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Upturn AI SWOT - About
IBM 
International Business Machines (IBM)
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Upturn Advisory Summary
04/01/2025: IBM (5-star) is a SELL. SELL since 3 days. Profits (8.01%). Updated daily EoD!
Upturn Star Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 60.62% | Avg. Invested days 58 | Today’s Advisory SELL |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 232.13B USD | Price to earnings Ratio 38.99 | 1Y Target Price 254.51 |
Price to earnings Ratio 38.99 | 1Y Target Price 254.51 | ||
Volume (30-day avg) 4797075 | Beta 0.73 | 52 Weeks Range 157.33 - 266.45 | Updated Date 04/1/2025 |
52 Weeks Range 157.33 - 266.45 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 2.69% | Basic EPS (TTM) 6.42 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 9.6% | Operating Margin (TTM) 19.67% |
Management Effectiveness
Return on Assets (TTM) 3.06% | Return on Equity (TTM) 24.06% |
Valuation
Trailing PE 38.99 | Forward PE 22.99 | Enterprise Value 275936352872 | Price to Sales(TTM) 3.7 |
Enterprise Value 275936352872 | Price to Sales(TTM) 3.7 | ||
Enterprise Value to Revenue 4.4 | Enterprise Value to EBITDA 22.66 | Shares Outstanding 927264000 | Shares Floating 925289259 |
Shares Outstanding 927264000 | Shares Floating 925289259 | ||
Percent Insiders 0.12 | Percent Institutions 64.07 |
Analyst Ratings
Rating 3.26 | Target Price 218.59 | Buy 2 | Strong Buy 5 |
Buy 2 | Strong Buy 5 | ||
Hold 8 | Sell 1 | Strong Sell 3 | |
Strong Sell 3 |
Upturn AI SWOT
International Business Machines
Company Overview
History and Background
International Business Machines (IBM) was founded in 1911 as the Computing-Tabulating-Recording Company (CTR). It rebranded as IBM in 1924. IBM has played a crucial role in the development of computing technology, from mainframes to personal computers and now cloud computing and AI.
Core Business Areas
- Consulting: IBM Consulting helps businesses transform through technology and business process expertise.
- Software: IBM Software includes middleware, operating systems, and applications that enable digital transformation.
- Infrastructure: IBM Infrastructure provides hybrid cloud platforms, servers, and storage solutions.
- Financing: IBM provides financing solutions to businesses and its clients.
Leadership and Structure
Arvind Krishna serves as the Chairman and CEO. IBM operates with a global matrix structure organized around business units and geographic regions.
Top Products and Market Share
Key Offerings
- IBM Cloud: IBM Cloud is a hybrid cloud platform offering Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Market share is estimated around 4% of the total cloud market. Key competitors: AWS (AMZN), Microsoft Azure (MSFT), Google Cloud Platform (GOOGL).
- Red Hat: Red Hat provides enterprise open-source solutions, including its flagship Red Hat Enterprise Linux operating system and OpenShift container platform. Market share is difficult to isolate due to its open-source nature but estimates place it as a significant player in enterprise Linux and container platforms. Key competitors: Canonical (Ubuntu), SUSE, VMware (VMW).
- IBM Consulting: IBM Consulting provides consulting services across various industries and technology domains. Revenue is estimated around $20 billion annually. Key competitors: Accenture (ACN), Deloitte, McKinsey & Company.
Market Dynamics
Industry Overview
The IT industry is undergoing rapid digital transformation, driven by cloud computing, artificial intelligence, cybersecurity, and data analytics. The consulting service market is estimated to be worth 750 billion USD with a CAGR of about 7.5% in the coming years.
Positioning
IBM is transitioning from a traditional IT provider to a hybrid cloud and AI-focused company. Its competitive advantages include its deep industry expertise, global reach, and established relationships with enterprise clients.
Total Addressable Market (TAM)
The TAM for hybrid cloud and AI solutions is estimated to be several trillion USD. IBM is positioned to capture a significant share through its hybrid cloud platform, AI capabilities, and consulting services.
Upturn SWOT Analysis
Strengths
- Global Brand Recognition
- Extensive R&D Capabilities
- Strong Enterprise Customer Relationships
- Hybrid Cloud and AI Expertise
- Large Patent Portfolio
Weaknesses
- Legacy Business Dependence
- Revenue Decline in Some Segments
- Complex Organizational Structure
- Slow to Adapt to New Technologies
- High Debt levels
Opportunities
- Growing Demand for Hybrid Cloud Solutions
- Expansion of AI and Data Analytics Applications
- Strategic Acquisitions and Partnerships
- Focus on Cybersecurity Services
- Government IT Spending
Threats
- Intense Competition from Cloud Providers
- Rapid Technological Changes
- Economic Downturns
- Geopolitical Risks
- Cybersecurity Threats
Competitors and Market Share
Key Competitors
- MSFT
- AMZN
- GOOGL
- ACN
- ORCL
Competitive Landscape
IBM faces intense competition from cloud providers like AWS and Azure, consulting firms like Accenture, and software companies like Oracle. IBM's competitive advantage lies in its hybrid cloud expertise, enterprise customer relationships, and its consulting business.
Major Acquisitions
Envizi
- Year: 2022
- Acquisition Price (USD millions): 0
- Strategic Rationale: Acquired to bolster IBM's environmental performance management capabilities.
Red Hat
- Year: 2019
- Acquisition Price (USD millions): 34000
- Strategic Rationale: Acquired to accelerate IBM's hybrid cloud strategy and provide enterprise open-source solutions.
Growth Trajectory and Initiatives
Historical Growth: IBM's growth has been slow in recent years, impacted by the decline of its traditional hardware and software businesses. It has transformed from selling technology to a software focused business.
Future Projections: Analysts expect IBM to achieve modest revenue growth in the coming years, driven by its cloud and AI initiatives. Continued investments in these areas will be crucial for IBM's future growth.
Recent Initiatives: Recent strategic initiatives include acquiring companies in the cloud and AI space, focusing on hybrid cloud solutions, and streamlining its operations.
Summary
IBM is in a transition phase, shifting from legacy hardware and software to hybrid cloud and AI-focused services. While the company has a strong brand and extensive enterprise relationships, it faces stiff competition from cloud providers and requires continued investment in R&D. IBM needs to grow its revenue, but it's dividend policy makes it an attractive investment. Its recent acquisitions and focus on hybrid cloud solutions are promising, but execution is critical.
Similar Companies
ACN
Accenture plc
ACN
Accenture plc
DELL
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DELL
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MSFT
Microsoft Corporation
MSFT
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ORCL
Oracle Corporation
ORCL
Oracle Corporation
SAP
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SAP
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Sources and Disclaimers
Data Sources:
- IBM Investor Relations, Market Research Reports, Analyst Estimates, Company Filings
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market data and analyst estimates are subject to change. Past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About International Business Machines
Exchange NYSE | Headquaters Armonk, NY, United States | ||
IPO Launch date 1962-01-02 | CEO, President & Chairman Mr. Arvind Krishna | ||
Sector Technology | Industry Information Technology Services | Full time employees 270300 | Website https://www.ibm.com |
Full time employees 270300 | Website https://www.ibm.com | ||
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the United States, Europe, the Middle East, Africa, Asia Pacific, and internationally. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. Its Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. Its Financing segment offers client and commercial financing, facilitates IBM clients' acquisition of hardware, software, and services. It has a strategic partnership to various companies including hyperscalers, service providers, global system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
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