Kyndryl (KD) - A net net / but worth the investment?
u/No_Consideration4594 ·
Reddit — r/ValueInvesting
· May 10, 2026 at 14:17
· ⬆ 15 pts
· 💬 21 comments
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Summary
The post highlights Kyndryl (KD) as a potential deep-value play, noting a market cap near cash ($2.76B vs $2.62B cash) but also net debt of ~$1.6B, plus low P/E, high FCF yield, and minimal price-to-sales.
The author admits they haven't done proper research and flags declining revenue and lumpy earnings as warning signs, asking the community for insights.
Quality assessment: This is early-stage speculation / noise — the author explicitly states no research was done and data may be inaccurate, so it lacks the rigor of a well-researched DD.
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Comments21
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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 🙏