IBM Stock Analysis: International Business | NYSE
Information Technology Services | NYSE, USA | Market Cap: 194.692m USD | 12M Return: -15.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.65B
EPS Trend: 97.1%
Qual. Beats: 0
Rev. Trend: 93.4%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
International Business Machines Corporation (NYSE: IBM) is a global technology and consulting company headquartered in Armonk, New York, operating across the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is organized into four segments: Software (hybrid cloud and AI platforms), Consulting (strategy, technology, and managed services), Infrastructure (on-premises and cloud server and storage solutions), and Financing (client and commercial financing for IBM hardware, software, and services).
IBM maintains strategic partnerships with major technology players, including Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics, and SAP, and has a collaboration with Arm Holdings to develop dual-architecture hardware for AI and data-intensive workloads. The company was originally incorporated in 1911 as Computing-Tabulating-Recording Co., making it one of the longest-operating firms in the U.S. technology sector. As a mega-cap Information Technology company in the IT Consulting & Other Services sub-industry, IBM competes in the highly competitive enterprise IT services and hybrid cloud market, where revenue is typically driven by long-term contracts, recurring service agreements, and large-scale infrastructure deployments rather than consumer product sales.
- Red Hat hybrid cloud revenue growth drives Software segment
- Enterprise AI adoption lifts Consulting bookings and margins
- Mainframe refresh cycle supports Infrastructure segment revenue
| Net Income: 10.7b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 1.64 > 1.0 |
| NWC/Revenue: -10.87% < 20% (prev -5.42%; Δ -5.45% < -1%) |
| CFO/TA 0.10 > 3% & CFO 14.9b > Net Income 10.7b |
| Net Debt (60.4b) to EBITDA (14.9b): 4.04 < 3 |
| Current Ratio: 0.79 > 1.5 & < 3 |
| Outstanding Shares: last quarter (952.7m) vs 12m ago 0.63% < -2% |
| Gross Margin: 58.44% > 18% (prev 57.57%; Δ 0.87% > 0.5%) |
| Asset Turnover: 45.96% > 50% (prev 43.10%; Δ 2.86% > 0%) |
| Interest Coverage Ratio: 6.41 > 6 (EBIT TTM 12.4b / Interest Expense TTM 1.93b) |
| A: -0.05 (Total Current Assets 28.4b - Total Current Liabilities 35.9b) / Total Assets 152b |
| B: 1.03 (Retained Earnings 156b / Total Assets 152b) |
| C: 0.08 (EBIT TTM 12.4b / Avg Total Assets 150b) |
| D: 0.29 (Book Value of Equity 34.5b / Total Liabilities 118b) |
| Altman-Z'' = 3.88 = AA |
| DSRI: 1.02 (Receivables 14.0b/12.7b, Revenue 69.1b/64.0b) |
| GMI: 0.99 (GM 57.57% / 58.44%) |
| AQI: 1.07 (AQ_t 0.76 / AQ_t-1 0.71) |
| SGI: 1.08 (Revenue 69.1b / 64.0b) |
| TATA: -0.03 (NI 10.7b - CFO 14.9b) / TA 152b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of July 28, 2026, the stock is trading at USD 216.28 with a total of 7,325,731 shares traded. Over the past week, the price has changed by +1.54%, over one month by -22.20%, over three months by -4.46% and over the past year by -15.73%.
Current recommended Stop Loss: 200.20 (which is 7.4% or 1.2 ATR below the current price).
International Business has received a consensus analysts rating of 3.55. Therefore, it is recommended to hold IBM.
- StrongBuy: 8
- Buy: 2
- Hold: 8
- Sell: 2
- StrongSell: 2
| Analysts Target Price | 262.9 | 21.5% |
P/E Trailing = 18.2876
P/E Forward = 16.8919
P/S = 2.8177
P/B = 5.6136
P/EG = 1.9875
Revenue TTM = 69.1b USD
EBIT TTM = 12.4b USD
EBITDA TTM = 14.9b USD
Long Term Debt = 56.2b USD (from longTermDebt, last quarter)
Short Term Debt = 6.54b USD (from shortTermDebt, last quarter)
Debt = 68.6b USD (from shortLongTermDebtTotal, last quarter) + Leases 3.29b
Net Debt = 60.4b USD (calculated: Debt 68.6b - CCE 8.13b)
Enterprise Value = 255b USD (195b + Debt 68.6b - CCE 8.13b)
Interest Coverage Ratio = 6.41 (Ebit TTM 12.4b / Interest Expense TTM 1.93b)
EV/FCF = 17.49x (Enterprise Value 255b / FCF TTM 14.6b)
FCF Yield = 5.72% (FCF TTM 14.6b / Enterprise Value 255b)
FCF Margin = 21.11% (FCF TTM 14.6b / Revenue TTM 69.1b)
Net Margin = 15.52% (Net Income TTM 10.7b / Revenue TTM 69.1b)
Gross Margin = 58.44% ((Revenue TTM 69.1b - Cost of Revenue TTM 28.7b) / Revenue TTM)
Gross Margin QoQ = 57.73% (prev 56.23%)
Tobins Q-Ratio = 1.68 (Enterprise Value 255b / Total Assets 152b)
Interest Expense / Debt = 2.81% (Interest Expense 1.93b / Debt 68.6b)
Taxrate = 12.63% (313.0m / 2.48b)
NOPAT = 10.8b (EBIT 12.4b * (1 - 12.63%))
Current Ratio = 0.79 (Total Current Assets 28.4b / Total Current Liabilities 35.9b)
Debt / Equity = 1.99 (Debt 68.6b / totalStockholderEquity, last quarter 34.5b)
Debt / EBITDA = 4.04 (Net Debt 60.4b / EBITDA 14.9b)
Debt / FCF = 4.14 (Net Debt 60.4b / FCF TTM 14.6b)
Total Stockholder Equity = 32.0b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.13% (Net Income 10.7b / Total Assets 152b)
RoE = 33.52% (Net Income TTM 10.7b / Total Stockholder Equity 32.0b)
RoCE = 14.02% (EBIT 12.4b / Capital Employed (Equity 32.0b + L.T.Debt 56.2b))
RoIC = 9.06% (NOPAT 10.8b / Invested Capital 119b)
WACC = 6.98% (E(195b)/V(263b) * Re(8.57%) + D(68.6b)/V(263b) * Rd(2.81%) * (1-Tc(0.13)))
Discount Rate = 8.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.70 | Cagr: 0.91%
[DCF] Terminal Value 77.97% ; FCFF base≈13.5b ; Y1≈15.4b ; Y5≈22.7b
[DCF] Fair Price = 299.0 (EV 342b - Net Debt 60.4b = Equity 282b / Shares 942.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.12 | EPS CAGR: 9.07% | SUE: 0.0 | # QB: 0
Revenue Correlation: 93.39 | Revenue CAGR: 4.59% | SUE: -0.08 | # QB: 0
EPS current Quarter (2026-09-30): EPS=2.87 | Chg30d=-1.84% | Revisions=+40% | Analysts=15
EPS current Year (2026-12-31): EPS=12.06 | Chg30d=-3.13% | Revisions=+17% | GrowthEPS=+4.1% | GrowthRev=+4.7%
EPS next Year (2027-12-31): EPS=12.99 | Chg30d=-3.48% | Revisions=+29% | GrowthEPS=+7.7% | GrowthRev=+3.9%
[Analyst] Revisions Ratio: +42% (up=7, down=2)