully invest in, adapt to, integrate, and compete with technological developments, including new services and products that incorporate artificial intelligence ("AI") into banking services and products, could impair our competitive position and adversely affect our business, revenue, and profitability. Q4, 2024
2.
The development, adoption, and integration of AI in our banking services, processes, and products may subject us to increased technological risks, costs, uncertainties, and unpredictable outcomes while increasing our compliance costs and exposing us to new operational challenges. Q4, 2024
3.
The regulatory landscape for cryptocurrencies, decentralized finance, and fintech services remains uncertain and may create additional competitive challenges for traditional banks like ours. Q4, 2024

International Bancshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AXAX
80
Outperform
$3.93B9.4917.80%15.93%0.17%
80
Outperform
$3.91B9.6015.20%2.14%4.24%0.38%
AUAUB
71
Outperform
$4.18B13.437.30%4.48%26.09%-19.05%
70
Neutral
$4.33B11.6610.19%1.14%9.14%31.69%
69
Neutral
$4.12B18.7714.14%1.44%2.59%7.66%
67
Neutral
$3.79B47.004.22%8.38%8.99%3.89%
64
Neutral
$12.66B9.797.67%17015.07%12.23%-6.06%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IBOC
International Bancshares
62.95
6.95
12.41%
ABCB
Ameris Bancorp
61.31
14.08
29.81%
BANF
BancFirst
123.82
38.73
45.52%
AX
Axos Financial
69.67
11.96
20.72%
TFSL
TFS Financial
13.14
1.41
12.02%
AUB
Atlantic Union Bankshares
29.34
-2.14
-6.80%

International Bancshares Corporate Events

Executive/Board ChangesShareholder Meetings
International Bancshares Holds Annual Shareholders Meeting
Neutral
May 21, 2025

On May 19, 2025, International Bancshares Corporation held its Annual Meeting of Shareholders where several proposals were voted on, including the election of eight directors, the ratification of RSM US LLP as the independent auditor for 2025, and a non-binding advisory resolution on executive compensation. All director nominees were elected, and the proposals regarding the auditor and executive compensation were approved by a majority vote. Additionally, shareholders preferred an annual advisory vote on executive compensation, which the Board of Directors will include in the 2026 meeting.

Stock Buyback
International Bancshares Announces $150 Million Stock Buyback
Positive
Mar 14, 2025

On March 12, 2025, International Bancshares Corporation’s Board of Directors approved a stock repurchase program, authorizing the buyback of up to $150 million of its common stock over a year starting March 15, 2025. This strategic move is likely aimed at enhancing shareholder value and could impact the company’s market positioning by potentially increasing stock value and investor confidence.

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.