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

FRA:IBM • US4592001014

Current stock price

212.7 EUR
-0.15 (-0.07%)
Last:

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

7

1. IBM.DE Profitability Analysis

1.1 Basic Checks

  • IBM had positive earnings in the past year.
  • IBM had a positive operating cash flow in the past year.
  • IBM had positive earnings in each of the past 5 years.
  • Each year in the past 5 years IBM had a positive operating cash flow.
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

  • With a decent Return On Assets value of 6.97%, IBM is doing good in the industry, outperforming 74.65% of the companies in the same industry.
  • IBM has a Return On Equity of 32.45%. This is amongst the best in the industry. IBM outperforms 91.55% of its industry peers.
  • IBM has a Return On Invested Capital (6.85%) which is in line with its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IBM is below the industry average of 10.82%.
  • 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

  • IBM's Profit Margin of 15.69% is amongst the best of the industry. IBM outperforms 94.37% of its industry peers.
  • In the last couple of years the Profit Margin of IBM has grown nicely.
  • The Operating Margin of IBM (16.30%) is better than 92.96% of its industry peers.
  • In the last couple of years the Operating Margin of IBM has grown nicely.
  • IBM has a Gross Margin (58.19%) which is in line with its industry peers.
  • 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.
  • Compared to 1 year ago, IBM has more shares outstanding
  • Compared to 5 years ago, IBM has more shares outstanding
  • Compared to 1 year ago, IBM has a worse debt to assets ratio.
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 3.27 indicates that IBM is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.27, IBM is in the better half of the industry, outperforming 69.01% of the companies in the same industry.
  • 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 has a Debt to FCF ratio (5.29) which 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.
  • IBM has a worse Debt to Equity ratio (1.68) than 80.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF 5.29
Altman-Z 3.27
ROIC/WACC0.75
WACC9.11%
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

  • IBM has a Current 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.
  • The Current ratio of IBM (0.96) is worse than 73.24% of its industry peers.
  • A Quick Ratio of 0.92 indicates that IBM may have some problems paying 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 73.24% 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.
  • Measured over the past 5 years, IBM shows a small growth in Earnings Per Share. The EPS has been growing by 5.94% on average per year.
  • 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

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

  • 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

  • The Price/Earnings ratio is 21.31, which indicates a rather expensive current valuation of IBM.
  • IBM's Price/Earnings is on the same level as the industry average.
  • IBM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.54, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 19.71, the valuation of IBM can be described as rather expensive.
  • IBM's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.70. IBM is around the same levels.
Industry RankSector Rank
PE 21.31
Fwd PE 19.71
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 70.42% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as IBM.
Industry RankSector Rank
P/FCF 19.99
EV/EBITDA 17.3
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.
  • IBM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)3.59
EPS Next 2Y8.29%
EPS Next 3Y8.96%

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

5

5. IBM.DE Dividend Analysis

5.1 Amount

  • IBM has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
  • IBM's Dividend Yield is comparable with the industry average which is at 2.78.
  • IBM's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.68%

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 2Y8.29%
EPS Next 3Y8.96%
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 (3/23/2026, 7:00:00 PM)

212.7

-0.15 (-0.07%)

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 Cap199.52B
Revenue(TTM)67.53B
Net Income(TTM)10.59B
Analysts74.07
Price Target300.26 (41.17%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.68%
Yearly Dividend5.82
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)10.84%
PT rev (3m)19.31%
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 21.31
Fwd PE 19.71
P/S 3.43
P/FCF 19.99
P/OCF 17.54
P/B 7.09
P/tB N/A
EV/EBITDA 17.3
EPS(TTM)9.98
EY4.69%
EPS(NY)10.79
Fwd EY5.07%
FCF(TTM)10.64
FCFY5%
OCF(TTM)12.13
OCFY5.7%
SpS62.09
BVpS30.01
TBVpS-42.71
PEG (NY)2.61
PEG (5Y)3.59
Graham Number82.09
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 3.27
F-Score6
WACC9.11%
ROIC/WACC0.75
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 / IBM.DE Fundamental Analysis 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 21.31 and the Price/Book (PB) ratio is 7.09.


Can you provide the financial health for IBM stock?

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