NVIDIA: Earnings Report for the Quarter Ending October 25, 2020

NVIDIA reported (https://tinyurl.com/y4ms3avm) after the market closed on 18 November 2020 it earned $2.12 per diluted share in the quarter that ended on 25 October 2020, up 46% percent from earnings of $1.45 in the equivalent 13 weeks of the previous year. These figures are the earnings determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP), which are described at https://tinyurl.com/yy2nwv8n. 

NVIDIA develops high-speed integrated circuits and cards for demanding data-processing applications, such as gaming, data centers, visualization, and even cryptocurrency mining.  NVIDIA acquired Mellanox Technologies, a maker of computer networking products, for $6.9 billion in April 2020.  It announced in October that it plans to acquire semiconductor-designer Arm Limited for $40 billion. 

Non-GAAP earnings rose 63% to $2.91 per share from $1.78 one year earlier, a percent change much better than seen with the GAAP figures. Non-GAAP earnings, by excluding unusual and non-cash items that could obscure the results of a business's principal, ongoing operations, are intended to be cleaner measures of corporate profits. However, caution is warranted when analyzing these figures because management has considerable leeway in choosing which GAAP-required items to exclude.

The exclusions responsible for the $0.79 per share difference in the latest quarter between GAAP earnings and Non-GAAP earnings were: Stock-based compensation [$0.50 per share], Acquisition-related costs [$0.25 per share], and Legal settlement [$0.03 per share].

Non-GAAP earnings of $2.91 per share in the latest quarter significantly beat the $2.58 average ("consensus") of estimates made by Wall Street analysts. See https://tinyurl.com/y5flwujv for NVIDIA's earnings record and forecasts.

Although NVIDIA's earnings were better than expected, stock market traders still weren't satisfied. The price of the company's shares fell 0.9% during after-hours trading following the report.

Looking deeper into the GAAP results, "top-line" revenue in the October 2020 quarter totaled $4.7 billion, 57% more than last year's $3.0 billion. The Gaming business was responsible for 48% of overall revenue, and this unit's revenue grew by 36.9% compared to the year-earlier result. The Data Center business contributed 40% of revenue, and this unit's revenue grew by 161.7%. The Professional Visualization unit supplied 5% of revenue, and the amount fell by 27.2%.

The gross margin weakened from 63.6% of revenue to 62.6%, a sign that NVIDIA sold its output and services at less profitable prices relative to production costs. Sales, general, and administrative expenses increased from 9.2% to 10.9% of quarterly revenue, which shows the company spent more per dollar of sales on other operational costs, such as marketing. The effective income tax rate fell by 5.4% to 0.9%, which had a positive effect on net income.

NVIDIA's operating activities generated $1.3 billion in cash during the last quarter, down 22.0% from $1.6 billion in the year-earlier period. The cash flow delta was, therefore, much worse than the change in earnings. Notable uses for cash included $99 million to pay dividends to shareholders, $1.4 billion for corporate acquisitions,  and $473 million to acquire property, plant and capital equipment. 

Free cash flow over the last 12 months totaled $4.2 billion, or $6.71 per share using the latest share count. At the current market price per share of $537.15, this translates into a weak Free Cash Flow Yield of 1.2%.

The accompanying charts illustrate several trends in NVIDIA's financial results, taken from data in regulatory filings. The text and the charts are intended to provide some limited historical context for readers interested in the company’s finances. No investment advice is provided, and no investment offer of any kind is made or solicited. The accuracy of the information presented is not guaranteed, and readers are encouraged to independently verify all data.

 #nvidia    #nvda    #gauges  #gcfr  #gcfr2 #valueinvesting   #financialanalysis

Walmart: Earnings Report for the Quarter Ending October 31, 2020

Walmart reported (https://tinyurl.com/y2nm3ozs) before the market opened on 17 November 2020 it earned $1.80 per diluted share in the quarter that ended on 31 October 2020, up 57% percent from earnings of $1.15 in the same 3 months of the previous year. These figures are the earnings determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP). 

Walmart is a large discount retailer known for keeping its costs and prices low.  In addition to its many eponymous storers, Walmart also runs the Sams Club warehouses.  The company has invested heavily to grow the online portion of its business, and this strategy proved to be beneficial when COVID-19 accelerated the transition away from in-store shopping.  Walmart has also done well as a source of consumer staples, which were scarce in the early days of the pandemic.  Walmart has recently been taking steps to reduce its overseas operations.  It announced an agreement to sell its UK subsidiary and business in Argentina.  Walmart also made a deal to sell a majority interest in its subsidiary in Japan.

Adjusted earnings, a non-GAAP figure, rose 16% to $1.34 per share from $1.16 one year earlier, a percent change not as robust as seen with the GAAP figures. Adjusted earnings, by excluding unusual and non-cash items that could obscure the results of a business's principal, ongoing operations, are intended to be cleaner measures of corporate profits. However, caution is warranted when analyzing these figures because management has considerable leeway in choosing which GAAP-required items to exclude.

The principal exclusions contributing to the $0.46 per share difference in the latest quarter between GAAP earnings and Adjusted earnings were: Unrealized gain on equity investments [$0.80 per share], and Loss on sale of Walmart Argentina [($0.34) per share].

Adjusted earnings of $1.34 per share in the latest quarter significantly beat the $1.18 average ("consensus") of estimates made by Wall Street analysts. See https://tinyurl.com/y3tovnud for Walmart's earnings record and forecasts.

Although Walmart's earnings were better than expected, stock market traders still weren't satisfied. The price of the company's shares fell 1.5% during the trading day following the report.

Comparable-store sales, an important industry measure, rose 6.3 percent at Walmart's U.S. stores relative to the year-earlier quarter. Sam's Club comp sales increased 7.9 percent.

Looking deeper into the GAAP results, "top-line" revenue in the October 2020 quarter totaled $134.7 billion, 5% more than last year's $128.0 billion. The Walmart U.S. business was responsible for 66% of overall revenue, and this unit's revenue grew by 6.2% compared to the year-earlier result. The Walmart International business contributed 22% of revenue, and this unit's revenue grew by 1.3%. The Sam's Club unit supplied 12% of revenue, and the amount grew by 8.3%.

The gross margin strengthened from 25.1% of revenue to 25.5%, a sign that Walmart sold its output and services at more profitable prices relative to production costs. Sales, general, and administrative expenses decreased from 21.4% to 21.2% of quarterly revenue, which shows the company spent less per dollar of sales on other operational costs, such as marketing. The effective income tax rate rose by 2.8% to 26.9%, which had a negative effect on net income.

Walmart's operating activities generated $3.9 billion in cash during the last quarter, up 17.0% from $3.4 billion in the year-earlier period. The cash flow delta was, therefore, not as robust as the change in earnings. Notable uses for cash included $1.5 billion to pay dividends to shareholders, $5 million for corporate acquisitions, $463 million to buy back the company's common shares, and $2.9 billion to acquire property, plant and capital equipment. 

Free cash flow over the last 12 months totaled $24.2 billion, or $8.50 per share using the latest share count. At the current market price per share of $150.38, this translates into a decent Free Cash Flow Yield of 5.7%.

The accompanying charts illustrate several trends in Walmart's financial results, taken from data in regulatory filings. The text and the charts are intended to provide some limited historical context for readers interested in the company’s finances. No investment advice is provided, and no investment offer of any kind is made or solicited. The accuracy of the information presented is not guaranteed, and readers are encouraged to independently verify all data.

 #walmart    #wmt    #gauges  #gcfr  #gcfr2 #valueinvesting   #financialanalysis

Archer-Daniels-Midland: Gauge Analysis (updated November 16, 2020)

I have analyzed ADM's financial statements to determine whether the reported figures suggest that the company's shares are a good value and reasonable risk for prudent investors. The way I performed this analysis was inspired by Benjamin Graham's recommendations in "The Intelligent Investor," which was first published in 1949 and is still one of the best-known books about value investing. I modified Graham's specific suggestions to fit modern times; however, the goal is the same: find stocks that are inexpensive relative to the company's strengths and aren't excessively risky.

The analysis evaluates investment suitability by gauging how well the company satisfies seven criteria.  GREEN, YELLOW, and RED grades indicate whether each gauge is fully satisfied, partially satisfied, or not satisfied at all.  An Overall Score between zero and 100, which takes the details of all gauges into account, is also computed.  While the analysis includes both growth and value criteria, the calculation is weighted to favor companies that exhibit good value characteristics over firms that are fast growers but expensive.

An Overall Score of 60 or higher is a good result, and it signifies that the company has enough value-investment appeal to be worth examining in more detail. 

First, a quick review of the company itself.

Chicago-based ADM is a global agribusiness that purchases, transports, stores, processes, and merchandises agricultural commodities (including oilseeds, corn, and wheat) and products (such as vegetable oils, flour, other food ingredients, livestock feed, and biofuels).  In the first quarter of 2019, ADM acquired Neovia and Florida Chemical Company as it seeks to become one of the world’s "leading nutrition companies."  Separately, ADM is creating an independent ethanol subsidiary that it may eventually sell or spin-off.

ADM recorded profits of $2 billion on revenue of $63 billion during the last year. In the quarter that ended on 30 September 2020, ADM earned $0.89 per share (excluding certain items), which significantly beat the $0.71 Wall Street consensus forecast. See https://tinyurl.com/y5v988oj for ADM's most recent quarterly report.

Shares of ADM now trade for about $50 each.  These shares can be found in the Standard and Poors 500, Standard and Poors Dividend Aristocrats, New York Stock Exchange Composite, and Russell 1000 stock indices.

Analysis Results:

ADM's grades on the seven investment criteria are listed below, along with some of the financial figures that influenced these color assignments

1. The Company's Size is Substantial: GREEN

    Market Value: $28.3 billion (large cap)

2. The Company is Conservatively Financed: YELLOW

    Current ratio = 1.6 (>2.0 is conservative)

    Long-term debt/Working Capital = 89% (<150% is conservative)

3. The Company Generates Stable Earnings: GREEN

    Twenty positive quarterly earnings reports in last 5 years (perfect)

    Earnings variability = 17% (moderate)

4. The Company Exhibits Earnings Growth: GREEN

    Owner Earnings growth rate (trailing year) = 27% (very good)

    Owner Earnings growth rate (five-year average) = 12% (good)

    Free Cash Flow growth rate (trailing year) = -5% (poor)

    Free Cash Flow growth rate (five-year average) = 27% (very good)

5. The Company is Efficiently Profitable: RED

    Cash Flow Return On Invested Capital = 12% (decent)

    Operating Profit/Sales = 2.7% (meager)

6. The Company Pays a Healthy Dividend: GREEN

    Dividends paid for the last 7 years or longer

    Dividend 5-year average growth rate = 4.9% (weak)

    Dividend = 33% of last year's FCF (easily sustainable with room to grow)

7. The Company's Shares are Fairly Valued: YELLOW

    Price/Owner Earnings (last year) = 14.7 (appealing)

    Price/GAAP Earnings (five-year average) = 18.4 (moderate to pricey)

    Free Cash Flow/Market Value = 8.5% (appealing, more than the five-year average of 6.2%)

    Acquirer's Multiple = 18.0 (expensive)

    Price/Book Value = 1.5 (about the same as its five-year average)

    Price/Sales = 0.5 (about the same as its five-year average)

In summary, the analysis assigned Archer-Daniels-Midland four GREEN, two YELLOW, and one RED grades.  The resulting Overall Score is 54 of the 100 possible points, which is not high enough.  The score is below the 60-point threshold, and, therefore, ADM does not qualify at this time for consideration.

Check back here occasionally for updates to the Overall Score, which can change when the company releases new financial results and when there's a significant change in the company's share price.

This analysis reported here is not, by any means, a complete evaluation of the subject company, and it does not consider all material facts about the company's operations, finances, or future prospects. The analysis relies on publicly available financial data assumed, but not guaranteed, to be accurate. Readers are encouraged to independently verify all data. Other analytical approaches and screening criteria will be more applicable to investors having different goals, circumstances, and tolerance for investment risk.  The analysis is not and should not be considered investment advice, nor does it constitute an offer or solicitation to buy or sell any security. The author might have a long or short position in the subject company and/or its competitors. The methodology and results are subject to change without notification.

---------------

 #adm        #gauges  #gcfr  #gcfr2 #valueinvesting   #financialanalysis

Cisco Systems: Earnings Report for the Quarter Ending October 24, 2020

Cisco Systems reported (https://tinyurl.com/y5fbct88) after the market closed on 12 November 2020 it earned $0.51 per diluted share in the quarter that ended on 24 October 2020, down 25% percent from earnings of $0.68 in the equivalent 13 weeks of the previous year. These figures are the earnings determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP). 

Founded in 1984, Cisco is a leading seller of products, such as routers and switches, and related services, for connecting devices via the Internet.  The company makes products related to the following technologies: software-defined wide area networks, cloud computing, 5G and WiFi-6, optical networking, next generation silicon, and artificial intelligence.  A frequent acquirer of other companies, Cisco is working to complete the pending purchase of Acacia Communications, Inc., a company that sells high-speed coherent optical interconnect products, for about $2.6 billion.

Non-GAAP earnings fell 10% to $0.76 per share from $0.84 one year earlier, a percent change decline not as steep as seen with the GAAP figures. Non-GAAP earnings, by excluding unusual and non-cash items that could obscure the results of a business's principal, ongoing operations, are intended to be cleaner measures of corporate profits. However, caution is warranted when analyzing these figures because management has considerable leeway in choosing which GAAP-required items to exclude.

The principal exclusions contributing to the $0.25 per share difference in the latest quarter between GAAP earnings and Non-GAAP earnings were: Stock-based compensation [$0.09 per share], Acquisition-related expenses [$0.06 per share], and Asset impairments and restructurings [$0.13 per share].

Non-GAAP earnings of $0.76 per share in the latest quarter beat the $0.70 average ("consensus") of estimates made by Wall Street analysts. See https://tinyurl.com/wjr3ob2 for Cisco's earnings record and forecasts.

Stock market traders reacted positively to Cisco exceeding expectations. The price of the company's shares rose 8.5% during after-hours trading following the report.

Looking deeper into the GAAP results, "top-line" revenue in the October 2020 quarter totaled $11.9 billion, 9% less than last year's $13.2 billion. The Infrastructure Platforms business was responsible for 53% of overall revenue, and this unit's revenue fell by 16.0% compared to the year-earlier result. The Applications business contributed 12% of revenue, and this unit's revenue fell by 8.0%. The Services unit supplied 28% of revenue, and the amount grew by 2.0%.

The gross margin weakened from 64.3% of revenue to 63.6%, a sign that Cisco sold its output and services at less profitable prices relative to production costs. Sales, general, and administrative expenses increased from 22.8% to 23.1% of quarterly revenue, which shows the company spent more per dollar of sales on other operational costs, such as marketing. The effective income tax rate fell by 1.7% to 18.9%, which had a positive effect on net income.

Cisco's operating activities generated $4.1 billion in cash during the last quarter, up 14.2% from $3.6 billion in the year-earlier period. The cash flow delta was, therefore, much better than the change in earnings. Notable uses for cash included $1.5 billion to pay dividends to shareholders, $898 million for corporate acquisitions, $800 million to buy back the company's common shares, and $171 million to acquire property, plant and capital equipment. 

Free cash flow over the last 12 months totaled $15.2 billion, or $3.58 per share using the latest share count. At the current market price per share of $38.67, this translates into a very attractive Free Cash Flow Yield of 9.3%.

The accompanying charts illustrate several trends in Cisco Systems's financial results, taken from data in regulatory filings. The text and the charts are intended to provide some limited historical context for readers interested in the company’s finances. No investment advice is provided, and no investment offer of any kind is made or solicited. The accuracy of the information presented is not guaranteed, and readers are encouraged to independently verify all data.

 #cisco    #csco    #gauges  #gcfr  #gcfr2 #valueinvesting   #financialanalysis

Intel: Gauge Analysis (updated November 10, 2020)

I have analyzed Intel's financial statements to determine whether the reported figures suggest that the company's shares are a good value and reasonable risk for prudent investors. The way I performed this analysis was inspired by Benjamin Graham's recommendations in "The Intelligent Investor," which was first published in 1949 and is still one of the best-known books about value investing. I modified Graham's specific suggestions to fit modern times; however, the goal is the same: find stocks that are inexpensive relative to the company's strengths and aren't excessively risky.

The analysis evaluates investment suitability by gauging how well the company satisfies seven criteria.  GREEN, YELLOW, and RED grades indicate whether each gauge is fully satisfied, partially satisfied, or not satisfied at all.  An Overall Score between zero and 100, which takes the details of all gauges into account, is also computed.  While the analysis includes both growth and value criteria, the calculation is weighted to favor companies that exhibit good value characteristics over firms that are fast growers but expensive.

An Overall Score of 60 or higher is a good result, and it signifies that the company has enough value-investment appeal to be worth examining in more detail. "

First, a quick review of the company itself.

Intel makes semiconductor chips used in computers, servers, and many other devices. Once the clear leader of its industry, the rapid growth of mobile phones benefited competing firms that did a better job producing chips that required less electrical power, a key consideration.  Intel has also lost market share because of delays manufacturing new generations of chips.  These and other factors forced Intel to consider other opportunities.  Intel acquired Altera Corp, a maker of programmable logic devices, in 2015, and Mobileye, which  developed technology for autonomous driving, in 2017.  The Intel Security Group (ISecG) was divested in April 2017. Intel then divested most of its  smartphone modem business in December 2019.  More recently, Intel agreed to sell its NAND memory and storage business to SK hynix for $9 billion.

Intel recorded profits of $22 billion on revenue of $78 billion during the last year. In the quarter that ended on 26 September 2020, Intel earned $1.11 per share (excluding certain items), which matched the $1.11 Wall Street consensus forecast. See https://tinyurl.com/y3hw3vb7 for Intel's most recent quarterly report.

Shares of Intel now trade for about $46 each.  These shares can be found in the Dow Jones Industrial Average, Standard and Poors 500, Standard and Poors 100, NASDAQ 100, and Russell 1000 stock indices.

Analysis Results:

Intel's grades on the seven investment criteria are listed below, along with some of the financial figures that influenced these color assignments

1. The Company's Size is Substantial: GREEN

    Market Value: $192.0 billion (mega-cap)

2. The Company is Conservatively Financed: RED

    Current ratio = 1.7 (>2.0 is conservative)

    Long-term debt/Working Capital = 246% (<150% is conservative)

3. The Company Generates Stable Earnings: GREEN

    Nineteen positive quarterly earnings reports in last 5 years (almost perfect)

    Earnings variability = 8% (modest)

4. The Company Exhibits Earnings Growth: GREEN

    Owner Earnings growth rate (trailing year) = 29% (very good)

    Owner Earnings growth rate (five-year average) = 14% (good)

    Free Cash Flow growth rate (trailing year) = 38% (very good)

    Free Cash Flow growth rate (five-year average) = 16% (good)

5. The Company is Efficiently Profitable: GREEN

    Cash Flow Return On Invested Capital = 33% (very good)

    Operating Profit/Sales = 31.9% (excellent)

6. The Company Pays a Healthy Dividend: GREEN

    Dividends paid for the last 7 years or longer

    Dividend 5-year average growth rate = 7% (fair)

    Dividend = 28% of last year's FCF (easily sustainable with room to grow)

7. The Company's Shares are Fairly Valued: GREEN

    Price/Owner Earnings (last year) = 10.8 (appealing)

    Price/GAAP Earnings (five-year average) = 13.0 (appealing)

    Free Cash Flow/Market Value = 10.6% (very appealing), more than the five-year average of 6.7%)

    Acquirer's Multiple = 8.4 (inexpensive)

    Price/Book Value = 2.6 (less expensive than the five-year average of 2.9)

    Price/Sales = 2.5 (less expensive than the five-year average of 3.1)

In summary, the analysis assigned Intel six GREEN, zero YELLOW, and one RED grades.  The resulting Overall Score is 79 of the 100 possible points, which is an excellent result.  The score is above the 60-point threshold, and, therefore, Intel merits consideration by value investors.

Check back here occasionally for updates to the Overall Score, which can change when the company releases new financial results and when there's a significant change in the company's share price.

This analysis reported here is not, by any means, a complete evaluation of the subject company, and it does not consider all material facts about the company's operations, finances, or future prospects. The analysis relies on publicly available financial data assumed, but not guaranteed, to be accurate. Readers are encouraged to independently verify all data. Other analytical approaches and screening criteria will be more applicable to investors having different goals, circumstances, and tolerance for investment risk.  The analysis is not and should not be considered investment advice, nor does it constitute an offer or solicitation to buy or sell any security. The author might have a long or short position in the subject company and/or its competitors. The methodology and results are subject to change without notification.

---------------

 #intel    #intc    #gauges  #gcfr  #gcfr2 #valueinvesting   #financialanalysis

IBM: Gauge Analysis (updated November 9, 2020)

I have analyzed IBM's financial statements to determine whether the reported figures suggest that the company's shares are a good value and reasonable risk for prudent investors. The way I performed this analysis was inspired by Benjamin Graham's recommendations in "The Intelligent Investor," which was first published in 1949 and is still one of the best-known books about value investing. I modified Graham's specific suggestions to fit modern times; however, the goal is the same: find stocks that are inexpensive relative to the company's strengths and aren't excessively risky.

The analysis evaluates investment suitability by gauging how well the company satisfies seven criteria.  GREEN, YELLOW, and RED grades indicate whether each gauge is fully satisfied, partially satisfied, or not satisfied at all.  An Overall Score between zero and 100, which takes the details of all gauges into account, is also computed.  While the analysis includes both growth and value criteria, the calculation is weighted to favor companies that exhibit good value characteristics over firms that are fast growers but expensive.

An Overall Score of 60 or higher is a good result, and it signifies that the company has enough value-investment appeal to be worth examining in more detail. 

First, a quick review of the company itself.

IBM was the first giant computer company, and it was once one of the largest companies in the world.  When hardware became a commodity product, IBM increased its focus on more-profitable information technology services for businesses.  Always a research powerhouse, the company subsequently developed cloud-computing and artificial intelligence services (e.g., "Deep Blue"), but IBM's annual revenue has been slowly declining for years. IBM started to recreate itself in a more radical way in 2019 by acquiring Red Hat, a leading open-source software firm, for $34 billion.  The next step came when IBM announced in October 2020 it would spin off its managed infrastructure services unit, into a separate company.  This business is currently part of the Global Technology Services division, and it brings in revenue of about $19 billion per year.  

IBM recorded profits of $8 billion on revenue of $75 billion during the last year. In the quarter that ended on 30 September 2020, IBM earned $2.58 per share (excluding certain items), which matched the $2.58 Wall Street consensus forecast. See https://tinyurl.com/y34rev9g for IBM's most recent quarterly report.

Shares of IBM now trade for about $115 each.  These shares can be found in the Dow Jones Industrial Average, Standard and Poors 500, Standard and Poors 100, New York Stock Exchange Composite, and Russell 1000 stock indices.

Analysis Results:

IBM's grades on the seven investment criteria are listed below, along with some of the financial figures that influenced these color assignments

1. The Company's Size is Substantial: GREEN

    Market Value: $103.6 billion (mega-cap)

2. The Company is Conservatively Financed: RED

    Current ratio = 1.0 (>2.0 is conservative)

    Long-term debt/Working Capital = 2978% (<150% is conservative)

3. The Company Generates Stable Earnings: GREEN

    Nineteen positive quarterly earnings reports in last 5 years (almost perfect)

    Earnings variability = 12% (modest)

4. The Company Exhibits Earnings Growth: RED

    Owner Earnings growth rate (trailing year) = -5% (poor)

    Owner Earnings growth rate (five-year average) = -6% (poor)

    Free Cash Flow growth rate (trailing year) = 3% (weak)

    Free Cash Flow growth rate (five-year average) = -1% (poor)

5. The Company is Efficiently Profitable: GREEN

    Cash Flow Return On Invested Capital = 18% (good)

    Operating Profit/Sales = 11.4% (good)

6. The Company Pays a Healthy Dividend: GREEN

    Dividends paid for the last 7 years or longer

    Dividend 5-year average growth rate = 4.8% (weak)

    Dividend = 44% of last year's FCF (sustainable)

7. The Company's Shares are Fairly Valued: YELLOW

    Price/Owner Earnings (last year) = 10.0 (appealing)

    Price/GAAP Earnings (five-year average) = 12.0 (appealing)

    Free Cash Flow/Market Value = 12.8% (very appealing), more than the five-year average of 10.1%)

    Acquirer's Multiple = 17.9 (expensive)

    Price/Book Value = 4.9 (less expensive than the five-year average of 7.4)

    Price/Sales = 1.4 (less expensive than the five-year average of 1.7)

In summary, the analysis assigned IBM four GREEN, one YELLOW, and two RED grades.  The resulting Overall Score is 55 of the 100 possible points, which is a good, but not quite high enough result.  The score is below the 60-point threshold, and, therefore, IBM does not qualify at this time for consideration by value investors.

Check back here occasionally for updates to the Overall Score, which can change when the company releases new financial results and when there's a significant change in the company's share price.

This analysis reported here is not, by any means, a complete evaluation of the subject company, and it does not consider all material facts about the company's operations, finances, or future prospects. The analysis relies on publicly available financial data assumed, but not guaranteed, to be accurate. Readers are encouraged to independently verify all data. Other analytical approaches and screening criteria will be more applicable to investors having different goals, circumstances, and tolerance for investment risk.  The analysis is not and should not be considered investment advice, nor does it constitute an offer or solicitation to buy or sell any security. The author might have a long or short position in the subject company and/or its competitors. The methodology and results are subject to change without notification.

---------------

 #ibm        #gauges  #gcfr  #gcfr2 #valueinvesting   #financialanalysis