INTL BUSINESS MACHINES CORP (IBM.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:IBM • US4592001014

237.6 EUR
-9.35 (-3.79%)
Last: Feb 11, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

4

Taking everything into account, IBM scores 4 out of 10 in our fundamental rating. IBM was compared to 74 industry peers in the IT Services industry. While IBM has a great profitability rating, there are quite some concerns on its financial health. IBM 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

  • IBM had positive earnings in the past year.
  • IBM had a positive operating cash flow in the past year.
  • In the past 5 years IBM has always been profitable.
  • In the past 5 years IBM always reported a positive cash flow from operatings.
IBM.DE Yearly Net Income VS EBIT VS OCF VS FCFIBM.DE 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 IBM (6.97%) is better than 68.92% of its industry peers.
  • IBM has a Return On Equity of 32.45%. This is amongst the best in the industry. IBM outperforms 87.84% of its industry peers.
  • IBM has a Return On Invested Capital of 6.85%. This is comparable to the rest of the industry: IBM outperforms 41.89% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for IBM is significantly below the industry average of 26.55%.
  • The last Return On Invested Capital (6.85%) for IBM is above the 3 year average (6.31%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.97%
ROE 32.45%
ROIC 6.85%
ROA(3y)5.64%
ROA(5y)4.51%
ROE(3y)29.27%
ROE(5y)25.13%
ROIC(3y)6.31%
ROIC(5y)5.71%
IBM.DE Yearly ROA, ROE, ROICIBM.DE 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%, IBM belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
  • IBM's Profit Margin has improved in the last couple of years.
  • IBM's Operating Margin of 16.30% is amongst the best of the industry. IBM outperforms 89.19% of its industry peers.
  • In the last couple of years the Operating Margin of IBM has grown nicely.
  • The Gross Margin of IBM (58.19%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of IBM 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%
IBM.DE Yearly Profit, Operating, Gross MarginsIBM.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IBM is destroying value.
  • Compared to 1 year ago, IBM has more shares outstanding
  • The number of shares outstanding for IBM has been increased compared to 5 years ago.
  • IBM has a worse debt/assets ratio than last year.
IBM.DE Yearly Shares OutstandingIBM.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
IBM.DE Yearly Total Debt VS Total AssetsIBM.DE 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 3.49 indicates that IBM is not in any danger for bankruptcy at the moment.
  • IBM has a better Altman-Z score (3.49) than 70.27% of its industry peers.
  • IBM has a debt to FCF ratio of 5.29. This is a neutral value as IBM would need 5.29 years to pay back of all of its debts.
  • IBM's Debt to FCF ratio of 5.29 is in line compared to the rest of the industry. IBM outperforms 43.24% of its industry peers.
  • IBM has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.68, IBM is not doing good in the industry: 79.73% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF 5.29
Altman-Z 3.49
ROIC/WACC0.79
WACC8.68%
IBM.DE Yearly LT Debt VS Equity VS FCFIBM.DE 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 IBM may have some problems paying its short term obligations.
  • IBM has a worse Current ratio (0.96) than 72.97% of its industry peers.
  • IBM has a Quick Ratio of 0.96. This is a bad value and indicates that IBM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.92, IBM is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.92
IBM.DE Yearly Current Assets VS Current LiabilitesIBM.DE 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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 12.00% over the past year.
  • IBM 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 been growing slightly by 7.62% in the past year.
  • Measured over the past years, IBM 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

  • IBM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.64% yearly.
  • The Revenue is expected to grow by 4.79% on average over the next years.
EPS Next Y8.56%
EPS Next 2Y8.43%
EPS Next 3Y9.11%
EPS Next 5Y5.64%
Revenue Next Year6.14%
Revenue Next 2Y5.37%
Revenue Next 3Y5.33%
Revenue Next 5Y4.79%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
IBM.DE Yearly Revenue VS EstimatesIBM.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
IBM.DE Yearly EPS VS EstimatesIBM.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20

More info and screens

Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 24.42 indicates a rather expensive valuation of IBM.
  • Compared to the rest of the industry, the Price/Earnings ratio of IBM is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 28.23, IBM is valued at the same level.
  • IBM is valuated rather expensively with a Price/Forward Earnings ratio of 22.50.
  • IBM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IBM is more expensive than 62.16% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, IBM is valued at the same level.
Industry RankSector Rank
PE 24.42
Fwd PE 22.5
IBM.DE Price Earnings VS Forward Price EarningsIBM.DE 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, IBM is valued a bit more expensive than 75.68% of the companies in the same industry.
  • IBM's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 22.82
EV/EBITDA 20
IBM.DE Per share dataIBM.DE 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 IBM does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of IBM may justify a higher PE ratio.
PEG (NY)2.85
PEG (5Y)4.11
EPS Next 2Y8.43%
EPS Next 3Y9.11%

More info and screens

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

5

5. Dividend

5.1 Amount

  • IBM has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
  • IBM's Dividend Yield is comparable with the industry average which is at 2.44.
  • Compared to an average S&P500 Dividend Yield of 1.79, IBM pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.32%

5.2 History

  • The dividend of IBM has a limited annual growth rate of 0.63%.
Dividend Growth(5Y)0.63%
Div Incr Years6
Div Non Decr Years6
IBM.DE Yearly Dividends per shareIBM.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • IBM pays out 59.05% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • IBM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.05%
EPS Next 2Y8.43%
EPS Next 3Y9.11%
IBM.DE Yearly Income VS Free CF VS DividendIBM.DE 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
IBM.DE Dividend Payout.IBM.DE Dividend Payout, showing the Payout Ratio.IBM.DE Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

INTL BUSINESS MACHINES CORP

FRA:IBM (2/11/2026, 7:00:00 PM)

237.6

-9.35 (-3.79%)

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 Cap222.09B
Revenue(TTM)67.53B
Net Income(TTM)10.59B
Analysts71.85
Price Target270.91 (14.02%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.32%
Yearly Dividend5.7
Dividend Growth(5Y)0.63%
DP59.05%
Div Incr Years6
Div Non Decr Years6
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)7.65%
PT rev (3m)8.28%
EPS NQ rev (1m)-3.75%
EPS NQ rev (3m)-3.97%
EPS NY rev (1m)1.98%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)2.08%
Valuation
Industry RankSector Rank
PE 24.42
Fwd PE 22.5
P/S 3.91
P/FCF 22.82
P/OCF 20.02
P/B 8.09
P/tB N/A
EV/EBITDA 20
EPS(TTM)9.73
EY4.1%
EPS(NY)10.56
Fwd EY4.44%
FCF(TTM)10.41
FCFY4.38%
OCF(TTM)11.87
OCFY4.99%
SpS60.74
BVpS29.36
TBVpS-41.79
PEG (NY)2.85
PEG (5Y)4.11
Graham Number80.18
Profitability
Industry RankSector Rank
ROA 6.97%
ROE 32.45%
ROCE 9.72%
ROIC 6.85%
ROICexc 7.84%
ROICexgc 39.35%
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)6.31%
ROIC(5y)5.71%
ROICexc(3y)7.28%
ROICexc(5y)6.47%
ROICexgc(3y)37.08%
ROICexgc(5y)31.05%
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 3.49
F-Score6
WACC8.68%
ROIC/WACC0.79
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 5Y5.64%
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 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 / IBM.DE FAQ

What is the fundamental rating for IBM stock?

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


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

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


How profitable is INTL BUSINESS MACHINES CORP (IBM.DE) stock?

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


What are the PE and PB ratios of INTL BUSINESS MACHINES CORP (IBM.DE) stock?

The Price/Earnings (PE) ratio for INTL BUSINESS MACHINES CORP (IBM.DE) is 24.42 and the Price/Book (PB) ratio is 8.09.


Can you provide the financial health for IBM stock?

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