Interactive Brokers (IBKR): Massive Cash Flow & Dividend Safety | 2 Minute Analysis

Key Concepts:

• Interactive Brokers Group (IBKR)
• Seeking Alpha Quant Rating
• Valuation Grade
• Growth Grade
• Profitability Grade
• Momentum Grade
• Dividend Grades (Safety, Growth, Yield, Consistency)
• Price to Cash Flow
• PEG Non-GAAP Forward Ratio
• Revenue Growth Year-over-Year
• Gross Profit Margin
• One-Year Price Performance
• Earnings Per Share (EPS) Revisions
• Revenue Revisions
• Dividend Yield
• Cash from Operations

Interactive Brokers Group (IBKR) Stock Analysis

This analysis provides a detailed breakdown of Interactive Brokers Group (IBKR) based on Seeking Alpha's quant rating system and analyst ratings, focusing on key financial metrics and performance indicators.

Quant Rating and Analyst Consensus

• Seeking Alpha Quant Rating: Currently a "Hold."
• Seeking Alpha Analyst Aggregate Rating: "Buy" (based on five analysts in the last 90 days).
• Wall Street Analyst Rating: "Buy" (based on 11 analysts in the last 90 days).
  • Note: Information on how Seeking Alpha's Quant system and analysts outperform the market is available via a link in the video description.

Valuation

• Overall Valuation Grade: D-minus.
• Price to Cash Flow: 1.80, which appears favorable when compared to the sector average of 13.29.
• PEG Non-GAAP Forward Ratio: 2.14, which is higher than the sector average of 1.03, indicating potential overvaluation relative to its peers.

Growth

• Overall Growth Grade: A-minus.
• Revenue Growth Year-over-Year: 21.3%, significantly outperforming the sector average of 8.4%.

Profitability

• Overall Profitability Grade: A-plus.
• Gross Profit Margin: 91.89%, substantially higher than the sector average of 60.73%.

Momentum

• Overall Momentum Grade: A-minus.
• One-Year Price Performance: 38.59%, a strong performance compared to the sector's negative 5.57%.
• Revisions Grade: B-plus.
  • EPS Revisions (last 3 months): Eight up revisions and zero down revisions.
  • Revenue Revisions (last 3 months): Four up revisions and zero down revisions.

Dividends

• Dividend Yield: 0.51%.
• Dividend Grades:
  • Safety: A-minus.
  • Growth: C-plus.
  • Yield: A-minus.
  • Consistency: C-minus.
• Dividend Safety: Supported by a strong Cash from Operations of $16 billion, significantly exceeding the sector average of $187.69 million, indicating robust safety for the dividend.

Important Disclaimers

The video transcript includes a disclaimer stating that the content is for informational purposes only and does not constitute personal investment advice. The presenter's opinions may not reflect Seeking Alpha's overall views. Investors are solely responsible for their investment decisions based on their individual objectives and financial situations. Past performance is not indicative of future results. Seeking Alpha is not a licensed securities dealer, broker, or investment advisor.

Conclusion

Interactive Brokers Group (IBKR) presents a mixed financial profile. While its valuation metrics, particularly the PEG ratio, suggest potential overvaluation, the company demonstrates exceptional strength in growth, profitability, and momentum. Its revenue growth and gross profit margins significantly outpace sector averages, and its stock performance has been robust. The dividend, though modest in yield, is supported by strong cash flow generation. Analyst sentiment is generally positive, with a "Buy" consensus from both Seeking Alpha analysts and Wall Street. The Seeking Alpha Quant rating, however, currently advises a "Hold," highlighting the need for careful consideration of all factors.