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In this report, we use the terms Kyndryl, the Company, we, us and our to refer to Kyndryl Holdings, Inc. and its consolidated subsidiaries. Our Company Kyndryl is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries.
Operating margin is thin at 3.83%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 0.2%, essentially flat. This is a business that needs a catalyst.
Net debt of $4.93B represents 14.5x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$15.09B
▲ +0.2% YoY
Net Income (TTM)
$198M
▼ -21.4% YoY
Op. Margin
3.83%
▲ +0.5pp YoY
ROIC
5.13%
▼ -0.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$340M
▲ +0.9% YoY
Op. Cash Flow (TTM)
$948M
▲ +0.6% YoY
Net Debt
$4.93B
Cash & Equiv.
$2.62B
5Y CAGR: -4.9%
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