Interactive Brokers currently has a performance score of 14 out of 100. Its market volatility, or Beta, is just 0.11, indicating that its stock price doesn't fluctuate much compared to the broader market. When the market rises, Interactive Brokers' gains are likely to be smaller, but in a downturn, its losses should also be less severe. To better understand the stock's potential, consider exploring its potential upside and examining the relationship between its kurtosis and typical daily price. This analysis can help you decide if Interactive Brokers' current trends might change direction.
Main Points
Interactive Brokers Group (NASDAQ: IBKR) is catching the eye of savvy investors as it stands out in the bustling capital markets sector. With a robust market capitalization of 78.3B and a net income from continuing operations of 2.8B, the company showcases a solid financial foundation. Despite a recent price change of -1.95, which might seem concerning at first glance, this dip could present a strategic entry point for those looking to capitalize on potential future gains. The company's enterprise value to revenue ratio of 1.85 further underscores its efficient revenue generation relative to its valuation, making it a compelling consideration for investors seeking growth opportunities.Buy low, sell high—it's the age-old mantra of savvy investors, and Interactive Brokers (NASDAQ: IBKR) might just be the ticket in today's bustling market. With a robust operating income of $3.6 billion and a profit margin of 14.12%, this company stands out in the capital markets industry. Despite the market's upward momentum, IBKR's stock is trading at a day typical price of $183.21, offering a potential upside given Wall Street's target price of $209.30. The analyst consensus is a strong buy, bolstered by a solid quarterly earnings growth of 7.1%. With a book value of $38.07 per share, Interactive Brokers presents a compelling case for investors seeking a blend of stability and growth potential. Currently, Interactive Brokers' net income per share remains relatively steady compared to last year. As of January 14, 2025, the company's capital expenditure to revenue ratio is expected to increase to 0.01, while the dividend yield might decrease by the same margin. With growing interest in the capital markets, it's a good time to evaluate Interactive Brokers Group. I'll delve into this stock and explore the latest sentiment among retail investors. Additionally, I'll discuss key factors influencing Interactive Brokers' offerings and how these might affect the company's prospects for active traders this year.
Interactive Brokers
financial leverage refers to using borrowed capital as a funding source to finance Interactive Brokers Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Interactive Brokers financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Interactive Brokers' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Interactive Brokers' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Interactive Brokers's total debt and its cash.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Interactive Brokers has an asset utilization ratio of 3.44 percent. This connotes that the Company is making $0.0344 for each dollar of assets. An increasing asset utilization means that Interactive Brokers Group is more efficient with each dollar of assets it utilizes for everyday operations. Warren Buffett once said, "Be fearful when others are greedy and greedy when others are fearful." This sentiment rings true for Interactive Brokers Group (NASDAQ: IBKR), which stands out as a compelling buy even as the market climbs. With a robust market capitalization of $78.26 billion and a healthy operating income of $3.6 billion, the company is well-positioned within the capital markets industry. Despite a high PEG ratio of 13.10, indicating potential overvaluation, the firm's strong cash flow from operations at $4.54 billion suggests solid financial health. Investors might find the current price levels attractive, especially given the company's impressive earnings per share of 6.43, signaling potential for future growth.
Another small fall for Interactive Brokers
Interactive Brokers Group's stock has seen a slight decline, with its coefficient of variation now at 592.39. This figure, which gauges the stock's volatility against its average return, indicates a reduction in risk compared to previous levels. Although still elevated, this decrease suggests the stock might be stabilizing, offering some comfort to investors dealing with recent ups and downs. As of January 14, 2025, the company maintains a Market Risk Adjusted Performance of 3.14, a risk-adjusted performance of 0.1448, and a Downside Deviation of 1.73. Investors can use technical analysis, including historical prices and volume momentum, to predict future price trends.
For a comprehensive evaluation, consider metrics like the information ratio, potential upside, and kurtosis to determine if the current price of $183.26 per share is justified. With a Jensen Alpha of 0.3494, it's advisable to review the company's ongoing market performance to ensure its long-term viability.Despite the recent dip in Interactive Brokers' stock price, the broader market's upward trend suggests potential opportunities for investors willing to look beyond short-term fluctuations. With a strong analyst consensus rating of "Strong Buy" and a highest estimated target price of
217.34, there appears to be significant confidence in the company's long-term prospects. While the current market value of
183.26 might seem discouraging, the potential upside and robust analyst support indicate that this could be a strategic entry point for those looking to capitalize on future growth. As always, investors should consider their risk tolerance and conduct thorough research before making any investment decisions..
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Interactive Brokers Group. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
