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

BIT:1IBM • US4592001014

Current stock price

206.05 EUR
-2.35 (-1.13%)
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.
  • In the past 5 years 1IBM has always 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 74.65% of its industry peers.
  • 1IBM has a Return On Equity of 32.45%. This is amongst the best in the industry. 1IBM outperforms 91.55% of its industry peers.
  • 1IBM has a Return On Invested Capital (7.29%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1IBM is below the industry average of 10.82%.
  • 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

  • With an excellent Profit Margin value of 15.69%, 1IBM belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
  • In the last couple of years the Profit Margin of 1IBM has grown nicely.
  • Looking at the Operating Margin, with a value of 16.30%, 1IBM belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
  • In the last couple of years the Operating Margin of 1IBM has grown nicely.
  • The Gross Margin of 1IBM (58.19%) is comparable to the rest of the 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. 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

  • 1IBM has an Altman-Z score of 3.24. This indicates that 1IBM is financially healthy and has little risk of bankruptcy at the moment.
  • 1IBM has a better Altman-Z score (3.24) than 69.01% 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.
  • Looking at the Debt to FCF ratio, with a value of 5.29, 1IBM is in line with its industry, outperforming 43.66% of the companies in the same industry.
  • A Debt/Equity ratio of 1.68 is on the high side and indicates that 1IBM has dependencies on debt 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 78.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF 5.29
Altman-Z 3.24
ROIC/WACC0.8
WACC9.12%
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.
  • 1IBM's Current ratio of 0.96 is on the low side compared to the rest of the industry. 1IBM is outperformed by 71.83% of its industry peers.
  • A Quick Ratio of 0.92 indicates that 1IBM may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.92, 1IBM is doing worse than 71.83% of the companies in the same industry.
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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5

3. 1IBM.MI Growth Analysis

3.1 Past

  • 1IBM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.00%, which is quite good.
  • Measured over the past 5 years, 1IBM shows a small growth in Earnings Per Share. The EPS has been growing by 5.94% on average per year.
  • 1IBM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.62%.
  • 1IBM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
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 11.08% on average over the next years. This is quite good.
  • Based on estimates for the next years, 1IBM will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y8.16%
EPS Next 2Y8.29%
EPS Next 3Y8.96%
EPS Next 5Y11.08%
Revenue Next Year6.17%
Revenue Next 2Y5.38%
Revenue Next 3Y5.35%
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. 1IBM.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • 1IBM is valuated rather expensively with a Price/Earnings ratio of 20.54.
  • 1IBM's Price/Earnings ratio is in line with the industry average.
  • 1IBM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 19.00, 1IBM is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1IBM is on the same level as its industry peers.
  • 1IBM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.54
Fwd PE 19
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

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1IBM indicates a slightly more expensive valuation: 1IBM is more expensive than 70.42% of the companies listed in the same industry.
  • 1IBM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 19.27
EV/EBITDA 16.94
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)2.52
PEG (5Y)3.46
EPS Next 2Y8.29%
EPS Next 3Y8.96%

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5

5. 1IBM.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.78%, 1IBM has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.81, 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 1.89.
Industry RankSector Rank
Dividend Yield 2.78%

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 2Y8.29%
EPS Next 3Y8.96%
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 (3/27/2026, 7:00:00 PM)

206.05

-2.35 (-1.13%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-28
Earnings (Next)04-22
Inst Owners65.54%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap193.28B
Revenue(TTM)67.53B
Net Income(TTM)10.59B
Analysts74.07
Price Target301.19 (46.17%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.78%
Yearly Dividend5.84
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)11.33%
PT rev (3m)18.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.75%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.49%
Valuation
Industry RankSector Rank
PE 20.54
Fwd PE 19
P/S 3.3
P/FCF 19.27
P/OCF 16.91
P/B 6.83
P/tB N/A
EV/EBITDA 16.94
EPS(TTM)10.03
EY4.87%
EPS(NY)10.85
Fwd EY5.26%
FCF(TTM)10.69
FCFY5.19%
OCF(TTM)12.19
OCFY5.92%
SpS62.39
BVpS30.16
TBVpS-42.92
PEG (NY)2.52
PEG (5Y)3.46
Graham Number82.5
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 3.24
F-Score6
WACC9.12%
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 Y8.16%
EPS Next 2Y8.29%
EPS Next 3Y8.96%
EPS Next 5Y11.08%
Revenue 1Y (TTM)7.62%
Revenue growth 3Y3.72%
Revenue growth 5Y4.12%
Sales Q2Q%12.15%
Revenue Next Year6.17%
Revenue Next 2Y5.38%
Revenue Next 3Y5.35%
Revenue Next 5Y5.87%
EBIT growth 1Y20.21%
EBIT growth 3Y14.66%
EBIT growth 5Y13.42%
EBIT Next Year50.69%
EBIT Next 3Y18.76%
EBIT Next 5Y16.19%
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 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.


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 8.16% 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%.