International Business Machines Corp. (IBM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is International Business Machines Corp. ?

Weak Long Term Fundamental Strength with a 5.49% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.05 times

Positive results in Jun 25

DIVIDEND PER SHARE(HY) Highest at USD 4.77
RAW MATERIAL COST(Y) Fallen by -7.23% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 4.77 times

With ROCE of 15.18%, it has a very expensive valuation with a 8.99 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 35.03%, its profits have fallen by -29.8%

Market Beating performance in long term as well as near term

Along with generating 35.03% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to International Business Machines Corp. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is International Business Machines Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

International Business Machines Corp.

6.74%

2.71

30.42%

S&P 500

24.32%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.71%

EBIT Growth (5y)

13.68%

EBIT to Interest (avg)

7.28

Debt to EBITDA (avg)

3.05

Net Debt to Equity (avg)

1.73

Sales to Capital Employed (avg)

0.74

Tax Ratio

6.56%

Dividend Payout Ratio

60.09%

Pledged Shares

Institutional Holding

66.64%

ROCE (avg)

13.79%

ROE (avg)

30.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

16.57

EV to EBIT

42.09

EV to EBITDA

30.96

EV to Capital Employed

7.40

EV to Sales

8.70

PEG Ratio

1.07

Dividend Yield

0.85%

ROCE (Latest)

17.58%

ROE (Latest)

39.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.97

RAW MATERIAL COST(Y)

Fallen by -2.18% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 175.82 %

PRE-TAX PROFIT(Q)

At USD 2,535 MM has Grown at 69.23%

NET PROFIT(Q)

At USD 2,221.64 MM has Grown at 62.91%

-2What is not working for the Company

INTEREST(Q)

At USD 437 MM has Grown at 14.7%

Here's what is working for International Business Machines Corp.

Dividend per share

Highest at USD 4.97 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Pre-Tax Profit

At USD 2,535 MM has Grown at 69.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 2,221.64 MM has Grown at 62.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 175.82 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for International Business Machines Corp.

Interest

At USD 437 MM has Grown at 14.7%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)