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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.23
NYSE:IBM's Cash to Debt is ranked lower than
90% of the 1781 Companies
in the Global Information Technology Services industry.

( Industry Median: 20.60 vs. NYSE:IBM: 0.23 )
Ranked among companies with meaningful Cash to Debt only.
NYSE:IBM' s 10-Year Cash to Debt Range
Min: 0.1  Med: 0.29 Max: 0.6
Current: 0.23
0.1
0.6
Equity to Asset 0.12
NYSE:IBM's Equity to Asset is ranked lower than
93% of the 1579 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.61 vs. NYSE:IBM: 0.12 )
Ranked among companies with meaningful Equity to Asset only.
NYSE:IBM' s 10-Year Equity to Asset Range
Min: 0.1  Med: 0.24 Max: 0.33
Current: 0.12
0.1
0.33
Interest Coverage 36.76
NYSE:IBM's Interest Coverage is ranked lower than
73% of the 1164 Companies
in the Global Information Technology Services industry.

( Industry Median: 10000.00 vs. NYSE:IBM: 36.76 )
Ranked among companies with meaningful Interest Coverage only.
NYSE:IBM' s 10-Year Interest Coverage Range
Min: 10.47  Med: 41.85 Max: 69.58
Current: 36.76
10.47
69.58
F-Score: 6
Z-Score: 4.07
M-Score: -2.92
WACC vs ROIC
7.26%
28.04%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 18.92
NYSE:IBM's Operating margin (%) is ranked higher than
85% of the 1748 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.11 vs. NYSE:IBM: 18.92 )
Ranked among companies with meaningful Operating margin (%) only.
NYSE:IBM' s 10-Year Operating margin (%) Range
Min: 8.37  Med: 13.11 Max: 19.81
Current: 18.92
8.37
19.81
Net-margin (%) 12.98
NYSE:IBM's Net-margin (%) is ranked higher than
81% of the 1748 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.20 vs. NYSE:IBM: 12.98 )
Ranked among companies with meaningful Net-margin (%) only.
NYSE:IBM' s 10-Year Net-margin (%) Range
Min: 4.41  Med: 9.23 Max: 16.76
Current: 12.98
4.41
16.76
ROE (%) 81.34
NYSE:IBM's ROE (%) is ranked higher than
98% of the 1703 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.27 vs. NYSE:IBM: 81.34 )
Ranked among companies with meaningful ROE (%) only.
NYSE:IBM' s 10-Year ROE (%) Range
Min: 15.48  Med: 36.57 Max: 85.15
Current: 81.34
15.48
85.15
ROA (%) 9.63
NYSE:IBM's ROA (%) is ranked higher than
78% of the 1788 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.29 vs. NYSE:IBM: 9.63 )
Ranked among companies with meaningful ROA (%) only.
NYSE:IBM' s 10-Year ROA (%) Range
Min: 3.83  Med: 9.08 Max: 14.09
Current: 9.63
3.83
14.09
ROC (Joel Greenblatt) (%) 102.77
NYSE:IBM's ROC (Joel Greenblatt) (%) is ranked higher than
73% of the 1761 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.35 vs. NYSE:IBM: 102.77 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
NYSE:IBM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 30.37  Med: 65.75 Max: 120.59
Current: 102.77
30.37
120.59
Revenue Growth (3Y)(%) 1.40
NYSE:IBM's Revenue Growth (3Y)(%) is ranked lower than
62% of the 1315 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.30 vs. NYSE:IBM: 1.40 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
NYSE:IBM' s 10-Year Revenue Growth (3Y)(%) Range
Min: -12.4  Med: 6.50 Max: 21.1
Current: 1.4
-12.4
21.1
EBITDA Growth (3Y)(%) 4.60
NYSE:IBM's EBITDA Growth (3Y)(%) is ranked lower than
55% of the 1053 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.80 vs. NYSE:IBM: 4.60 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
NYSE:IBM' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -22.7  Med: 9.50 Max: 31.9
Current: 4.6
-22.7
31.9
EPS Growth (3Y)(%) 6.10
NYSE:IBM's EPS Growth (3Y)(%) is ranked lower than
51% of the 975 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.70 vs. NYSE:IBM: 6.10 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
NYSE:IBM' s 10-Year EPS Growth (3Y)(%) Range
Min: -16.1  Med: 13.70 Max: 26.4
Current: 6.1
-16.1
26.4
» NYSE:IBM's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

IBM Guru Trades in Q3 2014

Prem Watsa 1,068,100 sh (+88908.30%)
Chris Davis 2,389,948 sh (+10934.40%)
Kahn Brothers 7,258 sh (+122.77%)
Joel Greenblatt 197,782 sh (+34.69%)
Diamond Hill Capital 1,310,068 sh (+12.26%)
Bill Frels 198,670 sh (+7.87%)
Arnold Van Den Berg 72,252 sh (+5.54%)
John Rogers 51,282 sh (+1.79%)
James Barrow 244,654 sh (+0.89%)
John Buckingham 35,728 sh (+0.81%)
David Dreman 11,547 sh (+0.06%)
Robert Bruce 118,500 sh (unchged)
Pioneer Investments 305,608 sh (unchged)
Richard Snow 1,205 sh (unchged)
Ronald Muhlenkamp 5,170 sh (unchged)
Brian Rogers 750,000 sh (unchged)
Steven Cohen 30,000 sh (unchged)
Warren Buffett 70,478,012 sh (unchged)
Steven Cohen Sold Out
Private Capital Sold Out
Louis Moore Bacon Sold Out
First Eagle Investment 10,252 sh (-1.69%)
Dodge & Cox 125,165 sh (-1.77%)
Mario Gabelli 34,585 sh (-2.22%)
HOTCHKIS & WILEY 1,615,947 sh (-2.27%)
Ruane Cunniff 1,415,603 sh (-3.59%)
Tom Russo 10,455 sh (-9.52%)
Ray Dalio 171,240 sh (-18.27%)
Jeremy Grantham 6,064,070 sh (-24.78%)
Ken Fisher 46,796 sh (-54.59%)
Paul Tudor Jones 1,500 sh (-85.27%)
Jim Simons 44,800 sh (-97.28%)
» More
Q4 2014

IBM Guru Trades in Q4 2014

Edward Lampert 216,605 sh (New)
Paul Tudor Jones 24,628 sh (+1541.87%)
Jim Simons 673,200 sh (+1402.68%)
Joel Greenblatt 431,911 sh (+118.38%)
Brian Rogers 1,500,000 sh (+100.00%)
Prem Watsa 1,363,100 sh (+27.62%)
Robert Bruce 138,500 sh (+16.88%)
Warren Buffett 76,971,817 sh (+9.21%)
Bill Frels 212,712 sh (+7.07%)
David Dreman 11,825 sh (+2.41%)
HOTCHKIS & WILEY 1,654,481 sh (+2.38%)
John Buckingham 36,180 sh (+1.27%)
Diamond Hill Capital 1,318,010 sh (+0.61%)
Warren Buffett 76,980,817 sh (+0.01%)
Arnold Van Den Berg Sold Out
Richard Snow Sold Out
John Rogers 51,182 sh (-0.20%)
Ruane Cunniff 1,411,033 sh (-0.32%)
Kahn Brothers 7,158 sh (-1.38%)
Ronald Muhlenkamp 5,090 sh (-1.55%)
James Barrow 239,476 sh (-2.12%)
First Eagle Investment 9,952 sh (-2.93%)
Dodge & Cox 121,357 sh (-3.04%)
Tom Russo 9,849 sh (-5.80%)
Ray Dalio 147,144 sh (-14.07%)
Ken Fisher 36,006 sh (-23.06%)
Jeremy Grantham 3,730,093 sh (-38.49%)
Mario Gabelli 17,485 sh (-49.44%)
Pioneer Investments 126,705 sh (-58.54%)
Chris Davis 20,760 sh (-99.13%)
» More
Q1 2015

IBM Guru Trades in Q1 2015

Leon Cooperman 333,067 sh (New)
Chase Coleman 141,823 sh (New)
Paul Tudor Jones 114,260 sh (+363.94%)
Pioneer Investments 370,607 sh (+192.50%)
David Dreman 13,311 sh (+12.57%)
John Rogers 54,607 sh (+6.69%)
Warren Buffett 79,565,115 sh (+3.37%)
Diamond Hill Capital 1,344,455 sh (+2.01%)
John Buckingham 36,872 sh (+1.91%)
Bill Frels 216,031 sh (+1.56%)
HOTCHKIS & WILEY 1,672,649 sh (+1.10%)
Mario Gabelli 17,646 sh (+0.92%)
Chris Davis 20,839 sh (+0.38%)
Robert Bruce 138,500 sh (unchged)
Brian Rogers 1,500,000 sh (unchged)
Kahn Brothers 7,158 sh (unchged)
Prem Watsa 1,363,100 sh (unchged)
Edward Lampert Sold Out
Ronald Muhlenkamp Sold Out
Jim Simons Sold Out
Ruane Cunniff 1,401,148 sh (-0.70%)
James Barrow 233,576 sh (-2.46%)
Dodge & Cox 118,202 sh (-2.60%)
Tom Russo 9,549 sh (-3.05%)
Ray Dalio 136,044 sh (-7.54%)
First Eagle Investment 9,052 sh (-9.04%)
Ken Fisher 30,560 sh (-15.13%)
Jeremy Grantham 1,227,972 sh (-67.08%)
Joel Greenblatt 109,177 sh (-74.72%)
» More
Q2 2015

IBM Guru Trades in Q2 2015

Louis Moore Bacon 75,000 sh (New)
Manning & Napier Advisors, Inc 95,455 sh (New)
John Hussman 950 sh (New)
Jeremy Grantham 2,704,421 sh (+120.23%)
Joel Greenblatt 205,986 sh (+88.67%)
Robert Bruce 160,500 sh (+15.88%)
Pioneer Investments 421,087 sh (+13.62%)
David Dreman 13,545 sh (+1.76%)
John Buckingham 37,506 sh (+1.72%)
John Rogers 54,822 sh (+0.39%)
Diamond Hill Capital 1,346,221 sh (+0.13%)
Bill Frels 216,180 sh (+0.07%)
Kahn Brothers 7,158 sh (unchged)
Brian Rogers 1,500,000 sh (unchged)
Warren Buffett 79,565,115 sh (unchged)
First Eagle Investment 9,052 sh (unchged)
Prem Watsa 1,363,100 sh (unchged)
Chase Coleman 141,823 sh (unchged)
Leon Cooperman Sold Out
Paul Tudor Jones Sold Out
James Barrow Sold Out
Tom Russo 9,524 sh (-0.26%)
Ruane Cunniff 1,377,964 sh (-1.65%)
Ken Fisher 29,919 sh (-2.10%)
Chris Davis 20,387 sh (-2.17%)
HOTCHKIS & WILEY 1,634,217 sh (-2.30%)
Mario Gabelli 16,896 sh (-4.25%)
Dodge & Cox 112,652 sh (-4.70%)
Ray Dalio 90,044 sh (-33.81%)
» More
» Details

Insider Trades

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Guru Investment Theses on International Business Machines Corp

Sequoia Fund Comments on IBM - Aug 28, 2015

Question:



I noticed the fund has a position in IBM and there have been many questions about Google. They seem to be companies moving in two different directions. Even though IBM screens cheaply on metrics, what is your attraction to the business right now?



Will Pan:



If you go back a little bit, IBM (NYSE:IBM) in 2010 put out a plan that it called the 2015 Roadmap. Management said that by 2015 it would be earning $20 per share. That was through a mix of a little bit of revenue growth, a bit of operating margin expansion as the mix moved more towards higher margin software and other higher margin services. And also IBM was going to cut some costs. Then there was a large component that was repurchase of shares. The plan was credible. IBM had hit one before. It seemed doable going forward at the time.



Mike Tyson says everybody has got a plan until they get punched in the face. And IBM got punched in the face a couple times — IBM did not keep its hands up the whole time. So in 2013, the company had some issues with its mid-range UNIX hardware business. Two things happened. One was Intel got more competitive at that range of systems. Then IBM also had been seeing good growth in those types of systems overseas. With Edward Snowden’s revelations about the NSA installing back doors in western vendors’ hardware, suddenly all those emerging market consumers, customers, got skittish, understandably. So IBM had an issue there. Also management was not able to grow its large software business as much as it thought it might. That is an execution issue on IBM’s part. Management also maybe went a little bit too far in terms of cost cutting. It was not keeping its employees very satisfied.



Finally, the last issue that caused the company to abandon the roadmap came when the dollar strengthened. IBM is an extremely global company — 75% of the sales are outside the United States. With the strong dollar, the company faced a very large headwind. As a result, in the third quarter of last year, IBM decided to give up the roadmap, probably a little bit too late. There were some cracks already showing and you could see them when the company repurchased a huge amount of its stock, $8 billion worth, in the first quarter of 2014. It was also taking increasingly large restructuring charges.



On the other hand, the mainframe turned 50 years old recently and people have been saying it has been dead for 10 − 20 − 30 years. First mini computers came at it and then the PC came at it and now you have got the cloud. This is not lost on CIOs who have mainframes. They have not been sleeping under rocks — they have considered this. But consider what it means for the CIOs. If you are a bank and you run your core banking application on a mainframe and it has been running smoothly for 40 − 50 years. You pay tens of millions of dollars to IBM to maintain all that, but when you do the calculation on whether to replace that, at the end of the day, you get your core banking application on another platform. That is all you get. There is really no big ROI for that. Who would want to risk an entire career and an entire company on something like that?



As part of its roadmap, IBM has repurchased an enormous number of shares. Whether the company repurchased those shares on our behalf at a good price is going to be proven out by whether the company can take advantage of new waves going forward. One of the new waves is cloud. IBM was kind of late to the game there. But it is somewhat hard to blame the company because many enterprises were quite reluctant. IBM really focuses on the global 2000 and if most of those customers were not really receptive, then there is only so much that you can do. You can spend a lot of money trying to force the technology but often it is really about getting the timing right. Apple tried handheld computing once with the Newton twenty years ago and it did not work. Then Microsoft tried a decade later with the tablet PC and it did not work. Only with the iPad did it work.



IBM has got a couple irons in the fire today: It is trying to seize mobile by doing a partnership with Apple and rewriting or adding new enterprise applications that run on iPads. Ginni Rometty, IBM’s CEO, has been on this push for cognitive computing, which is trying to build expert systems like Watson that faced off against the Jeopardy champions. There are some other initiatives around security, which is paramount to IBM’s customers. So we feel that the franchises are not going away. It remains to be seen whether the company is going to be able to capitalize on what it has got going forward. In the meantime, we paid $130 on $11.52 per share of earnings, and right now the stock is at $174 on about $16 per share of earnings.



From Ruane, Cunniff & Goldfarb Investor Day 2015 Transcript Part II - Sequoia Fund.



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Diamond Hill Capital Comments on International Business Machines Corp - Mar 17, 2015

Diversified information technology company International Business Machines Corp. (IBM) declined after the company reported disappointing third quarter earnings and management indicated that it would fail to meet the 2015 earnings guidance detailed in the company’s much-publicized 2015 Roadmap.

From Diamond Hill Capital (Trades, Portfolio)’s Select Fund Q4 2014 Commentary.

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Diamond Hill Capital Comments on International Business Machines Corp - Oct 17, 2014

Diversified information technology company International Business Machines Corp. (IBM) reported second quarter earnings that demonstrated continued execution of the company’s long-term plans. Revenue in the Systems & Technology (hardware) segment as well as revenue in China, two areas of recent concern, improved during the quarter leading to less investor pessimism about the future.

From Diamond Hill Capital (Trades, Portfolio)'s Select Fund Third Quarter 2014 Commentary.

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Diamond Hill Capital Comments on International Business Machines Corp - Jul 25, 2014

Shares of diversified information technology company International Business Machines Corp. (IBM) declined during the quarter as investors continued to worry about the company’s ability to grow revenue, particularly in China and other emerging markets. We continue to have a favorable view of the company’s long-term competitive position.

From Diamond Hill Capital (Trades, Portfolio)'s Select Fund Second Quarter 2014 Commentary.

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Hotchkis & Wiley Comments on IBM - Mar 20, 2014

We took a new position in IBM (NYSE:IBM) (1.5%)*, which we believe is a well-positioned, diversified technology company with a strong balance sheet, prudent capital allocation, and an attractive valuation.



From Hotchkis & Wiley's fourth quarter 2013 manager commentary.



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Top Ranked Articles about International Business Machines Corp

Berkshire Hathaway Buys More IBM, Wells Fargo, Precision Castparts, Sells National Oilwell Varco, Bank Of New York Mellon, Charter Communications
Warren Buffett (Trades, Portfolio)’s investment company just released his first quarter portfolio. Warren Buffett (Trades, Portfolio) and his CIOs buys IBM, Wells Fargo, Precision Castparts, U.S. Bancorp, Phillips 66, Twenty-First Century Fox Inc, Deere & Co, sells National Oilwell Varco Inc, Bank of New York Mellon Corp, Charter Communications Inc, Viacom Inc, Liberty Global PLC, Wabco Holdings Inc, MasterCard Inc, Visa Inc during the 3-months ended , according to the most recent filings of his investment company, Berkshire Hathaway. As of 2015-03-31, Berkshire Hathaway owns 47 stocks with a total value Read more...
Ronald Muhlenkamp Sells Seven Stakes in First Quarter
Value investor Ronald Muhlenkamp (Trades, Portfolio), founder and president of Muhlenkamp & Company, Inc., and portfolio manager for the company's self-named mutual fund (MUHLX), has a reputation for being patient, for being willing to give an investment time to pay off. Read more...
Diamond Hill Capital Comments on International Business Machines Corp
Diversified information technology company International Business Machines Corp. (IBM) declined after the company reported disappointing third quarter earnings and management indicated that it would fail to meet the 2015 earnings guidance detailed in the company’s much-publicized 2015 Roadmap. Read more...
Weekly 3-Year Low Highlights: IBM, ABEV, ITUB, OXY
According to GuruFocus list of 3-year lows, International Business Machines Corp, Ambev SA, Itau Unibanco Holding SA and Occidental Petroleum Corp have all reached their 3-year lows. Read more...
Berkshire Hathaway Buys IBM, Deere, Restaurant Brands, Sells Exxon Mobil, Liberty Broadband Corp
Warren Buffett (Trades, Portfolio)’s investment company Berkshire Hathaway just reported its fourth quarter portfolio. Berkshire buys IBM, Deere & Co, Restaurant Brands International Inc, Charter Communications Inc, Precision Castparts Corp, Twenty-First Century Fox Inc, Suncor Energy Inc, Directv, sells Exxon Mobil Corporation, Liberty Broadband Corp, Liberty Broadband Corp, ConocoPhillips, Express Scripts during the 3-months ended 12/31/2014, according to the most recent filings of his investment company, Berkshire Hathaway. Read more...
Prem Watsa Buys IBM, Bally Technologies, Rayonier Advanced Materials, Sells Idenix Pharmaceuticals, Questcor Pharmaceuticals, Susser Holdings
Prem Watsa (Trades, Portfolio) Buys IBM, Bally Technologies, Rayonier Advanced Materials, Sells Idenix Pharmaceuticals, Questcor Pharmaceuticals, Susser Holdings Read more...
Guru Stocks at 52-Week Lows: IBM, BBL, SNY, SAN, RIO
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. Read more...
Diamond Hill Capital Comments on International Business Machines Corp
Diversified information technology company International Business Machines Corp. (IBM) reported second quarter earnings that demonstrated continued execution of the company’s long-term plans. Revenue in the Systems & Technology (hardware) segment as well as revenue in China, two areas of recent concern, improved during the quarter leading to less investor pessimism about the future. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 12.64
IBM's P/E(ttm) is ranked higher than
79% of the 1109 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.00 vs. IBM: 12.64 )
Ranked among companies with meaningful P/E(ttm) only.
IBM' s 10-Year P/E(ttm) Range
Min: 8.86  Med: 14.16 Max: 22.45
Current: 12.64
8.86
22.45
Forward P/E 9.05
IBM's Forward P/E is ranked higher than
89% of the 528 Companies
in the Global Information Technology Services industry.

( Industry Median: 19.16 vs. IBM: 9.05 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 9.90
IBM's PE(NRI) is ranked higher than
89% of the 1101 Companies
in the Global Information Technology Services industry.

( Industry Median: 23.80 vs. IBM: 9.90 )
Ranked among companies with meaningful PE(NRI) only.
IBM' s 10-Year PE(NRI) Range
Min: 8.86  Med: 13.99 Max: 22.4
Current: 9.9
8.86
22.4
P/B 10.28
IBM's P/B is ranked lower than
89% of the 1572 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.63 vs. IBM: 10.28 )
Ranked among companies with meaningful P/B only.
IBM' s 10-Year P/B Range
Min: 3.34  Med: 8.45 Max: 14.09
Current: 10.28
3.34
14.09
P/S 1.65
IBM's P/S is ranked higher than
54% of the 1715 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.00 vs. IBM: 1.65 )
Ranked among companies with meaningful P/S only.
IBM' s 10-Year P/S Range
Min: 1  Med: 1.75 Max: 2.38
Current: 1.65
1
2.38
PFCF 10.78
IBM's PFCF is ranked higher than
83% of the 815 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.41 vs. IBM: 10.78 )
Ranked among companies with meaningful PFCF only.
IBM' s 10-Year PFCF Range
Min: 7.6  Med: 14.37 Max: 18.08
Current: 10.78
7.6
18.08
POCF 8.21
IBM's POCF is ranked higher than
81% of the 1017 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.74 vs. IBM: 8.21 )
Ranked among companies with meaningful POCF only.
IBM' s 10-Year POCF Range
Min: 5.93  Med: 9.93 Max: 12.94
Current: 8.21
5.93
12.94
EV-to-EBIT 9.00
IBM's EV-to-EBIT is ranked higher than
72% of the 1149 Companies
in the Global Information Technology Services industry.

( Industry Median: 16.13 vs. IBM: 9.00 )
Ranked among companies with meaningful EV-to-EBIT only.
IBM' s 10-Year EV-to-EBIT Range
Min: 8.2  Med: 12.10 Max: 18.6
Current: 9
8.2
18.6
PEG 1.46
IBM's PEG is ranked higher than
57% of the 487 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.75 vs. IBM: 1.46 )
Ranked among companies with meaningful PEG only.
IBM' s 10-Year PEG Range
Min: 0.64  Med: 1.19 Max: 24.53
Current: 1.46
0.64
24.53
Shiller P/E 10.58
IBM's Shiller P/E is ranked higher than
89% of the 699 Companies
in the Global Information Technology Services industry.

( Industry Median: 28.94 vs. IBM: 10.58 )
Ranked among companies with meaningful Shiller P/E only.
IBM' s 10-Year Shiller P/E Range
Min: 10.5  Med: 18.09 Max: 25.09
Current: 10.58
10.5
25.09
Current Ratio 1.27
IBM's Current Ratio is ranked lower than
76% of the 1625 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.07 vs. IBM: 1.27 )
Ranked among companies with meaningful Current Ratio only.
IBM' s 10-Year Current Ratio Range
Min: 0.88  Med: 1.21 Max: 1.36
Current: 1.27
0.88
1.36
Quick Ratio 1.22
IBM's Quick Ratio is ranked lower than
74% of the 1625 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.92 vs. IBM: 1.22 )
Ranked among companies with meaningful Quick Ratio only.
IBM' s 10-Year Quick Ratio Range
Min: 0.82  Med: 1.10 Max: 1.29
Current: 1.22
0.82
1.29
Days Inventory 17.99
IBM's Days Inventory is ranked higher than
50% of the 1028 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.89 vs. IBM: 17.99 )
Ranked among companies with meaningful Days Inventory only.
IBM' s 10-Year Days Inventory Range
Min: 16.22  Med: 19.41 Max: 49.01
Current: 17.99
16.22
49.01
Days Sales Outstanding 117.21
IBM's Days Sales Outstanding is ranked lower than
79% of the 1511 Companies
in the Global Information Technology Services industry.

( Industry Median: 69.32 vs. IBM: 117.21 )
Ranked among companies with meaningful Days Sales Outstanding only.
IBM' s 10-Year Days Sales Outstanding Range
Min: 4.14  Med: 46.60 Max: 125.21
Current: 117.21
4.14
125.21

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.33
IBM's Dividend Yield is ranked higher than
77% of the 1264 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.77 vs. IBM: 3.33 )
Ranked among companies with meaningful Dividend Yield only.
IBM' s 10-Year Dividend Yield Range
Min: 0.71  Med: 1.60 Max: 3.37
Current: 3.33
0.71
3.37
Dividend Payout 0.31
IBM's Dividend Payout is ranked higher than
95% of the 766 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. IBM: 0.31 )
Ranked among companies with meaningful Dividend Payout only.
IBM' s 10-Year Dividend Payout Range
Min: 0.08  Med: 0.19 Max: 55
Current: 0.31
0.08
55
Dividend growth (3y) 13.60
IBM's Dividend growth (3y) is ranked higher than
62% of the 439 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.10 vs. IBM: 13.60 )
Ranked among companies with meaningful Dividend growth (3y) only.
IBM' s 10-Year Dividend growth (3y) Range
Min: 7.3  Med: 14.00 Max: 34.6
Current: 13.6
7.3
34.6
Yield on cost (5-Year) 6.39
IBM's Yield on cost (5-Year) is ranked higher than
87% of the 1295 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.02 vs. IBM: 6.39 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
IBM' s 10-Year Yield on cost (5-Year) Range
Min: 1.39  Med: 3.14 Max: 6.6
Current: 6.39
1.39
6.6
Share Buyback Rate 5.90
IBM's Share Buyback Rate is ranked higher than
97% of the 1149 Companies
in the Global Information Technology Services industry.

( Industry Median: -2.20 vs. IBM: 5.90 )
Ranked among companies with meaningful Share Buyback Rate only.
IBM' s 10-Year Share Buyback Rate Range
Min: 14.2  Med: 4.80 Max: -11.3
Current: 5.9

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 0.97
IBM's Price/Projected FCF is ranked higher than
78% of the 823 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.66 vs. IBM: 0.97 )
Ranked among companies with meaningful Price/Projected FCF only.
IBM' s 10-Year Price/Projected FCF Range
Min: 0.7  Med: 1.16 Max: 6.08
Current: 0.97
0.7
6.08
Price/DCF (Earnings Based) 0.50
IBM's Price/DCF (Earnings Based) is ranked higher than
96% of the 99 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.36 vs. IBM: 0.50 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 0.96
IBM's Price/Median PS Value is ranked higher than
63% of the 1520 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.11 vs. IBM: 0.96 )
Ranked among companies with meaningful Price/Median PS Value only.
IBM' s 10-Year Price/Median PS Value Range
Min: 0.41  Med: 1.02 Max: 1.68
Current: 0.96
0.41
1.68
Price/Peter Lynch Fair Value 1.95
IBM's Price/Peter Lynch Fair Value is ranked lower than
60% of the 347 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.60 vs. IBM: 1.95 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
IBM' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.66  Med: 1.46 Max: 5.1
Current: 1.95
0.66
5.1
Earnings Yield (Greenblatt) (%) 11.14
IBM's Earnings Yield (Greenblatt) (%) is ranked higher than
81% of the 1711 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.80 vs. IBM: 11.14 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
IBM' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 5.4  Med: 8.30 Max: 12.3
Current: 11.14
5.4
12.3
Forward Rate of Return (Yacktman) (%) 13.42
IBM's Forward Rate of Return (Yacktman) (%) is ranked higher than
58% of the 694 Companies
in the Global Information Technology Services industry.

( Industry Median: 10.48 vs. IBM: 13.42 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
IBM' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -0.5  Med: 17.70 Max: 23.6
Current: 13.42
-0.5
23.6

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 82,963 82,293 82,782
EPS($) 15.75 16.21 17.36
EPS without NRI($) 15.75 16.21 17.36

Business Description

Industry: Application Software » Information Technology Services
Compare:AAPL, HPQ, DELL, LNVGY, NIPNF » details
Traded in other countries:IBM.UK, IBMC.Belgium, IBMB34.Brazil, IBM.Germany, IBM.Chile, IBM.Argentina, IBMA.Netherlands, IBM.Switzerland, IBM.Mexico,
International Business Machines Corp was incorporated in the State of New York on June 16, 1911. The company creates business value for clients and solves business problems through integrated solutions that leverage information technology and knowledge of business processes. Its solutions create value by reducing a client's operational costs or by enabling new capabilities that generate revenue. These solutions draw from an industry portfolio of consulting, delivery and implementation services, enterprise software, systems and financing. The company's operations consist of five business segments namely Global Technology Services and Global Business Services, which the company collectively calls Global Services, and Software, Systems and Technology and Global Financing. Global Services is a component of the company's strategy of providing IT infrastructure and business insight and solutions to clients. While solutions include industry's IBM software and systems, other suppliers' products are also used if a client solution requires it. Within Global Services, there are two reportable segments namely Global Technology Services and Global Business Services. Global Technology Services (GTS) provides IT infrastructure and business process services, creating business value for clients through technology and IP, Global Business Services (GBS) delivers predictable business outcomes to the company's clients across two primary business areas namely Consulting and Application Management Services. The role of GBS is to drive initiatives that integrate IBM content and solutions and drive the progress of the company's four growth initiatives. Software consists mainly of middleware and operating systems software. Middleware software enables clients to integrate systems, processes and applications across a standard software platform to improve their business results, solve critical problems and gain competitive advantage within their industries. IBM middleware is designed on open standards, making it easier to integrate disparate business applications, developed by different methods and implemented at different times. Operating systems are the software engines that run computers. Systems and Technology (STG) provides clients with business solutions requiring advanced computing power and storage capabilities. Approximately half of Systems and Technology's server and storage sales transactions are through the company's business partners; with the balance direct to end-user clients. In addition, Systems and Technology provides semiconductor technology, products and packaging solutions for IBM's own advanced technology needs and for external clients. Global Financing facilitates clients' acquisition of IBM systems, software and services. Global Financing invests in financing assets, leverages with debt and manages the associated risks with the objective of generating consistent returns on equity. The Company has global presence, operating in more th
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