KYNDRYL HOLDINGS INC (KD)
US50155Q1004 - Common Stock
KD gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 83 industry peers in the IT Services industry. KD may be in some trouble as it scores bad on both profitability and health. KD is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KD had negative earnings in the past year.
In the past year KD had a positive cash flow from operations.
KD had negative earnings in each of the past 5 years.
KD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of KD (-0.86%) is comparable to the rest of the industry.
KD's Return On Equity of -8.36% is in line compared to the rest of the industry. KD outperforms 44.44% of its industry peers.
With a Return On Invested Capital value of 1.38%, KD perfoms like the industry average, outperforming 50.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.86% | ||
| ROE | -8.36% | ||
| ROIC | 1.38% |
ROA(3y)-10.92%
ROA(5y)-11.74%
ROE(3y)-73.36%
ROE(5y)-55.47%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KD has a Operating Margin of 0.70%. This is comparable to the rest of the industry: KD outperforms 44.44% of its industry peers.
Looking at the Gross Margin, with a value of 19.76%, KD is doing worse than 85.19% of the companies in the same industry.
KD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.7% | ||
| PM (TTM) | N/A | ||
| GM | 19.76% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y16.04%
GM growth 5Y8.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KD is destroying value.
Compared to 1 year ago, KD has more shares outstanding
The number of shares outstanding for KD has been increased compared to 5 years ago.
The debt/assets ratio for KD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that KD is in the distress zone and has some risk of bankruptcy.
KD's Altman-Z score of 1.72 is on the low side compared to the rest of the industry. KD is outperformed by 61.73% of its industry peers.
KD has a debt to FCF ratio of 64.82. This is a negative value and a sign of low solvency as KD would need 64.82 years to pay back of all of its debts.
KD has a Debt to FCF ratio of 64.82. This is in the lower half of the industry: KD underperforms 62.96% of its industry peers.
A Debt/Equity ratio of 2.92 is on the high side and indicates that KD has dependencies on debt financing.
KD has a worse Debt to Equity ratio (2.92) than 83.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 64.82 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.13
WACC10.98%
2.3 Liquidity
A Current Ratio of 1.03 indicates that KD should not have too much problems paying its short term obligations.
The Current ratio of KD (1.03) is worse than 76.54% of its industry peers.
KD has a Quick Ratio of 1.03. This is a normal value and indicates that KD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.03, KD is doing worse than 72.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 90.99% over the past year.
Looking at the last year, KD shows a decrease in Revenue. The Revenue has decreased by -9.06% in the last year.
The Revenue has been decreasing by -5.93% on average over the past years.
EPS 1Y (TTM)90.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%69.35%
Revenue 1Y (TTM)-9.06%
Revenue growth 3Y-6.04%
Revenue growth 5Y-5.93%
Sales Q2Q%-7.34%
3.2 Future
The Earnings Per Share is expected to grow by 64.79% on average over the next years. This is a very strong growth
KD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.51% yearly.
EPS Next Y168.37%
EPS Next 2Y92.48%
EPS Next 3Y83.32%
EPS Next 5Y64.79%
Revenue Next Year-4.41%
Revenue Next 2Y-1.54%
Revenue Next 3Y-0.26%
Revenue Next 5Y1.51%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for KD. In the last year negative earnings were reported.
KD is valuated rather expensively with a Price/Forward Earnings ratio of 23.27.
KD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KD is cheaper than 62.96% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, KD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KD is valued a bit cheaper than the industry average as 72.84% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KD is valued a bit more expensive than 60.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 160.31 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
KD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KD's earnings are expected to grow with 83.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y92.48%
EPS Next 3Y83.32%
5. Dividend
5.1 Amount
No dividends for KD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
KYNDRYL HOLDINGS INC
NYSE:KD (12/20/2024, 8:21:08 PM)
After market: 34.2 -0.31 (-0.9%)34.51
+0.33 (+0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners77.79%
Inst Owner Change6.78%
Ins Owners11.09%
Ins Owner Change-0.72%
Market Cap8.02B
Analysts86.15
Price Target39.17 (13.5%)
Short Float %3.69%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.51%
Min EPS beat(2)22.49%
Max EPS beat(2)76.52%
EPS beat(4)4
Avg EPS beat(4)48.02%
Min EPS beat(4)11.74%
Max EPS beat(4)81.33%
EPS beat(8)7
Avg EPS beat(8)17.39%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.92%
Min Revenue beat(2)-4.23%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-2.21%
Min Revenue beat(4)-4.23%
Max Revenue beat(4)-0.59%
Revenue beat(8)2
Avg Revenue beat(8)-0.56%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)20%
PT rev (3m)20%
EPS NQ rev (1m)-13.75%
EPS NQ rev (3m)121.15%
EPS NY rev (1m)8.96%
EPS NY rev (3m)-5.84%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.27 | ||
| P/S | 0.52 | ||
| P/FCF | 160.31 | ||
| P/OCF | 11.75 | ||
| P/B | 7.53 | ||
| P/tB | 166.99 | ||
| EV/EBITDA | 12.05 |
EPS(TTM)-0.39
EYN/A
EPS(NY)1.48
Fwd EY4.3%
FCF(TTM)0.22
FCFY0.62%
OCF(TTM)2.94
OCFY8.51%
SpS65.87
BVpS4.59
TBVpS0.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.86% | ||
| ROE | -8.36% | ||
| ROCE | 1.74% | ||
| ROIC | 1.38% | ||
| ROICexc | 1.75% | ||
| ROICexgc | 2.22% | ||
| OM | 0.7% | ||
| PM (TTM) | N/A | ||
| GM | 19.76% | ||
| FCFM | 0.33% |
ROA(3y)-10.92%
ROA(5y)-11.74%
ROE(3y)-73.36%
ROE(5y)-55.47%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y16.04%
GM growth 5Y8.73%
F-Score6
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 64.82 | ||
| Debt/EBITDA | 3.8 | ||
| Cap/Depr | 88.89% | ||
| Cap/Sales | 4.13% | ||
| Interest Coverage | 0.9 | ||
| Cash Conversion | 83.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.72 |
F-Score6
WACC10.98%
ROIC/WACC0.13
Cap/Depr(3y)74.34%
Cap/Depr(5y)67.87%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)90.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%69.35%
EPS Next Y168.37%
EPS Next 2Y92.48%
EPS Next 3Y83.32%
EPS Next 5Y64.79%
Revenue 1Y (TTM)-9.06%
Revenue growth 3Y-6.04%
Revenue growth 5Y-5.93%
Sales Q2Q%-7.34%
Revenue Next Year-4.41%
Revenue Next 2Y-1.54%
Revenue Next 3Y-0.26%
Revenue Next 5Y1.51%
EBIT growth 1Y131.1%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year9341.28%
EBIT Next 3Y385.4%
EBIT Next 5Y143.05%
FCF growth 1Y-96.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-51.53%
OCF growth 3Y-10.2%
OCF growth 5Y-7.63%