KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis
USA - NYSE:KD - US50155Q1004 - Common Stock
26.36 USD
-0.16 (-0.6%)
26.5 USD
+0.14 (+0.53%)
We assign a fundamental rating of 3 out of 10 to KD. KD was compared to 85 industry peers in the IT Services industry. KD has a bad profitability rating. Also its financial health evaluation is rather negative. KD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
KD had positive earnings in the past year.
KD had a positive operating cash flow in the past year.
KD had negative earnings in 4 of the past 5 years.
Of the past 5 years KD 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.58%, KD perfoms like the industry average, outperforming 54.12% of the companies in the same industry.
KD has a better Return On Equity (24.09%) than 85.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.45%, KD is in line with its industry, outperforming 55.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 24.09% | ||
| ROIC | 4.45% |
ROA(3y)-4.26%
ROA(5y)-9.66%
ROE(3y)-37.82%
ROE(5y)-48.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KD has a Profit Margin (1.97%) which is in line with its industry peers.
KD's Operating Margin of 2.72% is in line compared to the rest of the industry. KD outperforms 45.88% of its industry peers.
Looking at the Gross Margin, with a value of 20.81%, KD is doing worse than 83.53% of the companies in the same industry.
In the last couple of years the Gross Margin of KD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.72% | ||
| PM (TTM) | 1.97% | ||
| GM | 20.81% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.11%
GM growth 5Y10.26%
2. Health
2.1 Basic Checks
KD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KD remains at a similar level compared to 1 year ago.
The number of shares outstanding for KD has been increased compared to 5 years ago.
The debt/assets ratio for KD has been reduced compared to a year ago.
2.2 Solvency
KD has an Altman-Z score of 1.56. This is a bad value and indicates that KD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.56, KD is doing worse than 62.35% of the companies in the same industry.
KD has a debt to FCF ratio of 13.26. This is a negative value and a sign of low solvency as KD would need 13.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.26, KD is in line with its industry, outperforming 47.06% of the companies in the same industry.
A Debt/Equity ratio of 2.44 is on the high side and indicates that KD has dependencies on debt financing.
The Debt to Equity ratio of KD (2.44) is worse than 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 13.26 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.55
WACC8.04%
2.3 Liquidity
KD has a Current Ratio of 1.05. This is a normal value and indicates that KD is financially healthy and should not expect problems in meeting its short term obligations.
KD has a Current ratio of 1.05. This is in the lower half of the industry: KD underperforms 76.47% of its industry peers.
A Quick Ratio of 1.05 indicates that KD should not have too much problems paying its short term obligations.
KD's Quick ratio of 1.05 is on the low side compared to the rest of the industry. KD is outperformed by 74.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 592.31% over the past year.
The Revenue has decreased by -6.20% in the past year.
Measured over the past years, KD shows a decrease in Revenue. The Revenue has been decreasing by -5.78% on average per year.
EPS 1Y (TTM)592.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)-6.2%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%-1.4%
3.2 Future
Based on estimates for the next years, KD will show a very strong growth in Earnings Per Share. The EPS will grow by 61.58% on average per year.
Based on estimates for the next years, KD will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y111.8%
EPS Next 2Y82.65%
EPS Next 3Y61.58%
EPS Next 5YN/A
Revenue Next Year3.86%
Revenue Next 2Y3.13%
Revenue Next 3Y3.14%
Revenue Next 5Y2.93%
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 13.73, which indicates a correct valuation of KD.
80.00% of the companies in the same industry are more expensive than KD, based on the Price/Earnings ratio.
KD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of KD.
KD's Price/Forward Earnings ratio is rather cheap when compared to the industry. KD is cheaper than 94.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. KD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
89.41% of the companies in the same industry are more expensive than KD, based on the Enterprise Value to EBITDA ratio.
KD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.71 | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KD's earnings are expected to grow with 61.58% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y82.65%
EPS Next 3Y61.58%
5. Dividend
5.1 Amount
No dividends for KD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.36
-0.16 (-0.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners80.69%
Inst Owner Change-0.31%
Ins Owners1.35%
Ins Owner Change4.27%
Market Cap6.09B
Revenue(TTM)15.06B
Net Income(TTM)297.00M
Analysts83.08
Price Target41.62 (57.89%)
Short Float %6.99%
Short Ratio7.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.77%
Min EPS beat(2)-23.42%
Max EPS beat(2)15.88%
EPS beat(4)3
Avg EPS beat(4)61.82%
Min EPS beat(4)-23.42%
Max EPS beat(4)232.34%
EPS beat(8)7
Avg EPS beat(8)53.08%
EPS beat(12)9
Avg EPS beat(12)26.78%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.29%
Min Revenue beat(2)-4.34%
Max Revenue beat(2)-2.24%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)-1.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.5%
Revenue beat(12)2
Avg Revenue beat(12)-1.4%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-12.45%
PT rev (3m)-14.07%
EPS NQ rev (1m)-7.74%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)-4.81%
EPS NY rev (3m)20.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 7.67 | ||
| P/S | 0.4 | ||
| P/FCF | 25.71 | ||
| P/OCF | 7.06 | ||
| P/B | 4.94 | ||
| P/tB | 22.4 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)1.92
EY7.28%
EPS(NY)3.44
Fwd EY13.04%
FCF(TTM)1.03
FCFY3.89%
OCF(TTM)3.73
OCFY14.16%
SpS65.16
BVpS5.33
TBVpS1.18
PEG (NY)0.12
PEG (5Y)N/A
Graham Number15.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 24.09% | ||
| ROCE | 5.64% | ||
| ROIC | 4.45% | ||
| ROICexc | 5.58% | ||
| ROICexgc | 6.69% | ||
| OM | 2.72% | ||
| PM (TTM) | 1.97% | ||
| GM | 20.81% | ||
| FCFM | 1.57% |
ROA(3y)-4.26%
ROA(5y)-9.66%
ROE(3y)-37.82%
ROE(5y)-48.13%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y23.11%
GM growth 5Y10.26%
F-Score8
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 13.26 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 83.02% | ||
| Cap/Sales | 4.16% | ||
| Interest Coverage | 3.47 | ||
| Cash Conversion | 74.2% | ||
| Profit Quality | 79.8% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.56 |
F-Score8
WACC8.04%
ROIC/WACC0.55
Cap/Depr(3y)84.82%
Cap/Depr(5y)73.06%
Cap/Sales(3y)4.38%
Cap/Sales(5y)4.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)592.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y111.8%
EPS Next 2Y82.65%
EPS Next 3Y61.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.2%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%-1.4%
Revenue Next Year3.86%
Revenue Next 2Y3.13%
Revenue Next 3Y3.14%
Revenue Next 5Y2.93%
EBIT growth 1Y617.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year387.8%
EBIT Next 3Y80.14%
EBIT Next 5Y31.72%
FCF growth 1Y192.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y173.1%
OCF growth 3YN/A
OCF growth 5Y-3.66%
KYNDRYL HOLDINGS INC / KD FAQ
Can you provide the ChartMill fundamental rating for KYNDRYL HOLDINGS INC?
ChartMill assigns a fundamental rating of 3 / 10 to KD.
Can you provide the valuation status for KYNDRYL HOLDINGS INC?
ChartMill assigns a valuation rating of 7 / 10 to KYNDRYL HOLDINGS INC (KD). This can be considered as Undervalued.
Can you provide the profitability details for KYNDRYL HOLDINGS INC?
KYNDRYL HOLDINGS INC (KD) has a profitability rating of 3 / 10.
What is the valuation of KYNDRYL HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KYNDRYL HOLDINGS INC (KD) is 13.73 and the Price/Book (PB) ratio is 4.94.