Stock Analysis
International Business Machines CorporationIBM
P/E 20.39×· 5Y range 11.61–107.57×· bottom 20% of history
Sector: Technology · Industry: Information Technology Services
AnalystsBuy31 analystsP/E 20.4× sits at the 20th percentile of its 5.0978781656399725-year history.
Cash covers 12% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, cheap valuation
Strengths
- Quality85
- Profitability77
Risks
- Financial Health47
Mixed business trading cheap — priced for skepticism.
Bull Case
- ✓ROE 31.1% — efficient capital deployment
- ✓P/E 20.4× at bottom 20% of 5-year history
What's happening with IBM
Profile
Strong earnings quality and profitability; financial health lags behind.
How is each axis scored?
- Valuation72/100 · Moderate
- P/E vs own history (20th pct)20/25
- FCF yield (6.3%)20/25
- P/S (3.2x)20/25
- EV/EBIT (23.7x)12/25
- Growth58/100 · Moderate
- Revenue CAGR (4.2%)6/25
- Net income CAGR (16.5%)20/25
- EPS CAGR 5Y (15.2%)20/25
- Fwd implied growth (13.4%)12/25
- Profitability77/100 · Strong
- ROIC (10.0%)12/25
- ROE (31.1%)25/25
- Net margin (15.5%)20/25
- Operating margin (16.8%)20/25
- Financial Health47/100 · Weak
- Altman Z (2.84)18/25
- Current ratio (0.79)6/25
- Interest coverage (5.3x)18/25
- Net cash / debt (D/A 38%)5/25
- Quality85/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.49)20/25
- FCF conversion (129%)25/25
- Margin stability (σ 3.7%)25/25
- Moat63/100 · Moderate
- ROIC >12% years (3/9 yrs)6/25
- Median gross margin (54.0%)20/25
- FCF-positive years (9/9 yrs)25/25
- Worst-year net margin (worst 2.7%)12/25
About International Business Machines Corporation
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. Show more
It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail.
Headquarters: ARMONK, NY · Employees: 287,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
72B+P/E (TTM)20.3xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 11.6x–107.6x · 20th pct
P/FCF16.6xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield6.3%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 4.1%–11.4% · 43rd pct
P/S (TTM)3.15xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 1.4x–4.6x · 64th pct
EV/EBIT23.7xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 15.4x–110.9x · 19th pct
EV/Sales4.0xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E17.9xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio6.31xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.41C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.88%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio58.8%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
77B+ROIC10.0%C
Grade C: AverageNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE31.1%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA7.1%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin15.5%A
Grade A: HighNet Income / Revenue
Operating Margin16.8%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin58.1%A
Grade A: PremiumGross Profit / Revenue
FCF Margin20.0%A
Grade A: HighFCF / Revenue
True FCF Margin17.2%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
58CRevenue CAGR4.2%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR16.5%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)15.2%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth13.4%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+4.3%C
Grade C: DilutiveShare count change over 5Y
SBC / Net Income17.5%C
Grade C: MedStock-based comp/Net income. >30% = dilution risk
SBC / Revenue2.7%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
47D+Altman Z-Score2.84C
Grade C: Gray zoneBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.79xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.65xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage5.3xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment4.1yC
Grade C: AverageYears to repay net debt via FCF
Net Debt/EBIT4.9xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity1.89xC
Grade C: MedDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.12xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
85APiotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.49A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion128.6%A
Grade A: StrongFCF / Net Income
Margin Stability3.7%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue1.6%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.46xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Brown Marianne Catherine Filed | Brown Marianne Catherine | Grant / award | +415 | |
Miebach Michael Filed | Miebach Michael | Grant / award | +415 | |
HOWARD MICHELLE J Filed | HOWARD MICHELLE J | Grant / award | +291 | |
Pollack Martha E Filed | Pollack Martha E | Grant / award | +268 | |
Buberl Thomas Filed | Buberl Thomas | Grant / award | +444 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
MCNABB FREDERICK WILLIAM III Filed | MCNABB FREDERICK WILLIAM III | Grant / award | +415 | |
Laguarta Ramon Filed | Laguarta Ramon | Grant / award | +415 | |
VOSER PETER R. Filed | VOSER PETER R. | Grant / award | +455 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
63BROIC >12% Years3/9 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)54.0%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years9/9 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor2.7%C
Grade C: ModerateWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$11.38
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$8.65
Cash & short-term investments per share (Finnhub)
Book Value / Share$36.65
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$65.27B
Total debt obligations (short + long term)
Cash & Equiv.$8.13B
Cash and short-term investments
Net Debt$57.14B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$34.54B
Shareholders' equity (book value)
Asset / Liability1.29xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$217.82B
Current Market Capitalization
Beta0.79B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 16, 2026
Key Insights: International Business Machines Corporation (IBM)
IBM is down 1.25% in after-hours trading. Piotroski F-Score of 6/9 indicates mixed fundamentals for International Business Machines Corporation. Altman Z-Score of 2.84 falls in the grey zone (1.81–2.99) — financial distress is unlikely but not ruled out. Beneish M-Score of -2.49 suggests a low likelihood of earnings manipulation. International Business Machines Corporation converts about 20% of revenue into free cash flow — strong cash generation.
- Takes ~4.1 years to repay net debt from free cash flow.
- At a valuation score of 72/100, IBM trades near the cheapest end of its own historical range (P/E 20.3).
- Return on equity of 31.1% is well above the market average.
- The stock currently yields 2.9% in dividends.
- International Business Machines Corporation reports earnings in 5 days — a potential volatility catalyst.
See how IBM ranks on the Capex Tracker — top 50 capital spenders compared.
Earnings
View earnings calendar →Next Earnings
| Date | Time | EPS Est. | Rev Est. |
|---|---|---|---|
| Oct 21, 2026 | After-Hrs | $2.90 | $17.0B |
Recent Market Moves
See all IBM moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 1 | Pre-market | 231.66 | +5.33% | 2.58 |
Frequently Asked Questions about IBM
What is the current International Business Machines Corporation (IBM) stock price?
IBM is trading at $231.20 in after-hours trading, down 1.25% on the session. PreMarketPrice tracks IBM pre-market, intraday and after-hours prices.
Is IBM stock a buy right now?
PreMarketPrice's quantitative model rates International Business Machines Corporation's financial health at 47/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is IBM stock overvalued?
International Business Machines Corporation trades at a trailing P/E of 20.3 and our valuation score rates it 72/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does International Business Machines Corporation report earnings?
IBM is scheduled to report on 2026-10-21 (in 5 days). Check the Earnings section for recent results and the full calendar.
What sector does International Business Machines Corporation operate in?
International Business Machines Corporation operates in the Technology sector, within the Information Technology Services industry. The Related Stocks section lists sector peers for comparison.
What does International Business Machines Corporation do?
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world.
About International Business Machines Corporation (IBM) Stock
International Business Machines Corporation (IBM) is a US-listed stock operating in the Technology sector, specifically the Information Technology Services industry. As of the latest update, International Business Machines Corporation is trading at $231.20, down 1.25% on the day with a market capitalization of $217.8 billion. The financial health score for IBM is 47/100, which indicates moderate financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for IBM stock.
IBM Stock Analysis & Key Metrics
On PreMarketPrice, you can track International Business Machines Corporation (IBM) across multiple dimensions:
- Pre-market price & movement: Real-time IBM stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Earnings calendar: Upcoming and past earnings reports for IBM, including EPS estimates, actual results, and surprise percentages.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for IBM with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for International Business Machines Corporation across multiple reporting periods.
- Financial health score: A composite score of 47/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for IBM.
- Sector peers: Compare IBM against 4 other technology stocks on key financial metrics.
Is IBM a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate International Business Machines Corporation (IBM) as an investment. The financial health score of 47/100 suggests moderate financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average. Earnings data reveals whether the company is meeting or beating analyst expectations.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.International Business Machines Corporation (IBM) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.