KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis
NYSE:KD • US50155Q1004
11.18 USD
-0.94 (-7.76%)
Last: Feb 12, 2026, 12:14 PM
We assign a fundamental rating of 4 out of 10 to KD. KD was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- KD had positive earnings in the past year.
- 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.
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 64.37% of the companies in the same industry.
- The Return On Equity of KD (33.22%) is better than 91.95% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.69%, KD is in the better half of the industry, outperforming 60.92% 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 of 2.72%. This is comparable to the rest of the industry: KD outperforms 51.72% of its industry peers.
- KD has a Operating Margin of 3.38%. This is comparable to the rest of the industry: KD outperforms 48.28% of its industry peers.
- KD has a worse Gross Margin (21.22%) than 80.46% of its industry peers.
- In the last couple of years the Gross Margin of KD has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KD is destroying value.
- KD has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, KD has more shares outstanding
- KD has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.42, we must say that KD is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.42, KD is doing worse than 62.07% of the companies in the same industry.
- The Debt to FCF ratio of KD is 12.93, which is on the high side as it means it would take KD, 12.93 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of KD (12.93) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.45 is on the high side and indicates that KD has dependencies on debt financing.
- KD has a worse Debt to Equity ratio (2.45) than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 12.93 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.72
WACC7.88%
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 78.16% 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 Quick ratio of 1.02. This is in the lower half of the industry: KD underperforms 77.01% 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 132.73% over the past year.
- Looking at the last year, KD shows a decrease in Revenue. The Revenue has decreased by -6.20% in the last year.
- The Revenue has been decreasing by -5.78% on average over the past years.
EPS 1Y (TTM)132.73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.91%
Revenue 1Y (TTM)-6.2%
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 Year3.49%
Revenue Next 2Y3.56%
Revenue Next 3Y3.33%
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
- With a Price/Earnings ratio of 8.73, the valuation of KD can be described as very reasonable.
- Based on the Price/Earnings ratio, KD is valued cheaper than 85.06% of the companies in the same industry.
- KD is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 3.05, the valuation of KD can be described as very cheap.
- KD's Price/Forward Earnings ratio is rather cheap when compared to the industry. KD is cheaper than 97.70% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, KD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 3.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KD is valued cheaper than 96.55% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, KD is valued a bit cheaper than 77.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.56 | ||
| EV/EBITDA | 3.97 |
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.
- A more expensive valuation may be justified as KD's earnings are expected to grow with 63.72% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y88.77%
EPS Next 3Y63.72%
5. Dividend
5.1 Amount
- KD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:KD (2/12/2026, 12:14:05 PM)
11.18
-0.94 (-7.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-09 2026-02-09/bmo
Earnings (Next)05-08 2026-05-08/amc
Inst Owners84.75%
Inst Owner Change-1.26%
Ins Owners1.33%
Ins Owner Change-0.3%
Market Cap2.56B
Revenue(TTM)15.06B
Net Income(TTM)408.00M
Analysts84
Price Target38.79 (246.96%)
Short Float %8.56%
Short Ratio9.92
Dividend
| Industry Rank | Sector 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)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)0.87%
PT rev (3m)-6.8%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)9.46%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 3.05 | ||
| P/S | 0.17 | ||
| P/FCF | 10.56 | ||
| P/OCF | 2.96 | ||
| P/B | 2.08 | ||
| P/tB | 9.5 | ||
| EV/EBITDA | 3.97 |
EPS(TTM)1.28
EY11.45%
EPS(NY)3.67
Fwd EY32.83%
FCF(TTM)1.06
FCFY9.47%
OCF(TTM)3.78
OCFY33.77%
SpS65.66
BVpS5.37
TBVpS1.18
PEG (NY)0.07
PEG (5Y)N/A
Graham Number12.44
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 | 1.42 |
F-Score7
WACC7.88%
ROIC/WACC0.72
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)132.73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.91%
EPS Next Y131.83%
EPS Next 2Y88.77%
EPS Next 3Y63.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.2%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%3.07%
Revenue Next Year3.49%
Revenue Next 2Y3.56%
Revenue Next 3Y3.33%
Revenue Next 5Y2.93%
EBIT growth 1Y374.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year382.85%
EBIT Next 3Y79.86%
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.
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 8.73 and the Price/Book (PB) ratio is 2.08.
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.