(IBM) International Business - Ratings and Ratios
Cloud, Software, Consulting, Infrastructure, Financing, AI, Storage
IBM EPS (Earnings per Share)
IBM Revenue
Description: IBM International Business
International Business Machines (IBM) is a diversified technology company operating through four main segments: Software, Consulting, Infrastructure, and Financing. The companys software segment is focused on hybrid cloud and AI platforms, enabling clients to undergo digital transformations. IBMs consulting segment provides expertise in strategy, experience, technology, and operations, tailored to specific industries. The infrastructure segment delivers on-premises and cloud-based server and storage solutions, along with lifecycle services for hybrid cloud infrastructure. The financing segment offers financing options for clients to acquire IBMs hardware, software, and services.
IBM has established strategic partnerships with major technology companies, including Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics, and SAP. These partnerships enhance IBMs capabilities in areas such as cloud computing, AI, and data analytics. With a strong presence in the IT consulting and services industry, IBM is well-positioned to capitalize on the growing demand for digital transformation and cloud services.
From a performance perspective, IBMs key metrics include revenue growth, operating margin, and return on equity (ROE). With a current ROE of 21.32%, IBM demonstrates a relatively strong ability to generate profits from shareholder equity. Additionally, the companys price-to-earnings (P/E) ratio of 49.05 and forward P/E of 26.46 indicate that investors have high expectations for IBMs future earnings growth. Other key performance indicators (KPIs) to monitor include the companys cloud revenue growth, AI adoption rates, and the success of its consulting and infrastructure services.
In terms of valuation, IBMs market capitalization stands at $267.14 billion, reflecting its significant presence in the technology industry. As a trading analyst, it is essential to monitor IBMs financial performance, industry trends, and competitive landscape to identify potential trading opportunities. By analyzing IBMs KPIs, such as revenue growth, operating margin, and ROE, investors can gain insights into the companys financial health and make informed investment decisions.
IBM Stock Overview
| Market Cap in USD | 223,006m |
| Sub-Industry | IT Consulting & Other Services |
| IPO / Inception | 1962-01-02 |
IBM Stock Ratings
| Growth Rating | 90.5% |
| Fundamental | 70.5% |
| Dividend Rating | 63.3% |
| Return 12m vs S&P 500 | 8.19% |
| Analyst Rating | 3.55 of 5 |
IBM Dividends
| Dividend Yield 12m | 2.77% |
| Yield on Cost 5y | 7.05% |
| Annual Growth 5y | 1.39% |
| Payout Consistency | 97.3% |
| Payout Ratio | 66.1% |
IBM Growth Ratios
| Growth Correlation 3m | -65% |
| Growth Correlation 12m | 79.5% |
| Growth Correlation 5y | 94.8% |
| CAGR 5y | 21.04% |
| CAGR/Max DD 5y | 1.06 |
| Sharpe Ratio 12m | 0.89 |
| Alpha | 14.82 |
| Beta | 0.635 |
| Volatility | 23.86% |
| Current Volume | 2819.9k |
| Average Volume 20d | 4556.7k |
| Stop Loss | 238.3 (-3%) |
| Signal | 0.26 |
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income (5.83b TTM) > 0 and > 6% of Revenue (6% = 3.84b TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA -1.17pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -5.42% (prev 5.85%; Δ -11.28pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.09 (>3.0%) and CFO 13.28b > Net Income 5.83b (YES >=105%, WARN >=100%) |
| Net Debt (55.78b) to EBITDA (12.90b) ratio: 4.32 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.91 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (946.7m) change vs 12m ago 1.32% (target <= -2.0% for YES) |
| Gross Margin 57.57% (prev 56.09%; Δ 1.48pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 45.35% (prev 46.59%; Δ -1.24pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 4.44 (EBITDA TTM 12.90b / Interest Expense TTM 1.82b) >= 6 (WARN >= 3) |
Altman Z'' 5.27
| (A) -0.02 = (Total Current Assets 34.25b - Total Current Liabilities 37.73b) / Total Assets 148.59b |
| (B) 1.02 = Retained Earnings (Balance) 151.37b / Total Assets 148.59b |
| warn (B) unusual magnitude: 1.02 — check mapping/units |
| (C) 0.06 = EBIT TTM 8.08b / Avg Total Assets 141.22b |
| (D) 1.63 = Book Value of Equity 197.72b / Total Liabilities 121.00b |
| Total Rating: 5.27 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 70.48
| 1. Piotroski 4.50pt = -0.50 |
| 2. FCF Yield 4.28% = 2.14 |
| 3. FCF Margin 18.44% = 4.61 |
| 4. Debt/Equity 2.36 = 0.22 |
| 5. Debt/Ebitda 5.04 = -2.50 |
| 6. ROIC - WACC 7.07% = 8.83 |
| 7. RoE 21.98% = 1.83 |
| 8. Rev. Trend 33.00% = 1.65 |
| 9. Rev. CAGR 6.97% = 0.87 |
| 10. EPS Trend 32.99% = 0.82 |
| 11. EPS CAGR 42.64% = 2.50 |
What is the price of IBM shares?
Over the past week, the price has changed by +2.64%, over one month by -6.01%, over three months by -4.94% and over the past year by +27.32%.
Is International Business a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of IBM is around 261.27 USD . This means that IBM is currently overvalued and has a potential downside of 6.32%.
Is IBM a buy, sell or hold?
- 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 | 281.8 | 14.7% |
| Analysts Target Price | 253.3 | 3.1% |
| ValueRay Target Price | 290.9 | 18.4% |
Last update: 2025-08-23 05:03
IBM Fundamental Data Overview
CCE Cash And Equivalents = 11.94b USD (last quarter)
P/E Trailing = 38.6129
P/E Forward = 21.978
P/S = 3.4823
P/B = 8.2133
P/EG = 1.8471
Beta = 0.677
Revenue TTM = 64.04b USD
EBIT TTM = 8.08b USD
EBITDA TTM = 12.90b USD
Long Term Debt = 55.22b USD (from longTermDebt, last quarter)
Short Term Debt = 9.77b USD (from shortTermDebt, last quarter)
Debt = 64.98b USD (Calculated: Short Term 9.77b + Long Term 55.22b)
Net Debt = 55.78b USD (from netDebt column, last quarter)
Enterprise Value = 276.05b USD (223.01b + Debt 64.98b - CCE 11.94b)
Interest Coverage Ratio = 4.44 (Ebit TTM 8.08b / Interest Expense TTM 1.82b)
FCF Yield = 4.28% (FCF TTM 11.81b / Enterprise Value 276.05b)
FCF Margin = 18.44% (FCF TTM 11.81b / Revenue TTM 64.04b)
Net Margin = 9.11% (Net Income TTM 5.83b / Revenue TTM 64.04b)
Gross Margin = 57.57% ((Revenue TTM 64.04b - Cost of Revenue TTM 27.17b) / Revenue TTM)
Tobins Q-Ratio = 1.40 (Enterprise Value 276.05b / Book Value Of Equity 197.72b)
Interest Expense / Debt = 0.78% (Interest Expense 510.0m / Debt 64.98b)
Taxrate = -3.76% (set to none) (from yearly Income Tax Expense: -218.0m / 5.80b)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 0.91 (Total Current Assets 34.25b / Total Current Liabilities 37.73b)
Debt / Equity = 2.36 (Debt 64.98b / last Quarter total Stockholder Equity 27.51b)
Debt / EBITDA = 5.04 (Net Debt 55.78b / EBITDA 12.90b)
Debt / FCF = 5.50 (Debt 64.98b / FCF TTM 11.81b)
Total Stockholder Equity = 26.54b (last 4 quarters mean)
RoA = 3.93% (Net Income 5.83b, Total Assets 148.59b )
RoE = 21.98% (Net Income TTM 5.83b / Total Stockholder Equity 26.54b)
RoCE = 9.88% (Ebit 8.08b / (Equity 26.54b + L.T.Debt 55.22b))
RoIC = 7.07% (Ebit 8.08b / (Assets 148.59b - Current Assets 34.25b))
WACC = unknown (E(223.01b)/V(287.99b) * Re(8.35%)) + (D(64.98b)/V(287.99b) * Rd(0.78%) * (1-Tc(none)))
Shares Correlation 5-Years: 100.0 | Cagr: 1.14%
Discount Rate = 8.35% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 77.68% ; FCFE base≈11.97b ; Y1≈12.36b ; Y5≈14.00b
Fair Price DCF = 249.5 (DCF Value 232.39b / Shares Outstanding 931.5m; 5y FCF grow 3.38% → 3.0% )
Revenue Correlation: 33.00 | Revenue CAGR: 6.97%
Rev Growth-of-Growth: 0.05
EPS Correlation: 32.99 | EPS CAGR: 42.64%
EPS Growth-of-Growth: -95.09
Additional Sources for IBM Stock
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