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NEW YORK (

TheStreet

)

-- International Business Machines

(NYSE:

IBM

) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, expanding profit margins, growth in earnings per share and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

TST Recommends

  • The net income increased by 5.7% when compared to the same quarter one year prior, going from $3,823.00 million to $4,041.00 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company.
  • The gross profit margin for INTL BUSINESS MACHINES CORP is rather high; currently it is at 53.54%. It has increased from the same quarter the previous year.
  • INTL BUSINESS MACHINES CORP has improved earnings per share by 10.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, INTL BUSINESS MACHINES CORP increased its bottom line by earning $14.41 versus $13.12 in the prior year. This year, the market expects an improvement in earnings ($16.90 versus $14.41).
  • Compared to where it was trading one year ago, IBM is down 3.24% to its most recent closing price of 184.13. Looking ahead, our view is that this company's fundamentals give it good potential for further appreciation.

International Business Machines Corporation provides information technology (IT) products and services worldwide. International Business Machines has a market cap of $201.1 billion and is part of the technology sector and computer software & services industry. The company has a P/E ratio of 13.00, below the S&P 500 P/E ratio of 18.00. Shares are down 3.9% year to date as of the close of trading on Thursday.

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International Business Machines Ratings Report

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--Written by a member of TheStreet Ratings Staff.

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