Bringing the fundamentals into focus…
Back to International Business Machines Corporation
How International Business Machines Corporation stacks up
IBM · against 31 other Technology companies of similar size
Profitability
68/ 100
Near the bottom of its peers.
Ranked #28 of 32 · scores higher than 13% of peers
Bars: peers in each 10-point band of the profitability score1 peers with a profitability score of 60–69, including IBM · Click a bar to see the companies
Why profitability scores 68?
Weighted metrics compared with all Technology companies.Mainly thanks to its return on assets and operating margin, which are stronger than most Technology peers.
- Return on invested capital is close to the peer norm. Return on invested capital: 8.4% vs peer median 6.8%
- a wider operating margin: stronger than 76% of peers. Operating margin: 14.7% vs peer median 6.3%
- a higher return on assets: stronger than 77% of peers. Return on assets: 7.1% vs peer median 2.9%
Metric by metric
Position: dot = IBM, ranked from the worst peer (left) to the best (right); tick = middle, shaded = middle half of peers.| Metric | IBM | Peer median | Better than | Position among peers | Weight |
|---|---|---|---|---|---|
| Return on invested capitalHigher is better · 32 reported | 8.4% | 20.6% | 16% | 33% | |
| Operating marginHigher is better · 32 reported | 14.7% | 25.9% | 23% | 33% | |
| Return on assetsHigher is better · 31 reported | 7.1% | 11.4% | 20% | 33% | |
| Return on equityHigher is better · 30 reported | 34.5% | 32.6% | 55% | Context only | |
| Gross marginHigher is better · 32 reported | 58.1% | 58.2% | 48% | Context only |
Ranking by profitability score
Top 5 and the companies ranked around IBM| Rank | Company | Market cap | Profitability | Overall |
|---|---|---|---|---|
| 1 | 25.82T JPY (≈$175.6B) | 99 | 73 | |
| 1 | 181.7B EUR (≈$199.8B) | 99 | 56 | |
| 1 | 203.8B USD | 99 | 56 | |
| 1 | 288.7B USD | 99 | 63 | |
| 1 | 164.9B USD | 99 | 89 | |
| 24 | 185.0B USD | 80 | 66 | |
| 25 | 216.3B USD | 77 | 64 | |
| 25 | 182.9B USD | 77 | 58 | |
| 27 | 154.6B USD | 73 | 58 | |
| 28 | 235.6B USD | 68 | 52 | |
| 29 | 148.4B USD | 52 | 50 | |
| 30 | 286.5B USD | 35 | 39 | |
| 31 | 320.1B USD | 20 | 28 | |
| 32 | 250.5B USD | 19 | 43 |
Scores are sector-relative percentiles from the latest snapshot, always calculated against the whole sector: narrowing the comparison group changes who you compare with, not the scores. Missing metrics are left out and the remaining weights rescaled. How we score