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International Business Machines Corporation (IBM) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

International Business Machines Corporation

IBMMarket cap $208BPrice $221.3

Country🇺🇸United States

SectorTechnology

IndustryIT Services

Provides cloud computing, AI software, and consulting services to Fortune 500 companies managing their digital transformation. Despite being 113 years old, generates more AI patent filings than any other tech company.

In Bastion Portfolios?

52W Return-20%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+4%4

Revenue Forecast

Rev CAGR (1y)+4%4

Rev CAGR (3y)+4%4

Rev CAGR (5y)+4%4

Earnings Forecast

EPS Growth Y+1+12%7

EPS Growth Y+2+8%6

EPS Growth Y+3+10%6

Quality

Margins

EBIT Margin18%7

Net Income Margin16%7

Free Cash Flow Margin20%8

Debt

Net Debt/EBITDA3.23

Efficiency

ROE35%9

ROA7%7

Earnings Stability77

GEAR+AVERAGE45

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)175

P/E Ratio (Forward 3y)155

P/BV6.13

EV Multiples

EV/EBITDA Fwd134

EV/EBIT Fwd175

Yield

Free Cash Flow Yield6.6%8

Dividend Yield3.1%7

Momentum

Short term

1 month return-6%4

3 month return-27%1

YTD return-24%2

Mid term

Price vs 52wHigh67%3

1 year return-23%2

Long term

3 year return+71%6

5 year return+98%7

Risk Shield

Price Risk

Beta0.94

Volatility51%3

Free Cash Flow

Free Cash Flow Margin20%8

Free Cash Flow Yield6.6%8

Quality

ROCE11%6

Earnings Stability77

Net Debt/EBITDA3.23

02Growth

Is it actually growing, and how fast?

IBMInternational Business Machines

Revenue FY25$67.5B

GROWTH RATING↗

AVERAGE35 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+4%4

Revenue, next 1Y+4%4

Revenue, next 3Y, CAGR+4%4

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+12%7

EPS growth, FY27E+8%6

EPS growth, FY28E+10%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 4%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 35% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 4%/yr over the last 3 years and is set to keep growing around 4%/yr.

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK20 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-27%1

YTD return-24%2

MID & LONG-TERM▾SCORE

% of 52-week high67%3

1-year return-23%2

3-year return+71%6

5-year return+98%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +71% over three years and +98% over five, ahead of 60% of the market.

WATCH

Returns sit at the market level over the past month (-6%).

WEAKNESSES

It's down 23% over the past year, now 33% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-27%) and so far this year (-24%).

BOTTOM LINE

Outperformer in a Drawdown

A proven multi-year compounder now in a meaningful pullback well below its 52-week high. This is the classic fork: either a buy-the-dip in an intact uptrend, or the early stage of a trend change. Wait for the short-term slide to stabilise before adding. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on IBM. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

IBMInternational Business Machines

Revenue FY25$67.5B

GROWTH RATING↗

AVERAGE35 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+4%4

Revenue, next 1Y+4%4

Revenue, next 3Y, CAGR+4%4

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+12%7

EPS growth, FY27E+8%6

EPS growth, FY28E+10%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 4%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 35% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 4%/yr over the last 3 years and is set to keep growing around 4%/yr.

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK20 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-27%1

YTD return-24%2

MID & LONG-TERM▾SCORE

% of 52-week high67%3

1-year return-23%2

3-year return+71%6

5-year return+98%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +71% over three years and +98% over five, ahead of 60% of the market.

WATCH

Returns sit at the market level over the past month (-6%).

WEAKNESSES

It's down 23% over the past year, now 33% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-27%) and so far this year (-24%).

BOTTOM LINE

Outperformer in a Drawdown

04Value

Are you paying a fair price for it?

Stop guessing on IBM. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community