International Business Machines (CHIX:IBMD) 1-Year ROIIC % : 19.30% (As of Mar. 2026)


CHIX:IBMD International Business Machines Corp CHIX:IBMD
81 GF Score
Price €243.60
GF Value €241.06
Valuation Fairly Valued
! 3 Warning Signs
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What is International Business Machines 1-Year ROIIC %?

International Business Machines CHIX:IBMD 81 1-Year ROIIC % is 19.30 as of Mar. 2026. GuruFocus rates CHIX:IBMD with a GF Score™ of 81/100 and a GF Value™ of €241.06 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,714 Software companies, International Business Machines ranks better than 64.37% on this metric.

1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year. International Business Machines's 1-Year ROIIC % for the quarter that ended in Mar. 2026 was 19.30%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for International Business Machines's 1-Year ROIIC % or its related term are showing as below:

CHIX:IBMd's 1-Year ROIIC % is ranked better than
64.37% of 2714 companies
in the Software industry
Industry Median: 4.24 vs CHIX:IBMd: 19.30

International Business Machines  (CHIX:IBMd) 1-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


International Business Machines 1-Year ROIIC % Related Terms


International Business Machines 1-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for International Business Machines's 1-Year ROIIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

International Business Machines 1-Year ROIIC % Chart

International Business Machines Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
1-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.30 -10.56 15.63 46.73 19.50

International Business Machines Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
1-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.69 -0.38 13.84 19.50 19.30

CHIX:IBMD vs ACN, FISV, FIS: 1-Year ROIIC % Comparison

For the Information Technology Services subindustry, International Business Machines's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


International Business Machines 1-Year ROIIC % vs Software Industry

For the Software industry and Technology sector, International Business Machines's 1-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where International Business Machines's 1-Year ROIIC % falls into.


CHIX:IBMD
81GF Score
International Business Machines Corp CHIX:IBMD
1-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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International Business Machines 1-Year ROIIC % Calculation

International Business Machines's 1-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:

1-Year ROIIC %=1-Year Incremental Net Operating Profit After Taxes (NOPAT)**/1-Year Incremental Invested Capital
=( 9788.9689 (Mar. 2026) - 7426.1744 (Mar. 2025) )/( 133851.83 (Mar. 2026) - 126496.525 (Mar. 2025) )
=2362.7945/7355.305
=32.12%***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Frequently Asked Questions Learn more about 1-Year ROIIC % →
What does a 1-Year ROIIC % of 19.30 mean?
International Business Machines (CHIX:IBMD) has a 1-Year ROIIC % of 19.30 as of Mar. 2026. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on International Business Machines and its competitors. According to the industry distribution chart, International Business Machines ranks #967 out of 2714 companies in the Software industry, placing it in the top 35.6%.
Is International Business Machines' 1-Year ROIIC % too high?
International Business Machines' current 1-Year ROIIC % is 19.30. The Software industry median 1-Year ROIIC % is 4.24. International Business Machines' value of 19.30 is 355.2% above this industry median. Based on the distribution chart, International Business Machines ranks #967 out of 2714 companies in the Software industry, which is above the industry midpoint. Overall, International Business Machines has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' 1-Year ROIIC % compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #967 out of 2714 companies for 1-Year ROIIC %. This puts International Business Machines in the upper half of its industry. The industry median 1-Year ROIIC % is 4.24. International Business Machines' value of 19.30 is 355.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year ROIIC % for a Software company?
The median 1-Year ROIIC % among Software companies is 4.24, based on 2,714 companies in the industry. Companies in the top quartile (top 25%) have a 1-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 1-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current 1-Year ROIIC % of 19.30 is 355.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year ROIIC % mean?
A high 1-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on International Business Machines and its competitors. For the Software industry, the median 1-Year ROIIC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current 1-Year ROIIC % is 19.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is International Business Machines stock overvalued right now?
Based on GuruFocus' analysis, International Business Machines (CHIX:IBMD) is currently considered Fairly Valued. The stock's GF Value™ is €241.06, compared to a current price of €243.60 — trading 1.1% above its estimated fair value. The current 1-Year ROIIC % is 19.30 and 355.2% above the Software industry median of 4.24. International Business Machines' overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year ROIIC % calculated?
1-Year ROIIC % is calculated from a company's financial statements. For International Business Machines (CHIX:IBMD), the current 1-Year ROIIC % is 19.30 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is International Business Machines (CHIX:IBMD) Overvalued in 2026?

Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued. The current stock price of €243.60 is trading 1.1% above its estimated GF Value™ of €241.06. GuruFocus considers International Business Machines to be Fairly Valued.

Key valuation signals for CHIX:IBMD:

  • 1-Year ROIIC %: 19.30
  • GF Value™: €241.06 vs. price of €243.60 (1.1% above fair value)
  • GF Score™: 81/100 with 3 warning signs
  • Industry Position: 355.2% above the Software median (#967 of 2714)

No single metric tells the full story. See the CHIX:IBMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


International Business Machines Business Description

Address One New Orchard Road, Armonk, NY, USA, 10504
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. 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.
81GF Score

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1-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€243.60
Price
€241.06
GF Value