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International Business Machines

Market Cap


Last Updated

2021/07/25 22:11 UTC

Data Sources

Company Financials +

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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IBM's weekly volatility (3%) has been stable over the past year.

Market Performance

7 Day Return






US Market

1 Year Return






US Market

Return vs Industry: IBM underperformed the US IT industry which returned 38.2% over the past year.

Return vs Market: IBM underperformed the US Market which returned 39.1% over the past year.

Shareholder returns

7 Day1.8%3.2%2.0%
30 Day-3.7%4.2%1.6%
90 Day-0.2%6.5%3.5%
1 Year18.3%12.4%39.3%38.2%41.3%39.1%
3 Year12.7%-2.6%103.9%97.2%64.0%53.8%
5 Year9.9%-12.0%233.8%210.4%123.9%99.0%

Long-Term 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


Is International Business Machines undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: IBM ($141.34) is trading below our estimate of fair value ($195.49)

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 (24.1x) compared to the US IT industry average (35.7x).

PE vs Market: IBM is poor value based on its PE Ratio (24.1x) compared to the US market (18.4x).

Price to Earnings Growth Ratio

PEG Ratio: IBM is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: IBM is overvalued based on its PB Ratio (5.8x) compared to the US IT industry average (5x).

Future Growth

How is International Business Machines forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBM's forecast earnings growth (12.6% per year) is above the savings rate (2%).

Earnings vs Market: IBM's earnings (12.6% per year) are forecast to grow slower than the US market (15.1% per year).

High Growth Earnings: IBM's earnings are forecast to grow, but not significantly.

Revenue vs Market: IBM's revenue (1.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: IBM's revenue (1.7% 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 (42.7%).

Past Performance

How has International Business Machines performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IBM has a large one-off loss of $2.5B impacting its June 30 2021 financial results.

Growing Profit Margin: IBM's current net profit margins (7%) are lower than last year (10.4%).

Past Earnings Growth Analysis

Earnings Trend: IBM's earnings have declined by 12.7% per year over the past 5 years.

Accelerating Growth: IBM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IBM had negative earnings growth (-33.4%) over the past year, making it difficult to compare to the IT industry average (16.7%).

Return on Equity

High ROE: Whilst IBM's Return on Equity (23.76%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is International Business Machines's financial position?

Financial Position Analysis

Short Term Liabilities: IBM's short term assets ($30.8B) do not cover its short term liabilities ($36.6B).

Long Term Liabilities: IBM's short term assets ($30.8B) do not cover its long term liabilities ($88.1B).

Debt to Equity History and Analysis

Debt Level: IBM's debt to equity ratio (250%) is considered high.

Reducing Debt: IBM's debt to equity ratio has reduced from 279.8% to 250% over the past 5 years.

Debt Coverage: IBM's debt is well covered by operating cash flow (32%).

Interest Coverage: IBM's interest payments on its debt are well covered by EBIT (9x coverage).

Balance Sheet


What is International Business Machines's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IBM's dividend (4.64%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: IBM's dividend (4.64%) is in the top 25% of dividend payers in the US market (3.56%)

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 high payout ratio (111.2%), IBM's dividend payments are not well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: IBM's dividends in 3 years are forecast to be covered by earnings (57% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Arvind Krishna (58 yo)





Mr. Arvind Krishna serves as Chairman of the Board at International Business Machines Corporation since January 1, 2021. He has been Chief Executive Officer and Director of at International Business Machin...

CEO Compensation Analysis

Compensation vs Market: Arvind's total compensation ($USD17.01M) is above average for companies of similar size in the US market ($USD11.26M).

Compensation vs Earnings: Insufficient data to compare Arvind's compensation with company performance.

Leadership Team

Experienced Management: IBM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: IBM's board of directors are considered experienced (6.8 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$126.291b
  • Shares outstanding: 893.52m
  • Website: https://www.ibm.com

Number of Employees


  • International Business Machines Corporation
  • One New Orchard Road
  • Armonk
  • New York
  • 10504
  • United States



International Business Machines Corporation provides integrated solutions and services worldwide. Its Cloud & Cognitive Software segment offers software for vertical and domain-specific solutions in variou...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 22:11
End of Day Share Price2021/07/23 00:00
Annual Earnings2020/12/31

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.