INTL BUSINESS MACHINES CORP (1IBM.MI) Stock Fundamental Analysis

Europe • Euronext Milan • BIT:1IBM • US4592001014

241.65 EUR
-5.05 (-2.05%)
Last: Feb 4, 2026, 07:00 PM
Fundamental Rating

4

Overall 1IBM gets a fundamental rating of 4 out of 10. We evaluated 1IBM against 74 industry peers in the IT Services industry. While 1IBM has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, 1IBM is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • 1IBM had positive earnings in the past year.
  • In the past year 1IBM had a positive cash flow from operations.
  • Each year in the past 5 years 1IBM has been profitable.
  • 1IBM had a positive operating cash flow in each of the past 5 years.
1IBM.MI Yearly Net Income VS EBIT VS OCF VS FCF1IBM.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

1.2 Ratios

  • 1IBM has a Return On Assets of 6.97%. This is in the better half of the industry: 1IBM outperforms 71.62% of its industry peers.
  • 1IBM's Return On Equity of 32.45% is amongst the best of the industry. 1IBM outperforms 91.89% of its industry peers.
  • The Return On Invested Capital of 1IBM (7.29%) is comparable to the rest of the industry.
  • 1IBM had an Average Return On Invested Capital over the past 3 years of 6.72%. This is significantly below the industry average of 26.58%.
  • The last Return On Invested Capital (7.29%) for 1IBM is above the 3 year average (6.72%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.97%
ROE 32.45%
ROIC 7.29%
ROA(3y)5.64%
ROA(5y)4.51%
ROE(3y)29.27%
ROE(5y)25.13%
ROIC(3y)6.72%
ROIC(5y)6.08%
1IBM.MI Yearly ROA, ROE, ROIC1IBM.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 15.69%, 1IBM belongs to the top of the industry, outperforming 93.24% of the companies in the same industry.
  • In the last couple of years the Profit Margin of 1IBM has grown nicely.
  • With an excellent Operating Margin value of 16.30%, 1IBM belongs to the best of the industry, outperforming 93.24% of the companies in the same industry.
  • 1IBM's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 58.19%, 1IBM perfoms like the industry average, outperforming 47.30% of the companies in the same industry.
  • In the last couple of years the Gross Margin of 1IBM has remained more or less at the same level.
Industry RankSector Rank
OM 16.3%
PM (TTM) 15.69%
GM 58.19%
OM growth 3Y10.55%
OM growth 5Y8.93%
PM growth 3Y79.59%
PM growth 5Y9.14%
GM growth 3Y2.52%
GM growth 5Y0.79%
1IBM.MI Yearly Profit, Operating, Gross Margins1IBM.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1IBM is destroying value.
  • Compared to 1 year ago, 1IBM has more shares outstanding
  • 1IBM has more shares outstanding than it did 5 years ago.
  • 1IBM has a worse debt/assets ratio than last year.
1IBM.MI Yearly Shares Outstanding1IBM.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
1IBM.MI Yearly Total Debt VS Total Assets1IBM.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.2 Solvency

  • 1IBM has an Altman-Z score of 3.45. This indicates that 1IBM is financially healthy and has little risk of bankruptcy at the moment.
  • 1IBM has a better Altman-Z score (3.45) than 70.27% of its industry peers.
  • 1IBM has a debt to FCF ratio of 5.29. This is a neutral value as 1IBM would need 5.29 years to pay back of all of its debts.
  • 1IBM has a Debt to FCF ratio (5.29) which is in line with its industry peers.
  • 1IBM has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
  • 1IBM's Debt to Equity ratio of 1.68 is on the low side compared to the rest of the industry. 1IBM is outperformed by 77.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF 5.29
Altman-Z 3.45
ROIC/WACC0.82
WACC8.88%
1IBM.MI Yearly LT Debt VS Equity VS FCF1IBM.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.3 Liquidity

  • A Current Ratio of 0.96 indicates that 1IBM may have some problems paying its short term obligations.
  • With a Current ratio value of 0.96, 1IBM is not doing good in the industry: 68.92% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.92 indicates that 1IBM may have some problems paying its short term obligations.
  • 1IBM has a worse Quick ratio (0.92) than 67.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.92
1IBM.MI Yearly Current Assets VS Current Liabilites1IBM.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

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4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 12.00% over the past year.
  • The Earnings Per Share has been growing slightly by 5.94% on average over the past years.
  • 1IBM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.62%.
  • Measured over the past years, 1IBM shows a small growth in Revenue. The Revenue has been growing by 4.12% on average per year.
EPS 1Y (TTM)12%
EPS 3Y8.25%
EPS 5Y5.94%
EPS Q2Q%15.31%
Revenue 1Y (TTM)7.62%
Revenue growth 3Y3.72%
Revenue growth 5Y4.12%
Sales Q2Q%12.15%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.64% on average over the next years.
  • Based on estimates for the next years, 1IBM will show a small growth in Revenue. The Revenue will grow by 4.79% on average per year.
EPS Next Y6.47%
EPS Next 2Y6.33%
EPS Next 3Y4.68%
EPS Next 5Y5.64%
Revenue Next Year4.62%
Revenue Next 2Y4.4%
Revenue Next 3Y4.74%
Revenue Next 5Y4.79%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
1IBM.MI Yearly Revenue VS Estimates1IBM.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
1IBM.MI Yearly EPS VS Estimates1IBM.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20

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2

4. Valuation

4.1 Price/Earnings Ratio

  • 1IBM is valuated rather expensively with a Price/Earnings ratio of 24.63.
  • 1IBM's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.67. 1IBM is around the same levels.
  • With a Price/Forward Earnings ratio of 23.14, 1IBM is valued on the expensive side.
  • 1IBM's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of 1IBM to the average of the S&P500 Index (27.20), we can say 1IBM is valued inline with the index average.
Industry RankSector Rank
PE 24.63
Fwd PE 23.14
1IBM.MI Price Earnings VS Forward Price Earnings1IBM.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, 1IBM is valued a bit more expensive than 70.27% of the companies in the same industry.
  • 1IBM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 23.02
EV/EBITDA 19.5
1IBM.MI Per share data1IBM.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1IBM does not grow enough to justify the current Price/Earnings ratio.
  • 1IBM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.81
PEG (5Y)4.15
EPS Next 2Y6.33%
EPS Next 3Y4.68%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • 1IBM has a Yearly Dividend Yield of 2.17%.
  • 1IBM's Dividend Yield is comparable with the industry average which is at 2.36.
  • Compared to an average S&P500 Dividend Yield of 1.82, 1IBM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.17%

5.2 History

  • The dividend of 1IBM has a limited annual growth rate of 0.63%.
Dividend Growth(5Y)0.63%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 1IBM pays out 59.05% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • 1IBM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.05%
EPS Next 2Y6.33%
EPS Next 3Y4.68%
1IBM.MI Yearly Income VS Free CF VS Dividend1IBM.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B
1IBM.MI Dividend Payout.1IBM.MI Dividend Payout, showing the Payout Ratio.1IBM.MI Dividend Payout.PayoutRetained Earnings

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INTL BUSINESS MACHINES CORP

BIT:1IBM (2/4/2026, 7:00:00 PM)

241.65

-5.05 (-2.05%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners64.18%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap225.88B
Revenue(TTM)67.53B
Net Income(TTM)10.59B
Analysts71.85
Price Target250.47 (3.65%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.17%
Yearly Dividend5.64
Dividend Growth(5Y)0.63%
DP59.05%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.44%
Min EPS beat(2)3.6%
Max EPS beat(2)7.28%
EPS beat(4)4
Avg EPS beat(4)7.19%
Min EPS beat(4)3.6%
Max EPS beat(4)12.97%
EPS beat(8)8
Avg EPS beat(8)6.03%
EPS beat(12)12
Avg EPS beat(12)5.55%
EPS beat(16)15
Avg EPS beat(16)4.22%
Revenue beat(2)2
Avg Revenue beat(2)0.94%
Min Revenue beat(2)0.5%
Max Revenue beat(2)1.37%
Revenue beat(4)4
Avg Revenue beat(4)0.81%
Min Revenue beat(4)0.01%
Max Revenue beat(4)1.37%
Revenue beat(8)4
Avg Revenue beat(8)-0.12%
Revenue beat(12)4
Avg Revenue beat(12)-0.46%
Revenue beat(16)8
Avg Revenue beat(16)0.09%
PT rev (1m)-1.33%
PT rev (3m)4.04%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)3.62%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.62%
Valuation
Industry RankSector Rank
PE 24.63
Fwd PE 23.14
P/S 3.95
P/FCF 23.02
P/OCF 20.2
P/B 8.16
P/tB N/A
EV/EBITDA 19.5
EPS(TTM)9.81
EY4.06%
EPS(NY)10.44
Fwd EY4.32%
FCF(TTM)10.5
FCFY4.34%
OCF(TTM)11.96
OCFY4.95%
SpS61.24
BVpS29.6
TBVpS-42.13
PEG (NY)3.81
PEG (5Y)4.15
Graham Number80.83
Profitability
Industry RankSector Rank
ROA 6.97%
ROE 32.45%
ROCE 9.72%
ROIC 7.29%
ROICexc 8.36%
ROICexgc 41.92%
OM 16.3%
PM (TTM) 15.69%
GM 58.19%
FCFM 17.14%
ROA(3y)5.64%
ROA(5y)4.51%
ROE(3y)29.27%
ROE(5y)25.13%
ROIC(3y)6.72%
ROIC(5y)6.08%
ROICexc(3y)7.76%
ROICexc(5y)6.89%
ROICexgc(3y)39.5%
ROICexgc(5y)33.07%
ROCE(3y)8.97%
ROCE(5y)8.11%
ROICexgc growth 3Y15%
ROICexgc growth 5Y27.2%
ROICexc growth 3Y9.9%
ROICexc growth 5Y14.25%
OM growth 3Y10.55%
OM growth 5Y8.93%
PM growth 3Y79.59%
PM growth 5Y9.14%
GM growth 3Y2.52%
GM growth 5Y0.79%
F-Score6
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF 5.29
Debt/EBITDA 3.42
Cap/Depr 32.2%
Cap/Sales 2.39%
Interest Coverage 250
Cash Conversion 82.3%
Profit Quality 109.28%
Current Ratio 0.96
Quick Ratio 0.92
Altman-Z 3.45
F-Score6
WACC8.88%
ROIC/WACC0.82
Cap/Depr(3y)36.49%
Cap/Depr(5y)38.74%
Cap/Sales(3y)2.67%
Cap/Sales(5y)3.22%
Profit Quality(3y)155.37%
Profit Quality(5y)231.43%
High Growth Momentum
Growth
EPS 1Y (TTM)12%
EPS 3Y8.25%
EPS 5Y5.94%
EPS Q2Q%15.31%
EPS Next Y6.47%
EPS Next 2Y6.33%
EPS Next 3Y4.68%
EPS Next 5Y5.64%
Revenue 1Y (TTM)7.62%
Revenue growth 3Y3.72%
Revenue growth 5Y4.12%
Sales Q2Q%12.15%
Revenue Next Year4.62%
Revenue Next 2Y4.4%
Revenue Next 3Y4.74%
Revenue Next 5Y4.79%
EBIT growth 1Y20.21%
EBIT growth 3Y14.66%
EBIT growth 5Y13.42%
EBIT Next Year45.85%
EBIT Next 3Y16.75%
EBIT Next 5Y13.5%
FCF growth 1Y-1.57%
FCF growth 3Y11%
FCF growth 5Y-5.01%
OCF growth 1Y-1.88%
OCF growth 3Y8.13%
OCF growth 5Y-6.23%

INTL BUSINESS MACHINES CORP / 1IBM.MI FAQ

What is the ChartMill fundamental rating of INTL BUSINESS MACHINES CORP (1IBM.MI) stock?

ChartMill assigns a fundamental rating of 4 / 10 to 1IBM.MI.


What is the valuation status of INTL BUSINESS MACHINES CORP (1IBM.MI) stock?

ChartMill assigns a valuation rating of 2 / 10 to INTL BUSINESS MACHINES CORP (1IBM.MI). This can be considered as Overvalued.


What is the profitability of 1IBM stock?

INTL BUSINESS MACHINES CORP (1IBM.MI) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for 1IBM stock?

The Earnings per Share (EPS) of INTL BUSINESS MACHINES CORP (1IBM.MI) is expected to grow by 6.47% in the next year.


Is the dividend of INTL BUSINESS MACHINES CORP sustainable?

The dividend rating of INTL BUSINESS MACHINES CORP (1IBM.MI) is 4 / 10 and the dividend payout ratio is 59.05%.