KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis
USA - NYSE:KD - US50155Q1004 - Common Stock
23.3199 USD
-0.8 (-3.32%)
We assign a fundamental rating of 4 out of 10 to KD. KD was compared to 85 industry peers in the IT Services industry. KD has a medium profitability rating, but doesn't score so well on its financial health evaluation. KD may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year KD was profitable.
KD had a positive operating cash flow in the past year.
In the past 5 years KD reported 4 times negative net income.
KD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.63%, KD is in the better half of the industry, outperforming 62.35% of the companies in the same industry.
KD has a Return On Equity of 33.22%. This is amongst the best in the industry. KD outperforms 92.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.69%, KD is in line with its industry, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 33.22% | ||
| ROIC | 5.69% |
ROA(3y)-4.26%
ROA(5y)-9.66%
ROE(3y)-37.82%
ROE(5y)-48.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KD has a Profit Margin (2.72%) which is comparable to the rest of the industry.
The Operating Margin of KD (3.38%) is comparable to the rest of the industry.
KD has a Gross Margin of 21.22%. This is amonst the worse of the industry: KD underperforms 81.18% of its industry peers.
KD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.38% | ||
| PM (TTM) | 2.72% | ||
| GM | 21.22% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.11%
GM growth 5Y10.26%
2. Health
2.1 Basic Checks
KD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KD has about the same amout of shares outstanding than it did 1 year ago.
KD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that KD is in the distress zone and has some risk of bankruptcy.
KD's Altman-Z score of 1.59 is on the low side compared to the rest of the industry. KD is outperformed by 63.53% of its industry peers.
KD has a debt to FCF ratio of 12.93. This is a negative value and a sign of low solvency as KD would need 12.93 years to pay back of all of its debts.
KD's Debt to FCF ratio of 12.93 is in line compared to the rest of the industry. KD outperforms 42.35% of its industry peers.
A Debt/Equity ratio of 2.45 is on the high side and indicates that KD has dependencies on debt financing.
With a Debt to Equity ratio value of 2.45, KD is not doing good in the industry: 78.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 12.93 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.73
WACC7.85%
2.3 Liquidity
A Current Ratio of 1.02 indicates that KD should not have too much problems paying its short term obligations.
KD has a Current ratio of 1.02. This is in the lower half of the industry: KD underperforms 75.29% of its industry peers.
KD has a Quick Ratio of 1.02. This is a normal value and indicates that KD is financially healthy and should not expect problems in meeting its short term obligations.
KD has a worse Quick ratio (1.02) than 74.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 592.31% over the past year.
Looking at the last year, KD shows a decrease in Revenue. The Revenue has decreased by -1.90% in the last year.
The Revenue has been decreasing by -5.78% on average over the past years.
EPS 1Y (TTM)592.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%-1.4%
3.2 Future
The Earnings Per Share is expected to grow by 61.58% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y111.8%
EPS Next 2Y82.65%
EPS Next 3Y61.58%
EPS Next 5YN/A
Revenue Next Year3.86%
Revenue Next 2Y3.13%
Revenue Next 3Y3.14%
Revenue Next 5Y2.93%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
KD is valuated correctly with a Price/Earnings ratio of 12.15.
Based on the Price/Earnings ratio, KD is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.56, KD is valued rather cheaply.
A Price/Forward Earnings ratio of 6.79 indicates a rather cheap valuation of KD.
92.94% of the companies in the same industry are more expensive than KD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, KD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 6.79 |
4.2 Price Multiples
KD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KD is cheaper than 88.24% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.27 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
KD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KD's earnings are expected to grow with 61.58% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y82.65%
EPS Next 3Y61.58%
5. Dividend
5.1 Amount
KD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:KD (11/18/2025, 12:32:06 PM)
23.3199
-0.8 (-3.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners80.69%
Inst Owner Change4.11%
Ins Owners1.35%
Ins Owner Change4.27%
Market Cap5.39B
Revenue(TTM)15.01B
Net Income(TTM)408.00M
Analysts83.08
Price Target41.62 (78.47%)
Short Float %7.03%
Short Ratio6.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.86%
Min EPS beat(2)3.2%
Max EPS beat(2)10.53%
EPS beat(4)3
Avg EPS beat(4)55.66%
Min EPS beat(4)-23.42%
Max EPS beat(4)232.34%
EPS beat(8)7
Avg EPS beat(8)51.84%
EPS beat(12)10
Avg EPS beat(12)30.14%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.13%
Min Revenue beat(2)-5.92%
Max Revenue beat(2)-4.34%
Revenue beat(4)0
Avg Revenue beat(4)-4.28%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)-2.24%
Revenue beat(8)0
Avg Revenue beat(8)-3.24%
Revenue beat(12)2
Avg Revenue beat(12)-1.8%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.79%
PT rev (3m)-15.62%
EPS NQ rev (1m)-6.06%
EPS NQ rev (3m)10.71%
EPS NY rev (1m)-4.81%
EPS NY rev (3m)20.48%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)1.86%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 6.79 | ||
| P/S | 0.36 | ||
| P/FCF | 22.27 | ||
| P/OCF | 6.25 | ||
| P/B | 4.39 | ||
| P/tB | 20.04 | ||
| EV/EBITDA | 6.42 |
EPS(TTM)1.92
EY8.23%
EPS(NY)3.44
Fwd EY14.73%
FCF(TTM)1.05
FCFY4.49%
OCF(TTM)3.73
OCFY16.01%
SpS64.93
BVpS5.31
TBVpS1.16
PEG (NY)0.11
PEG (5Y)N/A
Graham Number15.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 33.22% | ||
| ROCE | 7.21% | ||
| ROIC | 5.69% | ||
| ROICexc | 7.02% | ||
| ROICexgc | 8.44% | ||
| OM | 3.38% | ||
| PM (TTM) | 2.72% | ||
| GM | 21.22% | ||
| FCFM | 1.61% |
ROA(3y)-4.26%
ROA(5y)-9.66%
ROE(3y)-37.82%
ROE(5y)-48.13%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.11%
GM growth 5Y10.26%
F-Score7
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 12.93 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 96.88% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 4.34 | ||
| Cash Conversion | 75.11% | ||
| Profit Quality | 59.31% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 1.59 |
F-Score7
WACC7.85%
ROIC/WACC0.73
Cap/Depr(3y)84.82%
Cap/Depr(5y)73.06%
Cap/Sales(3y)4.38%
Cap/Sales(5y)4.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)592.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y111.8%
EPS Next 2Y82.65%
EPS Next 3Y61.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%-1.4%
Revenue Next Year3.86%
Revenue Next 2Y3.13%
Revenue Next 3Y3.14%
Revenue Next 5Y2.93%
EBIT growth 1Y374.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year387.8%
EBIT Next 3Y80.14%
EBIT Next 5Y31.72%
FCF growth 1Y147.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y429.45%
OCF growth 3YN/A
OCF growth 5Y-3.66%
KYNDRYL HOLDINGS INC / KD FAQ
Can you provide the ChartMill fundamental rating for KYNDRYL HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to KD.
Can you provide the valuation status for KYNDRYL HOLDINGS INC?
ChartMill assigns a valuation rating of 7 / 10 to KYNDRYL HOLDINGS INC (KD). This can be considered as Undervalued.
Can you provide the profitability details for KYNDRYL HOLDINGS INC?
KYNDRYL HOLDINGS INC (KD) has a profitability rating of 4 / 10.
What is the valuation of KYNDRYL HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KYNDRYL HOLDINGS INC (KD) is 12.15 and the Price/Book (PB) ratio is 4.39.