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

BIT:1IBM • US4592001014

Current stock price

197.96 EUR
-17.19 (-7.99%)
Last:

This 1IBM.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. 1IBM.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1IBM was profitable.
  • 1IBM had a positive operating cash flow in the past year.
  • Each year in the past 5 years 1IBM has been profitable.
  • In the past 5 years 1IBM always reported a positive cash flow from operatings.
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

  • With a decent Return On Assets value of 6.88%, 1IBM is doing good in the industry, outperforming 78.57% of the companies in the same industry.
  • 1IBM's Return On Equity of 32.61% is amongst the best of the industry. 1IBM outperforms 90.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.21%, 1IBM is in line with its industry, outperforming 45.71% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1IBM is below the industry average of 11.52%.
  • The 3 year average ROIC (6.82%) for 1IBM is below the current ROIC(7.21%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.88%
ROE 32.61%
ROIC 7.21%
ROA(3y)5.64%
ROA(5y)4.51%
ROE(3y)29.27%
ROE(5y)25.13%
ROIC(3y)6.82%
ROIC(5y)6.14%
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

  • The Profit Margin of 1IBM (15.60%) is better than 94.29% of its industry peers.
  • In the last couple of years the Profit Margin of 1IBM has grown nicely.
  • Looking at the Operating Margin, with a value of 16.19%, 1IBM belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
  • 1IBM's Operating Margin has improved in the last couple of years.
  • 1IBM has a Gross Margin (58.36%) which is in line with its industry peers.
  • 1IBM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.19%
PM (TTM) 15.6%
GM 58.36%
OM growth 3Y12.07%
OM growth 5Y9.83%
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. 1IBM.MI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1IBM is destroying value.
  • The number of shares outstanding for 1IBM has been increased compared to 1 year ago.
  • 1IBM has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for 1IBM is higher compared to a year ago.
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 3.06 indicates that 1IBM is not in any danger for bankruptcy at the moment.
  • 1IBM has a Altman-Z score of 3.06. This is in the better half of the industry: 1IBM outperforms 74.29% of its industry peers.
  • The Debt to FCF ratio of 1IBM is 5.41, which is a neutral value as it means it would take 1IBM, 5.41 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 5.41, 1IBM is in line with its industry, outperforming 45.71% of the companies in the same industry.
  • A Debt/Equity ratio of 1.75 is on the high side and indicates that 1IBM has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.75, 1IBM is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.75
Debt/FCF 5.41
Altman-Z 3.06
ROIC/WACC0.72
WACC10.04%
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 0.80 indicates that 1IBM may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.80, 1IBM is doing worse than 80.00% of the companies in the same industry.
  • A Quick Ratio of 0.76 indicates that 1IBM may have some problems paying its short term obligations.
  • The Quick ratio of 1IBM (0.76) is worse than 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.76
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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5

3. 1IBM.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 15.90% over the past year.
  • 1IBM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
  • The Revenue has grown by 9.67% in the past year. This is quite good.
  • The Revenue has been growing slightly by 4.12% on average over the past years.
EPS 1Y (TTM)15.9%
EPS 3Y8.25%
EPS 5Y5.94%
EPS Q2Q%19.37%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y3.72%
Revenue growth 5Y4.12%
Sales Q2Q%9.46%

3.2 Future

  • Based on estimates for the next years, 1IBM will show a small growth in Earnings Per Share. The EPS will grow by 6.29% on average per year.
  • The Revenue is expected to grow by 5.36% on average over the next years.
EPS Next Y8.16%
EPS Next 2Y8.19%
EPS Next 3Y8.77%
EPS Next 5Y6.29%
Revenue Next Year6.12%
Revenue Next 2Y5.36%
Revenue Next 3Y5.51%
Revenue Next 5Y5.36%

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 accelerating: in the next years the growth will be better 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 25

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2

4. 1IBM.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.50 indicates a rather expensive valuation of 1IBM.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1IBM is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 26.64. 1IBM is valued slightly cheaper when compared to this.
  • 1IBM is valuated rather expensively with a Price/Forward Earnings ratio of 17.10.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1IBM.
  • When comparing the Price/Forward Earnings ratio of 1IBM to the average of the S&P500 Index (21.36), we can say 1IBM is valued inline with the index average.
Industry RankSector Rank
PE 19.5
Fwd PE 17.1
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 72.86% 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 17.73
EV/EBITDA 16.64
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.
  • The decent profitability rating of 1IBM may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)3.28
EPS Next 2Y8.19%
EPS Next 3Y8.77%

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6

5. 1IBM.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.93%, 1IBM has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.77, 1IBM has a dividend in line with its industry peers.
  • 1IBM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 2.93%

5.2 History

  • The dividend of 1IBM has a limited annual growth rate of 0.61%.
Dividend Growth(5Y)0.61%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 1IBM pays out 58.42% 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.
DP58.42%
EPS Next 2Y8.19%
EPS Next 3Y8.77%
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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1IBM.MI Fundamentals: All Metrics, Ratios and Statistics

INTL BUSINESS MACHINES CORP

BIT:1IBM (4/23/2026, 7:00:00 PM)

197.96

-17.19 (-7.99%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Industry Strength4.35
Industry Growth21.74
Earnings (Last)04-22
Earnings (Next)07-22
Inst Owners65.22%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap185.69B
Revenue(TTM)68.91B
Net Income(TTM)10.75B
Analysts74.07
Price Target243.36 (22.93%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.93%
Yearly Dividend5.74
Dividend Growth(5Y)0.61%
DP58.42%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.16%
Min EPS beat(2)3.6%
Max EPS beat(2)4.73%
EPS beat(4)4
Avg EPS beat(4)5.12%
Min EPS beat(4)3.6%
Max EPS beat(4)7.28%
EPS beat(8)8
Avg EPS beat(8)6.11%
EPS beat(12)12
Avg EPS beat(12)5.36%
EPS beat(16)15
Avg EPS beat(16)4.5%
Revenue beat(2)2
Avg Revenue beat(2)1.12%
Min Revenue beat(2)0.87%
Max Revenue beat(2)1.37%
Revenue beat(4)4
Avg Revenue beat(4)1.02%
Min Revenue beat(4)0.5%
Max Revenue beat(4)1.37%
Revenue beat(8)5
Avg Revenue beat(8)0.19%
Revenue beat(12)5
Avg Revenue beat(12)-0.25%
Revenue beat(16)8
Avg Revenue beat(16)0.05%
PT rev (1m)-19.2%
PT rev (3m)-2.84%
EPS NQ rev (1m)-2.55%
EPS NQ rev (3m)-2.16%
EPS NY rev (1m)0%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.43%
Valuation
Industry RankSector Rank
PE 19.5
Fwd PE 17.1
P/S 3.15
P/FCF 17.73
P/OCF 15.53
P/B 6.59
P/tB N/A
EV/EBITDA 16.64
EPS(TTM)10.15
EY5.13%
EPS(NY)11.57
Fwd EY5.85%
FCF(TTM)11.17
FCFY5.64%
OCF(TTM)12.75
OCFY6.44%
SpS62.78
BVpS30.04
TBVpS-51.34
PEG (NY)2.39
PEG (5Y)3.28
Graham Number82.8282 (-58.16%)
Profitability
Industry RankSector Rank
ROA 6.88%
ROE 32.61%
ROCE 9.61%
ROIC 7.21%
ROICexc 8.02%
ROICexgc 55.75%
OM 16.19%
PM (TTM) 15.6%
GM 58.36%
FCFM 17.79%
ROA(3y)5.64%
ROA(5y)4.51%
ROE(3y)29.27%
ROE(5y)25.13%
ROIC(3y)6.82%
ROIC(5y)6.14%
ROICexc(3y)7.87%
ROICexc(5y)6.96%
ROICexgc(3y)40.07%
ROICexgc(5y)33.42%
ROCE(3y)9.1%
ROCE(5y)8.19%
ROICexgc growth 3Y16.58%
ROICexgc growth 5Y28.25%
ROICexc growth 3Y11.41%
ROICexc growth 5Y15.19%
OM growth 3Y12.07%
OM growth 5Y9.83%
PM growth 3Y79.59%
PM growth 5Y9.14%
GM growth 3Y2.52%
GM growth 5Y0.79%
F-Score8
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 1.75
Debt/FCF 5.41
Debt/EBITDA 3.55
Cap/Depr 33.88%
Cap/Sales 2.52%
Interest Coverage 250
Cash Conversion 85.97%
Profit Quality 114.01%
Current Ratio 0.8
Quick Ratio 0.76
Altman-Z 3.06
F-Score8
WACC10.04%
ROIC/WACC0.72
Cap/Depr(3y)37.3%
Cap/Depr(5y)39.22%
Cap/Sales(3y)2.73%
Cap/Sales(5y)3.25%
Profit Quality(3y)154.99%
Profit Quality(5y)231.2%
High Growth Momentum
Growth
EPS 1Y (TTM)15.9%
EPS 3Y8.25%
EPS 5Y5.94%
EPS Q2Q%19.37%
EPS Next Y8.16%
EPS Next 2Y8.19%
EPS Next 3Y8.77%
EPS Next 5Y6.29%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y3.72%
Revenue growth 5Y4.12%
Sales Q2Q%9.46%
Revenue Next Year6.12%
Revenue Next 2Y5.36%
Revenue Next 3Y5.51%
Revenue Next 5Y5.36%
EBIT growth 1Y20.13%
EBIT growth 3Y16.24%
EBIT growth 5Y14.36%
EBIT Next Year50.48%
EBIT Next 3Y18.78%
EBIT Next 5Y16.19%
FCF growth 1Y-2.78%
FCF growth 3Y10.61%
FCF growth 5Y-5.21%
OCF growth 1Y-2.31%
OCF growth 3Y8.13%
OCF growth 5Y-6.23%

INTL BUSINESS MACHINES CORP / 1IBM.MI Fundamental Analysis 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.


Can you provide the profitability details for INTL BUSINESS MACHINES CORP?

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


What is the valuation of INTL BUSINESS MACHINES CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for INTL BUSINESS MACHINES CORP (1IBM.MI) is 19.5 and the Price/Book (PB) ratio is 6.59.


Can you provide the financial health for 1IBM stock?

The financial health rating of INTL BUSINESS MACHINES CORP (1IBM.MI) is 2 / 10.