KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis
USA - NYSE:KD - US50155Q1004 - Common Stock
23.535 USD
-0.09 (-0.36%)
KD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
In the past year KD had a positive cash flow from operations.
KD had negative earnings in 4 of the past 5 years.
Of the past 5 years KD 4 years had a positive operating cash flow.
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.
The Return On Equity of KD (33.22%) is better than 92.94% of its industry peers.
KD has a Return On Invested Capital (5.69%) which is in line with its industry peers.
| 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
The Profit Margin of KD (2.72%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 3.38%, KD is in line with its industry, outperforming 47.06% of the companies in the same industry.
The Gross Margin of KD (21.22%) is worse than 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.
The number of shares outstanding for KD remains at a similar level compared to 1 year ago.
The number of shares outstanding for KD has been increased compared to 5 years ago.
The debt/assets ratio for KD has been reduced compared to a year ago.
2.2 Solvency
KD has an Altman-Z score of 1.58. This is a bad value and indicates that KD is not financially healthy and even has some risk of bankruptcy.
KD has a Altman-Z score of 1.58. This is in the lower half of the industry: KD underperforms 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.
Looking at the Debt to FCF ratio, with a value of 12.93, KD is in line with its industry, outperforming 42.35% of the companies in the same industry.
A Debt/Equity ratio of 2.45 is on the high side and indicates that KD has dependencies on debt financing.
KD's Debt to Equity ratio of 2.45 is on the low side compared to the rest of the industry. KD is outperformed by 78.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 12.93 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.73
WACC7.81%
2.3 Liquidity
KD has a Current 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 Current ratio (1.02) than 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
KD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 592.31%, which is quite impressive.
The Revenue has decreased by -1.90% in the past year.
KD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.78% yearly.
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
Based on estimates for the next years, KD will show a very strong growth in Earnings Per Share. The EPS will grow by 61.58% on average per year.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.26, KD is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of KD indicates a rather cheap valuation: KD is cheaper than 82.35% of the companies listed in the same industry.
KD is valuated cheaply when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.85, the valuation of KD can be described as very cheap.
Based on the Price/Forward Earnings ratio, KD is valued cheaper than 92.94% of the companies in the same industry.
KD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KD is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.48 | ||
| EV/EBITDA | 6.32 |
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.
KD's earnings are expected to grow with 61.58% in the coming years. This may justify a more expensive valuation.
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 (11/19/2025, 2:58:30 PM)
23.535
-0.09 (-0.36%)
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 Cap5.44B
Revenue(TTM)15.01B
Net Income(TTM)408.00M
Analysts83.08
Price Target41.62 (76.84%)
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 | 12.26 | ||
| Fwd PE | 6.85 | ||
| P/S | 0.36 | ||
| P/FCF | 22.48 | ||
| P/OCF | 6.3 | ||
| P/B | 4.43 | ||
| P/tB | 20.22 | ||
| EV/EBITDA | 6.32 |
EPS(TTM)1.92
EY8.16%
EPS(NY)3.44
Fwd EY14.6%
FCF(TTM)1.05
FCFY4.45%
OCF(TTM)3.73
OCFY15.86%
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 | 1.58 |
F-Score7
WACC7.81%
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 8 / 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 12.26 and the Price/Book (PB) ratio is 4.43.