INTERNATIONAL BUSINESS MACHINES CORP (IBM) Factsheet
INTERNATIONAL BUSINESS MACHINES CORP (IBM) Stock Analysis
Analysis from 10-Q filed 2025-10-23. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 12.4%. FCF margin 18.7%. D/E 2.0x. Source: 10-Q filed 2025-10-23.
| Metric | Value | Context |
|---|---|---|
| ROIC | 12.4% | Solid returns |
| FCF Margin | 18.7% | Strong cash generation |
| Debt/Equity | 2.0x | Elevated debt |
ROIC 12.4% — Top 50% of sector peers. FCF margin 18.7% — Top 50%.
Explore INTERNATIONAL BUSINESS MACHINES CORP: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for IBM: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: INTERNATIONAL BUSINESS MACHINES CORP earns 12.4% ROIC, Top 50% in Technology
ROIC TTM 12.4%, sector median 5.0%, Top 50%. DuPont: NOPAT margin 16.7% × asset turnover 0.5x. Gross margin 58.4%. Operating margin 16.5%. Source: 10-Q filed 2025-10-23.
| Metric | IBM | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.4% | Good | Above sector median of 5.0% |
| Return on Equity (ROE) | 36.5% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 58.4% | Excellent | Strong pricing power |
| Operating Margin | 16.5% | Good | Efficient operations |
Cash Flow: INTERNATIONAL BUSINESS MACHINES CORP generates $12.9B FCF at 18.7% margin, positive NaN/8 quarters
FCF TTM $12.9B. FCF margin 18.7%, Top 50%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-23.
| Metric | IBM | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 18.7% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $12.9B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: INTERNATIONAL BUSINESS MACHINES CORP at 2.0x leverage
Debt/Equity 2.0x. Total debt $66.4B, cash & investments $10.9B. Source: 10-Q filed 2025-10-23.
| Metric | IBM | Rating | Context |
|---|---|---|---|
| Debt to Equity | 2.0x | Warning | Elevated leverage |
| Net Cash Position | $-55.5B | Warning | Net debt position |
Valuation: INTERNATIONAL BUSINESS MACHINES CORP trades at 21.1x earnings
P/E 21.1x. EV/Sales 4.0x. FCF yield 5.7%. Dividend yield 2.8%. Source: 10-Q filed 2025-10-23.
| Metric | IBM | Rating | Context |
|---|---|---|---|
| P/E Ratio | 21.1x | Adequate | Premium valuation |
| EV/Sales | 4.0x | Good | Growth premium priced in |
| FCF Yield | 5.7% | Good | Attractive cash return |
| Dividend Yield | 2.8% | Adequate | Growth focus over income |
Capital Allocation: INTERNATIONAL BUSINESS MACHINES CORP returns 2.8% shareholder yield
Total shareholder yield 2.8% (div 2.8%). Capital returned $6.3B TTM. Source: 10-Q filed 2025-10-23.
| Metric | IBM | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.8% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $6.3B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.4% | Top 50% | 2.5x above |
| Free Cash Flow Margin | 18.7% | Top 50% | 2.2x above |
| Gross Margin | 58.4% | Top 50% | 1.1x above |
| Operating Margin | 16.5% | Top 25% | 3.4x above |
| Return on Equity (ROE) | 36.5% | Top 25% | 7.4x above |
| P/E Ratio | 21.1x | N/A | - |
Financial Scorecard
| Metric | IBM | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.4% | Good | Top 50% of sector (median: 5.0%) |
| Free Cash Flow Margin | 18.7% | Good | Top 50% of sector (median: 8.6%) |
| Gross Margin | 58.4% | Excellent | Top 50% of sector (median: 51.6%) |
| Debt to Equity Ratio | 201.3% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 21.1x | Adequate | Fair value |
| Free Cash Flow Yield | 5.7% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is INTERNATIONAL BUSINESS MACHINES CORP's Return on Invested Capital (ROIC)?
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a trailing twelve-month Return on Invested Capital (ROIC) of 12.4%. Sector median 5.0%. Source: 10-Q filed 2025-10-23.
Q: What is INTERNATIONAL BUSINESS MACHINES CORP's Free Cash Flow Margin?
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a free cash flow margin of 18.7%, generating $12.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-23.
Q: What is INTERNATIONAL BUSINESS MACHINES CORP's P/E ratio and how does it compare to peers?
INTERNATIONAL BUSINESS MACHINES CORP (IBM) trades at a P/E ratio of 21.1x, which is above the sector median of N/A. EV/Sales 4.0x. FCF yield 5.7%. Source: 10-Q filed 2025-10-23.
Q: Does INTERNATIONAL BUSINESS MACHINES CORP pay a dividend?
INTERNATIONAL BUSINESS MACHINES CORP (IBM) currently pays a dividend yield of 2.8%. Total shareholder yield (dividend + buybacks) 2.8%. Source: 10-Q filed 2025-10-23.
Q: How much debt does INTERNATIONAL BUSINESS MACHINES CORP have?
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a debt-to-equity ratio of 2.0x with total debt of $66.4 billion. Net debt $55.5 billion. Source: 10-Q filed 2025-10-23.
Q: What is INTERNATIONAL BUSINESS MACHINES CORP's revenue and earnings growth?
INTERNATIONAL BUSINESS MACHINES CORP (IBM) grew revenue by 9.7% year-over-year. EPS +93.6% YoY. Source: 10-Q filed 2025-10-23.
Q: How does INTERNATIONAL BUSINESS MACHINES CORP compare to competitors in Technology?
Compared to other companies in Technology, INTERNATIONAL BUSINESS MACHINES CORP (IBM) shows: ROIC 12.4%, sector median 5.0% (Top 50%). FCF margin 18.7%, sector median 8.6% (Top 50%). Gross margin 58.4%, 6.7pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with INTERNATIONAL BUSINESS MACHINES CORP?
Quantitative warning flags for INTERNATIONAL BUSINESS MACHINES CORP (IBM): 1) debt/equity 2.0x (above 1.5x threshold). Source: 10-Q filed 2025-10-23.
Data Source: Data sourced from 10-Q filed 2025-10-23. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.