IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.

Financial Strength

5/10

Name	Current	Vs Industry
Cash-To-Debt	0.22
Equity-to-Asset	0.17
Debt-to-Equity	2.66
Debt-to-EBITDA	4.08
Interest Coverage	5.83
Piotroski F-Score	8/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	3.16	Distress Grey Safe
Beneish M-Score	-2.75	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

4/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	2.9
	3-Year EBITDA Growth Rate	10.6
	3-Year EPS without NRI Growth Rate	3.5
	3-Year FCF Growth Rate	-7.7
	3-Year Book Growth Rate	2.2
	Future 3-5Y EPS without NRI Growth Rate	5.1
	Future 3-5Y Total Revenue Growth Rate	3

Momentum Rank

6/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	34.68
	9-Day RSI	35.81
	14-Day RSI	40.04
	6-1 Month Momentum %	36.17
	12-1 Month Momentum %	49.48

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	0.96
	Quick Ratio	0.93
	Cash Ratio	0.39
	Days Inventory	19.11
	Days Sales Outstanding	36.01
	Days Payable	50.29

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	3.61
	Dividend Payout Ratio	0.69
	3-Year Dividend Growth Rate	0.6
	Forward Dividend Yield %	3.61
	5-Year Yield-on-Cost %	3.83
	3-Year Average Share Buyback Ratio	-0.8
	Shareholder Yield %	0.65

Profitability Rank

7/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	55.45
	Operating Margin %	15.15
	Net Margin %	12.13
	FCF Margin %	19.59
	ROE %	33.68
	ROA %	5.7
	ROIC %	6.64
	ROC (Joel Greenblatt) %	123.63
	ROCE %	10.34
	Years of Profitability over Past 10-Year	10

GF Value Rank

3/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	22.55
	Forward PE Ratio	18.2
	PE Ratio without NRI	19.05
	Shiller PE Ratio	17.44
	Price-to-Owner-Earnings	14.14
	PS Ratio	2.69
	PB Ratio	7.43
	Price-to-Free-Cash-Flow	13.9
	Price-to-Operating-Cash-Flow	12.13
	EV-to-EBIT	20.87
	EV-to-Forward-EBIT	18.57
	EV-to-EBITDA	14.63
	EV-to-Forward-EBITDA	13.65
	EV-to-Revenue	3.47
	EV-to-Forward-Revenue	3.37
	EV-to-FCF	17.73
	Price-to-Projected-FCF	1.31
	Price-to-Median-PS-Value	1.49
	Earnings Yield (Greenblatt) %	4.79
	FCF Yield %	7.22
	Forward Rate of Return (Yacktman) %	-4.93

GF Value: $146.78

IBM

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