May 14, 2026 a 08:00 am
IBM: Fundamental Ratio Analysis - International Business Machines Corporation
IBM, a leader in the technology sector, provides integrated solutions globally through its diverse segments. Despite a mature market position, IBM shows consistent performance in software and consulting services. Its historical financials reveal steady returns, though some fundamental challenges exist.
Fundamental Rating
IBM has a solid overall score with strong marks in discounted cash flow and return on equity. However, it faces challenges in debt-to-equity ratios and price-to-book valuations, indicating potential leverage and valuation concerns.
| Category | Score | |
|---|---|---|
| Discounted Cash Flow | 5 | |
| Return on Equity | 5 | |
| Return on Assets | 4 | |
| Debt to Equity | 1 | |
| Price to Earnings | 3 | |
| Price to Book | 1 |
Historical Rating
The historical ratings indicate consistency in IBM's overall financial health, with stable scores in several key areas across periods.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2026-05-13 | 3 | 5 | 5 | 4 | 1 | 3 | 1 |
| N/A | 0 | 5 | 5 | 4 | 1 | 3 | 1 |
Analyst Price Targets
Current analyst price targets for IBM range widely, suggesting mixed opinions on its future valuation. The median target indicates moderate growth expectations.
| High | Low | Median | Consensus |
|---|---|---|---|
| 360 | 225 | 320 | 309.64 |
Analyst Sentiment
Analyst sentiment reflects a generally neutral stance, with a significant portion leaning towards 'Hold' recommendations.
| Recommendation | Count | |
|---|---|---|
| Strong Buy | 1 | |
| Buy | 21 | |
| Hold | 24 | |
| Sell | 4 | |
| Strong Sell | 0 |
Conclusion
IBM's position as a stalwart in the technology sector is reflected in its strong fundamentals and stable historical ratings. While the analyst consensus leans towards holding the stock, the diverse business model provides resilience against market fluctuations. However, its financial leverage and valuation metrics warrant careful monitoring. The stock appears poised for steady performance, though challenges may arise from changing technological landscapes.
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