The Fundamental Case for and Against Interactive Brokers Group, Inc. (IBKR)

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is in the highlights and many would want to know whether now might be a good time for it to present much upside. Now trading with a market value of 28.86B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. Everyone seems to have their own opinion of this stock. But what do the numbers really say? We think it’s a great time to take a fresh look.

Interactive Brokers Group, Inc. (NASDAQ:IBKR) Fundamentals That Matter

It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For IBKR, the company currently has 22.17 billion of cash on the books. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 59.09 billion in total assets, balanced by 52.39 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.

Interactive Brokers Group, Inc. (IBKR) saw 13 million in free cash flow last quarter, representing a quarterly net change in cash of 216 million. Perhaps most importantly where cash movements are concerned, the company saw about 21 million in net operating cash flow.

Interactive Brokers Group, Inc. (NASDAQ:IBKR) Revenue Growth Potential

As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 583 million in total revenues. That represents a quarterly year/year change in revenues of 0.62 in sequential terms, the IBKR saw sales decline by -0.02.

But what about the bottom line? After all, that’s what really matters in the end. Interactive Brokers Group, Inc. (IBKR) is intriguing when broken down to its core data. For shareholders, given the total diluted outstanding shares of 72.51 million, this means overall earnings per share of 0.63. Note, this compares with a consensus analyst forecast of 0.54 in earnings per share for its next fiscal quarterly report.

Is Interactive Brokers Group, Inc. (NASDAQ:IBKR) Valuation Attractive

Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 2.51 in total earnings per share. If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 28.10. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Interactive Brokers Group, Inc..

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