IBM Corp. (IBM) 10-K Red Flags
Risk signals extracted deterministically from IBM Corp.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (12)
- Material weakness in internal controls: The term "material weakness" appears in 19 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 1.86x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Goodwill is 48% of total assets: Goodwill of $74.71B represents a large share of the balance sheet. If acquired businesses underperform, a non-cash impairment charge could materially impact earnings. Monitor segment performance and acquisition integration metrics.
- Endogenous analysis: 1 positive signal(s) versus 1 risk signal(s). The filing exhibits more constructive indicators than concerns, though individual risk factors should still be monitored.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- Ongoing high-severity risk language: Material weakness in internal controls.
- Market cap $272.12B at $289.52 per share.
- Trailing P/E 35.57, P/S 4.40, P/B 8.25.
- Composite risk: Elevated.
- Leverage debt/equity 1.91 (moderate).
- Material weakness in internal controls: The term "material weakness" appears in 19 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 1.86x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
Filings & ownership
- Latest annual report (10-K) filed Feb 24, 2026.
- Latest quarterly report (10-Q) filed Apr 23, 2026.
- 10 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~7640 recent 13F-HR filings reference IBM Corp.; broad institutional reporting.
- Recent filers include PROVIDENT INVESTMENT ADVISORS INC, ORG Wealth Partners, LLC, PROVIDENT INVESTMENT ADVISORS INC.
- 1 recent 13D activist/beneficial-ownership filings — potential catalyst.
- 3 recent 13G passive institutional ownership notices.
Full IBM analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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