The share price of International Business Machines Corporation [NYSE: IBM] inclined by $155.31, presently trading at $154.31. The company’s shares saw 21.65% gains compared to the lowest price in the period of the last 52 weeks, set at $126.85 recorded on 02/13/20. The last few days have been tough to the share price as IBM fall by -1.56% during the last week, even though the stock is still down by -0.83% compared to -2.45 of all time high it touched on 02/12/20. However, the stock had a strong performance during the past 3 months, roughly gaining 13.61%, while additionally gaining 12.21% during the last 12 months. International Business Machines Corporation is said to have a 12-month price target set at $149.94. That means that the stock has a strong potential to acquire -4.37% decrease from the current trading price.
International Business Machines Corporation [NYSE:IBM]: Analyst Rating and Earnings
Its stock price has been found in the range of 126.85 to 158.75. This is compared to its latest closing price of $155.31.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Tue 21 Apr (In 68 Days).
Fundamental Analysis of International Business Machines Corporation [IBM]
Now let’s turn to look at profitability: with a current Operating Margin for International Business Machines Corporation [IBM] sitting at +12.83 and its Gross Margin at +47.30, this company’s Net Margin is now 11.30%. These measurements indicate that International Business Machines Corporation [IBM] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 13.03, and its Return on Invested Capital has reached 17.20%. Its Return on Equity is 50.14, and its Return on Assets is 6.85. These metrics all suggest that International Business Machines Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, International Business Machines Corporation [IBM] has generated a Total Debt to Total Equity ratio of 327.04. Similarly, its Total Debt to Total Capital is 76.58, while its Total Debt to Total Assets stands at 44.79. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 7.36, and its Long-Term Debt to Total Capital is 278.21.
What about valuation? This company’s Enterprise Value to EBITDA is 12.22 and its Total Debt to EBITDA Value is 3.94. The Enterprise Value to Sales for this firm is now 2.53, and its Total Debt to Enterprise Value stands at 0.38.
Similarly, this company’s Receivables Turnover is 2.82 and its Total Asset Turnover is 0.56. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.93 and its Current Ratio is 0.97. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
International Business Machines Corporation [IBM] has 904.98M shares outstanding, amounting to a total market cap of $139.65B. Its stock price has been found in the range of 126.85 to 158.75. At its current price, it has moved down by -2.80% from its 52-week high, and it has moved up 21.65% from its 52-week low.
This stock’s Beta value is currently 1.35, which indicates that it is 1.50% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 68.28. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is International Business Machines Corporation [IBM] a Reliable Buy?
Shares of International Business Machines Corporation [IBM], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.