IBM: BigBlue

Key words: We Make IT Happen, Think., Solutions for a small planet, I think therefore IBM
IBM
International Business Machines Corp. (NYSE:IBM)
Sector / Industry (GICS): Information Technology, IT Services
Employees: 377 757, +175 countries
Fiscal year ends: 31 December
Headquarter: Armonk , New York
Products: Information technology (IT) products and services worldwide.
Rating (long-term): AA- (S&P), Aa3 (Moody’s), A+ (Fitch)
Competitors: HP, Accenture, Infosys, Microsoft, Intel, Symantec, Apple
The company creates value for clients through integrated solutions and products that leverage:

• Data
• Information technology
• Deep expertise in industries and business processes
• A broad ecosystem of partners

IBM solutions create value by enabling new capabilities for clients that transform their businesses.
These solutions include portfolio of consulting and IT implementation services, cloud and cognitive offerings, and enterprise systems and software.

The company’s highly differentiated strategy include:

• Cognitive Solutions
• Cloud Platform
• Industry Focus
Growth is Stable+:
Revenue and Gross profit are on course to decline: $99 751 (2013), $92 793 (2014), $81 741 (2015)
Nevertheless, Gross, Operating and Net margins are stable.

Profitability is Stable+:
The company manages ROA, ROE and Free cash flow margin ratios effectively.

Financial health is Low+:
The company has borrowed a lot of money and thus has a huge leverage.

Valuation: $206.72
Rating (Out of 10): 5.60
Growth: Stable+
Profitability: Stable+
Financial health: Low+
Stock Price: $152.73
Market Cap: $146.03b
Preferred: No
Company’s rating: 5.6
Valuation price: $206.72 => There is 35% upside to the current market price
Last stock splits: 2:1 (10.05.1999), 3:1 (09.05.1997), 4:1 (10.05.1979)
Share repurchase: positive

IBM financial

IBM financial ratios

IBM P/E P/B P/S

History

1911: June 16, International Business Machines was incorporated in the State of New York, as the Computing-Tabulating-Recording (C-T-R)
1915: “THINK” signs, based on the slogan coined by Thomas J. Watson
1924: February 14, C-T-R changed its name to International Business Machines Corporation.
1944: August 7, The IBM Automatic Sequence Controlled Calculator (ASCC) was presented to Harvard University
1980: November 6, IBM asked Microsoft to license and further develop the operating system, which led to the formal contract.
1981: August 12, The IBM Personal Computer debuts
1995: July 5, IBM acquires all of the outstanding shares of the Lotus Development Corporation
1997: May 11, IBM Deep Blue beats Garry Kasparov, marking the first time a computer had defeated a reigning world champion in a traditional match.
2002: The Hard disk drive business is sold to Hitachi
2005: Lenovo purchases IBM’s personal computing division

Disclosure: Billion Trader has no positions in any stocks mentioned, the valuation is based on the own model developed and tested by Billion Trader. Billion Trader is not responsible for any loss arising from information provided.


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