StockStory Cites Falling Sales in Its Bearish Kyndryl View
The publisher points to declining revenue, a negative five-year return on invested capital and a weak sales outlook for Kyndryl.
Key takeaways
- Kyndryl’s sales fell at a 5% annual rate over the past five years, StockStory said.
- Analysts expect Kyndryl revenue to decline 1% over the next 12 months, according to StockStory.
Kyndryl shares lost 10.5% over six months, while the S&P 500 gained 15.9%, according to a StockStory analysis published Monday. The publisher said it sees several reasons for caution about the company.
StockStory said Kyndryl’s sales declined at a 5% annual rate over the past five years. It also cited Wall Street analysts’ forecast for a 1% revenue drop over the next 12 months.
The analysis noted that Kyndryl’s average return on invested capital over five years was negative 11.7%. StockStory said the stock traded at 4.9 times forward earnings and argued that its low valuation did not outweigh what it described as shaky fundamentals.
This article was produced with the help of AI technology. Source: Yahoo Finance
