# International Business Machines Corporation (IBM) — Stock CV

International Business Machines Corporation 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.

> 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.

## Identity

- **Ticker**: IBM
- **Sector**: Technology
- **Industry**: Information Technology Services
- **Headquarters**: ARMONK, NY
- **Employees**: 287 000
- **Website**: https://www.ibm.com
- **Market cap**: $213B
- **Last price**: $226.50
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $69.1B
- **Net income**: $10.7B
- **Free cash flow**: $13.8B
- **Net debt**: $47.7B
- **P/E**: 20.0
- **Revenue growth (YoY)**: 7.9%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 77 |
| Growth | 44 |
| Profitability | 85 |
| Health | 54 |
| Quality | 85 |
| Moat | 63 |

## Qualifications (beginner checklist) — 11 of 11 passed

- [x] Revenue growing — +7.9% YoY
- [x] Profitable — $10.7B TTM
- [x] Profit growing — +83.8% YoY
- [x] Generates cash — $13.8B TTM
- [x] Debt under control — ~3.5y of cash flow to repay
- [x] Established company — $213B market cap
- [x] Not printing shares — +6.3% shares over ~5y
- [x] Proven track record — 9/9 profitable years
- [x] Financially stable — Altman Z 2.8 — grey
- [x] Pays a dividend — yield 2.95%
- [x] Valuation not extreme — P/E 20.0

## Experience (career milestones)

- **Jul 9, 2019** — Acquired Red Hat: $34B — the hybrid-cloud pivot
- **FY2016** — Profitable every year on record: 9 consecutive profitable years in our data
- **FY2016** — Revenue already above $50B: $79.9B in first reported year
- **FY2016** — Positive free cash flow every year since: 9-year streak
- **FY2016** — Best year on record: $11.9B net income
- **May 11, 1997** — Deep Blue beats Kasparov: first computer to beat a reigning chess champion
- **Aug 12, 1981** — IBM PC: set the personal-computer standard — and lost control of it
- **Apr 7, 1964** — System/360: the $5B bet that defined the mainframe era
- **1924** — Renamed IBM: International Business Machines
- **Jun 16, 1911** — Founded as CTR: Computing-Tabulating-Recording — punch-card machines

## 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

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $57.4B | $5.74B | $10.7B |
| FY2022 | $60.5B | $1.64B | $9.09B |
| FY2023 | $61.9B | $7.50B | $12.7B |
| FY2024 | $62.8B | $6.02B | $12.4B |
| FY2025 | $67.5B | $10.6B | $12.1B |

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Source: https://stockcv.com/IBM — derived from company filings; may be delayed or incomplete. Information, not investment advice.