Interactive Brokers Group, Inc. IBKR
Verdict: Hold. Fair value $54.44 against a price of $71.57 on 6 Jan 2026, 24% below the price.
In plain words
The case for: Narrow competitive moat provides durability. Industry tailwinds with growing market.
The case against: Intense competitive pressure could compress margins. Revenue more than doubled from $4.19B in 2022 to $9.32B in 2024. For a broker, this is likely.... The provided financial data is high-level, lacking detailed balance sheet line items (e.g.,....
Main risks
- Significant deceleration in revenue growth in the most recent year (from 85.9% in 2023 to 19.6% in 2024), raising questions about future growth sustainability.
- Net profit margin has compressed from 10.5% in 2021 to 8.2% in 2024, indicating potential competitive pressure or a shift in business mix.
- Standard profitability and return metrics (Operating Margin, ROIC, ROIIC) are unreliable due to the nature of financial services cash flows, making true capital efficiency difficult to assess externally.
- Intense competitive environment
- Valuation prices in optimistic scenario (limited margin for error)