International Business Machines Corporation
International Business Machines Corporation Fundamental Analysis
International Business Machines Corporation (IBMA.BR) shows moderate financial fundamentals with a PE ratio of 22.59, profit margin of 9.60%, and ROE of 24.17%. The company generates $60.9B in annual revenue with weak year-over-year growth of 1.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IBMA.BR's fundamental strength across five key dimensions:
Efficiency Score
WeakIBMA.BR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIBMA.BR trades at attractive valuation levels.
Growth Score
WeakIBMA.BR faces weak or negative growth trends.
Financial Health Score
ModerateIBMA.BR shows balanced financial health with some risks.
Profitability Score
ModerateIBMA.BR maintains healthy but balanced margins.
Key Financial Metrics
Is IBMA.BR Expensive or Cheap?
P/E Ratio
IBMA.BR trades at 22.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IBMA.BR's PEG of -1.09 indicates potential undervaluation.
Price to Book
The market values International Business Machines Corporation at 4.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.39 times EBITDA. This is generally considered low.
How Well Does IBMA.BR Make Money?
Net Profit Margin
For every $100 in sales, International Business Machines Corporation keeps $9.60 as profit after all expenses.
Operating Margin
Core operations generate 9.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.17 in profit for every $100 of shareholder equity.
ROA
International Business Machines Corporation generates $4.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
International Business Machines Corporation produces operating cash flow of $13.06B, showing steady but balanced cash generation.
Free Cash Flow
International Business Machines Corporation generates strong free cash flow of $12.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13.21 in free cash annually.
FCF Yield
IBMA.BR converts 9.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How IBMA.BR Stacks Against Its Sector Peers
| Metric | IBMA.BR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.59 | 35.60 | Better (Cheaper) |
| ROE | 24.17% | 1040.00% | Weak |
| Net Margin | 9.60% | 5855262042.00% | Weak |
| Debt/Equity | 2.14 | 0.57 | Weak (High Leverage) |
| Current Ratio | 1.04 | 5.05 | Neutral |
| ROA | 4.39% | -291580.00% (disorted) | Weak |
IBMA.BR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews International Business Machines Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.83%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
-39.60%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-13.91%
Industry Style: Growth, Innovation, High Beta
Declining