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Undervalued Dividend Growth Stock Analysis: IBM

Intl. Business Machines -- Yield: 3.81%


Intl. Business Machines (NYSE:IBM) employs 379,592 people, generates revenue of $92,793.00 million and has a net income of $15,752.00 million. The current market capitalization stands at $132.10 billion.



International Business Machines Corporation is a technology company. The Company operates in five business segments: Global Technology Services (GTS), which includes Strategic Outsourcing, Integrated Technology Services, Cloud and Technology Support Services, and also provides information technology (IT) infrastructure and business process services; Global Business Services (GBS), which offers its services across Consulting and Systems Integration, Global Process Services and Application Management Services; Software, which consists of middleware and operating systems software; Systems and Technology (STG), which provides infrastructure technologies, and Global Financing, which provides financing solutions for products or services that are critical to the end users' business operations. Its IBM Watson Health Cloud platform collects clinical, research and social data from a range of health sources and creates a cloud-based data sharing hub. More on Reuters.

Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $25,350.00 million. The EBITDA margin is 27.32% (the operating margin is 21.54% and the net profit margin 16.98%).

Financials: The total debt represents 34.72% of Intl. Business Machines assets and the total debt in relation to the equity amounts to 343.82%. Due to the financial situation, a return on equity of 90.89% was realized by Intl. Business Machines.

Twelve trailing months earnings per share reached a value of $14.57. Last fiscal year, Intl. Business Machines paid $4.25 in the form of dividends to shareholders.



Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.34, the P/S ratio is 1.43 and the P/B ratio is finally 11.40. The dividend yield amounts to 3.81%.


Stock Charts:

Long-Term Stock Price Chart of Intl. Business Machines (IBM)
Long-Term Stock Price Chart of Intl. Business Machines (IBM)
Long-Term Dividend Payment History of Intl. Business Machines (IBM)
Long-Term Dividend Payment History of Intl. Business Machines (IBM)
Long-Term Dividend Yield History of Intl. Business Machines (IBM)
Long-Term Dividend Yield History of Intl. Business Machines (IBM)

IBM increased dividends 38 out of the last 51 years. In 2014 the dividend yield was 2.3%. Dividend distributions were in February, May, August and November. The dividend payout ratio is 34%. In the last 10 years, the stock had an annual compounded return of 6.8% including dividends and stock price appreciation. This is 1.3% higher than the S&P 500 return of 5.4%. The company operates in the Technology sector.

These are the main competitors by yield...

HP -- Yield: 4.10%

HP (NYSE:HPQ) employs 302,000 people, generates revenue of $103,355.00 million and has a net income of $4,554.00 million. The current market capitalization stands at $21.81 billion.

HP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,202.00 million. The EBITDA margin is 11.81% (the operating margin is 5.29% and the net profit margin 4.41%).

Financials: The total debt represents 23.08% of HP assets and the total debt in relation to the equity amounts to 88.83%. Due to the financial situation, a return on equity of 16.71% was realized by HP.

Twelve trailing months earnings per share reached a value of $2.48. Last fiscal year, HP paid $0.67 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.92, the P/S ratio is 0.21 and the P/B ratio is finally 0.80. The dividend yield amounts to 4.10%.

Stock Charts:

Long-Term Stock Price Chart of HP (HPQ)
Long-Term Stock Price Chart of HP (HPQ)
Long-Term Dividend Payment History of HP (HPQ)
Long-Term Dividend Payment History of HP (HPQ)
Long-Term Dividend Yield History of HP (HPQ)
Long-Term Dividend Yield History of HP (HPQ)


Cisco Systems -- Yield: 3.14%

Cisco Systems (NASDAQ:CSCO) employs 71,833 people, generates revenue of $49,161.00 million and has a net income of $8,981.00 million. The current market capitalization stands at $136.45 billion.

Cisco Systems’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,696.00 million. The EBITDA margin is 27.86% (the operating margin is 21.91% and the net profit margin 18.27%).

Financials: The total debt represents 22.34% of Cisco Systems assets and the total debt in relation to the equity amounts to 42.47%. Due to the financial situation, a return on equity of 15.44% was realized by Cisco Systems.

Twelve trailing months earnings per share reached a value of $1.87. Last fiscal year, Cisco Systems paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.41, the P/S ratio is 2.76 and the P/B ratio is finally 2.28. The dividend yield amounts to 3.14%.

Stock Charts:

Long-Term Stock Price Chart of Cisco Systems (CSCO)
Long-Term Stock Price Chart of Cisco Systems (CSCO)
Long-Term Dividend Payment History of Cisco Systems (CSCO)
Long-Term Dividend Payment History of Cisco Systems (CSCO)
Long-Term Dividend Yield History of Cisco Systems (CSCO)
Long-Term Dividend Yield History of Cisco Systems (CSCO)


Microsoft -- Yield: 2.62%

Microsoft (NASDAQ:MSFT) employs 118,000 people, generates revenue of $93,580.00 million and has a net income of $12,193.00 million. The current market capitalization stands at $442.13 billion.

Microsoft’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34,129.00 million. The EBITDA margin is 36.47% (the operating margin is 19.21% and the net profit margin 13.03%).

Financials: The total debt represents 20.03% of Microsoft assets and the total debt in relation to the equity amounts to 44.07%. Due to the financial situation, a return on equity of 14.36% was realized by Microsoft.

Twelve trailing months earnings per share reached a value of $1.49. Last fiscal year, Microsoft paid $1.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 37.19, the P/S ratio is 4.69 and the P/B ratio is finally 5.51. The dividend yield amounts to 2.62%.

Stock Charts:

Long-Term Stock Price Chart of Microsoft (MSFT)
Long-Term Stock Price Chart of Microsoft (MSFT)
Long-Term Dividend Payment History of Microsoft (MSFT)
Long-Term Dividend Payment History of Microsoft (MSFT)
Long-Term Dividend Yield History of Microsoft (MSFT)
Long-Term Dividend Yield History of Microsoft (MSFT)


SAP -- Yield: 1.56%

SAP (NYSE:SAP) employs 75,643 people, generates revenue of $19,359.89 million and has a net income of $3,616.20 million. The current market capitalization stands at $95.70 billion.

SAP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,368.04 million. The EBITDA margin is 32.89% (the operating margin is 24.66% and the net profit margin 18.68%).

Financials: The total debt represents 23.77% of SAP assets and the total debt in relation to the equity amounts to 46.87%. Due to the financial situation, a return on equity of 18.46% was realized by SAP.

Twelve trailing months earnings per share reached a value of $2.85. Last fiscal year, SAP paid $1.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.61, the P/S ratio is 4.96 and the P/B ratio is finally 4.35. The dividend yield amounts to 1.56%.

Stock Charts:

Long-Term Stock Price Chart of SAP (SAP)
Long-Term Stock Price Chart of SAP (SAP)
Long-Term Dividend Payment History of SAP (SAP)
Long-Term Dividend Payment History of SAP (SAP)
Long-Term Dividend Yield History of SAP (SAP)
Long-Term Dividend Yield History of SAP (SAP)


Oracle Corporation -- Yield: 1.56%

Oracle Corporation (NYSE:ORCL) employs 132,000 people, generates revenue of $38,226.00 million and has a net income of $9,938.00 million. The current market capitalization stands at $163.93 billion.

Oracle Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $17,150.00 million. The EBITDA margin is 44.86% (the operating margin is 36.29% and the net profit margin 26.00%).

Financials: The total debt represents 36.95% of Oracle Corporation assets and the total debt in relation to the equity amounts to 84.21%. Due to the financial situation, a return on equity of 20.80% was realized by Oracle Corporation.

Twelve trailing months earnings per share reached a value of $2.13. Last fiscal year, Oracle Corporation paid $0.51 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.03, the P/S ratio is 4.30 and the P/B ratio is finally 3.44. The dividend yield amounts to 1.56%.

Stock Charts:

Long-Term Stock Price Chart of Oracle Corporation (ORCL)
Long-Term Stock Price Chart of Oracle Corporation (ORCL)
Long-Term Dividend Payment History of Oracle Corporation (ORCL)
Long-Term Dividend Payment History of Oracle Corporation (ORCL)
Long-Term Dividend Yield History of Oracle Corporation (ORCL)
Long-Term Dividend Yield History of Oracle Corporation (ORCL)

Competitor Stock Performance Comparison