International Business Machines
Market Cap
US$106.3b
Last Updated
2021/02/27 23:08 UTC
Data Sources
Company Financials +
Executive Summary
International Business Machines Corporation provides integrated solutions and services worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established 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 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.
Market Performance
7 Day Return
-0.05%
IBM
-2.5%
US IT
-4.6%
US Market
1 Year Return
-8.6%
IBM
38.9%
US IT
38.5%
US Market
Return vs Industry: IBM underperformed the US IT industry which returned 39.3% over the past year.
Return vs Market: IBM underperformed the US Market which returned 38.9% over the past year.
Shareholder returns
| IBM | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.05% | -2.5% | -4.6% |
| 30 Day | -1.0% | 7.9% | 0.6% |
| 90 Day | -4.4% | 5.1% | 1.9% |
| 1 Year | -3.6%-8.6% | 40.3%38.9% | 41.5%38.5% |
| 3 Year | -10.9%-23.0% | 96.1%88.7% | 56.7%46.7% |
| 5 Year | 7.6%-13.7% | 208.4%186.5% | 123.5%98.6% |
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
6 days ago | Simply Wall St
Here's What You Should Know About International Business Machines Corporation's (NYSE:IBM) 5.5% Dividend Yield2 weeks ago | Simply Wall St
Trade Alert: Michelle Howard At International Business Machines Corporation (NYSE:IBM), Has Just Spent US$7.9k Buying A Small Number of Shares3 weeks ago | Simply Wall St
Are International Business Machines' (NYSE:IBM) Statutory Earnings A Good Guide To Its Underlying Profitability?Valuation
Is International Business Machines undervalued compared to its fair value and its price relative to the market?
24.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IBM ($118.93) is trading below our estimate of fair value ($159.08)
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 (19.2x) compared to the US IT industry average (36.6x).
PE vs Market: IBM is good value based on its PE Ratio (19.2x) compared to the US market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: IBM is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: IBM's PB Ratio (5.2x) is in line with the US IT industry average.
Next Steps
Future Growth
How is International Business Machines forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
10.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IBM's forecast earnings growth (10.7% per year) is above the savings rate (2%).
Earnings vs Market: IBM's earnings (10.7% per year) are forecast to grow slower than the US market (20.2% per year).
High Growth Earnings: IBM's earnings are forecast to grow, but not significantly.
Revenue vs Market: IBM's revenue (1.2% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: IBM's revenue (1.2% 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 (48.7%).
Next Steps
Past Performance
How has International Business Machines performed over the past 5 years?
-12.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IBM has a large one-off loss of $2.2B impacting its December 31 2020 financial results.
Growing Profit Margin: IBM's current net profit margins (7.5%) are lower than last year (12.2%).
Past Earnings Growth Analysis
Earnings Trend: IBM's earnings have declined by 12.6% 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 (-41.7%) over the past year, making it difficult to compare to the IT industry average (6.5%).
Return on Equity
High ROE: Whilst IBM's Return on Equity (26.54%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is International Business Machines's financial position?
Financial Position Analysis
Short Term Liabilities: IBM's short term assets ($39.2B) do not cover its short term liabilities ($39.9B).
Long Term Liabilities: IBM's short term assets ($39.2B) do not cover its long term liabilities ($95.4B).
Debt to Equity History and Analysis
Debt Level: IBM's debt to equity ratio (295.5%) is considered high.
Reducing Debt: IBM's debt to equity ratio has increased from 277.2% to 295.5% over the past 5 years.
Debt Coverage: IBM's debt is well covered by operating cash flow (29.7%).
Interest Coverage: IBM's interest payments on its debt are well covered by EBIT (8.2x coverage).
Balance Sheet
Next Steps
Dividend
What is International Business Machines's current dividend yield, its reliability and sustainability?
5.48%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IBM's dividend (5.48%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: IBM's dividend (5.48%) is in the top 25% of dividend payers in the US market (3.72%)
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 (105.4%), 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 (54.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
Arvind Krishna (57 yo)
0.83
Tenure
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...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CFO and Senior VP of Finance & Operations | 3.08yrs | US$7.14m | 0.0097% $ 10.3m | |
| Senior VP of Legal & Regulatory Affairs and General Counsel | 6.08yrs | US$5.59m | 0.0086% $ 9.2m | |
| Chief Executive Officer of Managed Infrastructure Services Business | 0.083yr | US$10.22m | 0.012% $ 12.4m | |
| CEO & Chairman of the Board | 0.83yr | no data | 0.011% $ 11.4m | |
| Executive Vice Chairman | 0.083yr | no data | no data | |
| President | 0.83yr | no data | 0.030% $ 31.4m | |
| Chief Information Officer | no data | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Communications Officer | 1.08yrs | no data | no data | |
| Vice President of Corporate Development | no data | no data | no data | |
| Senior VP & Chief Marketing Officer | no data | no data | no data | |
| Senior VP & Chief Human Resources Officer | 0.42yr | no data | 0.00028% $ 297.6k |
0.8yrs
Average Tenure
54yo
Average Age
Experienced Management: IBM's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman of the Board | 0.83yr | no data | 0.011% $ 11.4m | |
| Executive Vice Chairman | 0.083yr | no data | no data | |
| Senior VP of IBM Systems & Chairman of North America | 2yrs | no data | no data | |
| Independent Lead Director | no data | US$598.38k | 0.00067% $ 712.0k | |
| Independent Director | 9.08yrs | US$391.53k | 0.00084% $ 892.7k | |
| Independent Director | 20.08yrs | US$566.54k | 0.0032% $ 3.4m | |
| Independent Director | 11yrs | US$443.94k | 0.00030% $ 318.8k | |
| Independent Director | 6.42yrs | US$412.72k | 0.00047% $ 499.5k | |
| Member of Watson Healthcare Advisory Board | 8.92yrs | no data | no data | |
| Member of Watson Healthcare Advisory Board | no data | no data | no data | |
| Chairman of Greater China Group | no data | no data | no data | |
| Member of Watson Healthcare Advisory Board | no data | no data | no data |
7.7yrs
Average Tenure
60yo
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 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$106.275b
- Shares outstanding: 893.59m
- Website: https://www.ibm.com
Number of Employees
Location
- International Business Machines Corporation
- One 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 provides integrated solutions and services worldwide. Its Cloud & Cognitive Software segment offers software for vertical and domain-specific solutions in health...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/27 23:08 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.