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International Business Machines Corporation is an information technology services business based in the US. IBM shares (IBM) are listed on the NYSE and all prices are listed in US Dollars. IBM employs 345,900 staff and has a trailing 12-month revenue of around USD$74.4 billion.
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Since the stock market crash in March caused by coronavirus, IBM's stock price has had significant negative movement.
Its last market close was $142.32, which is 5.02% down on its pre-crash value of $149.84 and 57.16% up on the lowest point reached during the March crash when the stocks fell as low as $90.56.
If you had bought $1,000 worth of IBM stocks at the start of February 2020, those stocks would have been worth $648.23 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $973.47.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|Latest market close||$142.32|
|52-week range||$100.73 - $151.10|
|50-day moving average||$139.04|
|200-day moving average||$141.35|
|Wall St. target price||$151.61|
|Dividend yield||$6.53 (4.55%)|
|Earnings per share (TTM)||$5.92|
|1 week (2021-10-08)||N/A|
|1 month (2021-09-15)||3.73%|
|3 months (2021-07-19)||3.19%|
|6 months (2021-04-19)||6.91%|
|1 year (2020-10-19)||13.38%|
|2 years (2019-10-18)||6.14%|
|3 years (2018-10-19)||10.24%|
|5 years (2016-10-19)||151.26|
Valuing IBM stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of IBM's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
IBM's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 24x. In other words, IBM shares trade at around 24x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
IBM's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.4816. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into IBM's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
IBM's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $16 billion.
The EBITDA is a measure of a IBM's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||$74.4 billion|
|Operating margin TTM||12.44%|
|Gross profit TTM||$35.6 billion|
|Return on assets TTM||3.85%|
|Return on equity TTM||24.53%|
|Market capitalisation||$105.7 billion|
TTM: trailing 12 months
There are currently 25.8 million IBM shares held short by investors – that's known as IBM's "short interest". This figure is 2.9% up from 25.1 million last month.
There are a few different ways that this level of interest in shorting IBM shares can be evaluated.
IBM's "short interest ratio" (SIR) is the quantity of IBM shares currently shorted divided by the average quantity of IBM shares traded daily (recently around 3.6 million). IBM's SIR currently stands at 7.16. In other words for every 100,000 IBM shares traded daily on the market, roughly 7160 shares are currently held short.
However IBM's short interest can also be evaluated against the total number of IBM shares, or, against the total number of tradable IBM shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case IBM's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 IBM shares in existence, roughly 30 shares are currently held short) or 0.0288% of the tradable shares (for every 100,000 tradable IBM shares, roughly 29 shares are currently held short).
A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against IBM.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like IBM.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 17.23
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and IBM's overall score of 17.23 (as at 12/31/2018) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like IBM is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 0.91/100
IBM's environmental score of 0.91 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that IBM is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 7.08/100
IBM's social score of 7.08 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that IBM is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 5.75/100
IBM's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that IBM is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. IBM scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that IBM has, for the most part, managed to keep its nose clean.
Dividend payout ratio: 74.74% of net profits
Recently IBM has paid out, on average, around 74.74% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.66% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), IBM shareholders could enjoy a 4.66% return on their shares, in the form of dividend payments. In IBM's case, that would currently equate to about $6.53 per share.
IBM's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
IBM's most recent dividend payout was on 9 September 2021. The latest dividend was paid out to all shareholders who bought their shares by 8 August 2021 (the "ex-dividend date").
IBM's shares were split on a 2:1 basis on 26 May 1999. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your IBM shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for IBM shares which in turn could have impacted IBM's share price.
Over the last 12 months, IBM's shares have ranged in value from as little as $100.7312 up to $151.1004. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while IBM's is 1.181. This would suggest that IBM's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
International Business Machines Corporation provides integrated solutions and services worldwide. Its Cloud & Cognitive Software segment offers software for vertical and domain-specific solutions in various application areas; and customer information control system and storage, and analytics and integration software solutions to support client mission on-premise workloads in banking, airline, and retail industries. It also offers middleware and data platform software, including Red Hat that enables the operation of clients' hybrid multi-cloud environments; and Cloud Paks, WebSphere distributed, and analytics platform software, such as DB2 distributed, information integration, and enterprise content management, as well as IoT, Blockchain and AI/Watson platforms. The company's Global Business Services segment offers business consulting services; system integration, application management, maintenance, and support services for packaged software; and finance, procurement, talent and engagement, and industry-specific business process outsourcing services. Its Global Technology Services segment provides IT infrastructure and platform services; and project, managed, outsourcing, and cloud-delivered services for enterprise IT infrastructure environments; and IT infrastructure support services. The company's Systems segment offers servers for businesses, cloud service providers, and scientific computing organizations; data storage products and solutions; and z/OS, an enterprise operating system, as well as Linux. Its Global Financing segment provides lease, installment payment, loan financing, short-term working capital financing, and remanufacturing and remarketing services.
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