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Analyzing Interactive Brokers Group’s March 2018 Numbers

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March 2018 metrics

On April 2, 2018, Interactive Brokers Group (IBKR) reported its financial metrics for March 2018. The company saw a substantial increase of 39% on a YoY basis in its daily average revenue trades (or DARTs). However, compared to February 2018, DARTs fell 11%. The trade war fears due to President Trump’s announcement regarding the imposition of tariffs could be the main reason for the decline in DARTs compared to February 2018.

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Interactive Brokers saw a substantial increase of 28% in client accounts in March 2018 on a YoY basis. However, compared to February 2018, the company saw a 2% rise. Thus, a rise in the client accounts could lead to a rise in trading volumes for the company moving forward, which could boost its revenues.

Other metrics

As of March 31, 2018, Interactive Brokers reported client margin loan balances of $29.3 billion, a rise of 5% compared to February 2018 and 40% on a YoY basis. The company reported client credit balances of $46.9 billion as of March 2018, a YoY increase of 7%. However, compared to February 2018, the number declined 1%.

The price-to-sales ratio of IBKR is 14.54x on an LTM (last-12-month) basis, and peers (XLF) Goldman Sachs (GS), J.P. Morgan Chase (JPM), and Morgan Stanley (MS) have ratios of 2.19x, 5.75x, and 2.16x, respectively, on an LTM basis.

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