International Stock Buy Hold or Sell Recommendation

IBM
 Stock
  

USD 134.01  1.47  1.11%   

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.
  
The advice is provided from International Business' buy-and-hold perspective. Please see 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. We conduct extensive research on individual companies such as International and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards International Business Machines.

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

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon International Business Machines has a Risk Adjusted Performance of 0.0754, Jensen Alpha of 0.037, Total Risk Alpha of (0.006846), Sortino Ratio of 0.0025 and Treynor Ratio of 0.1395
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, market capitalization, as well as the relationship between the cash and equivalents and earnings per share . Given that International Business has a price to earning of 24.51 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 53.38 B in debt with debt to equity (D/E) ratio of 2.74, meaning that the company heavily relies on borrowing funds for operations. International Business has a current ratio of 0.86, 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 57.0% of International Business shares are owned by institutional investors
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International Business current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. International analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. International analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price142.79
Target Median Price143.00
Target High Price160.00
Recommendation Mean2.70
Number Of Analyst Opinions19
Target Low Price115.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

International Business Returns Distribution Density

The distribution of International Business' historical returns is an attempt to chart the future uncertainty of International Business' future price movements. The chart of the probability distribution of International Business stock 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 stock.
Mean Return0.09Value At Risk-2.47
Potential Upside2.09Standard Deviation1.45
   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 originate 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.
Security TypeSharesValue
Vanguard Group IncCommon Shares77.4 M10.9 B
Blackrock IncCommon Shares69.8 M9.8 B
Geode Capital Management LlcCommon Shares15.3 M2.2 B
Northern Trust CorpCommon Shares10.7 M1.5 B
Jpmorgan Chase CoCommon Shares10.4 M1.5 B
Bank Of America CorpCommon SharesM1.3 B
Fmr LlcCommon Shares5.1 M721.1 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

201720182019202020212022 (projected)
Capital Expenditure(3.31 B)(3.72 B)(2.37 B)(3.04 B)(2.38 B)(2.57 B)
Depreciation Amortization and Accretion4.54 B4.48 B6.06 B6.7 B6.42 B6.28 B
Net Cash Flow or Change in Cash and Cash Equivalents4.16 B(630 M)(3.29 B)5.36 B(6.72 B)(6.89 B)
Net Cash Flow Business Acquisitions and Disposals(701 M)(139 M)(31.55 B)167 M(3.18 B)(3.43 B)
Issuance Purchase of Equity Shares(3.5 B)(4.34 B)(4.44 B)(1.36 B)(1.57 B)(1.69 B)
Issuance Repayment of Debt Securities3.45 B(301 M)16.28 B(3.71 B)(8.12 B)(8.33 B)
Payment of Dividends and Other Cash Distributions(5.51 B)(5.67 B)(5.71 B)(5.8 B)(5.87 B)(6.33 B)
Net Cash Flow from Financing(6.42 B)(10.47 B)9.04 B(9.72 B)(13.35 B)(14.41 B)
Net Cash Flow from Investing(7.08 B)(4.91 B)(26.94 B)(3.03 B)(5.97 B)(6.45 B)
Net Cash Flow Investment Acquisitions and Disposals(3.07 B)(1.06 B)6.99 B(153 M)(414 M)(424.89 M)
Net Cash Flow from Operations16.72 B15.25 B14.77 B18.2 B12.8 B13.85 B
Effect of Exchange Rate Changes on Cash937 M(495 M)(167 M)(87 M)(185 M)(199.61 M)
Share Based Compensation534 M510 M679 M937 M982 M893.95 M

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 Technology 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 stock's 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 DOW
0.036963
β
Beta against DOW0.54
σ
Overall volatility
1.45
Ir
Information ratio 0.003

International Business Volatility Alert

International Business Machines has relatively low volatility with skewness of -1.03 and kurtosis of 2.18. However, we advise all investors to independently investigate International Business Machines to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. 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 bullying 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 stocks as prices fall.

International Business Implied Volatility

International Business' implied volatility" href="/stock-options/IBM/International-Business-Machines">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" href="/stock-options/IBM/International-Business-Machines">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" href="/stock-options/IBM/International-Business-Machines">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 Equity27.09 %(0.31) %
Return On Asset3.00 %(0.14) %
Profit Margin9.36 %(1.27) %
Operating Margin20.37 %(5.51) %
Current Valuation164.01 B16.62 B
Shares Outstanding896.32 M571.82 M
Shares Owned by Insiders0.09 %10.09 %
Shares Owned by Institutions56.94 %39.21 %
Number of Shares Shorted22.41 M4.71 M
Price to Earning24.51 X28.72 X
Price to Book5.22 X9.51 X
Price to Sales1.94 X11.42 X
Revenue59.68 B9.43 B
Gross Profit31.49 B27.38 B
EBITDA12.16 B3.9 B
Net Income5.63 B570.98 M
Cash and Equivalents7.56 B2.7 B
Cash per Share8.37 X5.01 X
Total Debt53.38 B5.32 B
Debt to Equity2.74 %48.70 %
Current Ratio0.88 X2.16 X
Book Value Per Share24.79 X1.93 K
Cash Flow from Operations9.83 B971.22 M
Short Ratio4.47 X4.00 X
Earnings Per Share5.28 X3.12 X
Price to Earnings To Growth1.54 X4.89 X
Number of Employees282.1 K18.84 K
Beta0.93-0.15
Market Capitalization116.05 B19.03 B
Total Asset110.5 B29.47 B
Retained Earnings161.45 B9.33 B
Working Capital8.23 B1.48 B
Current Asset42.5 B9.34 B
   Acquisition by Del Bene Robert F of tradable 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.
Accumulation Distribution43539.11
Daily Balance Of Power0.6967
Rate Of Daily Change1.01
Day Median Price133.04
Day Typical Price133.36
Market Facilitation Index0.0
Price Action Indicator1.71

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 stock 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. Although International Business investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables23.8 B18.74 B15.77 B24.24 B
Inventories1.62 B1.84 B1.65 B1.99 B

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Please see 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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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 YOY
0.041
Market Capitalization
120.1 B
Quarterly Revenue Growth YOY
0.093
Return On Assets
0.03
Return On Equity
0.27
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 International Business value 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.