International Business Machines Corporation

Information Technology Services

IBMMixed11 of 11 basics passed

$226.50

-0.05%

Market cap $213B

$226.50

-0.05%

Market cap $213B

Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows.

It is a $213B technology company. Revenue grew 7.9% over the last year, it keeps 16¢ of every dollar of sales as profit, and its net debt equals ~3.5 years of free cash flow. It trades at 20.0× earnings — in the cheapest third of its own history.

Website: ibm.com
Location: Armonk, NY
Employees: 287 000
Sector: Technology
Founded: 1911

Share price · 3 years

$142.11 → $226.50+59.4%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $69.1B
Profit: keeps 16¢ of every $1 sold; $10.7B
Free cash flow: cash left after running the business; $13.8B
Net debt: debt minus cash on hand; $47.7B
P/E: years of profit in the price; 20.0
EPS: earnings per share, TTM; $11.31
Dividend: pays out 59% of profit · 46% of FCF · raised 30+ yrs; 2.95%
Shares: shares outstanding; 948.7M
Volatility: beta vs the market — under 1 swings less; 0.79

Revenue, last 9 years

52-week range

Low $205.77$226.50High $329.23

Today's price is 17% of the way from the year's low to its high.

P/E vs its history5y

20.0×median 26.1×

Higher than 17% of past days — in the cheapest third of its own history.

Valuation vs own history

P/E

20.0×

85%

P/S

3.1×

39%

EV/EBITDA

23.4×

86%

P/B

6.2×

67%

FCF yield

6.4%

46%

Share of the last ~5 years that was pricier than today (cheaper than usual). Based on the daily valuation record.

Insider activity · 90 days

-$5.76Mnet selling

Purchases$0

Sales$5.76M

Insiders trading, last 14d0 buy · 0 sell

Standing in Technology

Size$213Btop 13%
Revenue growth+4%top 73%
Net margin16%top 43%
Return on equity34%top 23%
P/E20.0×top 24%
Dividend yield2.95%top 8%

Ranked against 220 Technology companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong valuation, profitability and quality; Growth lags behind.

Valuation77

P/E vs own history17th pct · 25/25
FCF yield6.5% · 20/25
P/S3.1x · 20/25
EV/EBITDA22.5x · 12/25

Growth44

Revenue CAGR4.2% · 6/25
Net income CAGR16.5% · 20/25
EPS CAGR ~5Y1.1% · 6/25
Fwd implied growth11.4% · 12/25

Profitability85

ROIC15.1% · 20/25
ROE33.5% · 25/25
Net margin15.5% · 20/25
Operating margin15.1% · 20/25

Health54

Altman Z2.80 · 18/25
Current ratio0.79 · 6/25
Interest coverage45.6x · 25/25
Net cash / debtD/A 31% · 5/25

Quality85

Piotroski F6/9 · 15/25
Beneish M-2.49 · 20/25
FCF conversion129% · 25/25
Margin stabilityσ 3.7% · 25/25

Moat63

ROIC >12% years3/9 yrs · 6/25
Median gross margin54.0% · 20/25
FCF-positive years9/9 yrs · 25/25
Worst-year net marginworst 2.7% · 12/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

Jul 9, 2019Acquisition
Acquired Red Hat
$34B — the hybrid-cloud pivot
FY2016Financial
Profitable every year on record
9 consecutive profitable years in our data
FY2016Financial
Revenue already above $50B
$79.9B in first reported year
FY2016Financial
Positive free cash flow every year since
9-year streak
FY2016Financial
Best year on record
$11.9B net income
May 11, 1997Milestone
Deep Blue beats Kasparov
first computer to beat a reigning chess champion
Aug 12, 1981Product
IBM PC
set the personal-computer standard — and lost control of it
Apr 7, 1964Product
System/360
the $5B bet that defined the mainframe era
1924Milestone
Renamed IBM
International Business Machines
Jun 16, 1911Founded
Founded as CTR
Computing-Tabulating-Recording — punch-card machines

Achievements

Verifiable track record, straight from the reported numbers.

#29 largest of 220 Technology companies by market cap

Dividend Aristocrat — 30+ straight annual increases

$10 000 invested in 2021 would be worth ~$17 291 today — price return only

$67.5B revenue in FY2025

Revenue up 7.9% year over year

Profitable 9 years in a row

Positive free cash flow 9 years in a row

287 000 employees

ROIC of 15.1%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

High gross margin (58.1%)
Strong cash conversion — FCF is 20.0% of revenue
Interest covered 45.6× by operating earnings
High returns on invested capital (ROIC 15.1%)

Watch-outs

Nothing stands out as a concern in the available data.

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

11 of 11 checks passed

Revenue growing — the company sells more than a year ago+7.9% YoY
Profitable — makes more than it spends$10.7B TTM
Profit growing — earnings are higher than last year+83.8% YoY
Generates cash — cash left after running and investing$13.8B TTM
Debt under control — could handle its obligations~3.5y of cash flow to repay
Established company — not a micro-cap — lower blow-up risk$213B market cap
Not printing shares — share count not ballooning — you keep your slice+6.3% shares over ~5y
Proven track record — years of profitability behind it9/9 profitable years
Financially stable — balance sheet not near distressAltman Z 2.8 — grey
Pays a dividend — returns cash to shareholdersyield 2.95%
Valuation not extreme — price not wildly above earningsP/E 20.0

Peer comparisonInternational Business Machines Corporation vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
IBM this company	$213.4B	20.0	+7.9%	15.5%	Mixed
NVDA Nvidia Corp	$5.5T	28.6	+83.4%	63.7%	Mixed
AAPL Apple Inc.	$4.9T	38.1	+14.2%	27.6%	Strong
GOOGL Alphabet Inc.	$4.3T	17.6	+20.1%	54.8%	Mixed
MSFT Microsoft Corp	$4.0T	29.7	+17.8%	40.3%	Strong
SPCX Space Exploration Technologies Corp.	$2.1T	—	+33.2%	-34.0%	Strained
META Meta Platforms, Inc.	$1.8T	26.9	+27.7%	29.8%	Mixed

Head-to-head: IBM vs NVDA · IBM vs AAPL · IBM vs GOOGL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 8Buy 8Hold 13Sell 2

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $69.1B · net income $10.7B (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$69.1B

YoY 7.9%

Net income (TTM)

$10.7B

Margin 15.5%

Gross margin

58.1%

Operating margin

15.1%

P/E ratio

20.0

Dividend yield

2.95%

Income statement — full detail

Figures in USD billions · EPS in USD

	2019	2021	2022	2023	2024	2025
Revenue	77.1	57.4	60.5	61.9	62.8	67.5
Gross profit	36.5	31.5	32.7	34.3	35.6	39.3
Operating income (EBIT)	10.2	4.8	7.5	8.7	5.8	10.3
Net income	9.4	5.7	1.6	7.5	6.0	10.6
EPS (diluted)	10.56	6.35	1.80	8.14	6.43	11.17

Cash flowFree cash flow $13.8B · operating cash flow $14.9B (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$13.8B

Margin 20.0%

Operating cash flow (TTM)

$14.9B

FCF margin

20.0%

Cash flow statement — full detail

Figures in USD billions

	2019	2021	2022	2023	2024	2025
Operating cash flow	14.8	12.8	10.4	13.9	13.4	13.2
Capital expenditure	-2.3	-2.1	-1.3	-1.2	-1.0	-1.1
Free cash flow	12.5	10.7	9.1	12.7	12.4	12.1
FCF margin	16.2%	18.7%	15.0%	20.5%	19.8%	17.9%

Balance sheetAssets $152B · net debt $47.7B (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $152B of assets is financed

78%

22%

Liabilities $119B — borrowed moneyEquity $32.6B — owners' stake

Cash vs debt

Total debt $61.3B − cash $13.6B = net debt $47.7B

Cash on hand covers 22% of debt.

Altman Z-Score

2.80

Grey zone

Debt repayment

4.1 yrs

Years of free cash flow to clear net debt

Interest coverage

45.6x

EBIT ÷ interest expense

ROE

33.5%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2019	2021	2022	2023	2024	2025
Cash & equivalents	8.9	6.7	7.9	13.1	13.9	13.6
Total assets	152.2	132.0	127.2	135.2	137.2	151.9
Total liabilities	131.2	113.0	105.2	112.6	109.8	119.1
Total debt	62.9	51.7	50.9	56.5	55.0	61.3
Equity	20.8	18.9	21.9	22.5	27.3	32.6
Net debt	54.0	45.1	43.1	43.5	41.0	47.7

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Deeper analysis of IBM on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $226.50 · market cap $213B.