International Business Machines
Market Cap
US$117.4b
Last Updated
2019/10/21 23:38 UTC
Data Sources
Company Financials +
Executive Summary
International Business Machines Corporation operates as an integrated technology and services company worldwide.
Snowflake
Fundamentals
6 star dividend payer and fair value.
Similar Companies
Share Price & News
How has International Business Machines's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-6.7%
IBM
-1.8%
US IT
1.0%
US Market
1 Year Return
2.0%
IBM
20.6%
US IT
8.0%
US Market
Return vs Industry: IBM underperformed the US IT industry which returned 20.6% over the past year.
Return vs Market: IBM underperformed the US Market which returned 8% over the past year.
Shareholder returns
| IBM | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.7% | -1.8% | 1.0% |
| 30 Day | -6.6% | -0.9% | -0.07% |
| 90 Day | -11.8% | -5.5% | -1.0% |
| 1 Year | 7.0%2.0% | 21.9%20.6% | 10.4%8.0% |
| 3 Year | -0.08%-11.9% | 93.3%85.4% | 46.2%36.7% |
| 5 Year | -0.6%-18.1% | 146.1%123.5% | 64.3%46.2% |
Price Volatility Vs. Market
How volatile is International Business Machines's share price compared to the market and industry in the last 5 years?
Simply Wall St News
19 hours ago | Simply Wall St
What Type Of Shareholder Owns International Business Machines Corporation's (NYSE:IBM)?1 week ago | Simply Wall St
Do You Like International Business Machines Corporation (NYSE:IBM) At This P/E Ratio?3 weeks ago | Simply Wall St
Don’t Buy International Business Machines Corporation (NYSE:IBM) Until You Understand Its ROCEValuation
Is International Business Machines undervalued compared to its fair value and its price relative to the market?
31.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IBM ($132.58) is trading below our estimate of fair value ($193.35)
Significantly Below Fair Value: IBM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: IBM is good value based on its PE Ratio (15.3x) compared to the IT industry average (37.1x).
PE vs Market: IBM is good value based on its PE Ratio (15.3x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: IBM is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: IBM is overvalued based on its PB Ratio (6.5x) compared to the US IT industry average (4.3x).
Next Steps
Future Growth
How is International Business Machines forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
9.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IBM's forecast earnings growth (9.4% per year) is above the savings rate (2.7%).
Earnings vs Market: IBM's earnings (9.4% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: IBM's earnings are forecast to grow, but not significantly.
Revenue vs Market: IBM's revenue (2.3% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: IBM's revenue (2.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IBM's Return on Equity is forecast to be very high in 3 years time (43.9%).
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Past Performance
How has International Business Machines performed over the past 5 years?
-18.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: IBM's earnings have declined by -18.4% per year over the past 5 years.
Accelerating Growth: IBM's earnings growth over the past year (35%) exceeds its 5-year average (-18.4% per year).
Earnings vs Industry: IBM earnings growth over the past year (35%) exceeded the IT industry 9.8%.
Return on Equity
High ROE: Whilst IBM's Return on Equity (42.66%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: IBM's Return on Assets is below or equal to the IT industry average last year.
Return on Capital Employed
ROCE Improving: IBM's Return on Capital Employed has declined over the past 3 years.
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Financial Health
How is International Business Machines's financial position?
Financial Position Analysis
Short Term Liabilities: IBM's short term assets ($38.1B) exceeds its short term liabilities ($35.1B)
Long Term Liabilities: IBM's short term assets (38.1B) do not cover its long term liabilities (96.5B)
Debt to Equity History and Analysis
Debt Level: IBM's debt to equity ratio (366.5%) is considered high
Reducing Debt: IBM's debt to equity ratio has increased from 317.7% to 366.5% over the past 5 years.
Debt Coverage: IBM's debt is well covered by operating cash flow (23.3%).
Interest Coverage: IBM's interest payments on its debt are well covered by EBIT (11x coverage).
Balance Sheet
Inventory Level: IBM has a low level of unsold assets or inventory.
Debt Coverage by Assets: IBM's debt is not covered by short term assets (assets are 0.6x debt).
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Dividend
What is International Business Machines's current dividend yield, its reliability and sustainability?
4.89%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: IBM's dividend (4.89%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: IBM's dividend (4.89%) is in the top 25% of dividend payers in the US market (3.68%)
Stable Dividend: IBM's dividends per share have been stable in the past 10 years.
Growing Dividend: IBM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.6%), IBM's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IBM's dividends in 3 years are forecast to be well covered by earnings (44.4% payout ratio).
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Management
What is the CEO of International Business Machines's salary, the management and board of directors tenure and is there insider trading?
4.8yrs
Average management tenure
CEO
Ginni Rometty (60yo)
7.8yrs
Tenure
US$17,552,218
Compensation
Ms. Virginia M. Rometty, also known as Ginni, has been the Chairman of International Business Machines Corporation (also known as IBM Corp.) since October 1, 2012 and also has been its Chief Executive Offi ...
CEO Compensation Analysis
Compensation vs. Market: Ginni's total compensation ($USD17.55M) is above average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Ginni's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.8yrs
Average Tenure
55yo
Average Age
Experienced Management: IBM's management team is considered experienced (4.8 years average tenure).
Board Age and Tenure
7.4yrs
Average Tenure
62yo
Average Age
Experienced Board: IBM's board of directors are considered experienced (7.4 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,227 |
| Max Price | US$135.15 |
| Entity | Individual |
| Shares | 2,690 |
| Max Price | US$135.50 |
| Entity | Individual |
| Shares | 2,083 |
| Max Price | US$132.00 |
| Entity | Individual |
| Shares | 123.67 |
| Max Price | US$135.51 |
| Entity | Individual |
| Shares | 13,000 |
| Max Price | US$139.06 |
| Entity | Individual |
| Role | Head of Human Resources Senior VP & Chief Human Resources Officer |
| Shares | 1,989 |
| Max Price | US$137.25 |
| Entity | Individual |
| Role | Head of Human Resources Senior VP & Chief Human Resources Officer |
| Shares | 5,754 |
| Max Price | US$136.05 |
| Entity | Individual |
| Shares | 2,153 |
| Max Price | US$115.99 |
| Entity | Individual |
| Shares | 2,000 |
| Max Price | US$116.42 |
| Entity | Individual |
| Role | Chief Executive Officer Chairman |
| Shares | 8,500 |
| Max Price | US$117.51 |
| Entity | Individual |
| Shares | 1,000 |
| Max Price | US$114.69 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,311 |
| Max Price | US$115.02 |
Ownership Breakdown
Management Team
Michelle Peluso (47yo)
Senior VP of Digital Sales & Chief Marketing Officer
- Tenure: 0.8yrs
John Kelly (65yo)
Executive Vice President
- Tenure: 19.8yrs
- Compensation: US$6.42m
Michelle Browdy (54yo)
Senior VP of Legal & Regulatory Affairs and General Counsel
- Tenure: 4.8yrs
Ginni Rometty (60yo)
Chairman
- Tenure: 7.8yrs
- Compensation: US$17.55m
Martin Schroeter (55yo)
Senior VP of IBM Global Markets Global Financing
- Tenure: 5.8yrs
- Compensation: US$7.03m
James Kavanaugh (52yo)
Senior VP & CFO
- Tenure: 1.8yrs
- Compensation: US$5.90m
Patricia Murphy
Vice President of Investor Relations
- Tenure: 0yrs
Diane Gherson (61yo)
Senior VP & Chief Human Resources Officer
- Tenure: 1.6yrs
Kevin Reardon
Vice President of Corporate Development
- Tenure: 0yrs
Fletcher Previn
Chief Information Officer
- Tenure: 0yrs
Board Members
Mike Eskew (69yo)
Lead Director
- Tenure: 0yrs
- Compensation: US$564.70k
David Farr (64yo)
Independent Director
- Tenure: 7.8yrs
- Compensation: US$378.49k
Sidney Taurel (70yo)
Independent Director
- Tenure: 18.8yrs
- Compensation: US$547.72k
Shirley Jackson (72yo)
Independent Director
- Tenure: 14.1yrs
- Compensation: US$511.42k
Andrew Liveris (64yo)
Independent Director
- Tenure: 9.7yrs
- Compensation: US$420.26k
Alex Gorsky (59yo)
Independent Director
- Tenure: 5.1yrs
- Compensation: US$375.90k
Ginni Rometty (60yo)
Chairman
- Tenure: 7.8yrs
- Compensation: US$17.55m
Liming Chen (59yo)
Chairman of Greater China Group
- Tenure: 0yrs
Tom Rosamilia (58yo)
Senior VP of IBM Systems & Chairman of North America
- Tenure: 0.7yrs
Martin Jetter (60yo)
Senior VP & Chairman of IBM Europe
- Tenure: 0.8yrs
- Compensation: US$8.51m
Company Information
International Business Machines Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: International Business Machines Corporation
- Ticker: IBM
- Exchange: NYSE
- Founded: 1911
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: US$117.449b
- Shares outstanding: 885.88m
- Website: https://www.ibm.com
Number of Employees
Location
- International Business Machines Corporation
- 1 New Orchard Road
- Armonk
- New York
- 10504
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IBM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| IBM | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| IBM | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| IBM | BVL (Bolsa de Valores de Lima) | Yes | Common Stock | PE | USD | Jan 1968 |
| IBM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| IBM | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| IBM | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1968 |
| IBM | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| IBM | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| IBMA | ENXTBR (Euronext Brussels) | Yes | Common Stock | BE | USD | Jan 1968 |
| IBM | BASE (Buenos Aires Stock Exchange) | CEDEAR 5 REP 1 COM STK USD0.2 | AR | ARS | Jul 2001 | |
| IBMB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REPR 1 COM SHS | BR | BRL | Nov 2011 |
Biography
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers a portfolio of enterprise artificial intelligence pla ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 23:38 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.