Kyndryl Stock Discussion

Kyndryl Holdings' low P/S ratio is attributed to investors' pessimism about its poor revenue performance. The potential for revenue improvement doesn't seem enough to justify a higher P/S ratio.

Susquehanna analysts see potential for Kyndryl to expand margins despite a challenging IT Services environment. They predict a focus on margin remediation in underperforming accounts. Mixed analyst reactions, with Seeking Alpha authors rating KD a HOLD, while Wall Street analysts rate it a BUY.

CEO Martin Schroeter is satisfied with the company's performance and progress in shedding zero-profit or negative-margin businesses. He hinted at potential dividends or share buybacks after further margin improvements.

The company's high level of debt and liabilities, coupled with its loss before interest and tax and shrinking revenue, make it a risky investment. The company would need to improve its operations quickly to become an attractive investment option.

Evercore analysts predict Kyndryl Consult will significantly drive Accenture's revenue growth. They also foresee Kyndryl outperforming Wall Street's Q3 and fiscal 2024 revenue, gross margin, and adjusted EBITDA estimates.