International Business Machines Corp.
IBM
Market Cap$241.59B
Close$
Earnings Call Q4 2024
January 29, 2025 - AI Summary
Strong Financial Performance: IBM generated $63 billion in revenue for the full year 2024, with operating pre-tax income of $11.2 billion and a free cash flow of $12.7 billion, marking an increase of 14% year-over-year. Revenue growth was 3% overall, with Software leading at 9% growth, driven in part by Red Hat, which grew 17%.
2025 Revenue Guidance: IBM expects revenue growth to inflect to over 5% in constant currency for 2025, with a strong focus on Software continuing to approach double-digit growth. Consulting revenue is anticipated to accelerate to low single-digit growth from a challenging environment in 2024, while Infrastructure is expected to contribute positively again following the upcoming launch of z17 in 2025.
Significant Free Cash Flow Outlook: The company forecasts approximately $13.5 billion in free cash flow for 2025. This is bolstered by a solid business foundation, with double-digit adjusted EBITDA growth anticipated to drive this cash generation.
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$379.77
44.5% upside
Current Fair Value
44.5% upsideUndervalued by 44.5% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $241.59 Billion |
|---|---|
| Enterprise Value | $301.98 Billion |
| Dividend Yield | $6.68 (2.55664421310472%) |
| Earnings per Share | $6.53 |
| Beta | 0.71 |
| Outstanding Shares | 926,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 40.16 |
|---|---|
| PEG | -354.04 |
| Price to Sales | 3.92 |
| Price to Book Ratio | 9.06 |
| Enterprise Value to Revenue | 4.81 |
| Enterprise Value to EBIT | 50.26 |
| Enterprise Value to Net Income | 50 |
| Total Debt to Enterprise | 0.25 |
| Debt to Equity | 2.72 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About International Business Machines Corp.
CEO: Virginia Rometty