Taking everything into account, KD scores 4 out of 10 in our fundamental rating. KD was compared to 88 industry peers in the IT Services industry. There are concerns on the financial health of KD while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on KD.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years KD reported 4 times negative net income.
KD had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.63%, KD is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.22%, KD belongs to the top of the industry, outperforming 92.05% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.69%, KD is in the better half of the industry, outperforming 60.23% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	3.63%
ROE	33.22%
ROIC	5.69%

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 of 2.72%. This is comparable to the rest of the industry: KD outperforms 52.27% of its industry peers.
KD's Operating Margin of 3.38% is in line compared to the rest of the industry. KD outperforms 48.86% of its industry peers.
The Gross Margin of KD (21.22%) is worse than 79.55% of its industry peers.
In the last couple of years the Gross Margin of KD has grown nicely.

		Industry Rank	Sector Rank
OM	3.38%
PM (TTM)	2.72%
GM	21.22%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y23.11%

GM growth 5Y10.26%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 about the same amount of shares outstanding.
Compared to 5 years ago, KD has more shares outstanding
The debt/assets ratio for KD has been reduced compared to a year ago.

2.2 Solvency

KD has an Altman-Z score of 1.58. This is a bad value and indicates that KD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.58, KD is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
The Debt to FCF ratio of KD is 12.93, which is on the high side as it means it would take KD, 12.93 years of fcf income to pay off all of its debts.
KD has a Debt to FCF ratio of 12.93. This is comparable to the rest of the industry: KD outperforms 42.05% of its industry peers.
KD has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.45, KD is not doing good in the industry: 75.00% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	2.45
Debt/FCF	12.93
Altman-Z	1.58

ROIC/WACC0.68

WACC8.38%

2.3 Liquidity

A Current Ratio of 1.02 indicates that KD should not have too much problems paying its short term obligations.
KD has a Current ratio of 1.02. This is in the lower half of the industry: KD underperforms 77.27% of its industry peers.
KD has a Quick Ratio of 1.02. This is a normal value and indicates that KD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KD (1.02) is worse than 76.14% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.02
Quick Ratio	1.02

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

KD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 592.31%, which is quite impressive.
KD shows a decrease in Revenue. In the last year, the revenue decreased by -1.90%.
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)-1.9%

Revenue growth 3Y-6.9%

Revenue growth 5Y-5.78%

Sales Q2Q%-1.4%

3.2 Future

The Earnings Per Share is expected to grow by 64.58% 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 2.93% yearly.

EPS Next Y132.2%

EPS Next 2Y90.11%

EPS Next 3Y64.58%

EPS Next 5YN/A

Revenue Next Year3.47%

Revenue Next 2Y3.53%

Revenue Next 3Y3.28%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.34, KD is valued correctly.
Based on the Price/Earnings ratio, KD is valued cheaply inside the industry as 84.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.60, KD is valued rather cheaply.
The Price/Forward Earnings ratio is 6.37, which indicates a rather cheap valuation of KD.
Based on the Price/Forward Earnings ratio, KD is valued cheaply inside the industry as 94.32% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.83. KD is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	12.34
Fwd PE	6.37

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, KD is valued cheaper than 92.05% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KD.

		Industry Rank	Sector Rank
P/FCF	22.38
EV/EBITDA	6.28

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.
A more expensive valuation may be justified as KD's earnings are expected to grow with 64.58% in the coming years.