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International Business Machines Corp IBM

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Stock XNYS Rating as of
$222.64 −2.98 (1.32%)
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As of Delayed Price Post-Trading: $222.49 −0.14

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IBM’s Mainframe Ecosystem Should Remain Relevant in the AI Era

Luke Yang

While IBM has not always converted technological innovation into commercial success in its century-long history, we think the company’s latest effort to reinvent itself by expanding its software business has been successful so far. Many enterprise customers are searching for IT upgrade solutions to their decades-old infrastructure, and IBM’s leadership in hybrid cloud positions it as a trustworthy partner to preserve legacy IT systems’ stability and security during the modernization process.

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Price vs Fair Value

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IBM is trading at a LOCK|%N$hCB> premium.
Price
$225.62
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

IBM’s leadership in hybrid cloud can cater to enterprise customers’ demand of keeping sensitive, mission-critical workflows on-premises, especially for regulated industries.

Bears

IBM’s rich legacy can make it a slow adopter of the latest technology trends, such as general-purpose cloud computing and artificial intelligence.

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Trading Information

Previous Close Price
$225.62
Day Range
$221.63–225.92
52-Week Range
$199.19–332.46
Bid/Ask
$222.30 / $222.50
Shares Outstanding
942.13M
Market Cap
$209.76B
Volume/Avg
8M / 8M

Key Statistics

Price/Earnings (Normalized)
18.79
Price/Sales
3.11
Dividend Yield (Trailing)
2.99%
Dividend Yield (Forward)
3.00%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
3.14%

Company Profile

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.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Large Value
Total Number of Employees
287,000
Website
https://www.ibm.com

Competitors

Valuation

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Metric
IBM
ACN
ORCL
Price/Earnings (Normalized)
 18.7915.5017.09
Price/Book Value
 6.174.426.75
Price/Sales
 3.111.815.65
Price/Cash Flow
 12.8010.4213.29
Price/Earnings
IBM
ACN
ORCL

Financial Strength

Metric
IBM
ACN
ORCL
Quick Ratio
 0.591.211.02
Current Ratio
 0.791.341.17
Interest Coverage
 6.1439.695.07
Quick Ratio
IBM
ACN
ORCL

Profitability

Metric
IBM
ACN
ORCL
Return on Assets (Normalized)
 7.57%15.46%9.91%
Return on Equity (Normalized)
 36.78%35.59%63.39%
Return on Invested Capital (Normalized)
 12.81%24.86%15.17%
Return on Assets
IBM
ACN
ORCL

Information Technology Services Industry Comparables

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Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Accenture PLC Class A
ACN
LOCK|ZS#%wwLOCK|l#&Cg$130B
 Infosys Ltd ADR
INFY
LOCK|Zh!&S%LOCK|%Y#&@$44B
 Cognizant Technology Solutions Corp Class A
CTSH
LOCK|XR!<Zd&LOCK|VYMbc$27B
 Fiserv Inc
FISV
LOCK|<WY#p<LOCK|&bjq$24B
 Broadridge Financial Solutions Inc
BR
LOCK|ZnsjTdLOCK|ZlW$18B
 Fidelity National Information Services Inc
FIS
LOCK|?G#<Q@LOCK|<&>h$17B
 Wipro Ltd ADR
WIT
LOCK|<MG<fKLOCK|&T$16B
 CGI Inc Class A
GIB
LOCK|c>vR&QLOCK|>G?F$15B
 Gartner Inc
IT
LOCK|GV#cDPLOCK|W^$12B

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