Kyndryl Holdings Inc
NYSE:KD
Intrinsic Value
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%.
Valuation Backtest
Kyndryl Holdings Inc
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Fundamental Analysis
Company Adjusts Pretax Income Outlook Upwards
2024-Q3 Earnings Call
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.
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 |
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
What is Free Cash Flow?
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.
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.
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
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.
Ownership
KD Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
KD Price
Kyndryl Holdings Inc
Average Annual Return | -41.2% |
Standard Deviation of Annual Returns | 1.39% |
Max Drawdown | -75% |
Market Capitalization | 4.9B USD |
Shares Outstanding | 230 103 008 |
Percentage of Shares Shorted | 2.11% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
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
IPO
Employees
Officers
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%.