International Business Machines Corporation
Find Ratings ReportsINTL BUSINESS MACHINES CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. INTL BUSINESS MACHINES CORP has weak liquidity. Currently, the Quick Ratio is 0.84 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.68% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 17381.0 | 16690.0 |
EBITDA ($mil) | 4967.0 | 4491.0 |
EBIT ($mil) | 3815.0 | 3352.0 |
Net Income ($mil) | 3288.0 | 2710.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 13462.0 | 8841.0 |
Total Assets ($mil) | 135241.0 | 127243.0 |
Total Debt ($mil) | 59935.0 | 54012.0 |
Equity ($mil) | 22533.0 | 21944.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 64.65 | 63.51 |
EBITDA Margin | 28.57 | 26.9 |
Operating Margin | 21.95 | 20.08 |
Sales Turnover | 0.46 | 0.48 |
Return on Assets | 5.54 | 1.28 |
Return on Equity | 33.35 | 8.13 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.96 | 0.92 |
Debt/Capital | 0.73 | 0.71 |
Interest Expense | 486.0 | 396.0 |
Interest Coverage | 7.85 | 8.46 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 915.01 | 906.09 |
Div / share | 1.66 | 1.65 |
EPS | 3.54 | 3.13 |
Book value / share | 24.63 | 24.22 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 5014664.0 | 4377103.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 59.37 for the Comp Infrastructure, Data, Web Hosting, Related Se subsector and a discount compared to the S&P 500 average of 27.77. For additional comparison, its price-to-book ratio of 7.76 indicates a significant premium versus the S&P 500 average of 4.65 and a discount versus the subsector average of 9.26. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, INTL BUSINESS MACHINES CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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IBM 23.47 | Peers 59.37 | IBM 12.55 | Peers 27.54 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. IBM is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. IBM is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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IBM 17.96 | Peers 17.67 | IBM 1.00 | Peers 0.45 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. IBM is trading at a valuation on par with its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. IBM trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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IBM 7.76 | Peers 9.26 | IBM 323.95 | Peers 211.71 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. IBM is trading at a discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. IBM is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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IBM 2.83 | Peers 6.70 | IBM 2.19 | Peers 11.41 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. IBM is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. IBM significantly trails its peers on the basis of sales growth. |
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