IBM$309.28
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Powered by LiveAIOverall Analysis
BuyIBM shows strong fundamental performance with robust profitability and a healthy balance sheet, supported by its established position in hybrid cloud and AI. While recent technicals indicate a downtrend and potential overextension to the downside, the long-term outlook remains positive due to its strategic initiatives and dividend yield. Investors should consider the current technical weakness as a potential entry point for long-term holding.
Thematic
IBM is well-positioned to benefit from secular growth trends in hybrid cloud and artificial intelligence. Its strategic focus on these areas, coupled with a large enterprise client base, provides a solid foundation for future growth. However, competition in these markets is intense, and navigating the evolving technological landscape will be critical.
Fundamental
IBM demonstrates robust financial health with consistently strong revenue and net income growth, particularly in recent quarters. Its profitability margins are healthy, and the balance sheet is well-managed with manageable debt levels. The company also offers a stable dividend, appealing to income-focused investors.
Technical
IBM's stock price has experienced a significant decline, trading well below its 50-day and 200-day moving averages. While oscillators suggest the stock is oversold and could see a bounce, the overall trend remains bearish in the short to medium term. Key support levels need to hold to avoid further downside.
| Factor | Score |
|---|---|
| Hybrid Cloud Adoption | 85 |
| Artificial Intelligence (AI) Integration | 80 |
| Digital Transformation Services | 82 |
| Cybersecurity | 75 |
| Regulatory and Geopolitical Landscape | 65 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 75 |
| Growth | 70 |
| Balance Sheet Health | 80 |
| Cash Flow Generation | 90 |
| Dividend Sustainability | 50 |
| Factor | Score |
|---|---|
| Trend Analysis | 30 |
| Momentum | 85 |
| Volume Confirmation | 70 |
| Support & Resistance | 70 |
| Short-term Oscillators | 80 |
AI Investing Checklist
Powered by LiveAIBullish Points (7)
Consistent EPS Beat
The company has a strong track record of beating earnings per share (EPS) estimates, with positive surprises in 9 out of the last 12 reported quarters, including a 5.1% beat in Q2 2024.
Healthy Cash Position
IBM maintains a robust cash and cash equivalents position, with $13.95 billion reported in Q4 2024, providing significant financial flexibility and a strong ability to cover short-term liabilities.
Bearish Points (7)
Significant Price Decline
The stock has experienced a notable price drop of -7.62% (-21.5 points) to $260.51, indicating potential short-term selling pressure or market concern.
High Price-to-Earnings Ratio
The trailing P/E ratio of 42.02 is significantly high, suggesting that investors are paying a premium for each dollar of earnings, which could limit upside potential and increase risk.
Calendar
May 2025
9
Ex-Dividend Date
June 2025
10
Next Dividend Date
October 2025
23
Next Earnings Date
H: $2.65
A: $2.45
L: $2.36
H: 16.36B
A: 16.09B
L: 15.93B
Profile
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. Its Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. Its Financing segment offers client and commercial financing, facilitates IBM clients' acquisition of hardware, software, and services. It has strategic partnership with various companies, including hyperscalers, service providers, system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
Seasonals
Price Target
277.01 USD
The 39 analysts offering 1 year price forecasts for IBM have a max estimate of 350.00 and a min estimate of 190.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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