Key insights
- The author highlights Kyndryl's potentially undervalued status based on low P/E, high FCF yield, and a market cap close to its cash holdings (though revised to net debt). Declining revenue and lumpy income are noted as risks. The post seeks insights from others who have researched the company, suggesting uncertainty about the investment's viability. Limited US market influence due to company-specific focus and lack of definitive investment thesis.
Just noticed this this morning haven’t done any research.
Kyndryl provides technology services to companies like outsourcing data centers, data center colocation, technology management etc..
Some of the fundamentals look bad, like declining revenue, lumpy net income and eps.
But: - current p/e - 14 / forward p/e - 6 - FCF yield - 12.30% (adj. for stock based comp - 11.36%) - price to sales - 0.18
The best part is it has cash of $2.62 billion and its market cap is $2.76 billion. - NOTE- the service I was using had inaccurate data. They didn’t publish a balance sheet in the press release but it looks like they have net debt of like $1.6 billion.
Seems really cheap, obviously it’s gotta be cheap for a reason.
Anyone out ahead of me that has researched this company and can provide thoughts, insights, things to look out for etc?
Thanks 🙏