International Business Machines Corporation IBM
Composite 52/100; the shares have moved about 58% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 28/100 — a moderate mark against it.
Income ranks 72/100 — a moderate point in its favour. Growth ranks 69/100 — a moderate point in its favour. Quality ranks 65/100 — a moderate point in its favour.
Momentum ranks 28/100 — a moderate mark against it. Valuation ranks 45/100 — a slight mark against it. Balance-sheet strength ranks 46/100 — a slight mark against it.
What the company does IBM provides integrated IT services, hybrid cloud and AI platforms, consulting-led transformations, and on-prem/cloud infrastructure. Its Software segment monetizes hybrid cloud and AI tools, Consulting delivers business and tech modernization, Infrastructure supplies servers/storage for hybrid environments, and Financing facilitates client acquisitions.
Key financials IBM posts strong profitability with ROE 34.5%, ROA 5.3%, ROCE 10.6% and net margin 15.5%. Revenue growth is modest at 1.1% while EPS declined -1.8%. Margins remain healthy (gross 58.1%, operating 16.6%) and cash generation is solid (FCF yield 5.4%). Leverage is elevated (Debt/Equity 1.89) but interest coverage is 6.41x.
Stock health Momentum is mixed: +3.77% over 3m but -18.79% over 6m and -3.98% over 12m. The stock is -29.04% below its 52-week high and RSI(14) sits at 48.80, indicating neutral technical momentum. Quality metrics are average (Sideravia Quality 56.9), while Income is strong (Sideravia Income 81.5).
Price vs fair value IBM trades at a discount of 3.50% to the analyst mean target of 244.16. - Kyndryl’s AI-led growth offsets IBM headwinds (GuruFocus.com) - Dell’s AI server order book suggests enterprise demand remains bifurcated (Trefis) - IBM’s hybrid quantum HPC push aligns with long-term infrastructure bets (Zacks)
Looking forward Forward P/E of 18.25 and PEG of 1.78 imply moderate earnings expectations. Analysts see upside to 244.16, but revenue growth of only 1.1% and elevated leverage temper near-term enthusiasm. Execution on AI-led consulting and hybrid cloud will likely drive the multiple.
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Data as of 2026-09-03, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.