International Business Machines Corp (IBM) Stock Analysis
Verdict: WATCH (do not buy)
Software growth and 4.28% dividend yield buffer mainframe cyclicality, but high debt ($67.15B) and deal execution delays cap near-term upside.
Investment score: 57/100
Analysis as of
Is International Business Machines Corp stock worth reviewing? AI model thesis
The AI model assigns IBM a HOLD recommendation at $231.93. Software transition momentum and a 4.28% dividend yield provide floor support, but mainframe cyclicality and elevated leverage constrain short-term upside.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 68/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 52/100 (weight 15%)
- Insider Sentiment: 58/100 (weight 10%)
- Analyst Consensus: 58/100 (weight 10%)
- Risk-Adjusted Return: 62/100 (weight 15%)
International Business Machines Corp opportunities and risks
What speaks for IBM
- High-Margin Software and Red Hat Expansion
What speaks against IBM
- IBM Z Mainframe Cyclicality & Software Deal Delays
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| IBM | 20.3x | 3.2x | 17.1x | 58.4% | 15.5% | 6.2% |
| CTSH | 12.7x | 1.2x | 7.0x | 32.0% | 10.3% | 9.7% |
| QNT | n/a | 1017.6x | n/a | 8.3% | -1452.5% | -1.2% |
| IT | 16.4x | 1.9x | 10.6x | 68.9% | 12.0% | 10.5% |
| EPAM | 15.3x | 1.1x | 7.7x | 28.3% | 7.2% | 8.2% |
| KD | 8.2x | 0.1x | 2.4x | 21.9% | 1.3% | 5.5% |
| Peer median | 12.7x | 1.2x | 7.0x | 28.3% | 7.2% | 8.2% |
Frequently asked questions about International Business Machines Corp (IBM)
Is IBM stock a good investment?
The cached TradeMates AI model rates International Business Machines Corp as WATCH (do not buy) with an investment score of 57/100. The AI model assigns IBM a HOLD recommendation at $231.93. Software transition momentum and a 4.28% dividend yield provide floor support, but mainframe cyclicality and elevated leverage constrain short-term upside. This is algorithmic model output, not personal investment advice.
Is IBM stock a buy?
The TradeMates model verdict for IBM is WATCH (do not buy) with an investment score of 57/100. Treat this as a model signal to review, not a personal buy recommendation.