KYNDRYL HOLDINGS INC (KD) Fundamental Analysis & Valuation

NYSE:KD • US50155Q1004

13.08 USD
-0.11 (-0.83%)
At close: Mar 9, 2026
13.18 USD
+0.1 (+0.76%)
Pre-Market: 3/10/2026, 7:01:12 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This KD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Overall KD gets a fundamental rating of 4 out of 10. We evaluated KD against 87 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

4

1. KD Profitability Analysis

1.1 Basic Checks

  • In the past year KD was profitable.
  • In the past year KD had a positive cash flow from operations.
  • 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.
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 2025 0 1B -1B -2B

1.2 Ratios

  • KD has a Return On Assets (2.22%) which is comparable to the rest of the industry.
  • KD has a Return On Equity of 20.94%. This is amongst the best in the industry. KD outperforms 82.76% of its industry peers.
  • The Return On Invested Capital of KD (6.64%) is better than 64.37% of its industry peers.
Industry RankSector Rank
ROA 2.22%
ROE 20.94%
ROIC 6.64%
ROA(3y)-4.26%
ROA(5y)-9.66%
ROE(3y)-37.82%
ROE(5y)-48.13%
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 2025 0 20 -20 -40 -60 -80 -100

1.3 Margins

  • KD has a Profit Margin of 1.65%. This is comparable to the rest of the industry: KD outperforms 51.72% of its industry peers.
  • The Operating Margin of KD (3.46%) is comparable to the rest of the industry.
  • KD has a Gross Margin of 21.59%. This is amonst the worse of the industry: KD underperforms 80.46% of its industry peers.
  • In the last couple of years the Gross Margin of KD has grown nicely.
Industry RankSector Rank
OM 3.46%
PM (TTM) 1.65%
GM 21.59%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.11%
GM growth 5Y10.26%
KD Yearly Profit, Operating, Gross MarginsKD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. KD Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KD is destroying value.
  • Compared to 1 year ago, KD has about the same amount of shares outstanding.
  • KD has more shares outstanding than it did 5 years ago.
  • KD has a better debt/assets ratio than last year.
KD Yearly Shares OutstandingKD Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 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 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • Based on the Altman-Z score of 1.36, we must say that KD is in the distress zone and has some risk of bankruptcy.
  • KD's Altman-Z score of 1.36 is on the low side compared to the rest of the industry. KD is outperformed by 64.37% of its industry peers.
  • The Debt to FCF ratio of KD is 10.44, which is on the high side as it means it would take KD, 10.44 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 10.44, KD perfoms like the industry average, outperforming 45.98% of the companies in the same industry.
  • A Debt/Equity ratio of 1.92 is on the high side and indicates that KD has dependencies on debt financing.
  • KD's Debt to Equity ratio of 1.92 is on the low side compared to the rest of the industry. KD is outperformed by 75.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 10.44
Altman-Z 1.36
ROIC/WACC0.87
WACC7.61%
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 2025 0 2B 4B

2.3 Liquidity

  • A Current Ratio of 0.86 indicates that KD may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.86, KD is doing worse than 83.91% of the companies in the same industry.
  • KD has a Quick Ratio of 0.86. This is a bad value and indicates that KD is not financially healthy enough and could expect problems in meeting its short term obligations.
  • KD has a worse Quick ratio (0.86) than 82.76% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.86
KD Yearly Current Assets VS Current LiabilitesKD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. KD Growth Analysis

3.1 Past

  • KD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 181.82%, which is quite impressive.
  • Looking at the last year, KD shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
  • Measured over the past years, KD shows a decrease in Revenue. The Revenue has been decreasing by -5.78% on average per year.
EPS 1Y (TTM)181.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-41.57%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%3.07%

3.2 Future

  • The Earnings Per Share is expected to grow by 63.72% on average over the next years. This is a very strong growth
  • 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 Y131.83%
EPS Next 2Y88.77%
EPS Next 3Y63.72%
EPS Next 5YN/A
Revenue Next Year1.09%
Revenue Next 2Y0.75%
Revenue Next 3Y0.87%
Revenue Next 5Y2.93%

3.3 Evolution

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

More info and screens

Find the best growth stocksShow best growing peers

9

4. KD Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 8.44, which indicates a very decent valuation of KD.
  • Based on the Price/Earnings ratio, KD is valued cheaper than 89.66% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.45. KD is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 3.56, which indicates a rather cheap valuation of KD.
  • KD's Price/Forward Earnings ratio is rather cheap when compared to the industry. KD is cheaper than 96.55% of the companies in the same industry.
  • KD is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.65, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.44
Fwd PE 3.56
KD Price Earnings VS Forward Price EarningsKD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 96.55% of the companies in the same industry are more expensive than KD, based on the Enterprise Value to EBITDA ratio.
  • 85.06% of the companies in the same industry are more expensive than KD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.07
EV/EBITDA 3.6
KD Per share dataKD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • KD's earnings are expected to grow with 63.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y88.77%
EPS Next 3Y63.72%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. KD Dividend Analysis

5.1 Amount

  • KD does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

KD Fundamentals: All Metrics, Ratios and Statistics

KYNDRYL HOLDINGS INC

NYSE:KD (3/9/2026, 8:16:38 PM)

Premarket: 13.18 +0.1 (+0.76%)

13.08

-0.11 (-0.83%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-09
Earnings (Next)05-08
Inst Owners84.75%
Inst Owner Change0.29%
Ins Owners1.33%
Ins Owner Change0.26%
Market Cap2.99B
Revenue(TTM)15.12B
Net Income(TTM)250.00M
Analysts84
Price Target31.17 (138.3%)
Short Float %6.51%
Short Ratio2.73
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)1
Avg EPS beat(2)-6.56%
Min EPS beat(2)-16.32%
Max EPS beat(2)3.2%
EPS beat(4)2
Avg EPS beat(4)-6.5%
Min EPS beat(4)-23.42%
Max EPS beat(4)10.53%
EPS beat(8)6
Avg EPS beat(8)39.63%
EPS beat(12)9
Avg EPS beat(12)25.14%
EPS beat(16)10
Avg EPS beat(16)17.94%
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-5.92%
Max Revenue beat(2)-3.57%
Revenue beat(4)0
Avg Revenue beat(4)-4.02%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)-2.24%
Revenue beat(8)0
Avg Revenue beat(8)-3.39%
Revenue beat(12)1
Avg Revenue beat(12)-2.56%
Revenue beat(16)3
Avg Revenue beat(16)-1.65%
PT rev (1m)-19.66%
PT rev (3m)-18.96%
EPS NQ rev (1m)-56.09%
EPS NQ rev (3m)-54.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)-8.69%
Revenue NQ rev (3m)-7.66%
Revenue NY rev (1m)-2.32%
Revenue NY rev (3m)-2.3%
Valuation
Industry RankSector Rank
PE 8.44
Fwd PE 3.56
P/S 0.2
P/FCF 10.07
P/OCF 2.91
P/B 2.5
P/tB 12.46
EV/EBITDA 3.6
EPS(TTM)1.55
EY11.85%
EPS(NY)3.67
Fwd EY28.06%
FCF(TTM)1.3
FCFY9.93%
OCF(TTM)4.5
OCFY34.42%
SpS66.17
BVpS5.22
TBVpS1.05
PEG (NY)0.06
PEG (5Y)N/A
Graham Number13.5
Profitability
Industry RankSector Rank
ROA 2.22%
ROE 20.94%
ROCE 8.41%
ROIC 6.64%
ROICexc 8.47%
ROICexgc 10.53%
OM 3.46%
PM (TTM) 1.65%
GM 21.59%
FCFM 1.96%
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 Turnover1.34
Health
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 10.44
Debt/EBITDA 1.74
Cap/Depr 92.31%
Cap/Sales 4.84%
Interest Coverage 4.52
Cash Conversion 78.13%
Profit Quality 118.8%
Current Ratio 0.86
Quick Ratio 0.86
Altman-Z 1.36
F-Score7
WACC7.61%
ROIC/WACC0.87
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)181.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-41.57%
EPS Next Y131.83%
EPS Next 2Y88.77%
EPS Next 3Y63.72%
EPS Next 5YN/A
Revenue 1Y (TTM)0.11%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%3.07%
Revenue Next Year1.09%
Revenue Next 2Y0.75%
Revenue Next 3Y0.87%
Revenue Next 5Y2.93%
EBIT growth 1Y123.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year367.51%
EBIT Next 3Y71.12%
EBIT Next 5Y31.72%
FCF growth 1Y205.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y220.56%
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.


What is the valuation status of KYNDRYL HOLDINGS INC (KD) stock?

ChartMill assigns a valuation rating of 9 / 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 are the PE and PB ratios of KYNDRYL HOLDINGS INC (KD) stock?

The Price/Earnings (PE) ratio for KYNDRYL HOLDINGS INC (KD) is 8.44 and the Price/Book (PB) ratio is 2.5.


What is the earnings growth outlook for KYNDRYL HOLDINGS INC?

The Earnings per Share (EPS) of KYNDRYL HOLDINGS INC (KD) is expected to grow by 131.83% in the next year.