IBMIBM
US • —
$281.21
P/E
24.87
PEG
0.26
FCF Yield
—
Rev Growth YoY
+9.7% YoY
Gross Margin
58.4%
Health Score
7/10
D/E Ratio
1.88
Confidence
MEDIUM
Business Snapshot
IBM operates as a global technology company providing integrated solutions spanning cloud computing, artificial intelligence, enterprise software, and IT infrastructure services. The company's primary revenue segments include hybrid cloud platform (Red Hat), AI and data platform (watsonx), and consulting services, competing primarily against Amazon, Microsoft, and Google in cloud, and Accenture in consulting. With a large-cap classification, IBM's TTM revenue is not provided in the data, though the company maintains a broad international footprint across regulated industries. The defining characteristic of IBM is its established enterprise-level relationships and regulatory compliance expertise, providing a competitive moat in mission-critical workloads. Its pivot toward recurring revenue through Red Hat's open-source ecosystem and recurring software subscriptions differentiates it from legacy infrastructure competitors.
Financial Health
Gross margin of 58.4% indicates strong pricing power in software and services, though the data does not provide a prior-year comparison for margin trends. Net margin of 15.6% reflects solid profitability, suggesting operating leverage is continuing to improve beyond the gross profit line...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 1.88x and current ratio of 0.96x indicate elevated leverage and tight short-term liquidity that could constrain financial flexibility during economic downturns.
- VALUATION — P/E of 24.87x trades at a premium to the sector average of 22x, with Price/Book of 8.48x reflecting a high multiple on book value that offers limited margin of safety.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow is not reported in the payload, and FCF yield is unavailable, creating a gap in understanding the company's cash generation against its valuation....
Gross margin of 58.4% indicates strong pricing power in software and services, though the data does not provide a prior-year comparison for margin trends. Net margin of 15.6% reflects solid profitability, suggesting operating leverage is continuing to improve beyond the gross profit line. The balance sheet carries a debt/equity ratio of 1.88x, which is moderately elevated but not alarming for a well-established enterprise, though the current ratio of 0.96x signals tight short-term liquidity — current liabilities marginally exceed current assets. Return on equity of 35.5% is exceptionally high, indicating the company is efficiently generating profits on shareholder equity despite its leverage. Free cash flow data is not available in the payload, preventing a full assessment of cash generation versus capital requirements.
- DEBT / LIQUIDITY — Debt/equity of 1.88x and current ratio of 0.96x indicate elevated leverage and tight short-term liquidity that could constrain financial flexibility during economic downturns. - VALUATION — P/E of 24.87x trades at a premium to the sector average of 22x, with Price/Book of 8.48x reflecting a high multiple on book value that offers limited margin of safety. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow is not reported in the payload, and FCF yield is unavailable, creating a gap in understanding the company's cash generation against its valuation.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives