IBM underperforms Dow Jones past 3 years

IBM underperforms for years

The stock was the past 3 years with a huge loss of 14 percent one of the worst stocks of America. The past 3 years the average America stock gained around 15 percent. Other underperforming stocks from the sector are Internap Network Services Corp, Moduslink Global Solutions Inc and Hewlett Packard . Also over the past year the company's stock price gained (+4 percent).

Historiscal prices IBM past 10 years

The stock delivered over the past 12 months a profit of 7 percent. In the same period the average stock in the hardware sector booked a profit of 10 percent. On a 5-years basis the stock underperformed her peer group with a loss of 5 percent.Over the past 12 months the average American stock has a profit of 4 percent.

2010 best year, 2009 worst year

The matrix above shows IBM 's historical returns expressed in the different entry years in the left axis.

The year 2009 is (measured since 2008) with a price loss of 22 percent the worst year. The year 2010 is till now with a gain of 56 percent the best year for the stock. Who bought the stock in 2008 (price at that time 108,1 dollars) has now a profit of 50 percent.

Quite high dividend IBM

The average of the dividends estimates is at 5,24 dollars. The dividend yield consequently equals 3,23 percent. The average dividend of the hardware sector equals 1,50 percent.

Historical dividends and dividend returns IBM

The graph above shows the different returns since 2008. The green line represents the total return of the reinvested dividends, the blue line is the price return and the red part is the total return: price return plus dividend return.

Dividends quite significant support for investors

The past year's dividend payments resulted in an even higher total return for the investors. The buy & hold investor who bought the stock in 2008 now has a gain of 50 percent.

Last year's dividends were with 2,16 percent per year tiny. The investor who re-invested his dividends since 2008 now has a rather limited extra dividend return of 19 percent. The influence of the reinvested dividends on the total return is for the buy & hold investor rather insignificant.

Core figures sector hardware

IBM 's book to market equals around 14,77 dollars. The hardware sector now trades with an average Shiller PE of 2.68. Based on the number of outstanding shares IBM 's market capitalization is around 156,49 billion dollars.

Analysts expect less revenue

Tomorrow the the American company IBM will report her results over the past quarter. For this year most of the analyst expect a total sales of 79,53 billion dollars. This is slightly lower than the 2015's revenue of 81,74 billion dollars.

Historical revenues and results IBM plus taxations 2016

The analysts expect for 2016 a net profit of 12,83 billion dollars. For this year most of the analysts expect a profit per share of 13,51 dollars. Based on this the price/earnings-ratio equals 11,99.

The stock IBM is being covered by 16 fundamental analysts. The average target price for the stock is at 139,5 dollars. This is around 14 percent less than the current stock price of 162,04 dollars.

Historiscal prices IBM past 10 years

Monday the stock closed at 162,04 dollars.

This equals 12 times the 2015's earnings per share.

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