A Business at a Glance
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International Business Machines Corporation (IBM or the company) was incorporated in the State of New York on June 16, 1911, as the Computing-Tabulating-Recording Co. (C-T-R), a consolidation of the Computing Scale Co. of America, the Tabulating Machine Co. and The International Time Recording Co. of New York. Since that time, IBM has focused on the intersection of business insight and technological innovation, and its operations and aims have been international in nature. This was signaled over 100 years ago, in 1924, when C-T-R changed its name to International Business Machines Corporation. And it continues today—we create sustained value for clients by helping them leverage the power of hybrid cloud and artificial intelligence (AI). Our hybrid cloud platform and AI technology support clients’ digital transformations and helps them reimagine critical workflows, at scale, and modernize applications to increase agility, drive innovation and create operational efficiencies.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 67.5B | 67.5B | 62.8B | 61.9B | 60.5B | 57.4B |
| Net Income | 10.6B | 10.6B | 6.0B | 7.5B | 1.6B | 5.7B |
| EPS | $11.17 | $11.17 | $6.43 | $8.14 | $1.80 | $6.35 |
| Free Cash Flow | 12.1B | 12.1B | 12.4B | 12.7B | 9.1B | 10.7B |
| ROIC | 14.0% | 18.8% | 12.0% | 14.2% | 3.4% | 10.1% |
| Gross Margin | 58.2% | 58.2% | 56.7% | 55.4% | 54.0% | 54.9% |
| Debt/Equity | 2.18 | 2.18 | 2.32 | 2.95 | 2.68 | 3.28 |
| Dividends/Share | $6.60 | $6.71 | $6.67 | $6.63 | $6.59 | $6.55 |
| Operating Income | 12.3B | 12.3B | 7.5B | 10.3B | 2.2B | 7.0B |
| Operating Margin | 18.2% | 18.2% | 12.0% | 16.6% | 3.7% | 12.2% |
| ROE | 32.4% | 35.3% | 22.1% | 33.3% | 7.5% | 30.4% |
| Shares Outstanding | 948M | 948M | 937M | 922M | 911M | 904M |
INTERNATIONAL BUSINESS MACHINES CORP passes 6 of 9 quality checks, suggesting mixed fundamentals.
INTERNATIONAL BUSINESS MACHINES CORP trades at 21.3x trailing earnings, compared to its 15-year median P/E of 17.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 18.4x vs a median of 8.7x. The company's 5-year average ROIC is 11.7% with a gross margin of 55.8%. Total shareholder yield (dividends) is 2.8%. At current prices, the estimated annualized return to fair value is -1.2%.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a current P/E ratio of 21.3, compared to its historical median P/E of 17.7. The stock is currently considered Fair based on its historical valuation range.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a 5-year average return on invested capital (ROIC) of 11.7%. This indicates solid capital allocation.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a market capitalization of $225.5B. It is classified as a mega-cap stock.
Yes, INTERNATIONAL BUSINESS MACHINES CORP (IBM) pays a dividend with a trailing twelve-month yield of 2.77%.
Based on historical P/E analysis, INTERNATIONAL BUSINESS MACHINES CORP (IBM) appears fair. The current P/E of 21.3 is 21% above its historical median of 17.7. The estimated fair value CAGR (P/E method) is -4.3%.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) operates in the Computer & Office Equipment industry, within the Technology sector.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) reported annual revenue of $67.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a net profit margin of 15.7%. This is a healthy margin.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) generated $12.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a debt-to-equity ratio of 2.18. This indicates higher leverage, which may increase financial risk.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) reported earnings per share (EPS) of $11.17 in its most recent fiscal year.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a return on equity (ROE) of 35.3%. This indicates the company generates strong returns for shareholders.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a 5-year average gross margin of 55.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for INTERNATIONAL BUSINESS MACHINES CORP (IBM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a book value per share of $34.43, based on its most recent annual SEC filing.