International Business Machines Corporation (IBM) Stock

International Business Machines Corporation trades at a P/E ratio of 39.21, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 21.93 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.59 indicates reasonable value when growth is considered.

With a beta of 0.68, International Business Machines Corporation is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 8.25 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

International Business Machines Corporation achieves a profit margin of 9.11%, meaning it retains $9.11 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 18.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 22.70% and ROA at 4.81%, the company generates strong returns on invested capital.

International Business Machines Corporation's revenue grew by 7.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 17.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against COMPUTER & OFFICE EQUIPMENT industry averages for proper context.

International Business Machines Corporation offers a dividend yield of 2.72%, paying $6.69 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 8/8/2025.

The dividend sustainability can be assessed through the payout ratio - International Business Machines Corporation pays $6.69 per share in dividends against earnings of $6.21 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for 9/10/2025.

International Business Machines Corporation has a market capitalization of $226.82B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 931.52M shares outstanding, the company's ownership is relatively concentrated. As a major player in the COMPUTER & OFFICE EQUIPMENT industry, it competes with other firms in this sector.

International Business Machines Corporation's book value per share is $29.53, while the current stock price is $248.70, resulting in a price-to-book (P/B) ratio of 8.42. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

21 analysts cover IBM with 43% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $281.32 implies 13.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 8 Buy, 9 Hold, 2 Sell, 1 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

RSI data is not available for this stock.

MACD and moving average data are not available for this stock.