International Business Machines Corp (IBMA.BR) Fundamental Analysis & Valuation

EBR:IBMA • US4592001014

Current stock price

145 USD
-0.35 (-0.24%)
Last:

This IBMA.BR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. IBMA.BR Profitability Analysis

1.1 Basic Checks

  • IBMA had positive earnings in the past year.
  • In the past year IBMA had a positive cash flow from operations.
IBMA.BR Yearly Net Income VS EBIT VS OCF VS FCFIBMA.BR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

1.2 Ratios

  • The Return On Assets of IBMA (1.53%) is worse than 70.13% of its industry peers.
  • With a Return On Equity value of 9.12%, IBMA is not doing good in the industry: 62.34% of the companies in the same industry are doing better.
  • Looking at the Return On Invested Capital, with a value of 5.98%, IBMA is doing worse than 61.04% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for IBMA is significantly below the industry average of 11.27%.
  • The last Return On Invested Capital (5.98%) for IBMA is above the 3 year average (4.77%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.53%
ROE 9.12%
ROIC 5.98%
ROA(3y)3.07%
ROA(5y)4.5%
ROE(3y)21.66%
ROE(5y)32.44%
ROIC(3y)4.77%
ROIC(5y)6.3%
IBMA.BR Yearly ROA, ROE, ROICIBMA.BR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 20 40 60

1.3 Margins

  • IBMA's Profit Margin of 3.34% is in line compared to the rest of the industry. IBMA outperforms 46.75% of its industry peers.
  • In the last couple of years the Profit Margin of IBMA has declined.
  • IBMA's Operating Margin of 13.15% is amongst the best of the industry. IBMA outperforms 89.61% of its industry peers.
  • IBMA's Operating Margin has declined in the last couple of years.
  • The Gross Margin of IBMA (54.64%) is worse than 64.94% of its industry peers.
  • In the last couple of years the Gross Margin of IBMA has grown nicely.
Industry RankSector Rank
OM 13.15%
PM (TTM) 3.34%
GM 54.64%
OM growth 3Y-4.1%
OM growth 5Y-5.73%
PM growth 3Y-45.07%
PM growth 5Y-17.92%
GM growth 3Y-0.39%
GM growth 5Y2.96%
IBMA.BR Yearly Profit, Operating, Gross MarginsIBMA.BR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30 40 50

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3

2. IBMA.BR Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IBMA is destroying value.
  • IBMA has more shares outstanding than it did 1 year ago.
  • The debt/assets ratio for IBMA is higher compared to a year ago.
IBMA.BR Yearly Shares OutstandingIBMA.BR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M
IBMA.BR Yearly Total Debt VS Total AssetsIBMA.BR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 50B 100B 150B

2.2 Solvency

  • An Altman-Z score of 3.02 indicates that IBMA is not in any danger for bankruptcy at the moment.
  • IBMA has a better Altman-Z score (3.02) than 67.53% of its industry peers.
  • The Debt to FCF ratio of IBMA is 5.58, which is a neutral value as it means it would take IBMA, 5.58 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of IBMA (5.58) is comparable to the rest of the industry.
  • IBMA has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
  • IBMA has a worse Debt to Equity ratio (2.28) than 92.21% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 5.58
Altman-Z 3.02
ROIC/WACC0.62
WACC9.71%
IBMA.BR Yearly LT Debt VS Equity VS FCFIBMA.BR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B 40B 50B

2.3 Liquidity

  • IBMA has a Current Ratio of 1.06. This is a normal value and indicates that IBMA is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of IBMA (1.06) is worse than 64.94% of its industry peers.
  • IBMA has a Quick Ratio of 1.01. This is a normal value and indicates that IBMA is financially healthy and should not expect problems in meeting its short term obligations.
  • IBMA has a Quick ratio of 1.01. This is in the lower half of the industry: IBMA underperforms 64.94% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 1.01
IBMA.BR Yearly Current Assets VS Current LiabilitesIBMA.BR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B 40B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. IBMA.BR Growth Analysis

3.1 Past

  • IBMA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.58%.
  • Measured over the past years, IBMA shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.75% on average per year.
  • The Revenue has been growing slightly by 1.42% in the past year.
  • The Revenue has been decreasing by -5.22% on average over the past years.
EPS 1Y (TTM)-6.58%
EPS 3Y-10.71%
EPS 5Y-7.75%
EPS Q2Q%-5.63%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y1.6%
Revenue growth 5Y-5.22%
Sales Q2Q%-0.39%

3.2 Future

  • IBMA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.75% yearly.
  • Based on estimates for the next years, IBMA will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
EPS Next Y5.97%
EPS Next 2Y5.66%
EPS Next 3Y5.28%
EPS Next 5Y6.75%
Revenue Next Year3.22%
Revenue Next 2Y3.73%
Revenue Next 3Y4.15%
Revenue Next 5Y3.37%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
IBMA.BR Yearly Revenue VS EstimatesIBMA.BR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B 80B
IBMA.BR Yearly EPS VS EstimatesIBMA.BR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15

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3

4. IBMA.BR Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 17.12 indicates a rather expensive valuation of IBMA.
  • The rest of the industry has a similar Price/Earnings ratio as IBMA.
  • IBMA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
  • The Price/Forward Earnings ratio is 15.04, which indicates a correct valuation of IBMA.
  • The rest of the industry has a similar Price/Forward Earnings ratio as IBMA.
  • IBMA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
Industry RankSector Rank
PE 17.12
Fwd PE 15.04
IBMA.BR Price Earnings VS Forward Price EarningsIBMA.BR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, IBMA is valued a bit more expensive than 70.13% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, IBMA is valued a bit cheaper than the industry average as 64.94% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.55
EV/EBITDA 14.01
IBMA.BR Per share dataIBMA.BR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.87
PEG (5Y)N/A
EPS Next 2Y5.66%
EPS Next 3Y5.28%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. IBMA.BR Dividend Analysis

5.1 Amount

  • IBMA has a Yearly Dividend Yield of 4.69%, which is a nice return.
  • Compared to an average industry Dividend Yield of 2.88, IBMA pays a better dividend. On top of this IBMA pays more dividend than 89.61% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, IBMA pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.69%

5.2 History

  • The dividend of IBMA has a limited annual growth rate of 2.27%.
Dividend Growth(5Y)2.27%
Div Incr Years0
Div Non Decr Years0
IBMA.BR Yearly Dividends per shareIBMA.BR Yearly Dividends per shareYearly Dividends per share 2023 1 2 3 4

5.3 Sustainability

  • 296.05% of the earnings are spent on dividend by IBMA. This is not a sustainable payout ratio.
  • The dividend of IBMA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP296.05%
EPS Next 2Y5.66%
EPS Next 3Y5.28%
IBMA.BR Yearly Income VS Free CF VS DividendIBMA.BR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 5B 10B
IBMA.BR Dividend Payout.IBMA.BR Dividend Payout, showing the Payout Ratio.IBMA.BR Dividend Payout.PayoutRetained Earnings

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IBMA.BR Fundamentals: All Metrics, Ratios and Statistics

International Business Machines Corp

EBR:IBMA (9/26/2023, 7:00:00 PM)

145

-0.35 (-0.24%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)N/A
Earnings (Next)N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap132.10B
Revenue(TTM)60.52B
Net Income(TTM)2.02B
Analysts70
Price Target148.92 (2.7%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.69%
Yearly Dividend6.59
Dividend Growth(5Y)2.27%
DP296.05%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.24%
Min EPS beat(2)7.03%
Max EPS beat(2)7.45%
EPS beat(4)3
Avg EPS beat(4)3.64%
Min EPS beat(4)-0.93%
Max EPS beat(4)7.45%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-1.62%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)3.4%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.57%
PT rev (3m)3.7%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.4%
Valuation
Industry RankSector Rank
PE 17.12
Fwd PE 15.04
P/S 2.31
P/FCF 13.55
P/OCF 11.36
P/B 6.29
P/tB N/A
EV/EBITDA 14.01
EPS(TTM)8.47
EY5.84%
EPS(NY)9.64
Fwd EY6.65%
FCF(TTM)10.7
FCFY7.38%
OCF(TTM)12.76
OCFY8.8%
SpS62.9
BVpS23.07
TBVpS-46.43
PEG (NY)2.87
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 1.53%
ROE 9.12%
ROCE 7.98%
ROIC 5.98%
ROICexc 7.15%
ROICexgc 36.11%
OM 13.15%
PM (TTM) 3.34%
GM 54.64%
FCFM 17.02%
ROA(3y)3.07%
ROA(5y)4.5%
ROE(3y)21.66%
ROE(5y)32.44%
ROIC(3y)4.77%
ROIC(5y)6.3%
ROICexc(3y)5.25%
ROICexc(5y)7.05%
ROICexgc(3y)20.28%
ROICexgc(5y)21.53%
ROCE(3y)6.36%
ROCE(5y)8.53%
ROICexgc growth 3Y15.88%
ROICexgc growth 5Y0.98%
ROICexc growth 3Y4.35%
ROICexc growth 5Y-12.77%
OM growth 3Y-4.1%
OM growth 5Y-5.73%
PM growth 3Y-45.07%
PM growth 5Y-17.92%
GM growth 3Y-0.39%
GM growth 5Y2.96%
F-Score6
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 5.58
Debt/EBITDA 4.09
Cap/Depr 44.48%
Cap/Sales 3.27%
Interest Coverage 250
Cash Conversion 98.97%
Profit Quality 508.84%
Current Ratio 1.06
Quick Ratio 1.01
Altman-Z 3.02
F-Score6
WACC9.71%
ROIC/WACC0.62
Cap/Depr(3y)44.15%
Cap/Depr(5y)53.78%
Cap/Sales(3y)4.65%
Cap/Sales(5y)4.79%
Profit Quality(3y)319.59%
Profit Quality(5y)242.77%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.58%
EPS 3Y-10.71%
EPS 5Y-7.75%
EPS Q2Q%-5.63%
EPS Next Y5.97%
EPS Next 2Y5.66%
EPS Next 3Y5.28%
EPS Next 5Y6.75%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y1.6%
Revenue growth 5Y-5.22%
Sales Q2Q%-0.39%
Revenue Next Year3.22%
Revenue Next 2Y3.73%
Revenue Next 3Y4.15%
Revenue Next 5Y3.37%
EBIT growth 1Y10.7%
EBIT growth 3Y-2.57%
EBIT growth 5Y-10.65%
EBIT Next Year55.84%
EBIT Next 3Y19.11%
EBIT Next 5Y14.9%
FCF growth 1Y-29.16%
FCF growth 3Y-10.65%
FCF growth 5Y-8.15%
OCF growth 1Y-30.57%
OCF growth 3Y-10.93%
OCF growth 5Y-9%

International Business Machines Corp / IBMA.BR Fundamental Analysis FAQ

What is the ChartMill fundamental rating of International Business Machines Corp (IBMA.BR) stock?

ChartMill assigns a fundamental rating of 4 / 10 to IBMA.BR.


What is the valuation status of International Business Machines Corp (IBMA.BR) stock?

ChartMill assigns a valuation rating of 3 / 10 to International Business Machines Corp (IBMA.BR). This can be considered as Overvalued.


How profitable is International Business Machines Corp (IBMA.BR) stock?

International Business Machines Corp (IBMA.BR) has a profitability rating of 4 / 10.


What is the valuation of International Business Machines Corp based on its PE and PB ratios?

The Price/Earnings (PE) ratio for International Business Machines Corp (IBMA.BR) is 17.12 and the Price/Book (PB) ratio is 6.29.


How financially healthy is International Business Machines Corp?

The financial health rating of International Business Machines Corp (IBMA.BR) is 3 / 10.