International Business Machines Corporation (IBM) on Decifer

Decifer ranks IBM number 49 of 265 tracked names on durable business quality.

Why it ranks here

• It earns solid returns on the money it puts to work, around 10% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 8% a year, profits grew 74% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• We do not have a clean read on how it is run yet.
• Our durability check found pressure on this name, which costs it a few points.
• One of 3 enterprise AI suppliers with profits up 74% and a funded role, though momentum of 1 out of 35 keeps it in a waiting period.

The current read

The evidence on IBM lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Enterprise AI Automation: The collapsing cost of generative AI and ML inference is making it economically viable to automate white-collar decision-making and process work at scale.

Read the full IBM research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.