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

BIT:1IBM • US4592001014

219.55 EUR
-27.1 (-10.99%)
Last: Feb 13, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

4

Overall 1IBM gets a fundamental rating of 4 out of 10. We evaluated 1IBM against 71 industry peers in the IT Services industry. While 1IBM belongs to the best of the industry regarding profitability, there are 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.
  • 1IBM had a positive operating cash flow in the past year.
  • In the past 5 years 1IBM has always been profitable.
  • Each year in the past 5 years 1IBM had a positive operating cash flow.
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

  • The Return On Assets of 1IBM (6.97%) is better than 69.01% of its industry peers.
  • With an excellent Return On Equity value of 32.45%, 1IBM belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
  • With a Return On Invested Capital value of 7.29%, 1IBM perfoms like the industry average, outperforming 45.07% of the companies in the same industry.
  • 1IBM had an Average Return On Invested Capital over the past 3 years of 6.72%. This is below the industry average of 11.09%.
  • The 3 year average ROIC (6.72%) for 1IBM is below the current ROIC(7.29%), indicating increased profibility in the last year.
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

  • 1IBM's Profit Margin of 15.69% is amongst the best of the industry. 1IBM outperforms 91.55% of its industry peers.
  • 1IBM's Profit Margin has improved in the last couple of years.
  • 1IBM has a Operating Margin of 16.30%. This is amongst the best in the industry. 1IBM outperforms 91.55% of its industry peers.
  • In the last couple of years the Operating Margin of 1IBM has grown nicely.
  • 1IBM has a Gross Margin of 58.19%. This is comparable to the rest of the industry: 1IBM outperforms 43.66% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1IBM is destroying value.
  • 1IBM has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, 1IBM has more shares outstanding
  • Compared to 1 year ago, 1IBM has a worse debt to assets ratio.
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

  • An Altman-Z score of 3.33 indicates that 1IBM is not in any danger for bankruptcy at the moment.
  • 1IBM's Altman-Z score of 3.33 is fine compared to the rest of the industry. 1IBM outperforms 70.42% of its industry peers.
  • The Debt to FCF ratio of 1IBM is 5.29, which is a neutral value as it means it would take 1IBM, 5.29 years of fcf income to pay off all of its debts.
  • 1IBM has a Debt to FCF ratio of 5.29. This is comparable to the rest of the industry: 1IBM outperforms 45.07% of its industry peers.
  • A Debt/Equity ratio of 1.68 is on the high side and indicates that 1IBM has dependencies on debt financing.
  • 1IBM has a Debt to Equity ratio of 1.68. This is in the lower half of the industry: 1IBM underperforms 78.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF 5.29
Altman-Z 3.33
ROIC/WACC0.8
WACC9.09%
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: 71.83% of the companies in the same industry are doing better.
  • 1IBM has a Quick Ratio of 0.96. This is a bad value and indicates that 1IBM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • 1IBM has a worse Quick ratio (0.92) than 69.01% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • Looking at the last year, 1IBM shows a small growth in Revenue. The Revenue has grown by 7.62% in the last year.
  • The Revenue has been growing slightly by 4.12% on average over the past years.
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

  • Based on estimates for the next years, 1IBM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.08% on average per year.
  • 1IBM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.87% yearly.
EPS Next Y8.56%
EPS Next 2Y8.43%
EPS Next 3Y9.11%
EPS Next 5Y11.08%
Revenue Next Year6.14%
Revenue Next 2Y5.37%
Revenue Next 3Y5.33%
Revenue Next 5Y5.87%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 25

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2

4. Valuation

4.1 Price/Earnings Ratio

  • 1IBM is valuated rather expensively with a Price/Earnings ratio of 22.45.
  • The rest of the industry has a similar Price/Earnings ratio as 1IBM.
  • 1IBM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.16, which is the current average of the S&P500 Index.
  • 1IBM is valuated rather expensively with a Price/Forward Earnings ratio of 20.67.
  • 1IBM's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of 1IBM to the average of the S&P500 Index (28.10), we can say 1IBM is valued slightly cheaper.
Industry RankSector Rank
PE 22.45
Fwd PE 20.67
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 the industry average as 73.24% of the companies are valued more cheaply.
  • 1IBM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 20.97
EV/EBITDA 18.01
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 an expensive valuation of the company.
  • The decent profitability rating of 1IBM may justify a higher PE ratio.
PEG (NY)2.62
PEG (5Y)3.78
EPS Next 2Y8.43%
EPS Next 3Y9.11%

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

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.59%, 1IBM has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.64, 1IBM has a dividend in line with its industry peers.
  • 1IBM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.59%

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

  • 59.05% of the earnings are spent on dividend by 1IBM. 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 2Y8.43%
EPS Next 3Y9.11%
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 (2/13/2026, 7:00:00 PM)

219.55

-27.1 (-10.99%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-28
Earnings (Next)04-22
Inst Owners64.18%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap205.22B
Revenue(TTM)67.53B
Net Income(TTM)10.59B
Analysts73.33
Price Target270.55 (23.23%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.59%
Yearly Dividend5.67
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)6.58%
PT rev (3m)13.16%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)1.96%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.55%
Valuation
Industry RankSector Rank
PE 22.45
Fwd PE 20.67
P/S 3.59
P/FCF 20.97
P/OCF 18.4
P/B 7.43
P/tB N/A
EV/EBITDA 18.01
EPS(TTM)9.78
EY4.45%
EPS(NY)10.62
Fwd EY4.84%
FCF(TTM)10.47
FCFY4.77%
OCF(TTM)11.93
OCFY5.44%
SpS61.09
BVpS29.53
TBVpS-42.03
PEG (NY)2.62
PEG (5Y)3.78
Graham Number80.62
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 3.33
F-Score6
WACC9.09%
ROIC/WACC0.8
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 Y8.56%
EPS Next 2Y8.43%
EPS Next 3Y9.11%
EPS Next 5Y11.08%
Revenue 1Y (TTM)7.62%
Revenue growth 3Y3.72%
Revenue growth 5Y4.12%
Sales Q2Q%12.15%
Revenue Next Year6.14%
Revenue Next 2Y5.37%
Revenue Next 3Y5.33%
Revenue Next 5Y5.87%
EBIT growth 1Y20.21%
EBIT growth 3Y14.66%
EBIT growth 5Y13.42%
EBIT Next Year45.85%
EBIT Next 3Y16.75%
EBIT Next 5Y16.03%
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 8.56% in the next year.


Is the dividend of INTL BUSINESS MACHINES CORP sustainable?

The dividend rating of INTL BUSINESS MACHINES CORP (1IBM.MI) is 5 / 10 and the dividend payout ratio is 59.05%.