About International Business Machines
International Business Machines (IBM) is a Technology company in the Computer & office Equipment industry with a market capitalisation of $236B. The stock trades at 21.10x trailing earnings and yields 2.73%.
- Sector
- Technology
- Industry
- Computer & office Equipment
- Market cap
- $236B
- P/E ratio
- 21.10
- EPS (TTM)
- $11.17
- Revenue (TTM)
- $67.5B
- Free cash flow
- $12.1B
- Profit margin
- 15.7%
- Dividend yield
- 2.73%
- Shares outstanding
- 945.1M
Financial health: Fair7/10
6 strengths, 2 concerns. Weakest points: debt to equity, current ratio.
- 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: 32.5% (Strong, benchmark > 15%) — Earns 32.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 58.2% (Strong, benchmark > 40%) — Keeps 58.2% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 15.7% (Strong, benchmark > 10%) — Turns 15.7% 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: 7.6% (Watch, benchmark > 10%) — Revenue changed 7.6% year on year, short of the > 10% mark.
- Earnings growth: 75.9% (Strong, benchmark > 10%) — Earnings changed 75.9% year on year, comfortably past the > 10% mark.
- Payout ratio: 59.0% (Strong, benchmark < 60%) — Pays out 59.0% of earnings as dividends, leaving room to keep paying.