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

FRA:IBM • US4592001014

220.6 EUR
0 (0%)
Last: Mar 6, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

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

Fundamental Rating

4

Overall IBM gets a fundamental rating of 4 out of 10. We evaluated IBM against 75 industry peers in the IT Services industry. IBM has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, IBM is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. IBM.DE Profitability Analysis

1.1 Basic Checks

  • IBM had positive earnings in the past year.
  • In the past year IBM had a positive cash flow from operations.
  • In the past 5 years IBM has always been profitable.
  • IBM had a positive operating cash flow in each of the past 5 years.
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 69.33% of its industry peers.
  • IBM has a better Return On Equity (32.45%) than 88.00% of its industry peers.
  • With a Return On Invested Capital value of 6.85%, IBM perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
  • IBM had an Average Return On Invested Capital over the past 3 years of 6.31%. This is significantly below the industry average of 11.55%.
  • The 3 year average ROIC (6.31%) for IBM is below the current ROIC(6.85%), indicating increased profibility in the last year.
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

  • IBM has a better Profit Margin (15.69%) than 90.67% of its industry peers.
  • IBM's Profit Margin has improved in the last couple of years.
  • IBM has a Operating Margin of 16.30%. This is amongst the best in the industry. IBM outperforms 90.67% of its industry peers.
  • IBM's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 58.19%, IBM is in line with its industry, outperforming 45.33% of the companies in the same industry.
  • IBM's Gross Margin has been stable in the last couple of years.
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

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2

2. IBM.DE Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IBM is destroying value.
  • The number of shares outstanding for IBM has been increased compared to 1 year ago.
  • IBM has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for IBM is higher compared to a year ago.
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 3.31 indicates that IBM is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.31, IBM is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
  • The Debt to FCF ratio of IBM is 5.29, which is a neutral value as it means it would take IBM, 5.29 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of IBM (5.29) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.68 is on the high side and indicates that IBM has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.68, IBM is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF 5.29
Altman-Z 3.31
ROIC/WACC0.79
WACC8.7%
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's Current ratio of 0.96 is on the low side compared to the rest of the industry. IBM is outperformed by 72.00% 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.
  • IBM's Quick ratio of 0.92 is on the low side compared to the rest of the industry. IBM is outperformed by 68.00% of its industry peers.
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

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5

3. IBM.DE Growth Analysis

3.1 Past

  • IBM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.00%, which is quite good.
  • IBM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
  • IBM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.62%.
  • 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

  • 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, IBM will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y8.56%
EPS Next 2Y8.43%
EPS Next 3Y9.11%
EPS Next 5Y11.08%
Revenue Next Year6.15%
Revenue Next 2Y5.37%
Revenue Next 3Y5.33%
Revenue Next 5Y5.87%

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 accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 25

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2

4. IBM.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.15, IBM is valued on the expensive side.
  • 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 26.29, IBM is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 20.40, the valuation of IBM can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of IBM is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, IBM is valued at the same level.
Industry RankSector Rank
PE 22.15
Fwd PE 20.4
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IBM indicates a slightly more expensive valuation: IBM is more expensive than 74.67% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of IBM is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 20.7
EV/EBITDA 17.82
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 an expensive valuation of the company.
  • The decent profitability rating of IBM may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)3.73
EPS Next 2Y8.43%
EPS Next 3Y9.11%

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6

5. IBM.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.78%, IBM has a reasonable but not impressive dividend return.
  • IBM's Dividend Yield is a higher than the industry average which is at 2.52.
  • Compared to an average S&P500 Dividend Yield of 1.82, IBM pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.78%

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.
  • The dividend of IBM is growing, but earnings are growing more, so the dividend growth is 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

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IBM.DE Fundamentals: All Metrics, Ratios and Statistics

INTL BUSINESS MACHINES CORP

FRA:IBM (3/6/2026, 7:00:00 PM)

220.6

0 (0%)

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 Cap206.20B
Revenue(TTM)67.53B
Net Income(TTM)10.59B
Analysts73.33
Price Target300.26 (36.11%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.78%
Yearly Dividend5.69
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)19.95%
PT rev (3m)21.9%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-3.78%
EPS NY rev (1m)1.96%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.56%
Valuation
Industry RankSector Rank
PE 22.15
Fwd PE 20.4
P/S 3.55
P/FCF 20.7
P/OCF 18.16
P/B 7.34
P/tB N/A
EV/EBITDA 17.82
EPS(TTM)9.96
EY4.51%
EPS(NY)10.81
Fwd EY4.9%
FCF(TTM)10.66
FCFY4.83%
OCF(TTM)12.15
OCFY5.51%
SpS62.19
BVpS30.06
TBVpS-42.78
PEG (NY)2.59
PEG (5Y)3.73
Graham Number82.08
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 3.31
F-Score6
WACC8.7%
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 5Y11.08%
Revenue 1Y (TTM)7.62%
Revenue growth 3Y3.72%
Revenue growth 5Y4.12%
Sales Q2Q%12.15%
Revenue Next Year6.15%
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 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 / 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 22.15 and the Price/Book (PB) ratio is 7.34.


Can you provide the financial health for IBM stock?

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