12.96%
17.26%
26.05%
35.19%
37.47%
93.36%
97.70%
AI Spotlight on IBM
Company Description
International Business Machines Corporation provides integrated solutions and services worldwide.The company operates through four business segments: Software, Consulting, Infrastructure, and Financing.The Software segment offers hybrid cloud platform and software solutions, such as Red Hat, an enterprise open-source solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data, and identity.
This segment also provides transaction processing software that supports clients' mission-critical and on-premise workloads in banking, airlines, and retail industries.The Consulting segment offers business transformation services, including strategy, business process design and operations, data and analytics, and system integration services; technology consulting services; and application and cloud platform services.The Infrastructure segment provides on-premises and cloud-based server and storage solutions for its clients' mission-critical and regulated workloads; and support services and solutions for hybrid cloud infrastructure, as well as remanufacturing and remarketing services for used equipment.
The Financing segment offers lease, installment payment, loan financing, and short-term working capital financing services.The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
Market Data
| Last Price | 258.27 |
| Change Percentage | 12.96% |
| Open | 250 |
| Previous Close | 228.63 |
| Market Cap ( Millions) | 238808 |
| Volume | 14265569 |
| Year High | 261.8 |
| Year Low | 162.62 |
| M A 50 | 223.81 |
| M A 200 | 200.31 |
Financial Ratios
| FCF Yield | 5.12% |
| Dividend Yield | 2.58% |
| ROE | 24.33% |
| Debt / Equity | 213.85% |
| Net Debt / EBIDTA | 435.35% |
| Price To Book | 8.76 |
| Price Earnings Ratio | 39.7 |
| Price To FCF | 19.55 |
| Price To sales | 3.81 |
| EV / EBITDA | 27.74 |
News
- Jan -30 - Watch These IBM Price Levels as Stock Soars After AI Drives Strong Earnings
- Jan -30 - Why IBM's stock is having its best day since the dot-com era
- Jan -30 - Josh Brown's best stocks list: IBM, Gartner, Cognizant Tech, Accenture, Cloudflare and GoDaddy
- Jan -30 - Why IBM Stock Was Up 14% Today
- Jan -30 - IBM Stock Jumps, Leads S&P 500 Gainers, on Results, Open-Source AI Strategy
- Jan -30 - IBM rallies nearly 14%, heads for best day ever on strong earnings
- Jan -30 - IBM shares pop on strong revenue growth guidance
- Jan -30 - Tech Earnings Breakdown: IBM, Wolfspeed Report Results
- Jan -30 - IBM Beats Q4 Earnings Estimates on Solid Cloud & AI Traction
- Jan -30 - Should You Pick IBM Stock At $250?
- Jan -30 - IBM Tops EPS, Sets Optimistic Outlook
- Jan -30 - IBM Stock Jumps on Better-Than-Estimated Results, Open-Source AI Strategy
- Jan -30 - IBM's Q4 Review: AI Renaissance Continues To Defy Naysayers
- Jan -30 - Telefónica Tech and IBM sign a collaboration agreement for quantum-safe technology
- Jan -30 - IBM stock price analysis: risky pattern points to a retreat in 2025
- Jan -30 - International Business Machines Corporation (IBM) Q4 2024 Earnings Call Transcript
- Jan -30 - Compared to Estimates, IBM (IBM) Q4 Earnings: A Look at Key Metrics
- Jan -29 - IBM (IBM) Surpasses Q4 Earnings Estimates
- Jan -29 - Fed Holds Steady, Big Earnings Afternoon: MSFT, TSLA, META & More
- Jan -29 - IBM Earnings Beat. 2025 Revenue Outlook Above Views.
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Software
Expected Growth : 6.0 %
What the company do ?
IBM software refers to the various software products developed and marketed by International Business Machines Corporation, including operating systems, middleware, and application software.
Why we expect these perspectives ?
IBM's software segment growth is driven by increasing adoption of cloud-based services, artificial intelligence, and cybersecurity solutions. Strong demand for hybrid cloud platforms, Red Hat acquisition, and growing need for digital transformation are key contributors. Additionally, IBM's strategic partnerships, investments in research and development, and expanding presence in emerging markets also support growth.
Segment n°2 -> Consulting
Expected Growth : 4.5 %
What the company do ?
Consulting from International Business Machines Corporation refers to IBM's expert advisory services, helping clients solve complex business problems and implement innovative solutions.
Why we expect these perspectives ?
IBM's 4.5% growth in consulting is driven by increasing demand for digital transformation, cloud migration, and AI adoption. Strong relationships with Fortune 500 companies, expansion into emerging markets, and strategic acquisitions also contribute to growth. Additionally, IBM's expertise in industries such as healthcare, finance, and retail, and its ability to provide end-to-end solutions, further fuel growth in the consulting segment.
Segment n°3 -> Infrastructure
Expected Growth : -1.0 %
What the company do ?
IBM's infrastructure refers to its comprehensive portfolio of hardware, software, and services that enable businesses to design, build, and manage scalable, flexible, and secure IT environments.
Why we expect these perspectives ?
IBM's Infrastructure growth is driven by increasing demand for hybrid cloud, AI, and 5G technologies. The company's strategic acquisitions, such as Red Hat, have expanded its capabilities in cloud infrastructure and management. Additionally, IBM's focus on innovation, including its investments in quantum computing and blockchain, has positioned the company for growth in emerging technologies.
Segment n°4 -> Financing
Expected Growth : 3.5 %
What the company do ?
Financing from International Business Machines Corporation refers to IBM's financing solutions for businesses, providing leasing and loan options for IT infrastructure and services.
Why we expect these perspectives ?
IBM's 3.5% growth is driven by increasing demand for cloud computing, artificial intelligence, and cybersecurity solutions. Strategic acquisitions, such as Red Hat, have expanded its portfolio, while investments in research and development have improved its competitive edge. Additionally, IBM's strong brand reputation and long-standing relationships with clients have contributed to its steady growth.
Segment n°5 -> Other
Expected Growth : 3.0 %
What the company do ?
The 'Other' segment from International Business Machines Corporation refers to revenue generated from various sources, including IBM's financing business, real estate holdings, and other miscellaneous operations.
Why we expect these perspectives ?
IBM's 3.0% growth in 'Other' segment is driven by increasing demand for its cloud-based services, growth in artificial intelligence and blockchain technologies, and strategic acquisitions. Additionally, the company's focus on innovation and R&D investments in emerging technologies such as quantum computing and IoT are contributing to its growth.
International Business Machines Corporation Products
| Product Range | What is it ? |
|---|---|
| Hardware | IBM offers a range of hardware products, including servers, storage systems, and networking equipment. |
| Software | IBM provides a wide range of software products, including AI, analytics, blockchain, cloud, and IoT solutions. |
| Services | IBM offers a range of services, including consulting, implementation, and management services for IT and business processes. |
| Cloud | IBM Cloud is a cloud computing platform that provides infrastructure, platform, and software as a service. |
| Artificial Intelligence | IBM offers a range of AI solutions, including Watson, that enable businesses to automate decision-making, improve customer service, and optimize operations. |
| Blockchain | IBM Blockchain is a decentralized, distributed ledger technology that enables secure, transparent, and tamper-proof transactions. |
| Internet of Things (IoT) | IBM IoT solutions enable businesses to connect, monitor, and analyze data from devices and sensors. |
| Quantum Computing | IBM Quantum is a quantum computing platform that enables businesses to solve complex problems and simulate complex systems. |
International Business Machines Corporation's Porter Forces
Threat Of Substitutes
The threat of substitutes for IBM is moderate, as there are alternative technology solutions available in the market. However, IBM's strong brand reputation and diversified product portfolio mitigate this threat to some extent.
Bargaining Power Of Customers
The bargaining power of customers is low for IBM, as the company has a large and diversified customer base. Additionally, IBM's products and services are often customized to meet specific customer needs, reducing the bargaining power of individual customers.
Bargaining Power Of Suppliers
The bargaining power of suppliers is low for IBM, as the company has a large and diversified supply chain. IBM's strong relationships with its suppliers and its ability to negotiate favorable terms also reduce the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants is low for IBM, as the company operates in a highly competitive and capital-intensive industry. New entrants would need to invest heavily in research and development, marketing, and sales to compete with IBM's established brand and product portfolio.
Intensity Of Rivalry
The intensity of rivalry is high for IBM, as the company operates in a highly competitive industry with several established players. The market is characterized by frequent product innovations, aggressive pricing, and high marketing expenditures, which increases the intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 71.67% |
| Debt Cost | 3.95% |
| Equity Weight | 28.33% |
| Equity Cost | 7.67% |
| WACC | 5.00% |
| Leverage | 253.02% |
International Business Machines Corporation : Quality Control
International Business Machines Corporation passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MSFT | Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity … |
| SAP.DE | SAP SE, together with its subsidiaries, operates as an enterprise application software company worldwide. The company operates through three segments: Applications, Technology & Support; Qualtrics; and Services. It offers SAP … |
| CRM | Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their … |
| CAP.PA | Capgemini SE provides consulting, digital transformation, technology, and engineering services primarily in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers strategy and transformation services, including … |
| ACN | Accenture plc, a professional services company, provides strategy and consulting, interactive, and technology and operations services worldwide. The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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