Interactive Brokers is down -2.12

This post is geared to all Interactive Brokers management as well as to investors considering exiting their position in the enterprise. I will evaluate if Interactive Brokers shares are sensibly priced going into August and whether management should be worried. Interactive Brokers Piotroski F Score is 6 - Healthy. Given the investment horizon of 30 days, Interactive Brokers is expected to under-perform the market. In addition to that, the company is 9.223372036854776E16 times more volatile than its market benchmark. It trades about -0.09 of its total potential returns per unit of risk. The market is currently generating roughly 0.0 per unit of volatility. We found thirty-six available reported financial drivers for Interactive Brokers which can be compared to its competitors. To make sure the equity is not overpriced, please check out all Interactive Brokers fundamentals including its Net Income, Price to Earnings To Growth, Five Year Return, as well as the relationship between Current Ratio and Retained Earnings . Given that Interactive Brokers has Price to Earning of 33.41X, we strongly advise you confirm Interactive Brokers regular market performance to make sure the company can sustain itself down the road. Use Interactive Brokers to protect your portfolios against small markets fluctuations. The stock experiences unexpected downward movement. The market is reacting to new fundamentals. Check odds of Interactive Brokers to be traded at $50.5 in 30 days.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

INTERACTIVE BROKE currently holds roughly 29.76B in cash with 688M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 396.39. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about $0.2 per share. About 82.0% of the company shares are owned by institutional investors. The book value of Interactive Brokers was currently reported as 16.08. The company has Price/Earnings To Growth (PEG) ratio of 0.87. Interactive Brokers last dividend was issued on 2018-08-30.
Investing in Interactive Brokers, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Interactive Brokers along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Interactive Brokers' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Interactive Brokers. Your research has to be compared to or analyzed against Interactive Brokers' peers to derive any actionable benefits. When done correctly, Interactive Brokers' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Interactive Brokers.

How important is Interactive Brokers's Liquidity

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.

Interactive Brokers Correlation with Peers

Investors in Interactive can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Interactive Brokers Group. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Interactive Brokers and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Interactive is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Interactive for more details

A Deeper Perspective On Interactive Brokers

Interactive Brokers price decrease over the last few months may raise some interest from investors. The Stock closed today at a share price of 52.47 on 539480 in trading volume. The company directors and management were not very successful in positioning the corporation components to exploit market volatility in June. However, diversifying your holdings with Interactive Brokers or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.6097. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Interactive Brokers maintains retained earnings of 145m. Interactive Brokers is trading at 52.60 which is 2.12% down. Opened at 52.60. Interactive Brokers Book Value per Share is increasing over the last 5 years. The latest value of Interactive Brokers Book Value per Share is 8.71. Also, Interactive Brokers Invested Capital is increasing over the last 5 years.
 2014 2015 2016 2018 2019 (projected)
Interactive Brokers Cost of Revenue 212,000,000  231,000,000  244,000,000  280,600,000  301,823,833 
Interactive Brokers Consolidated Income 459,000,000  415,000,000  699,000,000  803,850,000  770,277,399 
All in all, our immediate 'Buy vs. Hold vs. Sell' recommendation on the enterprise is Strong Sell. We believe Interactive Brokers is overvalued with below average probability of distress for the next two years.

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Editorial Staff

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.

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