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IBM
International Business Machines Corporation
Summary
Business
Earnings Call
Valuation
Profitability
Financial Health
Intel
Yearly Return 10Y annualized return is positive but below market average at 5.6% per year
Earnings Expectations IBM has met or exceeded earnings expectations in most recent quarters (9/10)
Positive Strong Price-to-Earnings Ratio
Positive Solid Price-to-Sales Ratio
Negative High EV/EBITDA Ratio
Negative Expensive Price-to-Free Cash Flow

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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.

Country US
Exchange NYSE
Industry Information Technology Services
Sector Technology
Market Cap $205.89B
CEO Mr. 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

🖥️
Red Hat Open source software
☁️
IBM Cloud Cloud solutions
🤖
Watson AI AI services
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IBM Security Cybersecurity
💼
IBM Consulting Business consulting

Business Type

B2B Business to Business

Competitive Advantages

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Key Business Risks

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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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ROE: 21.324553627959986

ROA: None

Gross Profit Margin: 57.03963074964189

Net Profit Margin: 8.710806939360179

Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

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About Profitability Metrics

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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  • • Return on Equity (ROE) analysis
  • • Return on Assets (ROA) insights
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About Financial Health Metrics

Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.

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Meeting Expectations

9 /10

Higher values indicate better execution and credibility

Recent Results

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EPS

1.42
Estimated
1.60
Actual
+12.68%
Difference

Revenue

$14389983103
Estimated
$14541000000
Actual
+1.05%
Difference
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Insider trading data shows purchase and sale activities by company executives and board members.

Insider Sentiment Analysis

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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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