IBM: Big Blue Is Fading

Under Virginia ‘Ginni’ Rometty, International Business Machines (IBM) has not performed well. Its revenues, earnings, margins, and returns have declined. Its stock price has underperformed the market.

Source: YCharts

Big Blue has a market capitalization of $142 billion and a dividend yield of 3.95%. It has a trailing P/E ratio of 12.51 and a forward P/E ratio of 10.91. The two are below the Dow Jones Industrial Average (DJIA) of 23.11 and 14.64, respectively. Among the 30 companies in the index, IBM has the lowest forward P/E ratio, the 4th lowest dividend yield, and the 10th lowest payout ratio.

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