External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Equity Bottom-Up

<ul><li>Negative outlook on Kyndryl (KD US) as a spin-off company in IT outsourcing business</li><li>Post-spin turnaround boosted by financial engineering, with risk of 60% downside based on valuation multiples</li><li>Financial leverage misunderstood, cash flow generation may disappoint investors; recommendation to short KD US due to expected lack of growth and disappointing cash flow generation</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Negative outlook on Kyndryl (KD US) as a spin-off company in IT outsourcing businessPost-spin turnaround boosted by financial engineering, with risk of 60% downside based on valuation multiplesFinancial leverage misunderstood, cash flow generation may disappoint investors; recommendation to short KD US due to expected lack of growth and disappointing cash flow generationThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Kyndryl Holdings Inc (KD) - Thursday, Jun 6, 2024

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Kyndryl, a leading provider of IT services, reported its Fiscal First Quarter 2025 earnings and reported a 14% increase in constant currency signings for this quarter and a 7% increase over the last twelve months, with a projected pre-tax margin on these signings in the high single digits.</li><li>Despite a year-over-year decline in revenue by 8% in constant currency, which was mainly attributed to strategic exits from negative or low-margin streams, the company is confident about returning to top-line growth by the fourth quarter of this fiscal year.</li><li>This reduction in low-margin revenue is viewed as a strategic adjustment to enhance future profitability and quality of earnings.</li></ul>

Kyndryl, a leading provider of IT services, reported its Fiscal First Quarter 2025 earnings and reported a 14% increase in constant currency signings for this quarter and a 7% increase over the last twelve months, with a projected pre-tax margin on these signings in the high single digits.Despite a year-over-year decline in revenue by 8% in constant currency, which was mainly attributed to strategic exits from negative or low-margin streams, the company is confident about returning to top-line growth by the fourth quarter of this fiscal year.This reduction in low-margin revenue is viewed as a strategic adjustment to enhance future profitability and quality of earnings.

Kyndryl Holdings: Will Its Strategic Focus on High-Value Services Pay Off? - Major Drivers

<ul><li>Kyndryl's fiscal fourth quarter 2024 earnings discussion revealed a mixture of strengths and challenges as the company continues its transformative journey post spin-off.</li><li>A comprehensive examination of the performance metrics and strategic initiatives suggests both promising areas of growth and areas needing careful watching.</li><li>Starting with the positives, Kyndryl has demonstrated a robust strategy in its 3A initiatives: alliances, advanced delivery, and accounts.</li></ul>

Kyndryl's fiscal fourth quarter 2024 earnings discussion revealed a mixture of strengths and challenges as the company continues its transformative journey post spin-off.A comprehensive examination of the performance metrics and strategic initiatives suggests both promising areas of growth and areas needing careful watching.Starting with the positives, Kyndryl has demonstrated a robust strategy in its 3A initiatives: alliances, advanced delivery, and accounts.

Kyndryl Holdings: Will The Acquisition of Skytap For The Expansion Of Hybrid Cloud Services Give Them A Much Needed Edge? - Major Drivers

<ul><li>KD highlights several milestones on its Fiscal Third Quarter 2024 Earnings.</li><li>The company reported strong execution and accelerated progress as a leader in mission-critical IT infrastructure services.</li><li>Its strategy surrounds the creation of alliances, advanced delivery, account initiatives, KD Consult and KD Bridge, contributing to expectations of profitable growth and an increased full-year earnings outlook.</li></ul>

KD highlights several milestones on its Fiscal Third Quarter 2024 Earnings.The company reported strong execution and accelerated progress as a leader in mission-critical IT infrastructure services.Its strategy surrounds the creation of alliances, advanced delivery, account initiatives, KD Consult and KD Bridge, contributing to expectations of profitable growth and an increased full-year earnings outlook.

Kyndryl Holdings: Focus on Customer Relations & Contract Changes! - Major Drivers

<ul><li>This is our first report on IT services company, Kyndryl.</li><li>This increase has been attributed to successful execution of its operations, demonstrating their ability to drive substantial profit growth in the company.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

This is our first report on IT services company, Kyndryl.This increase has been attributed to successful execution of its operations, demonstrating their ability to drive substantial profit growth in the company.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Kyndryl Holdings: Initiation of Coverage - How Kyndryl Consult Is Shaping a New Era of Revenue Generation - Major Drivers

United States

Kyndryl Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides applications, data, AI, cloud, core enterprise, digital workplace, security, and other related services. Kyndryl Holdings serves customers in the United States.

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Kyndryl Holdings (KD US)

Kyndryl Holdings Inc (KD) - Thursday, Jun 6, 2024

Financial leverage misunderstood, cash flow generation may disappoint investors; recommendation to short KD US due to expected lack of growth and...

Value Investors Club (VIC)

Kyndryl Holdings: Will Its Strategic Focus on High-Value Services Pay Off? - Major Drivers

Kyndryl, a leading provider of IT services, reported its Fiscal First Quarter 2025 earnings and reported a 14% increase in constant currency...

Baptista Research

Kyndryl Holdings: Will The Acquisition of Skytap For The Expansion Of Hybrid Cloud Services Give Them A Much Needed Edge? - Major Drivers

Kyndryl's fiscal fourth quarter 2024 earnings discussion revealed a mixture of strengths and challenges as the company continues its...

Baptista Research

Kyndryl Holdings: Focus on Customer Relations & Contract Changes! - Major Drivers

KD highlights several milestones on its Fiscal Third Quarter 2024 Earnings. The company reported strong execution and accelerated progress as a...

Baptista Research

Kyndryl Holdings: Initiation of Coverage - How Kyndryl Consult Is Shaping a New Era of Revenue Generation - Major Drivers

This is our first report on IT services company, Kyndryl. This increase has been attributed to successful execution of its operations,...

Baptista Research

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