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.

-3.14%

2.71

30.42%

S&P 500

17.45%

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)

11.98%

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

60.07%

Pledged Shares

Institutional Holding

65.17%

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

23.53

EV to EBIT

58.72

EV to EBITDA

41.75

EV to Capital Employed

9.05

EV to Sales

10.88

PEG Ratio

Dividend Yield

0.94%

ROCE (Latest)

15.42%

ROE (Latest)

25.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

18What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.1

RAW MATERIAL COST(Y)

Fallen by -4.7% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 153.57 %

NET SALES(Q)

Highest at USD 19,686 MM

OPERATING PROFIT(Q)

Highest at USD 5,462 MM

NET PROFIT(Q)

Highest at USD 5,463 MM

EPS(Q)

Highest at USD 5.88

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 13,192 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 28.57%

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

Dividend per share

Highest at USD 4.1 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 19,686 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 5,462 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Net Profit

Highest at USD 5,463 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 5.88

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 153.57 %

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 -4.7% (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

Depreciation

Highest at USD 1,297 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Operating Cash Flow

Lowest at USD 13,192 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Dividend Payout Ratio

Lowest at 28.57%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)