International Bancshares (IBOC) AI Stock Analysis

• Market Cap: $4.51B
• Dividend Yield: 1.93%
• Average Volume (3M): 234.86K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.88
• 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: 0.99
• Enterprise Value/Revenue: 4.27
• Enterprise Value/Gross Profit: 5.44
• Enterprise Value/Ebitda: 8.29
• 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 ▼(-4.83% 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 (IBOC) is a financial holding company headquartered in Laredo, Texas, primarily engaged in the banking sector. It operates through its subsidiaries, which include commercial and retail banking services, as well as other financial services. IBOC serves a diverse customer base in the border region and beyond, providing products such as personal and business loans, deposits, and various investment services, while also focusing on the Hispanic community.

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 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	1.05B	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: 72.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 72.5 is above the 20-day moving average (MA) of 67.49, above the 50-day MA of 67.22, and above the 200-day MA of 65.77, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 68.62 is Neutral, neither overbought nor oversold. The STOCH value of 90.36 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	$4.36B	15.63	8.60%	―	5.19%	3454.95%
UCB	77 Outperform	$3.94B	12.81	9.01%	2.99%	5.63%	65.11%
ASB	74 Outperform	$4.50B	29.21	3.78%	3.43%	-1.44%	-21.65%
SFBS	69 Neutral	$4.07B	15.94	15.24%	1.80%	3.97%	24.91%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IBOC	67 Neutral	$4.51B	10.74	14.31%	1.93%	0.99%	4.94%
BANF	64 Neutral	$3.78B	16.11	14.11%	1.65%	6.55%	12.94%

International Bancshares Corporate Events

International Bancshares Reports Strong Q3 2025 Earnings

International Bancshares Corporation (IBC) is a prominent independent bank holding company based in Laredo, Texas, operating within the financial sector with a significant presence across Texas and Oklahoma through its extensive network of facilities and ATMs.