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IBM Logo

International Business Machines Corp

IBM

Computer & office Equipment

Mkt Cap

$168.9B

PE

24.39

Debt

$62.96B

Cash

$7.275B

EV

$224.5B

FCF

$12.08B

Market Cap

$168.9B

P/E Ratio

24.39

Debt

$62.96B

Cash

$7.275B

EV

$224.5B

FCF

$12.08B
Charts data: {"Earnings":[{"time":"2014-12-30","value":12022000000},{"time":"2015-12-30","value":13190000000},{"time":"2016-12-30","value":11872000000},{"time":"2017-12-30","value":5753000000},{"time":"2018-12-30","value":8728000000},{"time":"2019-12-30","value":9431000000},{"time":"2020-12-30","value":5590000000},{"time":"2021-12-30","value":5743000000},{"time":"2022-12-30","value":1639000000}],"Sales":[{"time":"2014-12-30","value":92793000000},{"time":"2015-12-30","value":81741000000},{"time":"2016-12-30","value":79919000000},{"time":"2017-12-30","value":79139000000},{"time":"2018-12-30","value":79591000000},{"time":"2019-12-30","value":77147000000},{"time":"2020-12-30","value":73620000000},{"time":"2021-12-30","value":57350000000},{"time":"2022-12-30","value":60530000000}],"Net Margins":[{"time":"2014-12-30","value":0.12955718642570022},{"time":"2015-12-30","value":0.16136333051956792},{"time":"2016-12-30","value":0.14855040728737848},{"time":"2017-12-30","value":0.07269487863126903},{"time":"2018-12-30","value":0.10966064002211305},{"time":"2019-12-30","value":0.1222471385795948},{"time":"2020-12-30","value":0.07593045368106492},{"time":"2021-12-30","value":0.10013949433304271},{"time":"2022-12-30","value":0.027077482240211465}],"Assets":[{"time":"2014-12-30","value":117532000000},{"time":"2015-12-30","value":110495000000},{"time":"2016-12-30","value":117470000000},{"time":"2017-12-30","value":125356000000},{"time":"2018-12-30","value":123382000000},{"time":"2019-12-30","value":152186000000},{"time":"2020-12-30","value":155971000000},{"time":"2021-12-30","value":132001000000},{"time":"2022-12-30","value":127243000000}],"Stockholders Equity":[{"time":"2014-12-30","value":12014000000},{"time":"2015-12-30","value":14424000000},{"time":"2016-12-30","value":18392000000},{"time":"2017-12-30","value":17725000000},{"time":"2018-12-30","value":16929000000},{"time":"2019-12-30","value":20985000000},{"time":"2020-12-30","value":20727000000},{"time":"2021-12-30","value":18996000000},{"time":"2022-12-30","value":22021000000}],"ROE":[{"time":"2014-12-30","value":1.000665889795239},{"time":"2015-12-30","value":0.9144481419855796},{"time":"2016-12-30","value":0.6454980426272292},{"time":"2017-12-30","value":0.32456981664315937},{"time":"2018-12-30","value":0.5155650067930769},{"time":"2019-12-30","value":0.4494162497021682},{"time":"2020-12-30","value":0.26969653109470737},{"time":"2021-12-30","value":0.30232680564329334},{"time":"2022-12-30","value":0.07442895418010081}],"ROA":[{"time":"2014-12-30","value":0.1700473062655277},{"time":"2015-12-30","value":0.14430517217973665},{"time":"2016-12-30","value":0.10496296926874947},{"time":"2017-12-30","value":0.09094100003190912},{"time":"2018-12-30","value":0.09192588870337651},{"time":"2019-12-30","value":0.06679983704151499},{"time":"2020-12-30","value":0.02972988568387713},{"time":"2021-12-30","value":0.036643661790440984},{"time":"2022-12-30","value":0.00908497913441211}]}

International Business Machines Corporation, together with its subsidiaries, 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; 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 has collaboration agreement with Siemens Digital Industri Software to develop a combined software solution. 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.

Sector

  • HPQ Logo

    HPQ

Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$12.08B$11.62B$11.18B$10.75B$10.35B$9.953B$9.575B$9.212B$8.862B$8.525B$8.202B$82.02B
DCF$10.1B$8.453B$7.071B$5.915B$4.949B$4.14B$3.463B$2.897B$2.423B$2.027B$20.27B
Value$71.72B

In the chart Earnings are multiplied by this value.

Earnings Growth -17%
Earnings Stability 61%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Net Margin13%16%15%7.3%11%12%7.6%10%2.7%11%
ROA17%14%10%9.1%9.2%6.7%3%3.7%0.91%6.4%
ROE100%91%65%32%52%45%27%30%7.4%30%

What is the average Net Margin?

The average Net Margin over the past 5 years is +8.46%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.87%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.42%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.75%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +32.27%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -5.91%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Debt FCF-3.373.633.894.515.694.445.516.245.21
Debt Equity3.783.142.652.963.153.383.343.112.582.72
MIN
Graham Stability---47%85%100%70%73%24%24%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.21.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.39.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.24.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years12-201512-201712-201912-2021Trend
Revenue-4.2%-5.2%-7.8%5.5%0.1%
Net Income-26%-22%-44%-71%-6.1%
Stockholders Equity6.2%4.4%1.6%16%-2.1%
FCF-5.4%-7.6%-10%-15%-2.2%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -5.22%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.1%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -22.21%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -6.14%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +4.44%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -2.05%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -7.6%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -2.24%.