International Business Machines Corporation operates as an integrated solutions and services company worldwide. More Details
6 star dividend payer and fair value.
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 +/- 4% a week.
Volatility Over Time: IBM's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: IBM underperformed the US IT industry which returned 29.4% over the past year.
Return vs Market: IBM underperformed the US Market which returned 22.1% over the past year.
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
1 week ago | Simply Wall StIs It Time To Consider Buying International Business Machines Corporation (NYSE:IBM)?
2 weeks ago | Simply Wall StEstimating The Intrinsic Value Of International Business Machines Corporation (NYSE:IBM)
1 month ago | Simply Wall StIs It Worth Considering International Business Machines Corporation (NYSE:IBM) For Its Upcoming Dividend?
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 ($127.2) is trading below our estimate of fair value ($141.63)
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 (14.3x) compared to the US IT industry average (36x).
PE vs Market: IBM is good value based on its PE Ratio (14.3x) compared to the US market (19.4x).
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 (5.3x) compared to the US IT industry average (4.1x).
How is International Business Machines forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IBM's forecast earnings growth (9% per year) is above the savings rate (2.2%).
Earnings vs Market: IBM's earnings (9% per year) are forecast to grow slower than the US market (21.9% 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 (10.2% 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 (45.2%).
How has International Business Machines performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IBM has high quality earnings.
Growing Profit Margin: IBM's current net profit margins (10.5%) are higher than last year (10%).
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 earnings growth over the past year (2.2%) exceeds its 5-year average (-12.7% per year).
Earnings vs Industry: IBM earnings growth over the past year (2.2%) underperformed the IT industry 3.8%.
Return on Equity
High ROE: Whilst IBM's Return on Equity (37.05%) is high, this metric is skewed due to their high level of debt.
How is International Business Machines's financial position?
Financial Position Analysis
Short Term Liabilities: IBM's short term assets ($39.8B) exceed its short term liabilities ($38.0B).
Long Term Liabilities: IBM's short term assets ($39.8B) do not cover its long term liabilities ($94.8B).
Debt to Equity History and Analysis
Debt Level: IBM's debt to equity ratio (305.3%) is considered high.
Reducing Debt: IBM's debt to equity ratio has increased from 294.4% to 305.3% over the past 5 years.
Debt Coverage: IBM's debt is well covered by operating cash flow (24.2%).
Interest Coverage: IBM's interest payments on its debt are well covered by EBIT (7.6x coverage).
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 (5.13%) is higher than the bottom 25% of dividend payers in the US market (1.49%).
High Dividend: IBM's dividend (5.13%) is in the top 25% of dividend payers in the US market (4.1%)
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 (73.1%), 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 covered by earnings (54.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Arvind Krishna (57 yo)
Mr. Arvind Krishna has been Chief Executive Officer and Director of at International Business Machines Corporation since April 6, 2020. Mr. Krishna served as the Senior Vice President of Cloud and Cognitiv...
|Executive Chairman||8.17yrs||US$20.16m||0.038% |
|CFO and Senior VP of Finance & Operations||2.92yrs||US$7.14m||0.0087% |
|Senior VP of Legal & Regulatory Affairs and General Counsel||5.92yrs||US$5.59m||0.0077% |
|Executive Vice President||20.92yrs||US$7.72m||0.015% |
|CEO & Director||0.67yr||no data||0.0087% |
|President||0.67yr||no data||no data|
|Chief Information Officer||no data||no data||no data|
|Vice President of Investor Relations||no data||no data||no data|
|Vice President of Corporate Development||no data||no data||no data|
|Senior VP of Digital Sales & Chief Marketing Officer||no data||no data||no data|
|Senior VP & Chief Human Resources Officer||0.25yr||no data||no data|
|Chief Innovation Officer & VP||11.08yrs||no data||no data|
Experienced Management: IBM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
|Executive Chairman||8.17yrs||US$20.16m||0.038% |
|CEO & Director||0.67yr||no data||0.0087% |
|Senior VP of IBM Systems & Chairman of North America||1.83yrs||no data||no data|
|Senior VP & Chairman of IBM Europe||1.92yrs||US$8.51m||no data|
|Independent Lead Director||no data||US$598.38k||0.00067% |
|Independent Director||8.92yrs||US$391.53k||0.00084% |
|Independent Director||19.92yrs||US$566.54k||0.0032% |
|Independent Director||3.17yrs||US$353.76k||0.00042% |
|Independent Director||10.83yrs||US$443.94k||0.00030% |
|Independent Director||6.25yrs||US$412.72k||0.00047% |
|Chairman of Greater China Group||no data||no data||no data|
|Member of Watson Healthcare Advisory Board||no data||no data||no data|
Experienced Board: IBM's board of directors are considered experienced (6.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IBM insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
International Business Machines Corporation's company bio, employee growth, exchange listings and data sources
- Name: International Business Machines Corporation
- Ticker: IBM
- Exchange: NYSE
- Founded: 1911
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: US$113.342b
- Shares outstanding: 891.06m
- Website: https://www.ibm.com
Number of Employees
- International Business Machines Corporation
- One New Orchard Road
- New York
- United States
|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-RM||MISX (Micex - Rts)||Yes||Common Stock||RU||RUB||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|
International Business Machines Corporation operates as an integrated solutions and services company worldwide. Its Cloud & Cognitive Software segment offers software for vertical and domain-specific solut...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/12/05 00:02|
|End of Day Share Price||2020/12/04 00:00|
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.