About International Business Machines
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It operates a data streaming platform. The company has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. It also has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads; strategic partnership with three.ws to advance ai-powered 3d agent technology; and collaboration with Lightwell to help strengthen open source software supply chain. Additionally, it offers operational resilience, logistics, and future-ready technology to the UK Ministry of Defence through Team ORION. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
International Business Machines (IBM) is a Technology company in the Information Technology Services industry with a market capitalisation of $220.5B. The stock trades at 20.80x trailing earnings and yields 2.82%.
- Sector
- Technology
- Industry
- Information Technology Services
- Market cap
- $220.5B
- P/E ratio
- 20.80
- Forward P/E
- 17.78
- EPS (TTM)
- $11.25
- Revenue (TTM)
- $69.1B
- Free cash flow
- $12B
- Profit margin
- 15.5%
- Dividend yield
- 2.82%
- Beta
- 0.71
- Shares outstanding
- 942.1M
Financial health: Fair5.5/10
5 strengths, 4 concerns. Weakest points: debt to equity, current ratio, earnings growth and 1 more.
- Debt to equity: 1.88 (Concern, benchmark < 0.5) — Debt of 1.88x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 3.9y (Watch, benchmark < 4 years) — Net debt of $47.7B is 3.9x annual free cash flow — about 4 years of cash flow to repay.
- Current ratio: 0.96 (Concern, benchmark > 1.5) — Short-term assets cover only 0.96x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has been broadly flat over the last 4 years.
- Return on equity: 34.5% (Strong, benchmark > 15%) — Earns 34.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 58.1% (Strong, benchmark > 40%) — Keeps 58.1% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 15.5% (Strong, benchmark > 10%) — Turns 15.5% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $12.1B (Strong, benchmark positive) — Generated $12.1B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 1.1% (Watch, benchmark > 10%) — Revenue changed 1.1% year on year, short of the > 10% mark.
- Earnings growth: -1.8% (Concern, benchmark > 10%) — Earnings changed -1.8% year on year, well short of the > 10% mark.
- PEG ratio: 2.27 (Concern, benchmark < 1) — At 2.27, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 59.8% (Strong, benchmark < 60%) — Pays out 59.8% of earnings as dividends, leaving room to keep paying.