# International Business Machines Corporation (IBM.TO) fundamentals

Data as of 2026-11-04. TSX, Canada. Sector: Technology / IT Services. Price C$36.67, market value C$308.6 billion.

## Valuation
- **P/E (trailing): 21.4×** (5-yr avg 34.6×, 3-yr avg 34.6×). International Business Machines Corporation trades at 21.4× trailing earnings, well below its own five-year average of 34.6×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×.
- **Price / sales: 4.4×**. Each dollar of revenue is priced at 4.4×.
- **Price / book: 0.7×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 20.2×**. Enterprise value is 20.2× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 4.5%** (5-yr avg 3.1%). Free cash flow equals 4.5% of the market value, above its five-year average of 3.1%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 4.7%**. The inverse of the P/E: 4.7% of the price is earned each year.

## Profitability
- **Gross margin: 58.0%**. International Business Machines Corporation keeps 58.0% of revenue after the direct cost of what it sells.
- **Operating margin: 18.3%**. 18.3% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 15.7%**. 15.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 32.4%**. 32.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 15.5%**. Return on all capital, debt included, is 15.5%: comfortably above what that capital costs.
- **Return on assets: 7.4%**. Each dollar of assets produces 7.4% of profit.

## Growth
- **Revenue growth (1 yr): 7.6%** (3-yr 3.7%/yr). Revenue grew 7.6% over the last year.
- **EPS growth (1 yr): 73.7%** (3-yr 83.8%/yr). Earnings per share rose 73.7%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 10.6%/yr**. Free cash flow has compounded at 10.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.98**. Debt is 1.98 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.8×**. It would take 2.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 6.6×**. Operating profit covers interest 6.6× over, a safe margin.
- **Current ratio: 0.96** (quick 0.92). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.61**. A Z-score of 2.61 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. International Business Machines Corporation does not currently pay a dividend, but it returned 0.1% of its market value through buybacks over the last year.

## Price and momentum
- **From 52-week high: -25.5%** (24.3% above the low). Trading 25% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 70**. An RSI of 70 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.76** (volatility 51%). Beta of 0.76 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=IBM.TO · Page: https://foliofundamentals.com/stocks/ibm.to

Not investment advice.