IBM Stock Analysis: International Business | NYSE
Information Technology Services | NYSE, USA | Market Cap: 237.522m USD | 12M Return: -8.7% | US4592001014 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.25B
EPS Trend: 97.1%
Qual. Beats: 1
Rev. Trend: 94.9%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
International Business Machines Corporation (NYSE: IBM) is a global technology company headquartered in the United States, operating across the Americas, Europe, the Middle East, Africa, and Asia Pacific. It is classified within the Information Technology sector under IT Consulting & Other Services and has a mega-cap market capitalization. The company reports through four segments: Software (hybrid cloud and AI platforms for digital transformation), Consulting (strategy, technology, and managed services including AI-powered solutions), Infrastructure (on-premises and cloud-based server and storage solutions), and Financing (client and commercial financing for IBM hardware, software, and services).
IBM maintains strategic partnerships with major technology players, including Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics, and SAP, alongside collaborations with Arm Holdings on dual-architecture hardware for AI and data-intensive workloads, three.ws on AI-powered 3D agent technology, and Lightwell on open source software supply chain security. The company also delivers operational resilience and technology services to the UK Ministry of Defence through the Team ORION consortium. Originally incorporated in 1911 as Computing-Tabulating-Recording Co., IBM adopted its current name in 1924, making it one of the longest-operating companies in the technology sector.
- Red Hat hybrid cloud revenue drives Software segment margins higher
- watsonx generative AI bookings accelerate with enterprise adoption
- Consulting margins compress under competitive IT services pricing
| Net Income: 11.2b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.93 > 1.0 |
| NWC/Revenue: -7.58% < 20% (prev -3.67%; Δ -3.91% < -1%) |
| CFO/TA 0.10 > 3% & CFO 15.8b > Net Income 11.2b |
| Net Debt (59.4b) to EBITDA (15.1b): 3.93 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (953.5m) vs 12m ago 0.49% < -2% |
| Gross Margin: 57.97% > 18% (prev 58.16%; Δ -0.19% > 0.5%) |
| Asset Turnover: 46.37% > 50% (prev 44.70%; Δ 1.67% > 0%) |
| Interest Coverage Ratio: 6.45 > 6 (EBIT TTM 12.4b / Interest Expense TTM 1.93b) |
| A: -0.03 (Total Current Assets 31.2b - Total Current Liabilities 36.5b) / Total Assets 155b |
| B: 1.01 (Retained Earnings 157b / Total Assets 155b) |
| C: 0.08 (EBIT TTM 12.4b / Avg Total Assets 151b) |
| D: 0.30 (Book Value of Equity 35.5b / Total Liabilities 119b) |
| Altman-Z'' = 3.94 = AA |
| DSRI: 1.03 (Receivables 13.9b/12.6b, Revenue 69.9b/65.4b) |
| GMI: 1.00 (GM 58.16% / 57.97%) |
| AQI: 1.04 (AQ_t 0.74 / AQ_t-1 0.71) |
| SGI: 1.07 (Revenue 69.9b / 65.4b) |
| TATA: -0.03 (NI 11.2b - CFO 15.8b) / TA 155b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of October 27, 2026, the stock is trading at USD 253.56 with a total of 5,887,468 shares traded. Over the past week, the price has changed by +9.23%, over one month by +8.94%, over three months by +23.58% and over the past year by -8.72%.
Current recommended Stop Loss: 244.80 (which is 3.5% or 1.2 ATR below the current price).
International Business has received a consensus analysts rating of 3.72. Therefore, it is recommended to hold IBM.
- StrongBuy: 9
- Buy: 3
- Hold: 11
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 255.7 | 0.8% |
P/E Trailing = 21.5111
P/E Forward = 17.3913
P/S = 3.4376
P/B = 6.3274
P/EG = 2.1883
Revenue TTM = 69.9b USD
EBIT TTM = 12.4b USD
EBITDA TTM = 15.1b USD
Long Term Debt = 54.8b USD (from longTermDebt, last fiscal year)
Short Term Debt = 7.76b USD (from shortTermDebt, last quarter)
Debt = 70.4b USD (from shortLongTermDebtTotal, last quarter) + Leases 3.29b
Net Debt = 59.4b USD (calculated: Debt 70.4b - CCE 11.1b)
Enterprise Value = 297b USD (238b + Debt 70.4b - CCE 11.1b)
Interest Coverage Ratio = 6.45 (Ebit TTM 12.4b / Interest Expense TTM 1.93b)
EV/FCF = 20.70x (Enterprise Value 297b / FCF TTM 14.3b)
FCF Yield = 4.83% (FCF TTM 14.3b / Enterprise Value 297b)
FCF Margin = 20.53% (FCF TTM 14.3b / Revenue TTM 69.9b)
Net Margin = 15.99% (Net Income TTM 11.2b / Revenue TTM 69.9b)
Gross Margin = 57.97% ((Revenue TTM 69.9b - Cost of Revenue TTM 29.4b) / Revenue TTM)
Gross Margin QoQ = 56.80% (prev 57.73%)
Tobins Q-Ratio = 1.92 (Enterprise Value 297b / Total Assets 155b)
Interest Expense / Debt = 2.74% (Interest Expense 1.93b / Debt 70.4b)
Taxrate = 11.93% (298.0m / 2.50b)
NOPAT = 10.9b (EBIT 12.4b * (1 - 11.93%))
Current Ratio = 0.85 (Total Current Assets 31.2b / Total Current Liabilities 36.5b)
Debt / Equity = 1.98 (Debt 70.4b / totalStockholderEquity, last quarter 35.5b)
Debt / EBITDA = 3.93 (Net Debt 59.4b / EBITDA 15.1b)
Debt / FCF = 4.14 (Net Debt 59.4b / FCF TTM 14.3b)
Total Stockholder Equity = 33.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.41% (Net Income 11.2b / Total Assets 155b)
RoE = 32.95% (Net Income TTM 11.2b / Total Stockholder Equity 33.9b)
RoCE = 14.01% (EBIT 12.4b / Capital Employed (Equity 33.9b + L.T.Debt 54.8b))
RoIC = 8.92% (NOPAT 10.9b / Invested Capital 123b)
WACC = 6.57% (E(238b)/V(308b) * Re(7.80%) + D(70.4b)/V(308b) * Rd(2.74%) * (1-Tc(0.12)))
Discount Rate = 7.80% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 85.41 | Cagr: 0.90%
[DCF] Terminal Value 77.97% ; FCFF base≈13.5b ; Y1≈15.4b ; Y5≈22.7b
[DCF] Fair Price = 300.2 (EV 342b - Net Debt 59.4b = Equity 283b / Shares 942.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.14 | EPS CAGR: 9.25% | SUE: 0.95 | # QB: 1
Revenue Correlation: 94.86 | Revenue CAGR: 5.06% | SUE: 1.23 | # QB: 1
EPS current Quarter (2027-03-31): EPS=2.13 | Chg30d=-0.50% | Revisions=+50% | Analysts=13
EPS current Year (2026-12-31): EPS=12.41 | Chg30d=+0.73% | Revisions=+0% | GrowthEPS=+7.1% | GrowthRev=+4.4%
EPS next Year (2027-12-31): EPS=13.23 | Chg30d=+0.51% | Revisions=+25% | GrowthEPS=+6.6% | GrowthRev=+3.7%
[Analyst] Revisions Ratio: +46% (up=8, down=2)