Qualtix Stock Brief
International Business Machines Corporation (IBM) stock analysis: business quality, valuation, and entry timing
IBM focuses on hybrid cloud software, including Red Hat, plus consulting and mainframe infrastructure. Its shift toward software is reshaping margins, while debt from past acquisitions remains part of the picture. Public Qualtix model snapshot from 2026-10-26 for IBM: business quality 57/100, a mixed model reading and valuation Fair. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates IBM with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
IBM public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 4.5% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 21.0% | Free cash flow divided by revenue | Qualtix model data |
| Operating margin | 18.0% | Profitability margin | FMP, computed |
| Gross margin | 58.0% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | 12.2% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | 31.4% | Return on equity | FMP, computed |
| Cash and debt | Cash and investments $11.1B / Debt $67.1B | Balance-sheet context | FMP, reported |
| TTM P/E | 21.6x | Price to trailing earnings | FMP, computed |
Qualtix view
- Business quality: 57/100, a mixed model reading.
- Valuation is currently labeled Fair, which the model weighs separately from business quality.
Today's verdict
- Today's model verdict and Entry Timing for IBM update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-09-30.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Beta of 0.72 suggests lower market sensitivity than higher-beta alternatives.
What weakens the current view
- Business quality remains below the model's stronger-company threshold (57/100).
- Valuation is currently labeled Fair, so price still matters.
What changed
- Business Quality was unchanged from the previous snapshot.
What to research next
- Start with the weaker Business Quality signal (57/100): review revenue durability, margins, cash generation, and balance-sheet pressure.
- Compare IBM's Fair valuation label with similar companies before treating price as a clear advantage.
- Compare IBM with ORCL and ACN to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.