(IBM) International Business - Overview
Sector: Technology | Industry: Information Technology Services | Exchange: NYSE (USA) | Market Cap: 283.629m USD | Total Return: 7.4% in 12m
Avg Turnover: 2.34B
EPS Trend: 60.8%
Qual. Beats: 0
Rev. Trend: 92.3%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
No distinct edge detected
International Business Machines Corporation (IBM) is a global provider of integrated technology solutions, structured into four primary segments: Software, Consulting, Infrastructure, and Financing. The company focuses on hybrid cloud platforms and artificial intelligence (AI) integration, facilitating digital transformations for enterprises across diverse hardware and software environments. Historically, IBM has transitioned from a hardware-centric manufacturer to a high-margin services and cloud-based software provider.
The business model relies heavily on strategic partnerships with hyperscalers and software vendors, including Amazon Web Services, Microsoft, and SAP, to expand its ecosystem. Recent initiatives include a collaboration with Arm Holdings to develop dual-architecture hardware designed for data-intensive AI workloads. In the IT consulting sector, growth is increasingly driven by application modernization and the implementation of managed services.
For a deeper look into the companys valuation metrics, consider reviewing the data on ValueRay. Founded in 1911 and headquartered in Armonk, New York, IBM remains a central player in global enterprise infrastructure and professional technology services.
- Hybrid cloud and AI software adoption accelerates high-margin recurring revenue growth
- Consulting segment demand scales through enterprise digital and AI transformation projects
- Mainframe refresh cycles drive periodic hardware revenue and infrastructure profitability spikes
- Strategic partnerships with hyperscalers expand distribution of Red Hat and Watsonx platforms
- Global enterprise IT spending shifts impact consulting backlog and software licensing volume
| Net Income: 10.8b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 0.18 > 1.0 |
| NWC/Revenue: -11.88% < 20% (prev 0.37%; Δ -12.25% < -1%) |
| CFO/TA 0.09 > 3% & CFO 14.0b > Net Income 10.8b |
| Net Debt (62.3b) to EBITDA (17.6b): 3.53 < 3 |
| Current Ratio: 0.80 > 1.5 & < 3 |
| Outstanding Shares: last quarter (952.1m) vs 12m ago 0.71% < -2% |
| Gross Margin: 58.97% > 18% (prev 57.04%; Δ 1.93% > 0.5%) |
| Asset Turnover: 45.65% > 50% (prev 43.13%; Δ 2.52% > 0%) |
| Interest Coverage Ratio: 6.41 > 6 (EBIT TTM 12.5b / Interest Expense TTM 1.95b) |
| A: -0.05 (Total Current Assets 31.9b - Total Current Liabilities 40.1b) / Total Assets 156b |
| B: 0.99 (Retained Earnings 155b / Total Assets 156b) |
| C: 0.08 (EBIT TTM 12.5b / Avg Total Assets 151b) |
| D: 0.27 (Book Value of Equity 33.0b / Total Liabilities 123b) |
| Altman-Z'' = 3.74 = AA |
| DSRI: 1.09 (Receivables 14.2b/11.9b, Revenue 68.9b/62.8b) |
| GMI: 0.97 (GM 57.04% / 58.97%) |
| AQI: 1.09 (AQ_t 0.76 / AQ_t-1 0.70) |
| SGI: 1.10 (Revenue 68.9b / 62.8b) |
| TATA: -0.02 (NI 10.8b - CFO 14.0b) / TA 156b) |
| Beneish M = -2.86 (Cap -4..+1) = A |
As of June 08, 2026, the stock is trading at USD 284.84 with a total of 12,157,277 shares traded.
Over the past week, the price has changed by -4.35%,
over one month by +24.05%,
over three months by +13.27% and
over the past year by +7.37%.
International Business has received a consensus analysts rating of 3.55. Therefore, it is recommended to hold IBM.
- StrongBuy: 8
- Buy: 2
- Hold: 8
- Sell: 2
- StrongSell: 2
| Analysts Target Price | 290.2 | 1.9% |
P/E Trailing = 26.729
P/E Forward = 26.5957
P/S = 4.1685
P/B = 9.3843
P/EG = 3.0744
Revenue TTM = 68.9b USD
EBIT TTM = 12.5b USD
EBITDA TTM = 17.6b USD
Long Term Debt = 57.7b USD (from longTermDebt, last quarter)
Short Term Debt = 10.3b USD (from shortTermDebt, last quarter)
Debt = 74.0b USD (from shortLongTermDebtTotal, last quarter) + Leases 3.44b
Net Debt = 62.3b USD (calculated: Debt 74.0b - CCE 11.8b)
Enterprise Value = 346b USD (284b + Debt 74.0b - CCE 11.8b)
Interest Coverage Ratio = 6.41 (Ebit TTM 12.5b / Interest Expense TTM 1.95b)
EV/FCF = 26.43x (Enterprise Value 346b / FCF TTM 13.1b)
FCF Yield = 3.78% (FCF TTM 13.1b / Enterprise Value 346b)
FCF Margin = 18.99% (FCF TTM 13.1b / Revenue TTM 68.9b)
Net Margin = 15.61% (Net Income TTM 10.8b / Revenue TTM 68.9b)
Gross Margin = 58.97% ((Revenue TTM 68.9b - Cost of Revenue TTM 28.3b) / Revenue TTM)
Gross Margin QoQ = 56.23% (prev 61.56%)
Tobins Q-Ratio = 2.21 (Enterprise Value 346b / Total Assets 156b)
Interest Expense / Debt = 2.64% (Interest Expense 1.95b / Debt 74.0b)
Taxrate = 12.40% (172.0m / 1.39b)
NOPAT = 11.0b (EBIT 12.5b * (1 - 12.40%))
Current Ratio = 0.80 (Total Current Assets 31.9b / Total Current Liabilities 40.1b)
Debt / Equity = 2.25 (Debt 74.0b / totalStockholderEquity, last quarter 33.0b)
Debt / EBITDA = 3.53 (Net Debt 62.3b / EBITDA 17.6b)
Debt / FCF = 4.76 (Net Debt 62.3b / FCF TTM 13.1b)
Total Stockholder Equity = 30.3b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.12% (Net Income 10.8b / Total Assets 156b)
RoE = 35.54% (Net Income TTM 10.8b / Total Stockholder Equity 30.3b)
RoCE = 14.22% (EBIT 12.5b / Capital Employed (Equity 30.3b + L.T.Debt 57.7b))
RoIC = 8.92% (NOPAT 11.0b / Invested Capital 123b)
WACC = 7.38% (E(284b)/V(358b) * Re(8.70%) + D(74.0b)/V(358b) * Rd(2.64%) * (1-Tc(0.12)))
Discount Rate = 8.70% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.22 | Cagr: 1.18%
[DCF] Terminal Value 76.62% ; FCFF base≈12.6b ; Y1≈13.7b ; Y5≈16.9b
[DCF] Fair Price = 209.0 (EV 259b - Net Debt 62.3b = Equity 196b / Shares 939.9m; r=8.35% [WACC [floored]]; 5y FCF grow 9.61% → 2.50% )
EPS Correlation: 60.76 | EPS CAGR: 4.32% | SUE: 0.47 | # QB: 0
Revenue Correlation: 92.34 | Revenue CAGR: 4.12% | SUE: 1.23 | # QB: 2
EPS current Quarter (2026-06-30): EPS=3.02 | Chg30d=+1.33% | Revisions=+33% | Analysts=19
EPS next Quarter (2026-09-30): EPS=2.93 | Chg30d=-1.28% | Revisions=-22% | Analysts=18
EPS current Year (2026-12-31): EPS=12.43 | Chg30d=+0.01% | Revisions=+52% | GrowthEPS=+7.2% | GrowthRev=+5.8%
EPS next Year (2027-12-31): EPS=13.42 | Chg30d=-0.10% | Revisions=+36% | GrowthEPS=+8.0% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: +52%