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KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

NYSE:KD - New York Stock Exchange, Inc. - US50155Q1004 - Common Stock - Currency: USD

39.78  -1.8 (-4.33%)

After market: 39.99 +0.21 (+0.53%)

Fundamental Rating

3

KD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. KD has a bad profitability rating. Also its financial health evaluation is rather negative. KD has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year KD was profitable.
In the past year KD had a positive cash flow from operations.
KD had negative earnings in each of the past 5 years.
In multiple years KD reported negative operating cash flow during the last 5 years.
KD Yearly Net Income VS EBIT VS OCF VS FCFKD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B

1.2 Ratios

The Return On Assets of KD (1.39%) is comparable to the rest of the industry.
KD has a better Return On Equity (12.61%) than 71.95% of its industry peers.
With a Return On Invested Capital value of 3.09%, KD perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
Industry RankSector Rank
ROA 1.39%
ROE 12.61%
ROIC 3.09%
ROA(3y)-10.92%
ROA(5y)-11.74%
ROE(3y)-73.36%
ROE(5y)-55.47%
ROIC(3y)N/A
ROIC(5y)N/A
KD Yearly ROA, ROE, ROICKD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 -20 -40 -60 -80 -100

1.3 Margins

Looking at the Profit Margin, with a value of 0.91%, KD is in line with its industry, outperforming 47.56% of the companies in the same industry.
KD has a Operating Margin (1.55%) which is comparable to the rest of the industry.
KD has a Gross Margin of 20.08%. This is amonst the worse of the industry: KD underperforms 81.71% of its industry peers.
In the last couple of years the Gross Margin of KD has grown nicely.
Industry RankSector Rank
OM 1.55%
PM (TTM) 0.91%
GM 20.08%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y16.04%
GM growth 5Y8.73%
KD Yearly Profit, Operating, Gross MarginsKD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 10 -10

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2

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
KD Yearly Shares OutstandingKD Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
KD Yearly Total Debt VS Total AssetsKD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 2.00 indicates that KD is not a great score, but indicates only limited risk for bankruptcy at the moment.
KD has a Altman-Z score of 2.00. This is in the lower half of the industry: KD underperforms 62.20% of its industry peers.
KD has a Debt/Equity ratio of 2.81. This is a high value indicating a heavy dependency on external financing.
KD's Debt to Equity ratio of 2.81 is on the low side compared to the rest of the industry. KD is outperformed by 82.93% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.81
Debt/FCF N/A
Altman-Z 2
ROIC/WACC0.35
WACC8.9%
KD Yearly LT Debt VS Equity VS FCFKD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 2B 4B

2.3 Liquidity

A Current Ratio of 1.09 indicates that KD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.09, KD is not doing good in the industry: 74.39% of the companies in the same industry are doing better.
A Quick Ratio of 1.09 indicates that KD should not have too much problems paying its short term obligations.
KD has a worse Quick ratio (1.09) than 73.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
KD Yearly Current Assets VS Current LiabilitesKD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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3

3. Growth

3.1 Past

KD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 218.39%, which is quite impressive.
EPS 1Y (TTM)218.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%240%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.3%

3.2 Future

Based on estimates for the next years, KD will show a very strong growth in Earnings Per Share. The EPS will grow by 62.49% on average per year.
Based on estimates for the next years, KD will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y83.4%
EPS Next 2Y71.46%
EPS Next 3Y62.49%
EPS Next 5YN/A
Revenue Next Year3.46%
Revenue Next 2Y2.98%
Revenue Next 3Y3.26%
Revenue Next 5Y2.93%

3.3 Evolution

KD Yearly Revenue VS EstimatesKD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
KD Yearly EPS VS EstimatesKD Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 4 -4 -6

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 38.62, the valuation of KD can be described as expensive.
KD's Price/Earnings ratio is in line with the industry average.
KD's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 21.06, the valuation of KD can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as KD.
KD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 38.62
Fwd PE 21.06
KD Price Earnings VS Forward Price EarningsKD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KD indicates a somewhat cheap valuation: KD is cheaper than 71.95% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.23
KD Per share dataKD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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 62.49% in the coming years.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y71.46%
EPS Next 3Y62.49%

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0

5. Dividend

5.1 Amount

No dividends for KD!.
Industry RankSector Rank
Dividend Yield N/A

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KYNDRYL HOLDINGS INC

NYSE:KD (7/11/2025, 8:04:00 PM)

After market: 39.99 +0.21 (+0.53%)

39.78

-1.8 (-4.33%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners80.66%
Inst Owner Change-0.02%
Ins Owners1.38%
Ins Owner Change5.24%
Market Cap9.26B
Analysts85.71
Price Target46.81 (17.67%)
Short Float %4.7%
Short Ratio6.05
Dividend
Industry RankSector 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)127.42%
Min EPS beat(2)22.49%
Max EPS beat(2)232.34%
EPS beat(4)4
Avg EPS beat(4)85.77%
Min EPS beat(4)11.74%
Max EPS beat(4)232.34%
EPS beat(8)7
Avg EPS beat(8)40.97%
EPS beat(12)8
Avg EPS beat(12)26.09%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.11%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-2.76%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)-0.59%
Revenue beat(8)1
Avg Revenue beat(8)-1.84%
Revenue beat(12)3
Avg Revenue beat(12)-0.86%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.27%
PT rev (3m)3.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)0%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 38.62
Fwd PE 21.06
P/S 0.61
P/FCF N/A
P/OCF 18.29
P/B 8.46
P/tB 105.19
EV/EBITDA 12.23
EPS(TTM)1.03
EY2.59%
EPS(NY)1.89
Fwd EY4.75%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)2.17
OCFY5.47%
SpS64.92
BVpS4.7
TBVpS0.38
PEG (NY)0.46
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.39%
ROE 12.61%
ROCE 3.91%
ROIC 3.09%
ROICexc 4.12%
ROICexgc 5.31%
OM 1.55%
PM (TTM) 0.91%
GM 20.08%
FCFM N/A
ROA(3y)-10.92%
ROA(5y)-11.74%
ROE(3y)-73.36%
ROE(5y)-55.47%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y16.04%
GM growth 5Y8.73%
F-Score8
Asset Turnover1.52
Health
Industry RankSector Rank
Debt/Equity 2.81
Debt/FCF N/A
Debt/EBITDA 3.3
Cap/Depr 81.47%
Cap/Sales 3.75%
Interest Coverage 2.13
Cash Conversion 54.41%
Profit Quality N/A
Current Ratio 1.09
Quick Ratio 1.09
Altman-Z 2
F-Score8
WACC8.9%
ROIC/WACC0.35
Cap/Depr(3y)74.34%
Cap/Depr(5y)67.87%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)218.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%240%
EPS Next Y83.4%
EPS Next 2Y71.46%
EPS Next 3Y62.49%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.3%
Revenue Next Year3.46%
Revenue Next 2Y2.98%
Revenue Next 3Y3.26%
Revenue Next 5Y2.93%
EBIT growth 1Y185.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year9459.94%
EBIT Next 3Y389.74%
EBIT Next 5Y143.05%
FCF growth 1Y-106.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-53.02%
OCF growth 3Y-10.2%
OCF growth 5Y-7.63%