International Business Machines Corp
NYSE:IBM
Intrinsic Value
International Business Machines Corp. is an information technology company, which provides integrated solutions that leverage information technology and knowledge of business processes. [ Read More ]
The intrinsic value of one IBM stock under the Base Case scenario is 172 USD. Compared to the current market price of 191.69 USD, International Business Machines Corp is Overvalued by 10%.
Valuation Backtest
International Business Machines Corp
Run backtest to discover the historical profit from buying and selling IBM stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Solid Revenue Growth and Increased Profitability
2023-Q4 Earnings Call
In the fourth quarter, the company reported revenues of $17.4 billion and operating earnings per share of $3.87. For the year, revenues reached nearly $62 billion, marking a 3% increase, buoyed by strong performances in the Software and Consulting segments. Gross profit margin expanded by 130 basis points, while free cash flow hit a potent $11.2 billion, peaking since 2019. Software revenue rose by 2%, and Consulting continued its upward trajectory with 5.5% growth. Infrastructure declined by 4%, indicative of product cycle dynamics. Operating pretax profit for the quarter climbed by 9%, contributing to this cash flow enhancement. In terms of guidance, constant currency revenue is anticipated to grow in line with the mid-single-digit model, with free cash flow expected around $12 billion for the next year.
Balance Sheet Decomposition
International Business Machines Corp
Current Assets | 32.9B |
Cash & Short-Term Investments | 13.4B |
Receivables | 14.4B |
Other Current Assets | 5.1B |
Non-Current Assets | 102.3B |
Long-Term Investments | 1.6B |
PP&E | 8.7B |
Intangibles | 71.2B |
Other Non-Current Assets | 20.8B |
Current Liabilities | 34.1B |
Accounts Payable | 4.1B |
Accrued Liabilities | 7.8B |
Short-Term Debt | 1m |
Other Current Liabilities | 22.1B |
Non-Current Liabilities | 78.6B |
Long-Term Debt | 50.1B |
Other Non-Current Liabilities | 28.5B |
Earnings Waterfall
International Business Machines Corp
Revenue
|
61.9B
USD
|
Cost of Revenue
|
-27.6B
USD
|
Gross Profit
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34.3B
USD
|
Operating Expenses
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-25.2B
USD
|
Operating Income
|
9.1B
USD
|
Other Expenses
|
-1.6B
USD
|
Net Income
|
7.5B
USD
|
Free Cash Flow Analysis
International Business Machines Corp
What is Free Cash Flow?
IBM Profitability Score
Profitability Due Diligence
International Business Machines Corp's profitability score is 60/100. The higher the profitability score, the more profitable the company is.
Score
International Business Machines Corp's profitability score is 60/100. The higher the profitability score, the more profitable the company is.
IBM Solvency Score
Solvency Due Diligence
International Business Machines Corp's solvency score is 40/100. The higher the solvency score, the more solvent the company is.
Score
International Business Machines Corp's solvency score is 40/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
IBM Price Targets Summary
International Business Machines Corp
According to Wall Street analysts, the average 1-year price target for IBM is 187.08 USD with a low forecast of 126.25 USD and a high forecast of 225.75 USD.
Ownership
IBM Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
IBM Price
International Business Machines Corp
Average Annual Return | 6.49% |
Standard Deviation of Annual Returns | 10.86% |
Max Drawdown | -39% |
Market Capitalization | 175.4B USD |
Shares Outstanding | 927 300 000 |
Percentage of Shares Shorted | 2.4% |
IBM News
Last Important Events
International Business Machines Corp
Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.
Sentiment Analysis
International Business Machines Corp
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
International Business Machines Corp. is an information technology company, which provides integrated solutions that leverage information technology and knowledge of business processes. The company is headquartered in Armonk, New York and currently employs 307,600 full-time employees. The firm segments include Cloud & Cognitive Software, Global Business Services (GBS), Systems and Global Financing. The Cloud & Cognitive Software Solutions segment delivers integrated and secure cloud, data and artificial intelligence (AI) solutions to its clients. The company comprises three business areas: cognitive applications, cloud & data platforms, and transaction processing platforms. The GBS segment provides consulting, business process and application management services. The Global Financing segment is engaged in financing, which is primarily conducted through IBM Credit LLC, and remanufacturing and remarketing. The Systems segment provides clients with infrastructure platforms to help meet the requirements of hybrid multi-cloud and enterprise AI workloads. The company also provides telco consulting services and solutions to help communications service providers (CSP) and media on multiple cloud platforms.
Contact
IPO
Employees
Officers
The intrinsic value of one IBM stock under the Base Case scenario is 172 USD.
Compared to the current market price of 191.69 USD, International Business Machines Corp is Overvalued by 10%.