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Kyndryl Holdings Inc
NYSE:KD

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Kyndryl Holdings Inc Logo
Kyndryl Holdings Inc
NYSE:KD
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Price: 21.55 USD 0.42%
Updated: Mar 28, 2024

Intrinsic Value

KD's intrinsic value estimate is unreliable because it is based only on its multiples and doesn't use a DCF valuation.

Kyndryl Holdings, Inc. operates as a technology services company, which engages in the provision of infrastructure services. [ Read More ]

The intrinsic value of one KD stock under the Base Case scenario is 70.51 USD. Compared to the current market price of 21.55 USD, Kyndryl Holdings Inc is Undervalued by 69%.

Key Points:
KD Intrinsic Value
Base Case
70.51 USD
Undervaluation 69%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Kyndryl Holdings Inc

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Fundamental Analysis

Company Adjusts Pretax Income Outlook Upwards
2024-Q3 Earnings Call

Company Adjusts Pretax Income Outlook Upwards

The company reported a revenue of $3.9 billion, marking a 10% decline driven by strategic exits from low-margin streams, with an impressive shift towards higher-margin advisory services evidenced by an 11% growth in Kyndryl Consult. Signings increased by 13% year-over-year, supporting plans for revenue growth by 2025. The adjusted EBITDA grew by 6% to $615 million despite tough comparisons, resulting in a 210 basis points year-over-year margin increase, highlighting successful cost-saving initiatives and margin expansion strategies. Hyperscaler-related revenue exceeded initial targets by $100 million, with a raised full-year target to $400 million. The company's updated outlook forecasts an adjusted pretax income of at least $150 million, marginally up from $140 million prior, expecting a 220 basis points margin expansion from last year, and an adjusted EBITDA margin of at least 14.5% for fiscal 2024. Revenue is predicted to decline 6-7% to $15.9-$16.1 billion, owing to the elimination of low-margin business, with adjusted free cash flow projected to remain positive for the fiscal year despite anticipated declines in the upcoming March quarter.

Financials

Balance Sheet Decomposition
Kyndryl Holdings Inc

Current Assets 4.6B
Cash & Short-Term Investments 1.4B
Receivables 1.7B
Other Current Assets 1.5B
Non-Current Assets 6B
PP&E 3.5B
Intangibles 994m
Other Non-Current Assets 1.5B
Current Liabilities 4.5B
Accounts Payable 1.2B
Accrued Liabilities 2B
Other Current Liabilities 1.2B
Non-Current Liabilities 5.1B
Long-Term Debt 3.1B
Other Non-Current Liabilities 2B
Efficiency

Earnings Waterfall
Kyndryl Holdings Inc

Revenue
16.5B USD
Cost of Revenue
-13.7B USD
Gross Profit
2.8B USD
Operating Expenses
-3.1B USD
Operating Income
-274m USD
Other Expenses
-758m USD
Net Income
-1B USD

Free Cash Flow Analysis
Kyndryl Holdings Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
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Fundamental Scores

KD Profitability Score
Profitability Due Diligence

Kyndryl Holdings Inc's profitability score is 29/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Negative Revenue Growth Forecast
Negative 1-Year Revenue Growth
Negative Free Cash Flow
29/100
Profitability
Score

Kyndryl Holdings Inc's profitability score is 29/100. The higher the profitability score, the more profitable the company is.

KD Solvency Score
Solvency Due Diligence

Kyndryl Holdings Inc's solvency score is 29/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Positive Net Debt
Low Altman Z-Score
29/100
Solvency
Score

Kyndryl Holdings Inc's solvency score is 29/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

KD Price Targets Summary
Kyndryl Holdings Inc

Wall Street analysts forecast KD stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for KD is 26.52 USD with a low forecast of 25.25 USD and a high forecast of 28.35 USD.

Lowest
Price Target
25.25 USD
17% Upside
Average
Price Target
26.52 USD
23% Upside
Highest
Price Target
28.35 USD
32% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

KD Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

KD Price
Kyndryl Holdings Inc

1M 1M
-2%
6M 6M
+42%
1Y 1Y
+53%
3Y 3Y
-36%
5Y 5Y
-36%
10Y 10Y
-36%
Annual Price Range
21.55
52w Low
11.52
52w High
22.82
Price Metrics
Average Annual Return -41.2%
Standard Deviation of Annual Returns 1.39%
Max Drawdown -75%
Shares Statistics
Market Capitalization 4.9B USD
Shares Outstanding 230 103 008
Percentage of Shares Shorted 2.11%

KD Return Decomposition
Main factors of price return

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KD News

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Company Profile

Kyndryl Holdings Inc Logo
Kyndryl Holdings Inc

Country

United States of America

Industry

Technology

Market Cap

4.9B USD

Dividend Yield

0%

Description

Kyndryl Holdings, Inc. operates as a technology services company, which engages in the provision of infrastructure services. The company is headquartered in New York City, New York and currently employs 90,000 full-time employees. The company went IPO on 2021-10-22. The company is an infrastructure services provider. The company offers services across domains such as cloud services, core enterprise and zCloud services, applications, data, and artificial intelligence services, digital workplace services, security and resiliency services, and network and edge services as it support its customers through technological change. Its segments include Americas, Europe/Middle East/Africa (EMEA), Japan, and Asia Pacific. Its Cloud Services designs, builds, and provide managed services for its customers multicloud environments. Core Enterprise and zCloud Services supports a range of enterprise infrastructure, including private clouds, mainframe environments, distributed computing, enterprise networks, and storage environments. Its Application, Data, and Artificial Intelligence Services provides enterprise data services, including data transformation, data architecture and management, data governance and compliance.

Contact

NEW YORK
New York City
One Vanderbilt Avenue, 15Th Floor
+12128962098.0
https://www.kyndryl.com/

IPO

2021-10-22

Employees

90 000

Officers

Chairman & CEO
Mr. Martin J. Schroeter
Group President
Mr. Elly Keinan
Chief Financial Officer
Mr. David B. Wyshner
General Counsel & Secretary
Mr. Edward Sebold
Chief Human Resources Officer
Ms. Maryjo T. Charbonnier
Chief Operations Officer
Mr. Harsh V. Chugh C.F.A.
Show More
Chief Technology Officer
Mr. Antoine Shagoury
Chief Information Officer
Mr. Michael Bradshaw
Global Head of Investor Relations
Ms. Lori C. Chaitman
Chief Marketing Officer
Ms. Maria Bartolome Winans
Show Less

See Also

Discover More
What is the Intrinsic Value of one KD stock?

The intrinsic value of one KD stock under the Base Case scenario is 70.51 USD.

Is KD stock undervalued or overvalued?

Compared to the current market price of 21.55 USD, Kyndryl Holdings Inc is Undervalued by 69%.