International Stock Buy Hold or Sell Recommendation

IBM -  USA Stock  

USD 129.35  1.47  1.12%

Considering the 90-day investment horizon and your way above-average risk tolerance, our recommendation regarding International Business Machines is 'Strong Buy'. 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.

International Advice 

 
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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 Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Barely shadows the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Very StrongDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon International Business Machines has a Risk Adjusted Performance of (0.016549), Jensen Alpha of (0.018991), Total Risk Alpha of 0.0593 and Treynor Ratio of (0.09)
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 25.16 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 58.98 B in debt with debt to equity (D/E) ratio of 2.64, meaning that the company heavily relies on borrowing funds for operations. International Business has a current ratio of 0.82, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
International Business has a strong financial position based on the latest SEC filings
About 58.0% of International Business shares are owned by institutional investors
Latest headline from www.thestreet.com: Wall Street Week Ahead Can Apple, Tesla and Microsoft Throw Stocks An Earnings Lifeline - TheStreet

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 Price145.17
Target Median Price145.00
Target High Price170.00
Recommendation Mean2.50
Number Of Analyst Opinions17
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 Return-0.04Value At Risk-1.6
Potential Upside1.78Standard Deviation1.54
 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 Business Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(3.31 B)(3.72 B)(2.37 B)(3.04 B)(3.5 B)(3.77 B)
Depreciation Amortization and Accretion4.54 B4.48 B6.06 B6.7 B7.7 B6.87 B
Net Cash Flow or Change in Cash and Cash Equivalents4.16 B(630 M)(3.29 B)5.36 B6.17 B6.65 B
Net Cash Flow Business Acquisitions and Disposals(701 M)(139 M)(31.55 B)167 M150.3 M162.17 M
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)(4.27 B)(4.38 B)
Payment of Dividends and Other Cash Distributions(5.51 B)(5.67 B)(5.71 B)(5.8 B)(5.22 B)(5.63 B)
Net Cash Flow from Financing(6.42 B)(10.47 B)9.04 B(9.72 B)(11.18 B)(12.06 B)
Net Cash Flow from Investing(7.08 B)(4.91 B)(26.94 B)(3.03 B)(2.73 B)(2.94 B)
Net Cash Flow Investment Acquisitions and Disposals(3.07 B)(1.06 B)6.99 B(153 M)(175.95 M)(189.84 M)
Net Cash Flow from Operations16.72 B15.25 B14.77 B18.2 B16.38 B15.91 B
Effect of Exchange Rate Changes on Cash937 M(495 M)(167 M)(87 M)(100.05 M)(107.95 M)
Share Based Compensation534 M510 M679 M937 M1.08 B925.09 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
-0.02
β
Beta against DOW0.52
σ
Overall volatility
1.01
Ir
Information ratio 0.0058

International Business Volatility Alert

International Business Machines exhibits very low volatility with skewness of -3.57 and kurtosis of 21.96. However, we advise investors to further study International Business Machines technical indicators to make sure all market info is available and is reliable. 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 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 Equity21.41 %(0.31) %
Return On Asset3.74 %(0.14) %
Profit Margin6.40 %(1.27) %
Operating Margin21.03 %(5.51) %
Current Valuation174.83 B16.62 B
Shares Outstanding896.32 M571.82 M
Shares Owned by Insiders0.13 %10.09 %
Shares Owned by Institutions57.88 %39.21 %
Number of Shares Shorted22.95 M4.71 M
Price to Earning25.16 X28.72 X
Price to Book5.36 X9.51 X
Price to Sales1.60 X11.42 X
Revenue74.46 B9.43 B
Gross Profit35.58 B27.38 B
EBITDA15.66 B3.9 B
Net Income4.68 B570.98 M
Cash and Equivalents8.06 B2.7 B
Cash per Share8.98 X5.01 X
Total Debt58.98 B5.32 B
Debt to Equity2.64 %48.70 %
Current Ratio0.84 X2.16 X
Book Value Per Share24.79 X1.93 K
Cash Flow from Operations16.11 B971.22 M
Short Ratio4.18 X4.00 X
Earnings Per Share5.28 X3.12 X
Price to Earnings To Growth2.07 X4.89 X
Number of Employees345.9 K18.84 K
Beta1.1-0.15
Market Capitalization119.16 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
   Exercise or conversion by Gary Cohn of 5112 shares of International Business subject to Rule 16b-3 [view details]

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 B21.55 B27.9 B
Inventories1.62 B1.84 B2.11 B2.25 B

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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Baby Boomer Prospects Theme
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. Baby Boomer Prospects theme has 98 constituents.
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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When running International Business price analysis, check to measure International Business' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy International Business is operating at the current time. Most of International Business' value examination focuses on studying past and present price action to predict the probability of International Business' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move International Business' price. Additionally, you may evaluate how the addition of International Business to your portfolios can decrease your overall portfolio volatility.
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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.
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.