International Bancshares (IBOC) AI Stock Analysis

• Market Cap: $4.17B
• Dividend Yield: 2.03%
• Average Volume (3M): 234.86K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.87
• Revenue Growth: 0.99%
• EPS Growth: 4.94%
• Country: US
• Employees: 2,103
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.63
• Shares Outstanding: 62,177,720
• 10 Day Avg. Volume: 223,663
• 30 Day Avg. Volume: 234,862
• PEG Ratio: 13.21
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 5.00
• P/FCF Ratio: 8.75
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 3.76
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 9.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6.74
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $76.00 ▲(8.45% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven by strong financial quality (profitability, low leverage, and dependable cash generation) and an attractive valuation (low P/E with a solid dividend yield). Offsetting these strengths are weak technical signals (below key moving averages with negative momentum) and the notable 2025 revenue decline, which raises durability risk.

Positive Factors

Very low leverage

Very low leverage and rising equity provide a durable capital cushion that reduces regulatory and refinancing risk. This balance-sheet strength supports lending capacity, dividend increases and loss absorption through cycles, while healthy ROE (~11%–17%) preserves franchise resilience.

Strong cash generation

Consistent, high-quality operating and free cash flow creates sustainable internal funding for loans, deposit initiatives and shareholder returns. Reliable cash generation lowers reliance on wholesale funding and gives management flexibility for capital allocation across economic cycles.

High core profitability

Robust net margins and steady net income indicate durable core profitability that can absorb cyclical swings and support reinvestment. Strong margins enhance buffer against credit losses, fund operating initiatives and underpin a capacity to sustain dividends over the medium term.

Negative Factors

2025 revenue decline

A large one-year revenue drop materially raises earnings durability concerns; persistent top-line weakness could compress margins, reduce free cash flow and limit capital return flexibility. Structural revenue pressure would force tougher trade-offs in lending and expense priorities.

Top-line volatility

Meaningful revenue volatility reduces predictability of earnings and complicates multi-year planning. For a bank reliant on net interest and fee income, this instability makes provisioning, credit pacing and strategic investment harder, increasing execution risk over coming quarters.

Regional concentration

Concentration in Texas and U.S.–Mexico border markets concentrates credit and deposit exposure to local economic cycles, trade and policy shifts. Limited geographic diversification can amplify regional downturns, regulatory or demographic shocks and slow portfolio diversification benefits.

International Bancshares Business Overview & Revenue Model

Company Description

International 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 Money

International Bancshares generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Key revenue streams include interest from commercial and consumer loans, mortgage loans, and fees from various banking services such as account maintenance and transaction services. Additionally, the company earns non-interest income from investment services, insurance products, and transaction fees. Significant partnerships with local businesses and community organizations enhance its market reach and customer base, contributing to its overall earnings.

International Bancshares Financial Statement Overview

Summary

Strong overall fundamentals: high and consistent profitability, well-managed balance sheet with very low leverage (debt-to-equity ~0.04 in 2025), and solid operating/free cash flow that closely tracks net income. Main risk is earnings durability due to the sharp 2025 revenue decline (-21.1% YoY).

Income Statement

Profitability is a clear strength, with consistently strong net profit margins (roughly ~29% to ~50% over 2020–2025) and steady net income in the ~$300M–$412M range since 2022. However, the top line is more volatile: revenue grew strongly in 2022–2024, but declined sharply in 2025 (-21.1% YoY), which meaningfully increases earnings durability risk if weakness persists.

Balance Sheet

Balance sheet risk looks well-managed, highlighted by very low leverage in 2025 (debt-to-equity ~0.04, down from ~0.23–0.46 in prior years) alongside rising equity over time. Returns on equity remain healthy (generally ~11%–17%), though they eased in 2025 versus the 2023 peak, suggesting profitability improved less than the capital base recently.

Cash Flow

Cash generation is consistently strong and high-quality: operating cash flow and free cash flow are both solid (2025 free cash flow ~$473M) and free cash flow closely tracks net income (about ~94%–98% across the period). Growth in free cash flow is positive most years (including 2025), though the pace can fluctuate (e.g., a decline in 2021).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	827.08M	1.04B	970.10M	712.91M	620.43M
Gross Profit	827.08M	801.84M	798.87M	653.11M	585.64M
EBITDA	23.35M	531.24M	545.46M	404.46M	347.36M
Net Income	412.29M	409.17M	411.77M	300.23M	253.92M
Balance Sheet
Total Assets	16.58B	15.74B	15.07B	15.50B	16.05B
Cash, Cash Equivalents and Short-Term Investments	0.00	5.34B	5.47B	6.51B	7.42B
Total Debt	119.20M	654.73M	650.03M	576.78M	1.01B
Total Liabilities	13.32B	12.94B	12.62B	13.46B	13.74B
Stockholders Equity	3.25B	2.80B	2.45B	2.04B	2.31B
Cash Flow
Free Cash Flow	472.94M	459.80M	446.94M	368.73M	281.29M
Operating Cash Flow	491.06M	473.95M	474.43M	387.94M	291.68M
Investing Cash Flow	-591.69M	-985.06M	-1.07B	-992.03M	-915.89M
Financing Cash Flow	284.47M	212.71M	-843.89M	-517.43M	1.84B

International Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 70.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBOC, the sentiment is Negative. The current price of 70.08 is below the 20-day moving average (MA) of 71.23, above the 50-day MA of 69.59, and above the 200-day MA of 67.48, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 38.77 is Neutral, neither overbought nor oversold. The STOCH value of 33.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IBOC.

International Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCB	78 Outperform	$3.85B	12.28	9.23%	3.02%	5.63%	65.11%
IBOC	76 Outperform	$4.17B	10.13	14.31%	2.03%	0.99%	4.94%
SFBS	75 Outperform	$4.42B	16.01	15.24%	1.82%	3.97%	24.91%
ASB	74 Outperform	$4.38B	9.54	3.78%	3.51%	-1.44%	-21.65%
TCBI	71 Outperform	$4.21B	14.02	9.44%	―	5.19%	3454.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BANF	65 Neutral	$3.69B	15.47	13.85%	1.70%	6.55%	12.94%

International Bancshares Corporate Events

International Bancshares boosts semi-annual dividend to shareholders

On January 30, 2026, International Bancshares Corporation’s Board of Directors approved a semi-annual cash dividend of $0.73 per share on its common stock, representing a 4.3% increase over the prior dividend. The dividend will be paid on February 27, 2026, to shareholders of record as of the close of business on February 13, 2026, signaling the company’s continued focus on returning capital to shareholders and indicating confidence in its financial performance and capital position.

The most recent analyst rating on (IBOC) stock is a Hold with a $78.00 price target. To see the full list of analyst forecasts on International Bancshares stock, see the IBOC Stock Forecast page.