International Bancshares (IBOC) AI Stock Analysis

• Market Cap: $4.31B
• Dividend Yield: 2.02%
• Average Volume (3M): 203.53K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.95
• Revenue Growth: 1.99%
• EPS Growth: 2.08%
• Country: US
• Employees: 2,103
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.61
• Shares Outstanding: 62,156,400
• 10 Day Avg. Volume: 177,480
• 30 Day Avg. Volume: 203,535
• PEG Ratio: -12.73
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 3.77
• P/FCF Ratio: 8.54
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 4.02
• Enterprise Value/Gross Profit: 5.19
• Enterprise Value/Ebitda: 7.92
• 1Y Price Target: $77.00
• Price Target Upside: 11.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $77.00 ▲(11.05% Upside)

International Bancshares' strong financial performance is the most significant factor, supported by stable profitability and manageable leverage. However, incomplete technical analysis data and mixed corporate events slightly dampen the overall score. The valuation is reasonable, but the modest dividend yield offers limited income potential.

International Bancshares Business Overview & Revenue Model

Company Description

International Bancshares Corporation (IBOC) is a financial holding company based in Laredo, Texas, primarily engaged in commercial banking operations through its subsidiaries. The company operates in the banking sector, offering a range of financial products and services including personal and commercial loans, deposit accounts, and treasury management. IBOC serves a diverse clientele including individuals, small to medium-sized businesses, and larger enterprises, with a strong presence in the U.S. and Mexico.

How the Company Makes Money

International Bancshares generates revenue primarily through net interest income, which is earned from the difference between the interest it pays on deposits and the interest it receives on loans. This includes various loan types such as commercial, consumer, and mortgage loans. Additionally, the company earns non-interest income from fees associated with account services, transaction processing, and other banking services. Significant partnerships with local businesses and government entities enhance its customer base and service offerings, contributing to its overall financial performance.

International Bancshares Financial Statement Overview

Summary

International Bancshares exhibits strong financial health with robust revenue growth and profitability. The balance sheet is stable with manageable leverage, though there is moderate reliance on debt. Cash flow generation is solid, but there are signs of pressure in converting income to cash. Overall, the company is well-positioned but should monitor operational efficiency and cash flow conversion closely.

Income Statement

International Bancshares has demonstrated strong revenue growth with a 23.4% increase in TTM, supported by healthy gross and net profit margins of 77.6% and 39.5% respectively. The EBIT and EBITDA margins are robust at 48.7% and 50.8%, indicating efficient operational management. However, the slight decline in EBIT margin from previous periods suggests potential pressure on operational efficiency.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.26, indicating prudent leverage. Return on equity is strong at 14.4%, reflecting effective use of shareholder funds. However, the equity ratio of 18.4% suggests a moderate reliance on debt financing, which could pose risks if market conditions change.

Cash Flow

Operating cash flow remains strong, but free cash flow has seen a slight decline of 2.8% in the TTM period. The operating cash flow to net income ratio is low at 0.036, indicating potential challenges in converting income into cash. Nevertheless, the free cash flow to net income ratio is high at 96.5%, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	1.04B	974.09M	712.91M	620.43M	577.59M
Gross Profit	808.64M	801.84M	798.87M	653.11M	585.64M	493.09M
EBITDA	529.98M	531.24M	545.46M	404.46M	347.36M	240.08M
Net Income	411.89M	409.17M	411.77M	300.23M	253.92M	167.32M
Balance Sheet
Total Assets	16.46B	15.74B	15.07B	15.50B	16.05B	14.03B
Cash, Cash Equivalents and Short-Term Investments	735.12M	5.34B	5.47B	6.51B	7.42B	5.08B
Total Debt	785.46M	654.73M	650.03M	576.78M	1.01B	999.12M
Total Liabilities	13.44B	12.94B	12.62B	13.46B	13.74B	11.85B
Stockholders Equity	3.02B	2.80B	2.45B	2.04B	2.31B	2.18B
Cash Flow
Free Cash Flow	450.81M	459.80M	446.94M	368.73M	281.29M	298.41M
Operating Cash Flow	467.32M	473.95M	474.43M	387.94M	291.68M	305.13M
Investing Cash Flow	-937.25M	-985.06M	-1.07B	-992.03M	-915.89M	-343.70M
Financing Cash Flow	409.69M	212.71M	-843.89M	-517.43M	1.84B	1.78B

International Bancshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.34
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 69.34 is below the 20-day moving average (MA) of 70.93, below the 50-day MA of 69.57, and above the 200-day MA of 65.07, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 11.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBOC.

International Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AX	81 Outperform	4.95B	11.74	16.15%	―	9.00%	-2.90%
ABCB	79 Outperform	5.09B	13.00	9.99%	1.01%	5.95%	25.95%
AUB	77 Outperform	5.02B	16.89	6.65%	3.86%	37.25%	-8.67%
BANF	68 Neutral	4.37B	18.61	13.53%	1.40%	9.63%	15.57%
IBOC	68 Neutral	$4.31B	10.41	14.71%	2.02%	1.99%	2.08%
TFSL	66 Neutral	3.70B	44.97	4.41%	8.58%	5.76%	2.70%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

International Bancshares Corporate Events

International Bancshares Amends By-Laws Affecting Shareholder Rights

On August 6, 2025, International Bancshares Corporation (IBC) amended its By-Laws to require shareholders or groups to own at least three percent of its common stock to initiate derivative proceedings. The amendments also designate specific courts as exclusive forums for legal claims and waive the right to a jury trial for internal claims, impacting shareholder rights and governance.

International Bancshares Announces Semi-Annual Cash Dividend

On August 1, 2025, International Bancshares Corporation announced that its Board of Directors approved a semi-annual cash dividend of seventy cents per share for its shareholders. This decision reflects the company’s commitment to providing returns to its investors and may influence its market positioning by potentially enhancing shareholder value.

International Bancshares Holds Annual Shareholders Meeting

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.