IBM
INTERNATIONAL BUSINESS MACHINES CORP
Technology • CIK: 0000051143
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Market Cap
$262.33B
P/E (TTM)
33.1x
Rev Growth (TTM)
+4.5%
Net Margin (TTM)
12.1%
FCF Yield (TTM)
4.8%
FCF Margin (TTM)
19.1%
Cash Flow Health
Free Cash Flow8/8 positive
TTM$12.5B
Q3 '25
$2.8B+90%
Q2 '25
$1.5B-64%
FCF Margin
TTM19.1%
Q3 '2517.3%+97%
Sector: 14.5%Above Avg
OCF Margin20.6%
OCF/NI1.71x
CapEx Coverage13.3x
FCF Yield4.8%
FCF Growth (2Y)+18%
Cash Conversion Cycle
1 days
DSO: 34+DIO: 18−DPO: 50
Capital Allocation & Returns
Balanced
Total Shareholder YieldEst.
Est.2.4%
Div Yield2.4%
+Est. Buyback1.4%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)2.4%
FCF Payout Ratio49.9%
Free Cash Flow (TTM)$12.5B
Capital Return / FCF49.9%
Est. Dividends Paid (TTM)$6.2B
Estimated: Buyback data estimated from FCF. Actual repurchase data not available for this company.
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
11.3%
Stable
-0.1% YoY-8.3%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
13.0%
8Q: 11.2%
Asset Turnover
0.46x
8Q: 0.45x
Leverage (1+D/E)
3.26x
D/E: 2.26x
DuPont: 19.4% ≈ 11.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
11.30x
8Q:11.17x
-171.4%
Invested Cap Turn
0.87x
8Q:0.88x
-19.3%
CapEx Intensity
1.3%
8Q:1.4%
CapEx/Depreciation
0.46x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $65.4B | $16.3B↓3.8% | $17.0B↑16.8% | $14.5B↓17.2% | $17.6B↑17.3% | $15.0B↓5.1% | $15.8B↑9.0% | $14.5B↓16.8% | $17.4B |
Operating Income | $10.2B | $2.5B↓11.3% | $2.9B↑138.7% | $1.2B↓66.9% | $3.6B↑120.9% | $1.6B↓24.8% | $2.2B↑123.2% | $973.0M↓73.9% | $3.7B |
Net Income | $7.9B | $1.7B↓20.5% | $2.2B↑108.0% | $1.1B↓63.8% | $2.9B↑983.0% | $-330.0M↓118.0% | $1.8B↑14.3% | $1.6B↓51.2% | $3.3B |
Operating Cash Flow | $13.5B | $3.1B↑81.2% | $1.7B↓61.1% | $4.4B↑0.9% | $4.3B↑50.3% | $2.9B↑39.4% | $2.1B↓50.4% | $4.2B↓6.6% | $4.5B |
Free Cash Flow | $12.5B | $2.8B↑89.6% | $1.5B↓63.9% | $4.1B↑2.5% | $4.0B↑55.2% | $2.6B↑40.6% | $1.8B↓53.0% | $3.9B↓5.6% | $4.2B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
33.1x
Valuation Lenses
Earnings
33.1x
vs – sector
Cash Flow
44.3x
EV/FCF vs –
Growth-Adj
1.5xPEG
Fair for growth
Quality-Adj
2.9P/E per %ROIC
ROIC: 11.3%
Shareholder Returns
Dividend
2.4%
Buyback
–
Total Yield
2.4%
Market Cap$262.33B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
93/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 25%
29.3%
8Q:–
Return on Invested Capital (ROIC)Top 25%
11.3%
8Q:–
-8.3%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 13.0%
Asset Turnover: 0.46x
Earnings Quality
Cash Conversion
1.71x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin57.8%
Capital Efficiency
Invested Capital Turnover0.87x
Working Capital
Cash Conversion Cycle1 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
63/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
4.5%
OpInc Growth YoY
55.0%
EPS Growth YoY
21.8%
FCF 3Y CAGR
17.8%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
57.8%
Operating
15.6%
Above Avg in sector
Net
12.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+7.0 pts
FCF: 19.1% | Net: 12.1%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Leveraged
Net Debt / EBITDA
–Net Debt: $51.52B
Interest Coverage
–
Leverage Metrics
Debt-to-Equity
2.26x
Balance sheet risk & solvency analysis