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

1IBM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the IT Services industry. 1IBM has an excellent profitability rating, but there are concerns on its financial health. 1IBM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

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.
  • 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

  • 1IBM has a Return On Assets of 6.97%. This is in the better half of the industry: 1IBM outperforms 70.42% of its industry peers.
  • 1IBM has a better Return On Equity (32.45%) than 90.14% of its industry peers.
  • 1IBM's Return On Invested Capital of 7.29% is in line compared to the rest of the industry. 1IBM outperforms 45.07% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1IBM 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

  • The Profit Margin of 1IBM (15.69%) is better than 92.96% of its industry peers.
  • In the last couple of years the Profit Margin of 1IBM has grown nicely.
  • 1IBM has a better Operating Margin (16.30%) than 92.96% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, 1IBM has more shares outstanding
  • 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

  • 1IBM has an Altman-Z score of 3.33. This indicates that 1IBM is financially healthy and has little risk of bankruptcy at the moment.
  • 1IBM has a Altman-Z score of 3.33. This is in the better half of the industry: 1IBM outperforms 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.
  • 1IBM has a Debt to FCF ratio (5.29) which is comparable to the rest of the industry.
  • 1IBM has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of 1IBM (1.68) is worse than 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

  • 1IBM has a Current 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 Current ratio (0.96) than 71.83% of its industry peers.
  • 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.
  • With a Quick ratio value of 0.92, 1IBM is not doing good in the industry: 69.01% of the companies in the same industry are doing better.
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.
  • 1IBM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
  • Looking at the last year, 1IBM shows a small growth in Revenue. The Revenue has grown by 7.62% in the last year.
  • 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

  • 1IBM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.08% yearly.
  • The Revenue is expected to grow by 5.87% on average over the next years.
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

  • With a Price/Earnings ratio of 22.49, 1IBM is valued on the expensive side.
  • 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 27.19, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 20.72, which indicates a rather expensive current valuation of 1IBM.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1IBM is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. 1IBM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 22.49
Fwd PE 20.72
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 70.42% of the companies are valued more cheaply.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1IBM is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 21.02
EV/EBITDA 18.05
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)2.63
PEG (5Y)3.79
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

  • 1IBM has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.64, 1IBM has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, 1IBM pays a bit more dividend than the S&P500 average.
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 22.49
Fwd PE 20.72
P/S 3.6
P/FCF 21.02
P/OCF 18.44
P/B 7.45
P/tB N/A
EV/EBITDA 18.05
EPS(TTM)9.76
EY4.45%
EPS(NY)10.6
Fwd EY4.83%
FCF(TTM)10.45
FCFY4.76%
OCF(TTM)11.91
OCFY5.42%
SpS60.94
BVpS29.46
TBVpS-41.93
PEG (NY)2.63
PEG (5Y)3.79
Graham Number80.43
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%.