IBM International Business Machines Corporation

Price (delayed)

$117.58

Market cap

$106.72B

P/E Ratio

11.82

Dividend/share

$6.49

EPS

$10.17

Enterprise value

$164.8B

Business Summary

Sector: Technology
Industry: Information Technology Services
International Business Machines Corp. is an information technology company, which provides integrated solutions that leverage information technology and knowledge of business processes. It operates through the following segments: Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems, and Global Financing. The Cloud & Cognitive Software segment provides integrated and secure cloud, data and solutions to the clients. The Global Business Services segment provides clients with consulting, application management and global process services. The Global Technology Services segment provides comprehensive IT infrastructure and platform services that create business value for clients. The Systems segment provides clients with innovative infrastructure platforms to help meet the requirements of hybrid cloud and enterprise AI workload. The Global Financing segment encompasses two primary businesses: financing, primarily conducted through IBM Credit LLC, and remanufacturing and remarketing. The company was founded by Charles Ranlett Flint and Thomas J. Watson Sr. on June 16, 1911 and is headquartered in Armonk, NY.

Highlights

The price to earnings (P/E) is 22% less than the 5-year quarterly average of 15.1 and 13% less than the last 4 quarters average of 13.6
The equity rose by 21% year-on-year but it has declined by 4% since the previous quarter
The company's EPS rose by 7% YoY but it fell by 4.3% QoQ
The company's quick ratio fell by 29% YoY and by 10% QoQ
International Business Machines's debt has increased by 27% YoY

Key stats

Shares outstanding
887.89M
Market cap
$106.72B
Enterprise value
$164.8B
EBIT
$9.69B
EBITDA
$15.94B
Price to earnings (P/E)
11.82
Price to book (P/B)
5.34
Price to sales (P/S)
1.39
EV/EBIT
17.01
EV/EBITDA
10.34
Net debt/EBITDA
3.64
EV/Sales
2.15
EBITDA margin
20.8%
Gross margin
47.5%
Net margin
11.8%
Operating margin
12.7%
Return on assets
5.9%
Return on equity
47.2%
Return on invested capital
9.5%
Return on capital employed
8.6%
Return on sales
12.7%
Debt to equity
3.47
Free cash flow
$11.99B
Free cash flow per share
$13.51
Book value per share
$22.51
Revenue per share
$86.19
TBVPS
$91.46
Current ratio
0.96
Quick ratio
0.99
Working capital
-$1.74B
Dividend yield
5.4%
DPS
$6.49
Payout ratio
63.8%

IBM stock price

Financial performance

The operating income has declined by 25% year-on-year and by 16% since the previous quarter
The operating margin has declined by 22% year-on-year and by 15% since the previous quarter
International Business Machines's net margin has increased by 7% YoY but it has decreased by 3.3% QoQ
IBM's net income is down by 4.4% since the previous quarter but it is up by 4.3% year-on-year

Valuation

Price to earnings (P/E)
Current price to earnings (P/E):
11.82
The price to earnings (P/E) is 22% less than the 5-year quarterly average of 15.1 and 13% less than the last 4 quarters average of 13.6
The company's EPS rose by 7% YoY but it fell by 4.3% QoQ
Price to book (P/B)
Current price to book (P/B):
5.34
IBM's P/B is 32% below its 5-year quarterly average of 7.8 and 14% below its last 4 quarters average of 6.2
The equity rose by 21% year-on-year but it has declined by 4% since the previous quarter
Price to sales (P/S)
Current price to sales (P/S):
1.39
IBM's price to sales (P/S) is 18% less than its 5-year quarterly average of 1.7 and 7% less than its last 4 quarters average of 1.5
The revenue has decreased by 2.8% YoY

Efficiency

The return on invested capital has declined by 39% year-on-year and by 17% since the previous quarter
The company's return on sales fell by 22% YoY and by 15% QoQ
The ROA has contracted by 15% YoY and by 8% from the previous quarter
International Business Machines's return on equity has decreased by 9% QoQ and by 2.3% YoY

Dividends

DPS
$6.49
Dividend yield
5.4%
Payout ratio
63.8%

Recent dividends

Financial health

Assets vs liabilities
IBM's total assets is 15% higher than its total liabilities
IBM's current ratio is down by 29% year-on-year and by 6% since the previous quarter
The company's quick ratio fell by 29% YoY and by 10% QoQ
Debt vs equity
The equity rose by 21% year-on-year but it has declined by 4% since the previous quarter
IBM's debt to equity is up by 6% QoQ and by 4.2% YoY

All financial data is based on trailing twelve months (TTM) periods - updated quarterly, unless otherwise specified.