Interactive Brokers Group, Inc.
Key Drivers
- High FCF
- Heavy leverage
- Rich multiples
AIAI Summary
IBKR is no longer just a low‑cost broker but a hybrid trading/credit franchise whose profitability now hinges materially on net interest income and securities‑lending demand—making the stock high cash‑conversion and high return in a higher‑rate, stable‑funding environment but highly volatile and solvency‑sensitive if rates or lending demand fall. Monitor NII sensitivity (management: 25bp ≈ $77m; 100bp ≈ $417m), client balances/DART trends and short‑term liquidity versus large payables as the key data points that should drive buy/hold/sell decisions.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •High FCF
- •Heavy leverage
- •Rich multiples
IBKR generates exceptional free cash flow and margins but is hampered by heavy leverage and large liabilities that justify a rich valuation premium despite low ROA.
Price Behavior
Key Price Behavior Insights:
- •Below last-month SMA
- •Near immediate support
- •Resistance at $72–$78
IBKR trades below its last-month SMA (~$69.4) with RSI ~34, holding near support at $65.47 but vulnerable to a break below $64.24 while resistance sits at ~$69.4 and stronger at $72–$78.
Sustained decline from
Sentiment & News
Key News Insights:
- •Operational momentum
- •Global expansion
- •Rich valuation
Interactive Brokers shows durable high-growth operations and international expansion, but a rich valuation and mixed institutional flows leave limited upside and higher risk sensitivity.
Strong compounding and platform breadth support a long-term growth thesis, yet the 32x P/E and active repositioning constrain near-term upside and elevate downside risk
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