International Bancshares (IBOC) AI Stock Analysis

• Market Cap: $4.36B
• Dividend Yield: 2.03%
• Average Volume (3M): 234.86K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.86
• Revenue Growth: 0.99%
• EPS Growth: 4.94%
• Country: US
• Employees: 2,103
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.74
• Shares Outstanding: 62,163,887
• 10 Day Avg. Volume: 223,663
• 30 Day Avg. Volume: 234,862
• 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: 0.98
• Enterprise Value/Revenue: 4.07
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 7.92
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $69.00 ▼(-1.54% Downside)

International Bancshares' strong financial performance is the most significant factor, supported by robust revenue growth and profitability. However, technical analysis indicates bearish momentum, which negatively impacts the overall score. The stock's valuation is favorable, with a low P/E ratio and a decent dividend yield, providing some balance to the technical weakness.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and sustainability.

Profitability

High profitability margins reflect efficient operations and cost management, ensuring financial stability and competitive advantage.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt management.

Negative Factors

Decreasing Equity Ratio

A decreasing equity ratio could indicate rising liabilities, which may affect financial stability and increase risk if not managed.

Gross Profit Margin Decline

A declining gross profit margin may signal increasing costs or pricing pressures, potentially impacting long-term profitability.

Cash Conversion Efficiency

Low cash conversion efficiency may hinder liquidity and operational flexibility, affecting the company's ability to fund growth initiatives.

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

International Bancshares exhibits strong financial performance with impressive revenue growth and profitability metrics. The company maintains a stable balance sheet with low leverage and a strong return on equity. Cash flow generation is robust, although there is room for improvement in cash conversion efficiency. Continued focus on maintaining profit margins and managing liabilities will be crucial for sustaining financial health.

Income Statement

International Bancshares has demonstrated strong revenue growth with a TTM revenue growth rate of 58.8%. The company maintains robust profitability with a net profit margin of 54.2% and an EBIT margin of 70.0% in the TTM period. These metrics indicate a solid financial performance, driven by efficient operations and cost management. However, the gross profit margin has slightly decreased over time, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.25 in the most recent annual report, indicating prudent leverage management. The return on equity remains strong at 14.2%, showcasing effective use of equity to generate profits. However, the equity ratio has been decreasing, suggesting a potential increase in liabilities relative to assets, which should be monitored.

Cash Flow

The cash flow statement shows a healthy free cash flow growth rate of 58.9% in the TTM period, indicating strong cash generation capabilities. The free cash flow to net income ratio of 1.01 suggests that the company is effectively converting its earnings into cash. However, the operating cash flow to net income ratio is low, which might indicate potential issues in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	1.04B	970.10M	712.91M	620.43M	577.59M
Gross Profit	821.72M	801.84M	798.87M	653.11M	585.64M	493.09M
EBITDA	539.61M	531.24M	545.46M	404.46M	347.36M	240.08M
Net Income	420.49M	409.17M	411.77M	300.23M	253.92M	167.32M
Balance Sheet
Total Assets	16.55B	15.74B	15.07B	15.50B	16.05B	14.03B
Cash, Cash Equivalents and Short-Term Investments	5.44B	5.34B	5.47B	6.51B	7.42B	5.08B
Total Debt	783.63M	654.73M	650.03M	576.78M	1.01B	999.12M
Total Liabilities	13.42B	12.94B	12.62B	13.46B	13.74B	11.85B
Stockholders Equity	3.13B	2.80B	2.45B	2.04B	2.31B	2.18B
Cash Flow
Free Cash Flow	453.46M	459.80M	446.94M	368.73M	281.29M	298.41M
Operating Cash Flow	466.00M	473.95M	474.43M	387.94M	291.68M	305.13M
Investing Cash Flow	-878.94M	-985.06M	-1.07B	-992.03M	-915.89M	-343.70M
Financing Cash Flow	222.43M	212.71M	-843.89M	-517.43M	1.84B	1.78B

International Bancshares Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBOC, the sentiment is Positive. The current price of 70.08 is above the 20-day moving average (MA) of 69.72, above the 50-day MA of 67.90, and above the 200-day MA of 66.35, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 80.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBOC.

International Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBI	79 Outperform	$4.45B	15.97	8.60%	―	5.19%	3454.95%
UCB	77 Outperform	$4.02B	13.07	9.01%	3.02%	5.63%	65.11%
ASB	74 Outperform	$4.45B	28.50	3.78%	3.51%	-1.44%	-21.65%
SFBS	74 Outperform	$4.17B	16.21	15.24%	1.82%	3.97%	24.91%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IBOC	67 Neutral	$4.36B	10.35	14.31%	2.03%	0.99%	4.94%
BANF	64 Neutral	$3.74B	15.70	14.11%	1.70%	6.55%	12.94%