International Business Machines Corp. (NYSE:IBM)
CAPS Rating:
The Company is a globally integrated innovation company, serving the needs of enterprises and institutions worldwide.
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The Company is a globally integrated innovation company, serving the needs of enterprises and institutions worldwide.
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Fool UK
Recs
I have to agree with the wise Nebraskan Sensei (yes I just made that up) on this one. IBM is a wonderful, consistent company at a fair price. My only concern is the lonterm durability of IBM's moat due to being a tech company. Looks great for the medium term at least.
Quality
5 yr avg ROIC 18.7% (93rd percentile), 5 yr avg ROE 59% (98th percenile), 10 yr FCF CAGR 13%, FCF/sales% 15% (cash king). The share count has decreased by about 4.5% per yer for the past 8 years. Reasonable debt level. DIV around 1.6%
Valuation
14x FCF, 14x P/E, 15x EV/FCF, 8.47x 5 yr P/E
I'm conservatively forcasting 12%-15% compounded returns, including reinvested dividends for the next 2-5 years. I got a feeling the S&P ain't gonna keep up with that. Very likely purchasing in RL for my father's portfolio that I manage.