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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 63.4GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.5%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.04%
Trailing Yield
$2.04
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
21%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, INTERNATIONAL BANCSHARES CORP (IBOC) receives a "Hold" rating with a composite score of 54.2/100, ranked #670 out of 4446 stocks. Key factor scores: Quality 63/100, Value 75/100, Momentum 44/100. This is quantitative analysis only — not investment advice.
INTERNATIONAL BANCSHARES CORP (IBOC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does INTERNATIONAL BANCSHARES CORP Do?
International Bancshares Corporation, a financial holding company, provides commercial and retail banking services. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. As of February 28, 2022, the company had 170 branch facilities and 263 ATMs serving 76 communities in Texas and Oklahoma. International Bancshares Corporation was founded in 1966 and is headquartered in Laredo, Texas. INTERNATIONAL BANCSHARES CORP (IBOC) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Dennis E. Nixon and employs approximately 2,170 people, headquartered in Laredo, Texas. With a market capitalization of $4.2B, IBOC is one of the notable companies in the Financials sector.
INTERNATIONAL BANCSHARES CORP (IBOC) Stock Rating — Hold (April 2026)
As of April 2026, INTERNATIONAL BANCSHARES CORP receives a Hold rating with a composite score of 54.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.IBOC ranks #670 out of 4,446 stocks in our coverage universe. Within the Financials sector, INTERNATIONAL BANCSHARES CORP ranks #199 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
IBOC Stock Price and 52-Week Range
INTERNATIONAL BANCSHARES CORP (IBOC) currently trades at $71.68. The stock lost $0.02 (0.0%) in the most recent trading session. The 52-week high for IBOC is $75.44, which means the stock is currently trading -5.0% from its annual peak. The 52-week low is $54.11, putting the stock 32.5% above its annual trough. Recent trading volume was 300K shares, suggesting relatively thin trading activity.
Is IBOC Overvalued or Undervalued? — Valuation Analysis
INTERNATIONAL BANCSHARES CORP (IBOC) carries a value factor score of 75/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 10.47x, compared to the Financials sector average of 14.88x — a discount of 30%. The price-to-book ratio stands at 1.30x, versus the sector average of 1.22x. The price-to-sales ratio is 4.79x, compared to 0.90x for the average Financials stock. On an enterprise value basis, IBOC trades at 8.31x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, INTERNATIONAL BANCSHARES CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
INTERNATIONAL BANCSHARES CORP Profitability — ROE, Margins, and Quality Score
INTERNATIONAL BANCSHARES CORP (IBOC) earns a quality factor score of 63/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.5%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 2.4% versus the sector average of 1.2%.
On a margin basis, INTERNATIONAL BANCSHARES CORP reports gross margins of 0.0%. The operating margin is 57.7% (sector: 21.8%). Net profit margin stands at 45.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 5.1% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
IBOC Debt, Balance Sheet, and Financial Health
INTERNATIONAL BANCSHARES CORP has a debt-to-equity ratio of 410.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.24x, suggesting adequate working capital coverage. Total debt on the balance sheet is $784M. Cash and equivalents stand at $589M.
IBOC has a beta of 0.75, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for INTERNATIONAL BANCSHARES CORP is 85/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
INTERNATIONAL BANCSHARES CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, INTERNATIONAL BANCSHARES CORP reported revenue of $885M and earnings per share (EPS) of $6.63. Net income for the quarter was $405M. Gross margin was 0.0%. Operating income came in at $511M.
In FY 2025, INTERNATIONAL BANCSHARES CORP reported revenue of $886M and earnings per share (EPS) of $6.63. Net income for the quarter was $412M. Revenue grew 2.3% year-over-year compared to FY 2024. Operating income came in at $520M.
In Q3 2025, INTERNATIONAL BANCSHARES CORP reported revenue of $227M and earnings per share (EPS) of $1.74. Net income for the quarter was $108M. Revenue grew 1.9% year-over-year compared to Q3 2024. Operating income came in at $136M.
In Q2 2025, INTERNATIONAL BANCSHARES CORP reported revenue of $221M and earnings per share (EPS) of $1.61. Net income for the quarter was $100M. Revenue grew 2.5% year-over-year compared to Q2 2024. Operating income came in at $126M.
Over the past 8 quarters, INTERNATIONAL BANCSHARES CORP has demonstrated a growth trajectory, with revenue expanding from $216M to $885M. Investors analyzing IBOC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
IBOC Dividend Yield and Income Analysis
INTERNATIONAL BANCSHARES CORP (IBOC) currently pays a dividend yield of 2.0%. At this yield, a $10,000 investment in IBOC stock would generate approximately $$204.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning IBOC yields less than the typical sector peer. With a net margin of 45.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
IBOC Momentum and Technical Analysis Profile
INTERNATIONAL BANCSHARES CORP (IBOC) has a momentum factor score of 44/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 12/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
IBOC vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing IBOC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full IBOC vs S&P 500 (SPY) comparison to assess how INTERNATIONAL BANCSHARES CORP stacks up against the broader market across all factor dimensions.
IBOC Next Earnings Date
No upcoming earnings date has been announced for INTERNATIONAL BANCSHARES CORP (IBOC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy IBOC? — Investment Thesis Summary
INTERNATIONAL BANCSHARES CORP presents a balanced picture with arguments on both sides. The quality score of 63/100 indicates above-average profitability and business fundamentals. The value score of 75/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 85/100) reduces downside risk.
In summary, INTERNATIONAL BANCSHARES CORP (IBOC) earns a Hold rating with a composite score of 54.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on IBOC stock.
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Institutional Research Dossier
INTERNATIONAL BANCSHARES CORP (IBOC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
International Bancshares Corporation (IBOC) currently holds a 'Hold' rating, a reflection of its solid profitability metrics offset by concerns regarding its capital allocation and moderate growth prospects. While the company exhibits strong value characteristics and stability, its relatively weak investment score and momentum suggest limited near-term upside potential. The current valuation appears fair, considering its financial performance and sector comparisons, but significant catalysts for outperformance are not readily apparent.
IBOC's impressive profitability and efficiency metrics, particularly its high operating and net margins, are noteworthy. However, the company's comparatively high debt-to-equity ratio and lower revenue growth compared to the sector raise concerns about its long-term financial health and growth trajectory. The 'Hold' rating acknowledges IBOC's strengths while also accounting for its weaknesses, suggesting a neutral stance until clearer signals emerge regarding its future performance and strategic direction.
Business Strategy & Overview
International Bancshares Corporation operates as a community bank, primarily serving the Texas and Oklahoma markets. The company's core business revolves around traditional banking activities, including deposit gathering and loan origination. IBOC differentiates itself through its focus on international banking services, catering to businesses and individuals engaged in cross-border transactions, particularly those related to trade with Mexico. This specialization provides a niche market and potentially higher margins compared to purely domestic banking operations.
IBOC's strategy appears to be centered on organic growth through expansion within its existing geographic footprint and by deepening relationships with existing customers. The company's extensive branch network and ATM presence in Texas and Oklahoma provide a solid foundation for attracting and retaining customers. Furthermore, its investment in internet banking services reflects an effort to adapt to evolving customer preferences and enhance accessibility.
The company's revenue streams are primarily derived from net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Additionally, IBOC generates fee income from various banking services, including international banking transactions, credit card services, and other customary banking activities. The company's profitability is heavily influenced by interest rate spreads, loan quality, and operational efficiency.
IBOC's competitive landscape includes both large national banks and smaller regional and community banks. The company's ability to compete effectively depends on its ability to offer competitive interest rates, provide superior customer service, and maintain strong relationships with its local communities. Its focus on international banking provides a degree of differentiation, but it also exposes the company to risks associated with international trade and economic conditions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
5.1%
Sector: 9.4%
-45% VS SCTR
Economic Moat Analysis
International Bancshares Corporation likely possesses a narrow economic moat, primarily derived from its established presence and brand recognition within its specific geographic markets in Texas and Oklahoma. Community banks often benefit from strong local relationships and customer loyalty, creating a barrier to entry for larger national banks that may lack the same level of community engagement. This localized advantage allows IBOC to maintain a stable deposit base and generate consistent loan demand.
The company's focus on international banking services, particularly those related to trade with Mexico, further strengthens its competitive position. This specialization requires expertise and infrastructure that may not be readily available to all competitors, providing IBOC with a niche market and potentially higher margins. However, the sustainability of this advantage depends on the continued growth of international trade and the company's ability to adapt to evolving regulatory requirements.
Switching costs in the banking industry are generally moderate, as customers can easily transfer their accounts to competing institutions. However, the convenience of a local branch network and the personal relationships developed with bank employees can create some degree of customer stickiness. IBOC's extensive branch network and focus on customer service likely contribute to its ability to retain customers and maintain its market share.
While IBOC's brand recognition and specialized services provide a narrow moat, it is important to note that the banking industry is highly competitive and subject to regulatory changes. The company's ability to maintain its competitive advantage depends on its ability to adapt to evolving market conditions, invest in technology, and maintain strong relationships with its customers and communities. The moat is not insurmountable, and sustained outperformance requires continuous effort and strategic adaptation.
Financial Health & Profitability
International Bancshares Corporation demonstrates strong profitability metrics. The company's net margin of 45.8% significantly exceeds the sector average of 17.8%, indicating efficient operations and effective cost management. Similarly, its operating margin of 57.7% is substantially higher than the sector average of 22.0%, further highlighting its operational efficiency. The ROE of 12.5% is also favorable compared to the sector average of 8.5%, suggesting effective utilization of equity to generate profits.
However, IBOC's revenue growth of 5.1% lags behind the sector average of 9.3%, indicating a potential area of concern. While the company's profitability is strong, its ability to generate revenue growth is crucial for long-term sustainability. The quarterly financial history reveals consistent revenue and net income figures, suggesting stability but also limited growth acceleration.
The company's balance sheet exhibits a relatively high debt-to-equity ratio of 410.00 compared to the sector average of 115.00. This higher leverage could increase financial risk, particularly in a rising interest rate environment. While the current ratio of 1.24 indicates sufficient liquidity to meet short-term obligations, the high debt level warrants careful monitoring.
The free cash flow of -$227.93M is a concern, as it indicates that the company is not generating sufficient cash from its operations to cover its capital expenditures and other cash outflows. This negative free cash flow could necessitate external financing, further increasing its debt burden. The trend in free cash flow should be closely monitored to assess the company's long-term financial sustainability.
Valuation Assessment
International Bancshares Corporation's valuation metrics suggest that the stock is currently undervalued relative to its peers. The company's P/E ratio of 10.1x is significantly lower than the sector average of 15.5x, indicating that investors are paying less for each dollar of earnings compared to other financial institutions. Similarly, its EV/EBITDA ratio of 2.0x is substantially lower than the sector average of 3.5x, further supporting the notion that the stock is undervalued.
However, it is important to consider the company's growth prospects when assessing its valuation. While IBOC's profitability metrics are strong, its revenue growth lags behind the sector average. This slower growth could justify a lower valuation multiple compared to its faster-growing peers. The market may be discounting the stock due to concerns about its ability to sustain its profitability in the face of slower revenue growth.
The company's free cash flow is negative, which could also be contributing to its lower valuation. Investors typically prefer companies that generate positive free cash flow, as it provides them with greater flexibility to invest in growth opportunities, pay dividends, or repurchase shares. The negative free cash flow could be a red flag for some investors, leading to a lower valuation multiple.
Overall, IBOC's valuation appears to be fair, considering its strong profitability metrics and slower growth prospects. The stock is likely undervalued relative to its peers based on P/E and EV/EBITDA ratios, but the market may be discounting it due to concerns about its revenue growth and free cash flow. A more in-depth analysis of the company's future growth potential and cash flow generation is needed to determine whether the stock is truly undervalued or fairly priced.
Risk & Uncertainty
International Bancshares Corporation faces several specific risks that could impact its financial performance and valuation. One significant risk is its exposure to the Mexican economy and international trade. A slowdown in economic activity in Mexico or disruptions to international trade flows could negatively affect the company's international banking services and loan portfolio. Changes in trade policies or regulations could also impact the company's profitability.
Another risk is the company's high debt-to-equity ratio. While the company's current ratio indicates sufficient liquidity, its high leverage could increase its vulnerability to rising interest rates. An increase in interest rates could increase the company's borrowing costs and reduce its profitability. Furthermore, a decline in asset quality could lead to loan losses and further strain its financial resources.
Competition from larger national banks and other regional and community banks also poses a risk. The banking industry is highly competitive, and IBOC faces pressure to offer competitive interest rates and fees to attract and retain customers. Larger banks may have greater resources to invest in technology and marketing, giving them a competitive advantage. The company's ability to compete effectively depends on its ability to differentiate itself through superior customer service and specialized services.
Regulatory changes also pose a risk to the company's operations. The banking industry is heavily regulated, and changes in regulations could increase the company's compliance costs and restrict its business activities. For example, changes in capital requirements or lending regulations could impact the company's profitability and growth prospects.
Bulls Say / Bears Say
The Bull Case
BULL VIEWIBOC's superior profitability metrics, including its high net and operating margins, demonstrate its operational efficiency and ability to generate strong earnings.
BULL VIEWThe company's focus on international banking provides a niche market and potentially higher margins compared to purely domestic banking operations, offering a competitive advantage.
BULL VIEWIBOC's low valuation multiples (P/E and EV/EBITDA) relative to the sector suggest the stock is undervalued and offers potential upside as the market recognizes its strong profitability.
The Bear Case
BEAR VIEWIBOC's revenue growth lags behind the sector average, indicating a potential lack of growth opportunities and raising concerns about its long-term sustainability.
BEAR VIEWThe company's high debt-to-equity ratio increases its financial risk and vulnerability to rising interest rates, potentially impacting its profitability and financial stability.
BEAR VIEWIBOC's negative free cash flow suggests it is not generating sufficient cash from operations, potentially requiring external financing and further increasing its debt burden.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score IBOC and 4,400+ other equities.
INTERNATIONAL BANCSHARES CORP exhibits a 141% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
2.4%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
57.7%
Sector: 21.8%
Net Margin
Bottom-line profitability
45.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-18%
Income Projection audit
A $10,000 investment would generate approximately $204 annually in dividends at the current trailing rate.
