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International Business Machines

SNSE:IBM
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IBM
SNSE
$98B
Market Cap
  1. Home
  2. CL
  3. Software
Company description

International Business Machines Corporation operates as an integrated solutions and services company worldwide. The last earnings update was 38 days ago. More info.


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IBM Share Price and Events
7 Day Returns
0%
SNSE:IBM
-11.1%
South America IT
5.2%
CL Market
1 Year Returns
-7.2%
SNSE:IBM
-53.5%
South America IT
-35.2%
CL Market
IBM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
International Business Machines (IBM) 0% 0% -0.2% -7.2% -23.1% -13.1%
South America IT -11.1% -38.1% -46.3% -53.5% -79% 39.9%
CL Market 5.2% -17.4% -26.1% -35.2% -31.4% -27.7%
1 Year Return vs Industry and Market
  • IBM outperformed the IT industry which returned -53.5% over the past year.
  • IBM outperformed the Market in Chile which returned -35.2% over the past year.
Price Volatility
IBM
Industry
5yr Volatility vs Market
Related Companies

IBM Value

 Is International Business Machines undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of International Business Machines to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for International Business Machines.

SNSE:IBM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.3%
Perpetual Growth Rate 10-Year CL Government Bond Rate 7.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SNSE:IBM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CL Govt Bond Rate 7.5%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.893 (1 + (1- 21%) (69.74%))
1.258
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.47% + (1.258 * 5.44%)
14.31%

Discounted Cash Flow Calculation for SNSE:IBM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for International Business Machines is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SNSE:IBM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.31%)
2020 13,113.00 Analyst x4 11,471.22
2021 12,732.25 Analyst x4 9,743.62
2022 12,775.85 Est @ 0.34% 8,552.89
2023 13,092.77 Est @ 2.48% 7,667.65
2024 13,613.53 Est @ 3.98% 6,974.44
2025 14,297.65 Est @ 5.03% 6,407.82
2026 15,121.00 Est @ 5.76% 5,928.35
2027 16,069.40 Est @ 6.27% 5,511.39
2028 17,135.03 Est @ 6.63% 5,141.08
2029 18,314.44 Est @ 6.88% 4,806.96
Present value of next 10 years cash flows $72,205.00
SNSE:IBM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $18,314.44 × (1 + 7.47%) ÷ (14.31% – 7.47%)
$287,666.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $287,666.52 ÷ (1 + 14.31%)10
$75,503.31
SNSE:IBM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $72,205.00 + $75,503.31
$147,708.31
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $147,708.31 / 888.41
$166.26
SNSE:IBM Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in SNSE:IBM represents 1.25774x of NYSE:IBM
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.25774x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 166.26 x 1.25774
$209.11
Value per share (USD) From above. $209.11
Current discount Discount to share price of $138.35
= -1 x ($138.35 - $209.11) / $209.11
33.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price International Business Machines is available for.
Intrinsic value
34%
Share price is $138.35 vs Future cash flow value of $209.11
Current Discount Checks
For International Business Machines to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • International Business Machines's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • International Business Machines's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for International Business Machines's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are International Business Machines's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SNSE:IBM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $10.63
NYSE:IBM Share Price ** NYSE (2020-04-02) in USD $110
South America IT Industry PE Ratio Median Figure of 8 Publicly-Listed IT Companies 17.22x
Chile Market PE Ratio Median Figure of 130 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of International Business Machines.

SNSE:IBM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:IBM Share Price ÷ EPS (both in USD)

= 110 ÷ 10.63

10.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Business Machines is good value based on earnings compared to the South America IT industry average.
  • International Business Machines is good value based on earnings compared to the Chile market.
Price based on expected Growth
Does International Business Machines's expected growth come at a high price?
Raw Data
SNSE:IBM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
6.2%per year
Global IT Industry PEG Ratio Median Figure of 272 Publicly-Listed IT Companies 1.41x
Chile Market PEG Ratio Median Figure of 30 Publicly-Listed Companies 0.82x

*Line of best fit is calculated by linear regression .

SNSE:IBM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.34x ÷ 6.2%

1.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Business Machines is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on International Business Machines's assets?
Raw Data
SNSE:IBM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $23.49
NYSE:IBM Share Price * NYSE (2020-04-02) in USD $110
South America IT Industry PB Ratio Median Figure of 8 Publicly-Listed IT Companies 1.66x
Chile Market PB Ratio Median Figure of 161 Publicly-Listed Companies 0.81x
SNSE:IBM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:IBM Share Price ÷ Book Value per Share (both in USD)

= 110 ÷ 23.49

4.68x

* Primary Listing of International Business Machines.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Business Machines is overvalued based on assets compared to the South America IT industry average.
X
Value checks
We assess International Business Machines's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. International Business Machines has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IBM Future Performance

 How is International Business Machines expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is International Business Machines expected to grow at an attractive rate?
  • International Business Machines's earnings growth is positive but not above the low risk savings rate of 7.5%.
Growth vs Market Checks
  • International Business Machines's earnings growth is positive but not above the Chile market average.
  • International Business Machines's revenue growth is positive but not above the Chile market average.
Annual Growth Rates Comparison
Raw Data
SNSE:IBM Future Growth Rates Data Sources
Data Point Source Value (per year)
SNSE:IBM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 6.2%
SNSE:IBM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 0.8%
Global IT Industry Earnings Growth Rate Market Cap Weighted Average 16.7%
Global IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
Chile Market Earnings Growth Rate Market Cap Weighted Average 15%
Chile Market Revenue Growth Rate Market Cap Weighted Average 6.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SNSE:IBM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SNSE:IBM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 79,668 19,000 13,200 2
2023-12-31 78,917 19,300 12,878 2
2022-12-31 78,426 17,180 10,506 5
2021-12-31 79,229 15,875 10,621 17
2020-12-31 77,287 16,374 9,616 18
2020-04-03
SNSE:IBM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 77,147 14,770 9,435
2019-09-30 77,131 15,438 7,719
2019-06-30 77,859 16,051 8,738
2019-03-31 78,701 15,404 8,641
2018-12-31 79,591 15,247 8,723
2018-09-30 80,373 16,861 5,718
2018-06-30 80,771 16,199 5,751
2018-03-31 80,056 17,371 5,680
2017-12-31 79,139 16,724 5,758
2017-09-30 78,366 14,970 11,316
2017-06-30 78,439 15,517 11,445
2017-03-31 79,390 15,509 11,617

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • International Business Machines's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
  • International Business Machines's revenue is expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SNSE:IBM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from International Business Machines Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SNSE:IBM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 12.99 12.99 12.99 1.00
2021-12-31 12.30 13.70 10.22 8.00
2020-12-31 11.09 12.83 9.26 8.00
2020-04-03
SNSE:IBM Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 10.63
2019-09-30 8.67
2019-06-30 9.74
2019-03-31 9.56
2018-12-31 9.56
2018-09-30 6.23
2018-06-30 6.23
2018-03-31 6.12
2017-12-31 6.17
2017-09-30 12.05
2017-06-30 12.11
2017-03-31 12.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • International Business Machines is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess International Business Machines's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
International Business Machines has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IBM Past Performance

  How has International Business Machines performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare International Business Machines's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • International Business Machines's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • International Business Machines's 1-year earnings growth exceeds its 5-year average (8.2% vs -16.8%)
  • International Business Machines's earnings growth has exceeded the South America IT industry average in the past year (8.2% vs -18.2%).
Earnings and Revenue History
International Business Machines's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from International Business Machines Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SNSE:IBM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 77,147.00 9,435.00 20,382.00 5,936.00
2019-09-30 77,131.00 7,719.00 19,864.00 5,698.00
2019-06-30 77,859.00 8,738.00 19,617.00 5,450.00
2019-03-31 78,701.00 8,641.00 19,801.00 5,407.00
2018-12-31 79,591.00 8,723.00 20,325.00 5,379.00
2018-09-30 80,373.00 5,718.00 20,631.00 5,399.00
2018-06-30 80,771.00 5,751.00 21,557.00 5,438.00
2018-03-31 80,056.00 5,680.00 21,009.00 5,511.00
2017-12-31 79,139.00 5,758.00 21,137.00 5,590.00
2017-09-30 78,366.00 11,316.00 20,442.00 5,643.00
2017-06-30 78,439.00 11,445.00 19,497.00 5,749.00
2017-03-31 79,390.00 11,617.00 20,129.00 5,777.00
2016-12-31 79,919.00 11,881.00 20,225.00 5,726.00
2016-09-30 80,208.00 11,836.00 20,188.00 5,682.00
2016-06-30 80,261.00 11,943.00 20,100.00 5,572.00
2016-03-31 80,835.00 12,965.00 19,788.00 5,407.00
2015-12-31 81,741.00 13,364.00 19,589.00 5,247.00
2015-09-30 83,795.00 14,417.00 19,844.00 5,205.00
2015-06-30 86,913.00 14,911.00 20,474.00 5,272.00
2015-03-31 90,147.00 15,637.00 21,054.00 5,333.00
2014-12-31 92,793.00 15,751.00 21,549.00 5,437.00
2014-09-30 96,066.00 16,453.00 22,131.00 5,569.00
2014-06-30 97,007.00 17,137.00 22,116.00 5,571.00
2014-03-31 97,196.00 16,379.00 22,183.00 5,501.00
2013-12-31 98,368.00 16,881.00 22,395.00 5,743.00
2013-09-30 100,286.00 16,498.00 22,332.00 5,871.00
2013-06-30 101,695.00 16,182.00 22,435.00 6,049.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst International Business Machines made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • International Business Machines used its assets less efficiently than the South America IT industry average last year based on Return on Assets.
  • International Business Machines's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess International Business Machines's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
International Business Machines has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IBM Health

 How is International Business Machines's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up International Business Machines's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • International Business Machines is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • International Business Machines's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of International Business Machines's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from International Business Machines Company Filings, last reported 3 months ago.

SNSE:IBM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 20,985.00 62,695.00 8,868.00
2019-09-30 18,095.00 66,174.00 10,829.00
2019-06-30 17,776.00 72,968.00 46,278.00
2019-03-31 16,607.00 50,056.00 18,018.00
2018-12-31 16,930.00 45,771.00 11,997.00
2018-09-30 19,918.00 47,077.00 14,495.00
2018-06-30 18,648.00 45,581.00 11,707.00
2018-03-31 18,290.00 46,465.00 12,842.00
2017-12-31 17,725.00 46,858.00 12,582.00
2017-09-30 19,757.00 45,642.00 11,515.00
2017-06-30 18,544.00 45,676.00 12,297.00
2017-03-31 18,448.00 42,786.00 10,695.00
2016-12-31 18,392.00 42,176.00 8,527.00
2016-09-30 17,159.00 42,483.00 9,968.00
2016-06-30 15,889.00 44,525.00 10,617.00
2016-03-31 15,072.00 45,557.00 14,869.00
2015-12-31 14,424.00 39,892.00 8,194.00
2015-09-30 13,451.00 39,660.00 9,568.00
2015-06-30 13,837.00 38,668.00 8,760.00
2015-03-31 12,289.00 38,827.00 8,809.00
2014-12-31 12,014.00 40,722.00 8,481.00
2014-09-30 14,395.00 45,704.00 9,570.00
2014-06-30 17,513.00 46,470.00 9,725.00
2014-03-31 16,740.00 43,992.00 9,704.00
2013-12-31 22,929.00 39,731.00 11,066.00
2013-09-30 20,008.00 36,180.00 10,273.00
2013-06-30 17,883.00 34,122.00 10,383.00
  • International Business Machines's level of debt (298.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (338.7% vs 298.8% today).
  • Debt is well covered by operating cash flow (23.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.8x coverage).
X
Financial health checks
We assess International Business Machines's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. International Business Machines has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IBM Dividends

 What is International Business Machines's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.89%
Current annual income from International Business Machines dividends. Estimated to be 6.1% next year.
If you bought $2,000 of International Business Machines shares you are expected to receive $118 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • International Business Machines's pays a higher dividend yield than the bottom 25% of dividend payers in Chile (3.12%).
  • International Business Machines's dividend is below the markets top 25% of dividend payers in Chile (6.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SNSE:IBM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
South America IT Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.4%
Chile Market Average Dividend Yield Market Cap Weighted Average of 130 Stocks 5.2%
Chile Minimum Threshold Dividend Yield 10th Percentile 1.2%
Chile Bottom 25% Dividend Yield 25th Percentile 3.1%
Chile Top 25% Dividend Yield 75th Percentile 6.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SNSE:IBM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 7.04 6.00
2021-12-31 6.79 10.00
2020-12-31 6.46 11.00
2020-04-03
SNSE:IBM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-28 6.480 5.138
2019-10-29 6.480 4.783
2019-07-30 6.480 4.665
2019-04-30 6.480 4.685
2019-01-29 6.280 4.519
2018-10-30 6.280 5.230
2018-07-31 6.280 4.383
2018-04-24 6.280 4.363
2018-01-30 6.000 3.881
2017-10-31 6.000 3.847
2017-07-25 6.000 4.108
2017-04-25 6.000 3.910
2017-01-31 5.600 3.202
2016-10-25 5.600 3.421
2016-10-17 5.600 3.701
2016-04-26 5.600 3.617
2016-01-26 5.200 3.765
2015-10-27 5.200 3.839
2015-07-28 5.200 3.490
2015-04-28 5.200 3.088
2015-01-27 4.400 2.737
2015-01-20 4.400 2.838
2014-07-29 4.400 2.540
2014-04-29 4.400 2.348
2014-01-28 3.800 2.038
2013-10-29 3.800 2.093
2013-07-30 3.800 2.046
2013-04-30 3.800 1.899
2013-01-29 3.400 1.657
2013-01-22 3.400 1.674
2012-07-31 3.400 1.729
2012-04-24 3.400 1.740
2012-01-31 3.000 1.500
2011-10-25 3.000 1.616
2011-07-26 3.000 1.731
2011-04-26 3.000 1.760
2011-01-25 2.600 1.600
2010-10-26 2.600 1.779
2010-07-27 2.600 1.975
2010-04-27 2.600 2.040
2010-01-26 2.200 1.728
2009-10-27 2.200 1.723
2009-07-28 2.200 1.834
2009-04-28 2.200 2.074

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of International Business Machines's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess International Business Machines's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can International Business Machines afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. International Business Machines has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IBM Management

 What is the CEO of International Business Machines's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ginni Rometty
COMPENSATION $20,160,865
AGE 60
TENURE AS CEO 8.3 years
CEO Bio

Ms. Virginia M. Rometty, also known as Ginni, has been the Chairman of International Business Machines Corporation (also known as IBM Corp.) since October 1, 2012 and also has been its Chief Executive Officer and President since January 1, 2012. Mrs. Rometty has responsibility for the overall strategy and business development for Global Services, including advanced services solutions, the services asset strategy and acquisition strategy. She began her career with IBM in 1981. She served as Senior Vice President of Global Business Services at International Business Machines Corporation from 2005 to 2009 and also served as its Senior Vice President of Global Sales & Distribution from 2009 to 2010, Senior Vice President from 2010 to 2012, Group Executive of Sales, Marketing & Strategy from 2010 to 2012 and Senior Vice President of Enterprise Business Services-IBM Global Services since July 2005. She served as Senior Vice President of Global Business Services and Managing Partner at IBM Business Consulting Services, Inc. She served as General Manager of IBM Global Services. She was responsible for strategic leadership, operations and client relationships of the Global Services business in the United States, Canada and Latin America. She also served as the General Manager of Strategy, Marketing and Sales Operations for IBM Global Services Worldwide. Before joining IBM's services business, She served as General Manager of IBM's Global Insurance and Financial Services Sector, where she led IBM's business strategy for the worldwide insurance marketplace, with responsibility for marketing, sales and consulting. She also supervised the operations of IBM's Insurance Research Centers in Hawthorne, N.Y., Zurich, Switzerland and Yamaha, Japan and was in charge of IBM's insurance solutions development worldwide. She served as General Manager of Americas for Global Services. She served as Managing Partner of IBM Global Business Services and Senior Vice President of Global Business Services at IBM Global Services U.S. She served as General Manager of Insurance Industry Group. She serves on the Council on Foreign Relations, the Board of Trustees of Northwestern University and the Board of Overseers and Board of Managers of Memorial Sloan-Kettering Cancer Center. She is a Member of IBM's strategy and operations teams. She is a Leader in IBM's diversity initiatives, including the Women in Technology Council and the Women's Leadership Council and is one of the Senior Vice President Sponsors of the Women's Executive Council at IBM. She has been Director of International Business Machines Corporation (IBM) since 2012. She served as a Director at American International Group, Inc. from September 20, 2006 to May 7, 2009. She served as a Director of APQC. She is a frequent speaker at industry and business conferences around the world, the recipient of the Carl Sloane Award 2006, given by the Association of Management Consulting Firms and was named among Fortune Magazine's “50 Most Powerful Women in Business” in 2005 and 2006 and was named among Time magazine's 2002 Global Business Influential. Before joining IBM, she was with General Motors Corporation, where she was responsible for application and systems development. She is a member of the Business Roundtable, the Council on Foreign Relations, and formerly served on the President’s Export Council. U.S. Government service (former member of the President’s Export Council). Experience as a university trustee. She holds a Bachelor of Science degree with high honors in computer science and electrical engineering from the Northwestern University.

CEO Compensation
  • Ginni's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Ginni to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the International Business Machines management team in years:

5.3
Average Tenure
55
Average Age
  • The average tenure for the International Business Machines management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ginni Rometty

TITLE
Executive Chairman
COMPENSATION
$20M
AGE
60
TENURE
8.3 yrs

James Kavanaugh

TITLE
Senior VP and CFO of Finance & Operations
COMPENSATION
$7M
AGE
52
TENURE
2.3 yrs

Michelle Browdy

TITLE
Senior VP of Legal & Regulatory Affairs and General Counsel
COMPENSATION
$6M
AGE
54
TENURE
5.3 yrs

John Kelly

TITLE
Executive Vice President
COMPENSATION
$8M
AGE
65
TENURE
20.3 yrs

Martin Schroeter

TITLE
Senior VP of Global Markets
COMPENSATION
$10M
AGE
55
TENURE
6.3 yrs

Fletcher Previn

TITLE
Chief Information Officer

Patricia Murphy

TITLE
Vice President of Investor Relations

Kevin Reardon

TITLE
Vice President of Corporate Development

Michelle Peluso

TITLE
Senior VP of Digital Sales & Chief Marketing Officer
AGE
47
TENURE
1.3 yrs

Diane Gherson

TITLE
Senior VP & Chief Human Resources Officer
AGE
61
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the International Business Machines board of directors in years:

6.5
Average Tenure
62
Average Age
  • The tenure for the International Business Machines board of directors is about average.
Board of Directors

Ginni Rometty

TITLE
Executive Chairman
COMPENSATION
$20M
AGE
60
TENURE
7.5 yrs

Tom Rosamilia

TITLE
Senior VP of IBM Systems & Chairman of North America
AGE
58
TENURE
1.2 yrs

Martin Jetter

TITLE
Senior VP & Chairman of IBM Europe
COMPENSATION
$9M
AGE
60
TENURE
1.3 yrs

Liming Chen

TITLE
Chairman of Greater China Group
AGE
59

Mike Eskew

TITLE
Lead Director
COMPENSATION
$598K
AGE
69

Alex Gorsky

TITLE
Independent Director
COMPENSATION
$413K
AGE
59
TENURE
5.6 yrs

Rick Waddell

TITLE
Independent Director
COMPENSATION
$354K
AGE
65
TENURE
2.5 yrs

Sidney Taurel

TITLE
Independent Director
COMPENSATION
$567K
AGE
70
TENURE
19.3 yrs

Andrew Liveris

TITLE
Independent Director
COMPENSATION
$444K
AGE
64
TENURE
10.2 yrs

David Farr

TITLE
Independent Director
COMPENSATION
$392K
AGE
64
TENURE
8.3 yrs
Who owns this company?
Recent Insider Trading
  • International Business Machines individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Feb 20 Sell Robert Del Bene Individual 26. Feb 20 26. Feb 20 -1,175 $140.60 $-164,952
21. Feb 20 Sell Robert Del Bene Individual 19. Feb 20 20. Feb 20 -2,350 $151.33 $-354,923
18. Feb 20 Sell Robert Del Bene Individual 14. Feb 20 14. Feb 20 -1,175 $151.97 $-178,560
17. Jun 19 Sell Kenneth Keverian Individual 14. Jun 19 14. Jun 19 -2,227 $135.15 $-300,979
12. Jun 19 Sell Kenneth Keverian Individual 11. Jun 19 11. Jun 19 -2,690 $135.50 $-364,495
05. Jun 19 Sell Kenneth Keverian Individual 04. Jun 19 04. Jun 19 -2,083 $132.00 $-274,956
X
Management checks
We assess International Business Machines's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. International Business Machines has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IBM News

Simply Wall St News

IBM Company Info

Description

International Business Machines Corporation operates as an integrated solutions and services company worldwide. Its Cloud & Cognitive Software segment offers software for vertical and domain-specific solutions in health, financial services, and Internet of Things (IoT), weather, and security software and services application areas; and customer information control system and storage, and analytics and integration software solutions to support client mission critical on-premise workloads in banking, airline, and retail industries. It also offers middleware and data platform software, including Red Hat, which enables the operation of clients’ hybrid multi-cloud environments; and Cloud Paks, WebSphere distributed, and analytics platform software, such as DB2 distributed, information integration, and enterprise content management, as well as IoT, Blockchain and AI/Watson platforms. The company’s Global Business Services segment offers business consulting services; system integration, application management, maintenance, and support services for packaged software; finance, procurement, talent and engagement, and industry-specific business process outsourcing services; and IT infrastructure and platform services. Its Global Technology Services segment provides project, managed, outsourcing, and cloud-delivered services for enterprise IT infrastructure environments; and IT infrastructure support services. The company’s Systems segment offers servers for businesses, cloud service providers, and scientific computing organizations; data storage products and solutions; and z/OS, an enterprise operating system, as well as Linux. Its Global Financing segment provides lease, installment payment, loan financing, short-term working capital financing, and remanufacturing and remarketing services. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. The company was founded in 1911 and is headquartered in Armonk, New York.

Details
Name: International Business Machines Corporation
IBM
Exchange: SNSE
Founded: 1911
$97,724,882,530
888,408,023
Website: http://www.ibm.com
Address: International Business Machines Corporation
One New Orchard Road,
Armonk,
New York, 10504,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE IBM Common Stock New York Stock Exchange US USD 02. Jan 1968
DB IBM Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA IBM Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
LSE IBM Common Stock London Stock Exchange GB USD 02. Jan 1968
SWX IBM Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
ENXTBR IBMA Common Stock Euronext Brussels BE USD 02. Jan 1968
WBAG IBM Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE IBM Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BMV IBM * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BVL IBM Common Stock Bolsa de Valores de Lima PE USD 02. Jan 1968
ETLX IBM-U Common Stock Eurotlx IT EUR 02. Jan 1968
BOVESPA IBMB34 BDR EA REPR 1 COM SHS Bolsa de Valores de Sao Paulo BR BRL 16. Nov 2011
BASE IBM CEDEAR 5 REP 1 COM STK USD0.2 Buenos Aires Stock Exchange AR ARS 12. Jul 2001
Number of employees
Current staff
Staff numbers
352,600
International Business Machines employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 18:51
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/02/25
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.