IBM demonstrates solid business quality through strong financial performance and diversified revenue streams, although challenges in the consulting and infrastructure segments could pose risks. Future prospects appear positive with a focus on innovation and strong growth expectations for 2025, despite potential macroeconomic headwinds.
Analysis Date: January 29, 2025 Last Updated: May 29, 2025
+73%
+5.6% per year
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
CountryUS
ExchangeNYSE
IndustryInformation Technology Services
SectorTechnology
Market Cap$205.89B
CEOMr. Arvind Krishna
International Business Machines Corporation, known as IBM, is a technology company that helps other businesses run better. They provide software that helps companies store and manage their data, as well as tools for making smart decisions using that data. IBM also offers consulting services to help businesses improve their operations and adapt to new technologies. Additionally, they provide equipment and financing options to support companies in their technology needs.
Streams of revenue
Global Technology Services:98%
Global Financing:2%
Geographic Distribution
Americas:50%
E M E A:31%
Asia Pacific:20%
Core Products
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Red HatOpen source software
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IBM CloudCloud solutions
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Watson AIAI services
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IBM SecurityCybersecurity
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IBM ConsultingBusiness consulting
Business Type
Business to Business
Competitive Advantages
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Graham Value Metrics
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
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IBM Stock Analysis: International Business Machines Corporation Investment Guide
IBM (International Business Machines Corporation) is a Technology company listed on New York Stock Exchange. The stock has generated 5.6% annual returns with an overall investment score of None/100.
IBM demonstrates solid business quality through strong financial performance and diversified revenue streams, although challenges in the consulting and infrastructure segments could pose risks. Future prospects appear positive with a focus on innovation and strong growth expectations for 2025, despite potential macroeconomic headwinds.
IBM Key Financial Metrics
IBM financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 8.150079314741275/100 and profitability score of 6.25/100 with financial health rated 3.85/100.
About International Business Machines Corporation
International Business Machines Corporation, known as IBM, is a technology company that helps other businesses run better. They provide software that helps companies store and manage their data, as well as tools for making smart decisions using that data. IBM also offers consulting services to help businesses improve their operations and adapt to new technologies. Additionally, they provide equipment and financing options to support companies in their technology needs.
IBM Investment Recommendation
Based on our comprehensive analysis of IBM, investors should consider the company's positive performance track record, earnings consistency (9/10 quarters beat expectations), and current valuation metrics when making investment decisions.
Technology Sector Analysis
IBM operates in the Information Technology Services industry within the Technology sector. This analysis compares International Business Machines Corporation performance against industry and sector benchmarks to provide context for investment decisions.
Frequently Asked Questions about IBM Stock
Is IBM a good investment?
IBM (International Business Machines Corporation) has generated 5.6% annual returns with an overall score of None/100. IBM demonstrates solid business quality through strong financial performance and diversified revenue streams, although challenges in the consulting and infrastructure segments could pose risks. Future prospects appear positive with a … Investors should consider their risk tolerance and investment goals when evaluating IBM.
What is IBM P/E ratio and valuation?
IBM valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Information Technology Services industry and Technology sector benchmarks. The company currently has a valuation score of 8.150079314741275/100.
Should I buy IBM stock now?
The decision to buy IBM stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 6.25/100, financial health score of 3.85/100, and detailed performance metrics to help inform your investment decision.
What are IBM financial health indicators?
IBM financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 3.85/100 based on comprehensive analysis of balance sheet strength and operational efficiency.
How does IBM compare to competitors?
IBM performance is benchmarked against Information Technology Services industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for International Business Machines Corporation's market position.
What are IBM historical returns?
IBM has generated 5.6% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.
IBM Key Investment Metrics Summary
Annual Return: 5.6%
Valuation Score: 8.150079314741275/100
Profitability Score: 6.25/100
Financial Health Score: 3.85/100
Growth Score: 122.29942428523243/100
Earnings Beat Rate: 9/10 quarters
Sector: Technology
Industry: Information Technology Services
Exchange: New York Stock Exchange
Market Cap: 205890702150
IBM Investment Thesis
International Business Machines Corporation (IBM) represents a moderate investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.
Investment Strengths
Strong Price-to-Earnings Ratio
Solid Price-to-Sales Ratio
Strong Return on Equity
Healthy Gross Profit Margin
Adequate Interest Coverage
Stable Current Ratio
Strong Financial Performance
Diverse Revenue Streams
Market Position and Competitive Advantages
Positive 2025 Revenue Outlook
Innovation and Product Development
Investment Risks
High EV/EBITDA Ratio
Expensive Price-to-Free Cash Flow
Low Net Profit Margin
Moderate Operating Profit Margin
High Debt-to-Equity Ratio
Low Quick and Cash Ratios
Consulting Segment Performance
Infrastructure Challenges
Potential Headwinds in Consulting Growth
Macro-Economic Headwinds
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