Overview Dividends

(IBM) International Business - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US4592001014

Software, Consulting, Infrastructure, Financing

IT Consulting & Other Services
Market Cap in USD: 290,460m

IPO / Inception: 1962-01-02
Return 12m vs S&P 500: 17.3%

EPS (Earnings per Share)

EPS CAGR: -6.06%
EPS Trend: -3.5%

Last SUE: 1.06
Qual. Beats: 1

Revenue

Rev. CAGR: -0.59%
Rev. Trend: 27.0%

Last SUE: 0.74
Qual. Beats: 0

Dividends

Dividend Yield	2.23%
Yield on Cost 5y	7.00%
Yield CAGR 5y	0.61%
Payout Consistency	93.8%
Payout Ratio	69.5%

Risk via 5d forecast
Volatility	28.6%
Value at Risk 5%th	42.4%
Relative Tail Risk	-9.85%

Reward TTM
Sharpe Ratio	1.14
Alpha	23.59
CAGR/Max DD	1.70

Character TTM
Hurst Exponent	0.544
Beta	0.720
Beta Downside	0.834

Drawdowns 3y
Max DD	19.82%
Mean DD	5.55%
Median DD	4.35%

Description: IBM International Business December 02, 2025

International Business Machines Corp. (IBM) delivers integrated technology solutions across the Americas, Europe, Middle East, Africa, and Asia-Pacific through four operating segments: Software, Consulting, Infrastructure, and Financing.

The Software segment centers on hybrid-cloud and AI platforms that enable clients to modernize applications, data, and environments; in FY 2023, cloud-related revenue grew ~12% YoY, reflecting strong demand for AI-enabled services.

IBM’s Consulting arm blends strategy, experience design, technology, and operations expertise, targeting industry-specific digital transformations; the segment contributed roughly 22% of total revenue and benefits from the broader enterprise-IT spend rebound projected at 3-4% annual growth.

The Infrastructure segment offers on-premises and cloud-based servers, storage, and lifecycle services for hybrid-cloud deployments; its gross margin has been pressured by commoditization, prompting IBM to focus on higher-value edge-computing and Red Hat-driven offerings.

Through its Financing segment, IBM provides client and commercial financing to facilitate purchases of its hardware, software, and services, supporting a ~$2 billion loan portfolio that helps smooth revenue cycles.

Strategic alliances with hyperscalers and enterprise software leaders-including AWS, Microsoft Azure, Google Cloud, Adobe, Salesforce, SAP, and Samsung-expand IBM’s ecosystem reach and accelerate co-innovation on AI and hybrid-cloud solutions.

Key performance indicators to watch include FY 2024 revenue guidance (~$60 billion), AI-related software ARR growth, and R&D spend (≈$6 billion), which together drive the company’s ability to capture a larger share of the $1 trillion hybrid-cloud market.

For a deeper, data-driven assessment of IBM’s valuation dynamics, you might explore the analytical tools available on ValueRay.

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (7.91b TTM) > 0 and > 6% of Revenue (6% = 3.92b TTM)

FCFTA 0.09 (>2.0%) and ΔFCFTA 0.06pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -3.67% (prev 2.70%; Δ -6.37pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.09 (>3.0%) and CFO 13.48b > Net Income 7.91b (YES >=105%, WARN >=100%)

Net Debt (55.00b) to EBITDA (16.21b) ratio: 3.39 <= 3.0 (WARN <= 3.5)

Current Ratio 0.93 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (948.9m) change vs 12m ago 2.74% (target <= -2.0% for YES)

Gross Margin 58.16% (prev 56.53%; Δ 1.63pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 46.61% (prev 46.58%; Δ 0.03pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 6.05 (EBITDA TTM 16.21b / Interest Expense TTM 1.88b) >= 6 (WARN >= 3)

Altman Z'' 5.58

(A) -0.02 = (Total Current Assets 32.74b - Total Current Liabilities 35.14b) / Total Assets 146.31b

(B) 1.04 = Retained Earnings (Balance) 151.58b / Total Assets 146.31b

warn (B) unusual magnitude: 1.04 — check mapping/units

(D) 1.68 = Book Value of Equity 198.42b / Total Liabilities 118.32b

Total Rating: 5.58 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 62.64

1. Piotroski 6.0pt

2. FCF Yield 3.77%

3. FCF Margin 19.94%

4. Debt/Equity 2.39

5. Debt/Ebitda 3.39

6. ROIC - WACC (= 2.04)%

7. RoE 28.86%

8. Rev. Trend 27.05%

9. EPS Trend -3.54%

What is the price of IBM shares?

As of December 20, 2025, the stock is trading at USD 300.98 with a total of 9,579,441 shares traded.
Over the past week, the price has changed by -2.67%, over one month by +4.31%, over three months by +13.60% and over the past year by +37.89%.

Is IBM a buy, sell or hold?

International Business has received a consensus analysts rating of 3.55. Therefor, it is recommend to hold IBM.

Strong Buy: 8
Buy: 2
Hold: 8
Sell: 2
Strong Sell: 2

What are the forecasts/targets for the IBM price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	292.6	-2.8%
Analysts Target Price	292.6	-2.8%
ValueRay Target Price	401.8	33.5%

IBM Fundamental Data Overview December 13, 2025

Market Cap USD = 290.46b (290.46b USD * 1.0 USD.USD)
P/E Trailing = 37.0369
P/E Forward = 25.3165
P/S = 4.4411
P/B = 10.4089
P/EG = 2.1264
Beta = 0.689
Revenue TTM = 65.40b USD
EBIT TTM = 11.37b USD
EBITDA TTM = 16.21b USD
Long Term Debt = 55.17b USD (from longTermDebt, last quarter)
Short Term Debt = 8.75b USD (from shortTermDebt, last quarter)
Debt = 66.57b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 55.00b USD (from netDebt column, last quarter)
Enterprise Value = 345.46b USD (290.46b + Debt 66.57b - CCE 11.57b)
Interest Coverage Ratio = 6.05 (Ebit TTM 11.37b / Interest Expense TTM 1.88b)
FCF Yield = 3.77% (FCF TTM 13.04b / Enterprise Value 345.46b)
FCF Margin = 19.94% (FCF TTM 13.04b / Revenue TTM 65.40b)
Net Margin = 12.09% (Net Income TTM 7.91b / Revenue TTM 65.40b)
Gross Margin = 58.16% ((Revenue TTM 65.40b - Cost of Revenue TTM 27.36b) / Revenue TTM)
Gross Margin QoQ = 58.73% (prev 58.76%)
Tobins Q-Ratio = 2.36 (Enterprise Value 345.46b / Total Assets 146.31b)
Interest Expense / Debt = 0.74% (Interest Expense 492.0m / Debt 66.57b)
Taxrate = 28.23% (686.0m / 2.43b)
NOPAT = 8.16b (EBIT 11.37b * (1 - 28.23%))
Current Ratio = 0.93 (Total Current Assets 32.74b / Total Current Liabilities 35.14b)
Debt / Equity = 2.39 (Debt 66.57b / totalStockholderEquity, last quarter 27.91b)
Debt / EBITDA = 3.39 (Net Debt 55.00b / EBITDA 16.21b)
Debt / FCF = 4.22 (Net Debt 55.00b / FCF TTM 13.04b)
Total Stockholder Equity = 27.40b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.40% (Net Income 7.91b / Total Assets 146.31b)
RoE = 28.86% (Net Income TTM 7.91b / Total Stockholder Equity 27.40b)
RoCE = 13.77% (EBIT 11.37b / Capital Employed (Equity 27.40b + L.T.Debt 55.17b))
RoIC = 9.19% (NOPAT 8.16b / Invested Capital 88.78b)
WACC = 7.15% (E(290.46b)/V(357.03b) * Re(8.67%) + D(66.57b)/V(357.03b) * Rd(0.74%) * (1-Tc(0.28)))
Discount Rate = 8.67% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 1.16%
[DCF Debug] Terminal Value 77.00% ; FCFE base≈12.58b ; Y1≈13.40b ; Y5≈16.13b
Fair Price DCF = 268.6 (DCF Value 251.11b / Shares Outstanding 934.7m; 5y FCF grow 7.24% → 3.0% )
EPS Correlation: -3.54 | EPS CAGR: -6.06% | SUE: 1.06 | # QB: 1
Revenue Correlation: 27.05 | Revenue CAGR: -0.59% | SUE: 0.74 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.94 | Chg30d=+0.002 | Revisions Net=+2 | Analysts=13
EPS next Year (2026-12-31): EPS=12.18 | Chg30d=+0.076 | Revisions Net=+12 | Growth EPS=+7.2% | Growth Revenue=+4.6%

Additional Sources for IBM Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle