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International Business Machines Corp IBM Stock Quote

| Rating as of

NYSE: IBM

Last close prices updated as of Feb 03, 2023, 7:00 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 136.94
  • Sector Technology
  • Industry Information Technology Services
  • Investment Style Large Value
  • Day Range 135.53  –  136.95
  • Year Range 115.55  –  153.21
  • Market Cap 123.8111 Bil
  • Volume / Avg 3.8 Mil /  4.3 Mil
  • Price / Sales 2.06
  • Price / Book 5.64
  • Forward Div Yield 4.82%
  • Trailing Div Yield 6.02%

Morningstar‘s Stock Analysis IBM

Valuation
Currency in
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

IBM Sees Broad-Based Beat in Q4, but Weaker Cash Flow Expected in 2023; Shares Fairly Valued

Julie Bhusal Sharma Equity Analyst

Analyst Note

| Julie Bhusal Sharma |

IBM reported fourth-quarter results that beat FactSet revenue and earnings consensus expectations and visibility into the year ahead. However, weaker free cash flow dampened the beat, contributing to shares declining by roughly 2% after-hours to nearly $138 per share. While earnings also came with news of job cuts at IBM, we see these cuts being unlike other technology sector layoffs at the moment, as they are related to IBM’s recent divestitures. Altogether, we are maintaining our fair value estimate for the narrow-moat stock at $126 per share, which leaves shares fairly valued, in our view. While we think IBM benefits from a narrow moat, we think its moat is trending negative as the IT stack of enterprises has become increasingly interoperable, chipping away at IBM’s less-differentiated businesses. We believe IBM will benefit from overall robust demand for enterprise software and IT consulting—but not come close to growth rates we expect for the respective markets individually.

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Key Statistics IBM

Company Profile IBM

Business Description

IBM looks to be a part of every aspect of an enterprise’s IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM’s outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.

Contact
One New Orchard Road
Armonk, NY, 10504
Industry Information Technology Services
Employees 307,600

Related Articles IBM

FAQs for International Business Machines Corp Stock

Yes. IBM has a forward dividend yield of 4.82%. See IBM’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

IBM’s market cap is 123.81 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

IBM’s stock style is Large Value.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

IBM’s price/sales is 2.06.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

IBM’s price/forward earnings is 14.31.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

IBM’s price/book is 5.64.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See IBM’s valuation ratios compared to the Market Index.

IBM’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare IBM’s historical performance against its industry peers and the overall market.