IBM Fundamentals
What does the company do?
International Business Machines Corporation (IBM), is an information technology (IT) company. The Company's major operations include Global Technology Services segment (GTS), Global Business Services segment (GBS), Software segment, Systems and Technology segment, and Global Financing segment. On January 31, 2008, the Company acquired 100% of Cognos, Inc. On April 3, 2008, IBM acquired 100% of Telelogic, AB. In July 2008, the Company acquired Platform Solutions, Inc. In December 2008, its internal global logistics operations were acquired by SNCF Transport and logistics division of Geodis. In July 2009, IBM acquired Ounce Labs, Inc., a privately held company based in Waltham, Massachusetts, whose software helps companies to reduce the risks and costs associated with security and compliance concerns. In August 2009, the Company announced the launch of its China Analytics Solution Center, part of a network of global centers.


How much does the company sell and earn?
Investors need to know how much stuff or services a company sells, and how much of that total it keeps as income (or profit) to grow its business or return to shareholders. The more of each, the better. In general, look for companies that sell and earn more than peers.

  • IBM one-year sales: 95.53 Bil.
    Difference from the average for the Diversified Computer Systems group: -2.52%
  • IBM one-year income: 13.04 Bil.
    Difference from the average for the Diversified Computer Systems group: 30.83%

    Sales & Income (past 12 months)CompanyIndustry
    Sales95.53 Bil 98.00 Bil 
    Income13.04 Bil 9.97 Bil 


How fast is the company growing?

  • IBM one-year sales growth: 37.60%.
    Difference from the average for the Diversified Computer Systems group: 31.60 pct. pts.
  • IBM one-year income growth: 67.50%.
    Difference from the average for the Diversified Computer Systems group: 38.40 pct. pts.

    Sales & Income Growth (past 12 months)CompanyIndustry
    Sales Growth 37.60%  6.00% 
    Income Growth 67.50%  29.10% 


How profitable is the company?
Investors prefer companies that increase profit margins -- the percentage of sales that they keep -- every year. This is accomplished either by lowering expenses or raising prices. Look for companies that consistently find ways to squeeze more profits out of sales than their peers.

  • IBM one-year net profit margin: 13.7%
    Difference from the company's 5-year average net profit margin: 3.8 pct. pts.
    Difference from the average for the Diversified Computer Systems group: 3.5 pct. pts.

    Net profit margins (%)
    Company13.7% 
    Company 5-Yr Avg.9.9% 
    Industry10.2% 


How is the company's financial health?
The debt/equity ratio shows how much a firm has borrowed as a percentage of its stock equity. The lower, the better.

  • IBM debt/equity ratio: 1.38.
    Difference from the average for the Diversified Computer Systems group: 42.27%.

     CompanyIndustry
    Debt/equity ratio1.38 0.97 

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