Technology · NYSE/NASDAQ: IBM
INTERNATIONAL BUSINESS MACHINES CORP
Information Technology Services
Market Cap $252.56B
Verdict: Average
Quality Scores
Multi-Bagger
52/100
Compounder Quality
75/100
Management Credibility
74/100
Governance
85/100
Cash Flow Quality
88/100
AI Summary
IBM has undergone a massive structural transformation over the last decade, culminating in the 2021 spin-off of its legacy infrastructure business, Kyndryl. While headline revenue appears to have declined significantly from $79.92B in 2016 to $67.53B in 2025, the underlying portfolio has shifted from hardware-weighted to a high-margin Hybrid Cloud and AI focus. The company maintains robust cash flow generation, consistently producing operating cash flows between $13B and $18B. A major inflection point was the $34B Red Hat acquisition in 2019, which fundamentally reset the growth trajectory.…
Top Opportunities
- Consistent positive Cash Flow from Operations
- Successful integration of Red Hat as growth engine
- High percentage of recurring software revenue
Top Risks
- Negative 10-year revenue CAGR
- Intense competition from hyperscalers (AWS, Azure)
- Legacy hardware segment (Z-systems) cyclicality
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