Introduction
Interactive Brokers Group (IBKR) is a premier electronic broker leveraging advanced algorithmic trading systems to serve over 3.3 million clients worldwide. Known for ultra-low costs and direct market access, IBKR processes an average of 2.6 million trades per day, making it a heavy hitter in Europe’s online brokerage ecosystem.
One of the Best Brokers in Europe
With operations in 36 countries and 28 currencies, IBKR’s European footprint rivals any local broker. Its platform supports stocks, options, futures, ETFs, forex, and even crypto, offering retail and institutional clients unparalleled market access.
Financial Performance
- Revenue (TTM): $5.4 billion
- Net Income (TTM): $793 million
- Diluted EPS (TTM): 7.25
These figures reflect a strong growth trajectory, with Q4 2024 commission revenue up 37% to $477 million and net interest income rising 11% to $807 million.
Key Highlights
- Commissions Revenue: 37% YoY growth to $477 million
- Customer Trading Volumes: Stocks +65%, Options +32%
- Customer Equity: $568.2 billion, up 33% YoY
- Accounts: 3.34 million, +30% YoY
Profitability and Valuation
- Profit Margin: 14.68%
- Return on Equity: 22.25%
- P/E (TTM): 28.4× (based on $205.83 share price)
At a P/E multiple below many fintech peers, IBKR appears attractively valued given its durable margins and cash-flow generation.
Debt and Leverage
IBKR maintains a conservative balance sheet, with a leverage ratio of 16.74 times, reflecting prudent risk controls on margin lending .
Growth Prospects
The firm continues to expand its product suite—launching UK crypto trading in May 2024 and prediction markets in late 2024—while its Lite offering gains traction in Europe.
Technical Analysis
Shares have rebounded above their 50-day moving average after a surge in trading activity, registering a Composite Rating of 98 and EPS Rating of 66 on Investors Business Daily’s system.
Potential Catalysts
- Stock Split: Four-for-one split effective June 18, 2025
- Crypto and Prediction Markets Expansion: Drives new revenue streams
- AI-Driven Trading Tools: Further differentiates platform capabilities
Leadership and Strategic Direction
CEO Milan Galik emphasizes capital returns—raising the dividend to $0.32 per share—and selective acquisitions to bolster global expansion.
Impact of Macroeconomic Factors
While U.S. tariff concerns and Fed rate talks create volatility, IBKR’s diversified revenue base and global footprint mitigate single-market risk.
Total Addressable Market (TAM)
The European online trading platform market was valued at USD 10.15 billion in 2024 and is projected to reach USD 10.82 billion in 2025, growing at a CAGR of 6.4% through 2032. This expansion underscores substantial runway for market share gains.
Market Sentiment and Engagement
Analyst sentiment remains bullish, with an average brokerage recommendation (ABR) of 1.22 (Strong Buy). Social media and institutional flows have shown heightened engagement on IBKR catalysts.
Conclusions, Target Price Objectives, and Stop Losses
Based on consensus forecasts and technicals, here are our recommended levels:
- Short-Term (6 months) Target: $198
- Medium-Term (12 months) Target: $206.33
- Long-Term (3 years) Target: $243
- Stop Loss: $185 (approx. 10% below current $205.83 close)
Discover More
For more insights into analyzing value and growth stocks poised for sustainable growth, consider this expert guide. It provides valuable strategies for identifying high-potential value and growth stocks.
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This analysis serves as information only and should not be interpreted as investment advice. Conduct your own research or consult with a financial advisor before making investment decisions.
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