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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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International Business Machines Corp.

Cloudflare, Inc.

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.

30.85%

2.71

30.42%

S&P 500

16.89%

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)

-3.24%

EBIT Growth (5y)

5.49%

EBIT to Interest (avg)

7.28

Debt to EBITDA (avg)

3.05

Net Debt to Equity (avg)

1.73

Sales to Capital Employed (avg)

0.75

Tax Ratio

6.56%

Dividend Payout Ratio

103.78%

Pledged Shares

Institutional Holding

65.23%

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

22.81

EV to EBIT

59.22

EV to EBITDA

41.61

EV to Capital Employed

8.99

EV to Sales

10.50

PEG Ratio

Dividend Yield

0.99%

ROCE (Latest)

15.18%

ROE (Latest)

28.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Bullish

OBV

No Trend

Mildly Bullish

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

4What is working for the Company

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

-7What is not working for the Company

NET PROFIT(HY)

At USD 3,321.16 MM has Grown at -39.38%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 72.59%

INTEREST(HY)

At USD 1,025 MM has Grown at 54.83%

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

Dividend per share

Highest at USD 4.77 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debtors Turnover Ratio

Highest at 4.77 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.23% (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.

Net Profit

At USD 3,321.16 MM has Grown at -39.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 1,025 MM has Grown at 54.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 72.59% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)