International Business Machines Corporation (IBM) Stock

International Business Machines Corporation trades at a P/E ratio of 45.87, 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 23.75 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.72 indicates reasonable value when growth is considered.

With a beta of 0.70, 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 9.63 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 INFORMATION TECHNOLOGY SERVICES industry averages for proper context.

International Business Machines Corporation offers a dividend yield of 2.35%, 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 Aug 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 $6.10 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 Sep 10, 2025.

International Business Machines Corporation has a market capitalization of $264.8B, 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 INFORMATION TECHNOLOGY SERVICES 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 $310.01, resulting in a price-to-book (P/B) ratio of 10.50. 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.

20 analysts cover IBM with 40% 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 $281.25 implies -9.3% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 7 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.