International Business Machines Corporation
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offer…
What to know about IBM
International Business Machines Corporation is a Technology company with a mixed financial profile. It scores well on size and profitability, but health is worth keeping an eye on.
Should you consider IBM?
Based on 31 financial metrics and sector comparison. Not financial advice.
-
International Business Machines Corporation is a Technology company with a mixed overall financial profile — it is in the lower half of its Technology peers (47 of 82).
-
Profitability is roughly average for the S&P 500 — not a standout in either direction.
-
Valuation is in the middle of the pack — neither obviously cheap nor stretched.
-
Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.
-
There is a small dividend (0.03%), but income-focused investors will likely find better yields elsewhere in the market.
-
Volatility is close to the S&P 500 average — typical market swings, nothing unusual.
-
This is a mixed picture — real strengths in some areas, but areas that need watching too. Do your homework on the sector before deciding.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how IBM compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 22.06 | Above avg |
| Forward P/E | 18.51 | Average |
| PEG Ratio | 2.53 | Average |
| Price to Sales | 3.40 | Average |
| Price to Book | 7.10 | Average |
| EV/EBITDA | 18.82 | Average |
| Earnings Yield | 4.53% | Above avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 58.36% | Above avg |
| Operating Margin | 13.81% | Average |
| Net Profit Margin | 15.61% | Above avg |
| Return on Equity | 35.77% | Top 25% |
| Return on Invested Capital | 5.37% | Average |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 9.50% | Above avg |
| Revenue Growth (3Y CAGR) | 3.72% | Average |
| EPS Growth (YoY) | 14.20% | Average |
| Free Cash Flow Growth | -2.59% | Average |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 0.80 | Below avg |
| Debt to Equity | 2.11 | Below avg |
| Interest Coverage | 6.34 | Average |
| Altman Z-Score | 3.31 | Above avg |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 2.50% | Above avg |
| Payout Ratio | 59.47% | Average |
| Dividend Growth (5Y) | -11.86% | Below avg |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 5.24% | Above avg |
| OCF to Sales | 20.30% | Average |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.67 | Above avg |
| Volatility (30-Day) | 69.26% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 3.61% | Average |
| Avg. Analyst Rating | 1.95 | Above avg |
| Target Upside % | 16.77% | Above avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 234.13B | Top 25% |
How does IBM compare to…?
Pick another stock and see them side by side in seconds.
You might also look at
Companies in a similar position to IBM — based on their financial profile.