International Business Machines
International Business Machines Corporation operates as an integrated technology and services company worldwide. The last earnings update was 48 days ago. More info.
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- International Business Machines has significant price volatility in the past 3 months.
IBM Share Price and Events
7 Day Returns
1 Year Returns
IBM Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| International Business Machines (IBM) | -4.2% | -4.5% | -21.9% | -24.3% | -14.3% | -36.3% |
| US IT | -1.4% | -4.2% | -12.3% | 9% | 57.1% | 70.1% |
| US Market | -1.5% | -5.2% | -11.2% | -4.2% | 27.3% | 35.3% |
1 Year Return vs Industry and Market
- IBM underperformed the IT industry which returned 9% over the past year.
- IBM underperformed the Market in United States of America which returned -4.2% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
International Business Machines
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for International Business Machines.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 23 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 12.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.01 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.012 (1 + (1- 21%) (43.2%)) |
1.357 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.36 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.357 * 7.05%) |
12.52% |
Discounted Cash Flow Calculation for NYSE:IBM using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for International Business Machines is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 12,692.20 | 12,932.20 | 12,000.00 | 12,300.00 | 11,651.92 |
| Source | Analyst x10 | Analyst x10 | Analyst x2 | Analyst x2 | Est @ -5.27% |
|
Present Value Discounted (@ 12.52%) |
11,280.30 | 10,215.03 | 8,424.26 | 7,674.31 | 6,461.23 |
| Present value of next 5 years cash flows | $44,055.13 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $11,651.92 × (1 + 2.95%) ÷ (12.52% – 2.95%) |
$125,391.53 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $125,391.53 ÷ (1 + 12.52%)5 |
$69,532.22 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $44,055.13 + $69,532.22 |
$113,587.35 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $113,587.35 / 908.79 |
$124.99 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $124.99 |
| Current discount | Discount to share price of
$116.10
= -1 x ($116.10 - $124.99) / $124.99 |
7.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- International Business Machines's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- International Business Machines's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for International Business Machines's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
International Business Machines's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-09-30) in USD | $6.23 |
| NYSE:IBM Share Price ** | NYSE (2018-12-17) in USD | $116.1 |
| United States of America IT Industry PE Ratio | Median Figure of 77 Publicly-Listed IT Companies | 24.82x |
| United States of America Market PE Ratio | Median Figure of 3,017 Publicly-Listed Companies | 16.77x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of International Business Machines.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:IBM Share Price ÷ EPS (both in USD) = 116.1 ÷ 6.23 |
18.64x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- International Business Machines is good value based on earnings compared to the US IT industry average.
- International Business Machines is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
International Business Machines's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 18.64x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts |
2.3%per year |
| United States of America IT Industry PEG Ratio | Median Figure of 63 Publicly-Listed IT Companies | 1.77x |
| United States of America Market PEG Ratio | Median Figure of 2,105 Publicly-Listed Companies | 1.16x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 18.64x ÷ 2.3% |
8x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- International Business Machines is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
International Business Machines's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in USD | $21.77 |
| NYSE:IBM Share Price * | NYSE (2018-12-17) in USD | $116.1 |
| United States of America IT Industry PB Ratio | Median Figure of 120 Publicly-Listed IT Companies | 3.87x |
| United States of America Market PB Ratio | Median Figure of 5,082 Publicly-Listed Companies | 1.7x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:IBM Share Price ÷ Book Value per Share (both in USD) = 116.1 ÷ 21.77 |
5.33x |
* Primary Listing of International Business Machines.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- International Business Machines is overvalued based on assets compared to the US IT industry average.
Value checks
We assess International Business Machines's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) International Business Machines has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- International Business Machines's earnings growth is positive but not above the low risk savings rate of 3%.
Growth vs Market Checks
- International Business Machines's earnings growth is positive but not above the United States of America market average.
- International Business Machines's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:IBM Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts | 2.3% |
| NYSE:IBM Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts | 0.2% |
| United States of America IT Industry Earnings Growth Rate | Market Cap Weighted Average | 17.3% |
| United States of America IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.1% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 23 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 81,600 | 15,900 | 11,300 | 1 |
| 2021-12-31 | 80,800 | 15,400 | 10,800 | 1 |
| 2020-12-31 | 79,751 | 16,759 | 10,981 | 14 |
| 2019-12-31 | 79,245 | 15,930 | 10,823 | 20 |
| 2018-12-31 | 79,738 | 16,564 | 10,805 | 23 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-09-30 | 80,373 | 16,861 | 5,718 |
| 2018-06-30 | 80,771 | 16,199 | 5,751 |
| 2018-03-31 | 80,056 | 17,371 | 5,680 |
| 2017-12-31 | 79,139 | 16,724 | 5,758 |
| 2017-09-30 | 78,366 | 14,970 | 11,316 |
| 2017-06-30 | 78,439 | 15,517 | 11,445 |
| 2017-03-31 | 79,390 | 15,509 | 11,617 |
| 2016-12-31 | 79,919 | 17,084 | 11,881 |
| 2016-09-30 | 80,208 | 18,384 | 11,836 |
| 2016-06-30 | 80,261 | 18,503 | 11,943 |
| 2016-03-31 | 80,835 | 18,928 | 12,965 |
| 2015-12-31 | 81,741 | 17,255 | 13,364 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 23 Analyst Estimates (S&P Global) | See Below |
All data from International Business Machines Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | ||||
| 2021-12-31 | ||||
| 2020-12-31 | 12.52 | 12.99 | 11.95 | 7.00 |
| 2019-12-31 | 12.07 | 14.10 | 11.46 | 12.00 |
| 2018-12-31 | 11.79 | 13.81 | 11.49 | 14.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-09-30 | 6.23 |
| 2018-06-30 | 6.23 |
| 2018-03-31 | 6.12 |
| 2017-12-31 | 6.17 |
| 2017-09-30 | 12.05 |
| 2017-06-30 | 12.11 |
| 2017-03-31 | 12.22 |
| 2016-12-31 | 12.44 |
| 2016-09-30 | 12.32 |
| 2016-06-30 | 12.36 |
| 2016-03-31 | 13.34 |
| 2015-12-31 | 13.65 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- International Business Machines is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Future performance checks
We assess International Business Machines's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
International Business Machines has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has International Business Machines performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- International Business Machines's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
- International Business Machines's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- International Business Machines's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
All data from International Business Machines Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-09-30 | 80,373.00 | 5,718.00 | 19,717.00 | 5,596.00 |
| 2018-06-30 | 80,771.00 | 5,751.00 | 19,847.00 | 5,635.00 |
| 2018-03-31 | 80,056.00 | 5,680.00 | 20,040.00 | 5,708.00 |
| 2017-12-31 | 79,139.00 | 5,758.00 | 19,986.00 | 5,787.00 |
| 2017-09-30 | 78,366.00 | 11,316.00 | 20,442.00 | 5,643.00 |
| 2017-06-30 | 78,439.00 | 11,445.00 | 19,497.00 | 5,749.00 |
| 2017-03-31 | 79,390.00 | 11,617.00 | 19,782.00 | 5,777.00 |
| 2016-12-31 | 79,919.00 | 11,881.00 | 19,977.00 | 5,751.00 |
| 2016-09-30 | 80,208.00 | 11,836.00 | 20,188.00 | 5,682.00 |
| 2016-06-30 | 80,261.00 | 11,943.00 | 20,100.00 | 5,572.00 |
| 2016-03-31 | 80,835.00 | 12,965.00 | 19,788.00 | 5,407.00 |
| 2015-12-31 | 81,741.00 | 13,364.00 | 19,589.00 | 5,247.00 |
| 2015-09-30 | 83,795.00 | 14,417.00 | 19,844.00 | 5,205.00 |
| 2015-06-30 | 86,913.00 | 14,911.00 | 20,474.00 | 5,272.00 |
| 2015-03-31 | 90,147.00 | 15,637.00 | 21,054.00 | 5,333.00 |
| 2014-12-31 | 92,793.00 | 15,751.00 | 21,549.00 | 5,437.00 |
| 2014-09-30 | 96,066.00 | 16,453.00 | 22,131.00 | 5,569.00 |
| 2014-06-30 | 97,007.00 | 17,137.00 | 22,116.00 | 5,571.00 |
| 2014-03-31 | 97,196.00 | 16,379.00 | 22,183.00 | 5,501.00 |
| 2013-12-31 | 98,368.00 | 16,881.00 | 22,395.00 | 5,743.00 |
| 2013-09-30 | 100,286.00 | 16,498.00 | 22,332.00 | 5,871.00 |
| 2013-06-30 | 101,695.00 | 16,182.00 | 22,435.00 | 6,049.00 |
| 2013-03-31 | 103,242.00 | 16,570.00 | 22,465.00 | 6,345.00 |
| 2012-12-31 | 102,874.00 | 16,999.00 | 22,494.00 | 5,816.00 |
| 2012-09-30 | 104,689.00 | 16,261.00 | 22,712.00 | 6,277.00 |
| 2012-06-30 | 106,099.00 | 16,277.00 | 23,014.00 | 6,290.00 |
| 2012-03-31 | 106,982.00 | 16,058.00 | 23,188.00 | 6,272.00 |
| 2011-12-31 | 106,916.00 | 15,855.00 | 23,134.00 | 6,258.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- International Business Machines has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- International Business Machines used its assets less efficiently than the US IT industry average last year based on Return on Assets.
- International Business Machines's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess International Business Machines's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
International Business Machines has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is International Business Machines's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up International Business Machines's finances.
The net worth of a company is the difference between its assets and liabilities.
- International Business Machines is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- International Business Machines's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from International Business Machines Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-09-30 | 19,918.00 | 47,077.00 | 14,495.00 |
| 2018-06-30 | 18,648.00 | 45,581.00 | 11,707.00 |
| 2018-03-31 | 18,290.00 | 46,465.00 | 12,842.00 |
| 2017-12-31 | 17,725.00 | 46,858.00 | 12,582.00 |
| 2017-09-30 | 19,757.00 | 45,642.00 | 11,515.00 |
| 2017-06-30 | 18,544.00 | 45,676.00 | 12,297.00 |
| 2017-03-31 | 18,448.00 | 42,786.00 | 10,695.00 |
| 2016-12-31 | 18,392.00 | 42,176.00 | 8,527.00 |
| 2016-09-30 | 17,159.00 | 42,483.00 | 9,968.00 |
| 2016-06-30 | 15,889.00 | 44,525.00 | 10,617.00 |
| 2016-03-31 | 15,072.00 | 45,557.00 | 14,869.00 |
| 2015-12-31 | 14,424.00 | 39,892.00 | 8,194.00 |
| 2015-09-30 | 13,451.00 | 39,660.00 | 9,568.00 |
| 2015-06-30 | 13,837.00 | 38,668.00 | 8,760.00 |
| 2015-03-31 | 12,289.00 | 38,827.00 | 8,809.00 |
| 2014-12-31 | 12,014.00 | 40,722.00 | 8,481.00 |
| 2014-09-30 | 14,395.00 | 45,704.00 | 9,570.00 |
| 2014-06-30 | 17,513.00 | 46,470.00 | 9,725.00 |
| 2014-03-31 | 16,740.00 | 43,992.00 | 9,704.00 |
| 2013-12-31 | 22,929.00 | 39,731.00 | 11,066.00 |
| 2013-09-30 | 20,008.00 | 36,180.00 | 10,273.00 |
| 2013-06-30 | 17,883.00 | 34,122.00 | 10,383.00 |
| 2013-03-31 | 19,214.00 | 33,397.00 | 12,058.00 |
| 2012-12-31 | 18,984.00 | 33,269.00 | 11,176.00 |
| 2012-09-30 | 21,666.00 | 33,667.00 | 12,305.00 |
| 2012-06-30 | 20,564.00 | 32,435.00 | 11,230.00 |
| 2012-03-31 | 20,783.00 | 32,053.00 | 12,391.00 |
| 2011-12-31 | 20,235.00 | 31,320.00 | 11,972.00 |
- International Business Machines's level of debt (236.4%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (180.7% vs 236.4% today).
- Debt is well covered by operating cash flow (35.8%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 26.7x coverage).
Financial health checks
We assess International Business Machines's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) International Business Machines has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
International Business Machines
shares you are expected to receive
$108
in your first year as a dividend.
Dividend Amount
- International Business Machines's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).
- International Business Machines's dividend is above the markets top 25% of dividend payers in United States of America (3.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 23 Analyst Estimates (S&P Global) | See Below |
| United States of America IT Industry Average Dividend Yield | Market Cap Weighted Average of 33 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1983 Stocks | 2.6% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.9% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-12-31 | ||
| 2021-12-31 | ||
| 2020-12-31 | 6.57 | 12.00 |
| 2019-12-31 | 6.38 | 15.00 |
| 2018-12-31 | 6.12 | 15.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-10-30 | 6.280 | 5.210 |
| 2018-07-31 | 6.280 | 4.383 |
| 2018-04-24 | 6.280 | 4.363 |
| 2018-01-30 | 6.000 | 3.881 |
| 2017-10-31 | 6.000 | 3.847 |
| 2017-07-25 | 6.000 | 4.108 |
| 2017-04-25 | 6.000 | 3.910 |
| 2017-01-31 | 5.600 | 3.202 |
| 2016-10-25 | 5.600 | 3.421 |
| 2016-10-17 | 5.600 | 3.701 |
| 2016-04-26 | 5.600 | 3.617 |
| 2016-01-26 | 5.200 | 3.765 |
| 2015-10-27 | 5.200 | 3.839 |
| 2015-07-28 | 5.200 | 3.490 |
| 2015-04-28 | 5.200 | 3.088 |
| 2015-01-27 | 4.400 | 2.737 |
| 2015-01-20 | 4.400 | 2.838 |
| 2014-07-29 | 4.400 | 2.540 |
| 2014-04-29 | 4.400 | 2.348 |
| 2014-01-28 | 3.800 | 2.038 |
| 2013-10-29 | 3.800 | 2.093 |
| 2013-07-30 | 3.800 | 2.046 |
| 2013-04-30 | 3.800 | 1.899 |
| 2013-01-29 | 3.400 | 1.657 |
| 2013-01-22 | 3.400 | 1.674 |
| 2012-07-31 | 3.400 | 1.729 |
| 2012-04-24 | 3.400 | 1.740 |
| 2012-01-31 | 3.000 | 1.500 |
| 2011-10-25 | 3.000 | 1.616 |
| 2011-07-26 | 3.000 | 1.731 |
| 2011-04-26 | 3.000 | 1.760 |
| 2011-01-25 | 2.600 | 1.600 |
| 2010-10-26 | 2.600 | 1.779 |
| 2010-07-27 | 2.600 | 1.975 |
| 2010-04-27 | 2.600 | 2.040 |
| 2010-01-26 | 2.200 | 1.728 |
| 2009-10-27 | 2.200 | 1.723 |
| 2009-07-28 | 2.200 | 1.834 |
| 2009-04-28 | 2.200 | 2.074 |
| 2009-01-27 | 2.000 | 2.125 |
| 2008-12-18 | 2.000 | 2.342 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
International Business Machines's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are not well covered by earnings (1x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
Income/ dividend checks
We assess International Business Machines's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can International Business Machines afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) International Business Machines has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $18,595,350 |
| AGE | 59 |
| TENURE AS CEO | 6.9 years |
CEO Bio
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 Officer and President since January 1, 2012. Mrs. Rometty has responsibility for the overall strategy and business development for Global Services, including advanced services solutions, the services asset strategy and acquisition strategy. She began her career with IBM in 1981. She served as Senior Vice President of Global Business Services at International Business Machines Corporation from 2005 to 2009 and also served as its Senior Vice President of Global Sales & Distribution from 2009 to 2010, Senior Vice President from 2010 to 2012, Group Executive of Sales, Marketing & Strategy from 2010 to 2012 and Senior Vice President of Enterprise Business Services-IBM Global Services since July 2005. She served as Senior Vice President of Global Business Services and Managing Partner at IBM Business Consulting Services, Inc. She served as General Manager of IBM Global Services. She was responsible for strategic leadership, operations and client relationships of the Global Services business in the United States, Canada and Latin America. She also served as the General Manager of Strategy, Marketing and Sales Operations for IBM Global Services Worldwide. Before joining IBM's services business, She served as General Manager of IBM's Global Insurance and Financial Services Sector, where she led IBM's business strategy for the worldwide insurance marketplace, with responsibility for marketing, sales and consulting. She also supervised the operations of IBM's Insurance Research Centers in Hawthorne, N.Y., Zurich, Switzerland and Yamaha, Japan and was in charge of IBM's insurance solutions development worldwide. She served as General Manager of Americas for Global Services. She served as Managing Partner of IBM Global Business Services and Senior Vice President of Global Business Services at IBM Global Services U.S. She served as General Manager of Insurance Industry Group. She serves on the Council on Foreign Relations, the Board of Trustees of Northwestern University and the Board of Overseers and Board of Managers of Memorial Sloan-Kettering Cancer Center. She is a Member of IBM's strategy and operations teams. She is a Leader in IBM's diversity initiatives, including the Women in Technology Council and the Women's Leadership Council and is one of the Senior Vice President Sponsors of the Women's Executive Council at IBM. She has been Director of International Business Machines Corporation (IBM) since 2012. She served as a Director at American International Group, Inc. from September 20, 2006 to May 7, 2009. She served as a Director of APQC. She is a frequent speaker at industry and business conferences around the world, the recipient of the Carl Sloane Award 2006, given by the Association of Management Consulting Firms and was named among Fortune Magazine's “50 Most Powerful Women in Business” in 2005 and 2006 and was named among Time magazine's 2002 Global Business Influential. Before joining IBM, she was with General Motors Corporation, where she was responsible for application and systems development. She is a member of the Business Roundtable, the Council on Foreign Relations, and formerly served on the President’s Export Council. U.S. Government service (former member of the President’s Export Council). Experience as a university trustee. She holds a Bachelor of Science degree with high honors in computer science and electrical engineering from the Northwestern University.
CEO Compensation
- Ginni's compensation has been consistent with company performance over the past year.
- Ginni's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the International Business Machines management team in years:
- The tenure for the International Business Machines management team is about average.
Management Team
Ginni Rometty
Chairman
$19M
59
6.9 yrs
James Kavanaugh
Senior VP & CFO
$5M
51
0.9 yrs
John Kelly
Senior Vice President of IBM Cognitive Solutions & IBM Research
$6M
64
18.9 yrs
Erich Clementi
Senior VP of IBM & Chairman of IBM Europe
$6M
60
0.3 yrs
Martin Schroeter
Senior VP of IBM Global Markets
$6M
54
4.9 yrs
Martin Jetter
Senior Vice President of IBM Global Technology Services
$9M
59
Fletcher Previn
Chief Information Officer
Patricia Murphy
Vice President of Investor Relations
Michelle Browdy
Senior VP of Legal & Regulatory Affairs and General Counsel
53
3.9 yrs
Kirill Korniliev
Vice President of Sales and Head of The Industry Solutions Area In Central & Eastern Europe
Board of Directors Tenure
Average tenure and age of the International Business Machines board of directors in years:
- The average tenure for the International Business Machines board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Ginni Rometty
Chairman
$19M
59
6.2 yrs
Vanitha Narayanan
Chairman of IBM India Private Limited
1.9 yrs
Liming Chen
Chairman of Greater China Group
58
Michael Eskew
Presiding Director
$500K
68
Shirley Jackson
Independent Director
$460K
71
13.3 yrs
Alex Gorsky
Independent Director
$332K
58
4.3 yrs
Ken Chenault
Independent Director
$473K
66
20.9 yrs
Sidney Taurel
Independent Director
$501K
69
17.9 yrs
James Owens
Independent Director
$410K
71
12.8 yrs
Andrew Liveris
Independent Director
$380K
63
8.8 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by International Business Machines insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 05. Nov 18 | Buy | Virginia Rometty | Individual | 02. Nov 18 | 02. Nov 18 | 8,500 | $117.51 | $998,835 | ||
| 05. Nov 18 | Buy | Frederick Waddell | Individual | 01. Nov 18 | 01. Nov 18 | 2,153 | $115.99 | $249,722 | ||
| 05. Nov 18 | Buy | Joseph Swedish | Individual | 01. Nov 18 | 01. Nov 18 | 2,000 | $116.42 | $232,838 | ||
| 02. Nov 18 | Buy | James Owens | Individual | 31. Oct 18 | 31. Oct 18 | 1,000 | $114.69 | $114,673 | ||
| 02. Nov 18 | Buy | Sidney Taurel | Individual | 31. Oct 18 | 31. Oct 18 | 4,311 | $115.02 | $495,846 | ||
| 06. Aug 18 | Sell | Diane Gherson | Individual | 03. Aug 18 | 03. Aug 18 | -11,451 | $147.00 | $-1,665,219 | ||
| 06. Aug 18 | Buy | David Farr | Individual | 22. Jun 18 | 22. Jun 18 | 1,100 | $141.46 | $155,611 | ||
| 27. Feb 18 | Sell | Diane Gherson | Individual | 26. Feb 18 | 26. Feb 18 | -5,000 | $156.00 | $-780,000 | ||
| 26. Feb 18 | Sell | Erich Clementi | Individual | 23. Feb 18 | 23. Feb 18 | -13,000 | $154.78 | $-2,010,518 | ||
| 01. Feb 18 | Buy | Frederick Waddell | Individual | 31. Jan 18 | 31. Jan 18 | 610 | $163.38 | $99,659 | ||
Management checks
We assess International Business Machines's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) International Business Machines has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
External News
Simply Wall St News
At US$119, Is It Time To Put International Business Machines Corporation (NYSE:IBM) On Your Watch List?
Let's talk about the popular International Business Machines Corporation (NYSE:IBM). … A question to answer is whether International Business Machines's current trading price of $119.34 reflective of the actual value of the? … Let’s take a look at International Business Machines’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleInternational Business Machines Corporation (NYSE:IBM): Ex-Dividend Is In 3 Days
On the 10 December 2018, International Business Machines Corporation (NYSE:IBM) will be paying shareholders an upcoming dividend amount of US$1.57 per share. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Let's take a look at International Business Machines's most recent financial data to examine its dividend characteristics in more detail.
Simply Wall St - – Full articleDoes International Business Machines Corporation (NYSE:IBM)'s Capital Return Make The Cut?
and looking to gauge the potential return on investment in International Business Machines Corporation (NYSE:IBM). … To understand International Business Machines’s capital returns we will look at a useful metric called return on capital employed. … International Business Machines's Return On Capital Employed
Simply Wall St - – Full articleDoes International Business Machines Corporation (NYSE:IBM) Have A Good P/E Ratio?
We'll look at International Business Machines Corporation's (NYSE:IBM) P/E ratio and reflect on what it tells us about the company's share price. … International Business Machines has a P/E ratio of 20.03, based on the last twelve months. … How Do I Calculate International Business Machines's Price To Earnings Ratio
Simply Wall St - – Full articleWith An ROE Of 31%, Has International Business Machines Corporation's (NYSE:IBM) Management Done Well?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows International Business Machines has a return on equity of 31% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Do Analysts Think About International Business Machines Corporation's (NYSE:IBM) Future?
Looking at International Business Machines Corporation's (NYSE:IBM) earnings update in June 2018, … with profits predicted to ramp up by an impressive 89.4% next year, … 5-year average growth rate of -10.3%.
Simply Wall St - – Full articleWhat Should Investors Know About International Business Machines Corporation's (NYSE:IBM) Return On Capital?
and looking to gauge the potential return on investment in International Business Machines Corporation (NYSE:IBM). … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Thus, to understand how your money can grow by investing in International Business Machines, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Simply Wall St - – Full articleHow Has International Business Machines Corporation's (NYSE:IBM) Earnings Fared Against The Long Term Trend
For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. … Below, I will examine International Business Machines Corporation's (NYSE:IBM) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. … See our latest analysis for International Business Machines.
Simply Wall St - – Full articleDoes International Business Machines Corporation's (NYSE:IBM) PE Ratio Warrant A Buy?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between International Business Machines Corporation (NYSE:IBM)’s fundamentals and stock market performance. … International Business Machines Corporation (NYSE:IBM) is trading with a trailing P/E of 22.8x, which is lower than the industry average of 24.6x.
Simply Wall St - – Full articleIs International Business Machines Corporation (NYSE:IBM) A Sell At Its Current PE Ratio?
largely comparable to the 24.1x average multiple of the IT? … But should this fair multiple be the final verdict of IBM’s fair valuation. … Below, I will lay out some important considerations to help determine which multiple best suits
Simply Wall St - – Full articleCompany Info
Map
Description
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers. This segment also offers data and analytics solutions, including analytics and data management platforms, cloud data services, enterprise social software, talent management solutions, and solutions tailored by industry; and transaction processing software that runs mission-critical systems 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 cloud, project-based, outsourcing, and other managed services for enterprise IT infrastructure environments. This segment also offers technical support, and software and solution support; 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 was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was founded in 1911 and is headquartered in Armonk, New York.
Details
| Name: | International Business Machines Corporation |
| IBM | |
| Exchange: | NYSE |
| Founded: | 1911 |
| $108,964,373,862 | |
| 908,793,777 | |
| Website: | http://www.ibm.com |
| Address: |
International Business Machines Corporation 1 New Orchard Road, Armonk, New York, 10504, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | IBM | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | IBM | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| XTRA | IBM | Common Stock | XETRA Trading Platform | DE | EUR | 02. Jan 1968 | |
| LSE | IBM | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1968 | |
| SWX | IBM | Common Stock | SIX Swiss Exchange | CH | CHF | 02. Jan 1968 | |
| ENXTBR | IBMA | Common Stock | Euronext Brussels | BE | USD | 02. Jan 1968 | |
| WBAG | IBM | Common Stock | Wiener Boerse AG | AT | EUR | 02. Jan 1968 | |
| SNSE | IBM | Common Stock | Santiago Stock Exchange | CL | USD | 02. Jan 1968 | |
| BMV | IBM * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1968 | |
| BVL | IBM | Common Stock | Bolsa de Valores de Lima | PE | USD | 02. Jan 1968 | |
| BATS-CHIXE | IBMZ | Common Stock | BATS 'Chi-X Europe' | GB | CHF | 02. Jan 1968 | |
| BOVESPA | IBMB34 | BDR EA REPR 1 COM SHS | Bolsa de Valores de Sao Paulo | BR | BRL | 16. Nov 2011 | |
| BASE | IBM | CEDEAR 10 REP 1 COM STK USD0.2 | Buenos Aires Stock Exchange | AR | ARS | 12. Jul 2001 |
Number of employees
Current staff
Industry
| IT Consulting and Other Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/12/17 23:37 |
| End of day share price update: | 2018/12/17 00:00 |
| Last estimates confirmation: | 2018/12/17 |
| Last earnings filing: | 2018/10/30 |
| Last earnings reported: | 2018/09/30 |
| Last annual earnings reported: | 2017/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
