IBM is an information technology services business based in the US. IBM shares (IBM) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was $210.25 – a decrease of 0.32% over the previous week. IBM employs 282,200 staff and has a trailing 12-month revenue of around $62.6 billion.
October 24, 2024: IBM shares have remained fairly flat after its latest earnings report showed that revenue of $14.97 billion was slightly below expectations and earnings per share (EPS) of $2.30 was slightly above expectations.
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| Latest market close | $210.25 |
|---|---|
| 52-week range | $147.04 - $235.52 |
| 50-day moving average | $218.70 |
| 200-day moving average | $191.63 |
| Wall St. target price | $214.21 |
| PE ratio | 30.5095 |
| Dividend yield | $6.66 (3.2%) |
| Earnings per share (TTM) | $6.85 |
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Historical closes compared with the close of $208.09 from 2024-11-18
| 1 week (2024-11-13) | -1.34% |
|---|---|
| 1 month (2024-10-21) | -10.21% |
| 3 months (2024-08-20) | 6.15% |
| 6 months (2024-05-20) | 22.46% |
| 1 year (2023-11-20) | 34.82% |
|---|---|
| 2 years (2022-11-18) | 53.29% |
| 3 years (2021-11-19) | 104.69% |
| 5 years (2019-11-20) | 106.20% |
Valuing IBM stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of IBM's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
IBM's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 31x. In other words, IBM shares trade at around 31x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
IBM's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 6.9846. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into IBM's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
IBM's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $14.7 billion.
The EBITDA is a measure of a IBM's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $62.6 billion |
|---|---|
| Operating margin TTM | 14.13% |
| Gross profit TTM | $32.7 billion |
| Return on assets TTM | 4.73% |
| Return on equity TTM | 26.73% |
| Profit margin | 10.22% |
| Book value | $26.44 |
| Market Capitalization | $193.2 billion |
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like IBM.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 17.23
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and IBM's overall score of 17.23 (as at 12/31/2018) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like IBM is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 0.91/100
IBM's environmental score of 0.91 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that IBM is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 7.08/100
IBM's social score of 7.08 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that IBM is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 5.75/100
IBM's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that IBM is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. IBM scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that IBM has, for the most part, managed to keep its nose clean.
International Business Machines was last rated for ESG on: 2019-01-01.
| Total ESG score | 17.23 |
|---|---|
| Total ESG percentile | 14.12 |
| Environmental score | 0.91 |
| Environmental score percentile | 1 |
| Social score | 7.08 |
| Social score percentile | 1 |
| Governance score | 5.75 |
| Governance score percentile | 1 |
| Level of controversy | 2 |
Dividend payout ratio: 64.88% of net profits
Recently IBM has paid out, on average, around 100% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), IBM shareholders could enjoy a 0% return on their shares, in the form of dividend payments. In IBM's case, that would currently equate to about $6.66 per share.
IBM's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
IBM's most recent dividend payout was on 9 December 2024. The latest dividend was paid out to all shareholders who bought their shares by 11 November 2024 (the "ex-dividend date").
IBM's shares were split on a 1046:1000 basis on 3 November 2021 . So if you had owned 1000 shares the day before before the split, the next day you'd have owned 1046 shares. This wouldn't directly have changed the overall worth of your IBM shares – just the quantity. However, indirectly, the new 4.4% lower share price could have impacted the market appetite for IBM shares which in turn could have impacted IBM's share price.
Over the last 12 months, IBM's shares have ranged in value from as little as $147.0356 up to $235.5152. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while IBM's is 0.71. This would suggest that IBM's shares are less volatile than average (for this exchange).
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, facilitates IBM clients' acquisition of hardware, software, and services. The company has a strategic partnership to various companies including hyperscalers, service providers, global system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others.
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