IBM Stock Analysis: International Business | NYSE
Information Technology Services | NYSE, USA | Market Cap: 272.116m USD | 12M Return: 1.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.28B
EPS Trend: 97.0%
Qual. Beats: 6
Rev. Trend: 92.3%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 10.5 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 and consulting company headquartered in Armonk, New York, operating across the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is organized into four segments: Software (hybrid cloud and AI platforms), Consulting (strategy, technology, and managed services), Infrastructure (on-premises and cloud 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, and has a collaboration with Arm Holdings to develop dual-architecture hardware for AI and data-intensive workloads. The company was originally incorporated in 1911 as Computing-Tabulating-Recording Co., making it one of the longest-operating firms in the U.S. technology sector. As a mega-cap Information Technology company in the IT Consulting & Other Services sub-industry, IBM competes in the highly competitive enterprise IT services and hybrid cloud market, where revenue is typically driven by long-term contracts, recurring service agreements, and large-scale infrastructure deployments rather than consumer product sales.
- Red Hat hybrid cloud revenue growth drives Software segment
- Enterprise AI adoption lifts Consulting bookings and margins
- Mainframe refresh cycle supports Infrastructure segment revenue
| 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 (61.5b) to EBITDA (17.6b): 3.49 < 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 July 06, 2026, the stock is trading at USD 289.52 with a total of 5,950,200 shares traded. Over the past week, the price has changed by +12.10%, over one month by +1.64%, over three months by +18.20% and over the past year by +1.52%.
Current recommended Stop Loss: 274.40 (which is 5.2% or 1.2 ATR below the current price).
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 | 293.9 | 1.5% |
P/E Trailing = 25.6439
P/E Forward = 23.1481
P/S = 3.9488
P/B = 8.1592
P/EG = 2.6731
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 = 9.45b USD (from shortTermDebt, last quarter)
Debt = 73.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 3.44b
Net Debt = 61.5b USD (calculated: Debt 73.2b - CCE 11.8b)
Enterprise Value = 334b USD (272b + Debt 73.2b - CCE 11.8b)
Interest Coverage Ratio = 6.41 (Ebit TTM 12.5b / Interest Expense TTM 1.95b)
EV/FCF = 25.49x (Enterprise Value 334b / FCF TTM 13.1b)
FCF Yield = 3.92% (FCF TTM 13.1b / Enterprise Value 334b)
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 = 2.14 (Enterprise Value 334b / Total Assets 156b)
Interest Expense / Debt = 2.67% (Interest Expense 1.95b / Debt 73.2b)
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 = 2.22 (Debt 73.2b / totalStockholderEquity, last quarter 33.0b)
Debt / EBITDA = 3.49 (Net Debt 61.5b / EBITDA 17.6b)
Debt / FCF = 4.70 (Net Debt 61.5b / 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 = 8.97% (NOPAT 11.0b / Invested Capital 122b)
WACC = 7.50% (E(272b)/V(345b) * Re(8.89%) + D(73.2b)/V(345b) * Rd(2.67%) * (1-Tc(0.12)))
Discount Rate = 8.89% (= 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 = 209.9 (EV 259b - Net Debt 61.5b = Equity 197b / Shares 939.9m; r=8.35% [WACC [floored]]; 5y FCF grow 9.61% → 2.50% )
EPS Correlation: 97.02 | EPS CAGR: 9.26% | SUE: 1.49 | # QB: 6
Revenue Correlation: 92.34 | Revenue CAGR: 4.12% | SUE: 1.23 | # QB: 2
EPS current Quarter (2026-06-30): EPS=3.02 | Chg30d=-0.38% | Revisions=+40% | Analysts=18
EPS next Quarter (2026-09-30): EPS=2.93 | Chg30d=-0.24% | Revisions=-24% | Analysts=17
EPS current Year (2026-12-31): EPS=12.46 | Chg30d=+0.22% | Revisions=+54% | GrowthEPS=+7.5% | GrowthRev=+5.9%
EPS next Year (2027-12-31): EPS=13.46 | Chg30d=+0.02% | Revisions=+25% | GrowthEPS=+8.0% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: +29% (up=25, down=13)