Interactive Brokers (IBKR)
Financials · $132B market cap · SEC CIK 0001381197
ahead of 21% of the S&P 500 · #65 of 76 in Financials
Next reports on Jan 18, 2027, after the close, with analysts expecting $0.75 in earnings per share.
52-week range $58.95 to $98.75. 21% below its 52-week high and 32% above its low.
The case for IBKR
- Revenue growing 15.9% year over year.
- Earnings per share up 25.7%.
- Has compounded revenue at 33.3% a year over five years.
- Return on equity of 20%.
- Gross margin of 57% absorbs cost shocks.
The case against
- Expensive for its growth: 112.3× earnings, where 10%+ a year of growth would justify about 24×.
- Priced at 23× book value. Very little hard asset backing here.
- Growth is slowing: revenue up 15.9% this year against 33.3% a year over five.
- Stability is weak (28/100): beta 1.40, a 40% swing over the year.
- Price/sales of 11.3× is higher than 95% of Financials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 4 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 91 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 47 |
| Momentumhow the price has behaved lately | 43 |
| Stabilityhow violently it moves, what it owes and what it pays you | 28 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +15.9% |
|---|---|
| Over 5 years | +33.3% a year |
| FY2025 revenue | $6.2B (+20%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? No, slipping
| Gross margin | 57% |
|---|---|
| Operating margin | 47% |
| Net margin, FY24 → FY25 → now | 65.7% → 70.2% → 10.0% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $5.0B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 112.3× |
|---|---|
| Fair P/E for its growth | 24× |
| Price / book | 23.42× |
| Fair P/B for its ROE | 2.0× |
| Forward P/E | 24.0× |
| EV / EBITDA | 28.8× |
At 112.3× earnings it trades well above the 24× that 10%+ a year of growth would justify. At 23.42× book it trades well above the 2.0× that its 20% return on equity would justify; for a financial company that counts for more than earnings.
The financials, five years deep
Pulled from Interactive Brokers's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $6.2B | $5.2B | $4.3B | $3.1B | $2.7B |
| Change on the year | +20% | +19% | +42% | +13% | — |
| Profit margins | |||||
| Net margin | 70.2% | 65.7% | 64.8% | 60.1% | 60.3% |
| Debt vs. cash | |||||
| Cash | $5.0B | $3.6B | $3.8B | $3.4B | $2.4B |
What Interactive Brokers says it does
2 Overview 2 Available Information 2 Our Organizational Structure and Overview of Recapitalization Transactions 3 Nature of Operations 4 Technology 10 Clearing and Margining 12 Risk Management Activities 12 Customers 13 Human Capital 13 Competition 15 Regulation