International Business Machines
Market Cap
US$133.6b
Last Updated
2020/02/20 00:07 UTC
Data Sources
Company Financials +
Executive Summary
International Business Machines Corporation operates as an integrated technology and services company worldwide.
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer and good 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
Stable Share Price: IBM has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.3%
IBM
2.0%
US IT
0.5%
US Market
1 Year Return
9.4%
IBM
39.2%
US IT
20.3%
US Market
Return vs Industry: IBM underperformed the US IT industry which returned 39.2% over the past year.
Return vs Market: IBM underperformed the US Market which returned 20.3% over the past year.
Shareholder returns
| IBM | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | 2.0% | 0.5% |
| 30 Day | 8.4% | 5.3% | 2.0% |
| 90 Day | 12.3% | 16.6% | 9.4% |
| 1 Year | 14.6%9.4% | 40.7%39.2% | 22.8%20.3% |
| 3 Year | -5.3%-17.0% | 112.1%102.9% | 50.1%40.4% |
| 5 Year | 14.8%-6.2% | 151.0%128.7% | 73.1%54.1% |
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
1 day ago | Simply Wall St
Have Insiders Sold International Business Machines Corporation (NYSE:IBM) Shares Recently?1 week ago | Simply Wall St
Could The International Business Machines Corporation (NYSE:IBM) Ownership Structure Tell Us Something Useful?2 weeks ago | Simply Wall St
International Business Machines Corporation (NYSE:IBM) Stock Goes Ex-Dividend In Just 4 DaysValuation
Is International Business Machines undervalued compared to its fair value and its price relative to the market?
35.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IBM ($150.86) is trading below our estimate of fair value ($234.3)
Significantly Below Fair Value: IBM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IBM is good value based on its PE Ratio (14.2x) compared to the IT industry average (33.5x).
PE vs Market: IBM is good value based on its PE Ratio (14.2x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: IBM is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: IBM is overvalued based on its PB Ratio (6.4x) 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 19 analysts?
6.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IBM's forecast earnings growth (6.7% per year) is above the savings rate (1.7%).
Earnings vs Market: IBM's earnings (6.7% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: IBM's earnings are forecast to grow, but not significantly.
Revenue vs Market: IBM's revenue (1.5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: IBM's revenue (1.5% 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 high in 3 years time (39.9%)
Next Steps
Past Performance
How has International Business Machines performed over the past 5 years?
-16.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IBM has high quality earnings.
Growing Profit Margin: IBM's current net profit margins (12.2%) are higher than last year (11%).
Past Earnings Growth Analysis
Earnings Trend: IBM's earnings have declined by -16.8% per year over the past 5 years.
Accelerating Growth: IBM's earnings growth over the past year (8.2%) exceeds its 5-year average (-16.8% per year).
Earnings vs Industry: IBM earnings growth over the past year (8.2%) underperformed the IT industry 12%.
Return on Equity
High ROE: Whilst IBM's Return on Equity (44.96%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is International Business Machines's financial position?
Financial Position Analysis
Short Term Liabilities: IBM's short term assets ($38.4B) exceed its short term liabilities ($37.7B).
Long Term Liabilities: IBM's short term assets ($38.4B) do not cover its long term liabilities ($93.5B).
Debt to Equity History and Analysis
Debt Level: IBM's debt to equity ratio (299.7%) is considered high.
Reducing Debt: IBM's debt to equity ratio has reduced from 338.7% to 299.7% over the past 5 years.
Debt Coverage: IBM's debt is well covered by operating cash flow (23.5%).
Interest Coverage: IBM's interest payments on its debt are well covered by EBIT (7.8x 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).
Next Steps
Dividend
What is International Business Machines's current dividend yield, its reliability and sustainability?
4.30%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: IBM's dividend (4.3%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: IBM's dividend (4.3%) is in the top 25% of dividend payers in the US market (3.73%)
Stability and Growth of Payments
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 (60.5%), 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 (48.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average management tenure
CEO
Ginni Rometty (60yo)
8.1yrs
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 ($USD10.78M).
Compensation vs Earnings: Ginni's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 8.1yrs | US$17.55m | 0.036% $48.1m | |
| Senior VP & CFO | 2.1yrs | US$5.90m | 0.0081% $10.9m | |
| Executive Vice President | 20.1yrs | US$6.42m | 0.015% $20.4m | |
| Senior VP of IBM Global Markets Global Financing | 6.1yrs | US$7.03m | 0.011% $14.6m | |
| Chief Information Officer | 0yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Senior VP of Legal & Regulatory Affairs and General Counsel | 5.1yrs | no data | 0.0072% $9.6m | |
| Vice President of Corporate Development | 0yrs | no data | no data | |
| Senior VP of Digital Sales & Chief Marketing Officer | 1.1yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | 1.9yrs | no data | 0.0032% $4.3m |
5.1yrs
Average Tenure
55yo
Average Age
Experienced Management: IBM's management team is seasoned and experienced (5.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 8.1yrs | US$17.55m | 0.036% $48.1m | |
| Senior VP of IBM Systems & Chairman of North America | 1yrs | no data | no data | |
| Senior VP & Chairman of IBM Europe | 1.1yrs | US$8.51m | no data | |
| Lead Director | 0yrs | US$564.70k | no data | |
| Independent Director | 8.1yrs | US$378.49k | 0.00068% $908.5k | |
| Independent Director | 19.1yrs | US$547.72k | 0.0027% $3.6m | |
| Independent Director | 14.4yrs | US$511.42k | no data | |
| Independent Director | 10yrs | US$420.26k | no data | |
| Independent Director | 5.4yrs | US$375.90k | no data | |
| Chairman of Greater China Group | 0yrs | no data | no data |
7.7yrs
Average Tenure
62yo
Average Age
Experienced Board: IBM's board of directors are considered experienced (7.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IBM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$133.607b
- Shares outstanding: 885.64m
- 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 | 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 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | 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 |
| IBM | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1968 |
| IBM-U | ETLX (Eurotlx) | Yes | Common Stock | IT | 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 platforms, such as analytics and data management platforms, cloud data services, talent management, and industry solutions primarily under the Watson Platform, Watson Health, and Watson Internet of Things names. This segment also offers transaction processing software for use in banking, airlines, and retail industries. The company’s Global Business Services segment offers business consulting services; delivers system integration, application management, maintenance, and support services for packaged software applications; and finance, procurement, talent and engagement, and industry-specific business process outsourcing services. Its Technology Services & Cloud Platforms segment provides project, managed, outsourcing, and cloud-delivered services for enterprise IT infrastructure environments; technical, and software and solution support services; and integration software solutions. The company’s Systems segment offers servers for businesses, cloud service providers, and scientific computing organizations; data storage products and solutions; and z/OS, an enterprise operating system. Its Global Financing segment provides lease, installment payment plans, and loan financing services; short-term working capital financing to suppliers, distributors, and resellers; and remanufacturing and remarketing services. The company serves financial services institutions, airlines, manufacturers, and consumer goods and retail companies. International Business Machines Corporation has a strategic partnership with Cloudera to develop joint go-to-market programs. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. The company was incorporated in 1911 and is headquartered in Armonk, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 00:07 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.