International Business Machines Stock Buy Hold or Sell Recommendation

IBM Stock  USD 190.96  0.16  0.08%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding International Business Machines is 'Strong Hold'. Macroaxis provides International Business buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding IBM positions. The advice algorithm takes into account all of International Business' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting International Business' buy or sell advice are summarized below:
Real Value
139.27
Target Price
137.35
Hype Value
191.11
Market Value
190.96
Naive Value
180.49
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell International Business Machines given historical horizon and risk tolerance towards International Business. When Macroaxis issues a 'buy' or 'sell' recommendation for International Business Machines, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out International Business Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as International and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards International Business Machines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Execute International Business Buy or Sell Advice

The International recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on International Business Machines. Macroaxis does not own or have any residual interests in International Business Machines or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute International Business' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell International BusinessBuy International Business
Strong Hold

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon International Business Machines has a Risk Adjusted Performance of 0.1015, Jensen Alpha of 0.084, Total Risk Alpha of (0.1), Sortino Ratio of 0.1342 and Treynor Ratio of 0.1784
Macroaxis provides investment recommendation on International Business to complement and cross-verify current analyst consensus on International Business. Our trade recommendations engine determines the entity's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure International Business Machines is not overpriced, please check out all International Business fundamentals, including its revenue, current ratio, beta, as well as the relationship between the cash and equivalents and earnings per share . Given that International Business has a price to book of 7.67 X, we strongly advise you to confirm International Business market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

International Business Trading Alerts and Improvement Suggestions

The company has 59.94 B in debt with debt to equity (D/E) ratio of 2.67, meaning that the company heavily relies on borrowing funds for operations. International Business has a current ratio of 0.93, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist International Business until it has trouble settling it off, either with new capital or with free cash flow. So, International Business' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like International Business sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for International to invest in growth at high rates of return. When we think about International Business' use of debt, we should always consider it together with cash and equity.
International Business has a strong financial position based on the latest SEC filings
About 61.0% of International Business shares are owned by institutional investors
Latest headline from investorplace.com: 3 Quantum Computing Stocks to Buy for the Next Bull Run March 2024

International Business Returns Distribution Density

The distribution of International Business' historical returns is an attempt to chart the uncertainty of International Business' future price movements. The chart of the probability distribution of International Business daily returns describes the distribution of returns around its average expected value. We use International Business Machines price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of International Business returns is essential to provide solid investment advice for International Business.
Mean Return
0.29
Value At Risk
-2.04
Potential Upside
2.58
Standard Deviation
1.68
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of International Business historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

International Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as International Business is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading International Business Machines backward and forwards among themselves. International Business' institutional investor refers to the entity that pools money to purchase International Business' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Legal & General Group Plc2023-12-31
8.1 M
Ameriprise Financial Inc2023-12-31
M
Charles Schwab Investment Management Inc2023-12-31
6.5 M
California Public Employees Retrmnt Sys2023-12-31
6.4 M
Norges Bank2023-12-31
6.2 M
Royal Bank Of Canada2023-12-31
5.6 M
Ubs Asset Mgmt Americas Inc2023-12-31
5.5 M
Amvescap Plc.2023-12-31
4.5 M
Dimensional Fund Advisors, Inc.2023-12-31
4.5 M
Vanguard Group Inc2023-12-31
82.6 M
Blackrock Inc2023-12-31
75.5 M
Note, although International Business' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

International Business Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory67M(209M)138M71M390M409.5M
Change In Cash(3.2B)5.4B(6.7B)1.0B7.4B7.8B
Free Cash Flow12.4B15.2B10.4B8.6B13.4B10.0B
Depreciation4.5B6.1B6.7B6.4B4.8B4.0B
Other Non Cash Items1.5B3.2B2.0B8.6B1.1B1.2B
Dividends Paid5.7B5.8B5.9B5.9B6.0B3.2B
Capital Expenditures2.4B3.0B2.4B1.9B1.9B3.7B
Net Income9.4B5.6B5.7B1.6B6.9B8.4B
End Period Cash Flow8.2B13.7B7.0B8.0B7.4B9.1B
Investments7.0B(153M)(414M)(4.2B)(11.2B)(10.7B)
Change Receivables1.0B502M5.3B1.4B1.6B1.7B
Net Borrowings16.3B(3.7B)(8.1B)1.2B1.4B1.6B
Change To Netincome(848M)(2.3B)983M4.0B3.6B3.8B

International Business Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to International Business or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that International Business' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a International stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.08
β
Beta against NYSE Composite1.55
σ
Overall volatility
1.73
Ir
Information ratio 0.09

International Business Volatility Alert

International Business Machines has relatively low volatility with skewness of 2.55 and kurtosis of 12.83. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure International Business' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact International Business' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

International Business Implied Volatility

International Business' implied volatility exposes the market's sentiment of International Business Machines stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if International Business' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that International Business stock will not fluctuate a lot when International Business' options are near their expiration.

International Business Fundamentals Vs Peers

Comparing International Business' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze International Business' direct or indirect competition across all of the common fundamentals between International Business and the related equities. This way, we can detect undervalued stocks with similar characteristics as International Business or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of International Business' fundamental indicators could also be used in its relative valuation, which is a method of valuing International Business by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare International Business to competition
FundamentalsInternational BusinessPeer Average
Return On Equity0.34-0.31
Return On Asset0.0471-0.14
Profit Margin0.12 %(1.27) %
Operating Margin0.23 %(5.51) %
Current Valuation219.3 B16.62 B
Shares Outstanding916.75 M571.82 M
Shares Owned By Insiders0.11 %10.09 %
Shares Owned By Institutions60.64 %39.21 %
Number Of Shares Shorted22 M4.71 M
Price To Earning24.45 X28.72 X
Price To Book7.67 X9.51 X
Price To Sales2.79 X11.42 X
Revenue61.86 B9.43 B
Gross Profit32.69 B27.38 B
EBITDA7.51 B3.9 B
Net Income6.92 B570.98 M
Cash And Equivalents7.89 B2.7 B
Cash Per Share10.58 X5.01 X
Total Debt59.94 B5.32 B
Debt To Equity2.67 %48.70 %
Current Ratio0.95 X2.16 X
Book Value Per Share24.63 X1.93 K
Cash Flow From Operations13.43 B971.22 M
Short Ratio4.68 X4.00 X
Earnings Per Share8.14 X3.12 X
Price To Earnings To Growth4.35 X4.89 X
Target Price172.83
Number Of Employees282.2 K18.84 K
Beta0.71-0.15
Market Capitalization172.81 B19.03 B
Total Asset135.24 B29.47 B
Retained Earnings151.28 B9.33 B
Working Capital(1.21 B)1.48 B
Note: Acquisition by Zambrano Lorenzo H of 596 shares of International Business subject to Rule 16b-3 [view details]

International Business Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as International . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About International Business Buy or Sell Advice

When is the right time to buy or sell International Business Machines? Buying financial instruments such as International Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total55.1B54.0B59.9B34.2B
Total Assets132.0B127.2B135.2B112.2B

Use Investing Ideas to Build Portfolios

In addition to having International Business in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether International Business is a strong investment it is important to analyze International Business' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact International Business' future performance. For an informed investment choice regarding International Stock, refer to the following important reports:
Check out International Business Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the International Business information on this page should be used as a complementary analysis to other International Business' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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Is International Business' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of International Business. If investors know International will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about International Business listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.2
Dividend Share
6.63
Earnings Share
8.14
Revenue Per Share
67.888
Quarterly Revenue Growth
0.041
The market value of International Business is measured differently than its book value, which is the value of International that is recorded on the company's balance sheet. Investors also form their own opinion of International Business' value that differs from its market value or its book value, called intrinsic value, which is International Business' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because International Business' market value can be influenced by many factors that don't directly affect International Business' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between International Business' value and its price as these two are different measures arrived at by different means. Investors typically determine if International Business is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, International Business' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.