KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:KD • US50155Q1004

23.49 USD
+1.42 (+6.43%)
At close: Feb 6, 2026
10.96 USD
-12.53 (-53.34%)
Pre-Market: 2/9/2026, 9:13:09 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
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. There are concerns on the financial health of KD while its profitability can be described as average. KD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

4

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.
  • Of the past 5 years KD 4 years had a positive operating cash flow.
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

  • The Return On Assets of KD (3.63%) is better than 63.22% of its industry peers.
  • With an excellent Return On Equity value of 33.22%, KD belongs to the best of the industry, outperforming 91.95% of the companies in the same industry.
  • The Return On Invested Capital of KD (5.69%) is comparable to the rest of the industry.
Industry RankSector 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
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 2.72%. This is comparable to the rest of the industry: KD outperforms 51.72% of its industry peers.
  • Looking at the Operating Margin, with a value of 3.38%, KD is in line with its industry, outperforming 48.28% of the companies in the same industry.
  • KD has a worse Gross Margin (21.22%) than 80.46% of its industry peers.
  • KD's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KD is destroying value.
  • The number of shares outstanding for KD remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, KD has more shares outstanding
  • Compared to 1 year ago, KD has an improved debt to assets ratio.
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 1.57, we must say that KD is in the distress zone and has some risk of bankruptcy.
  • KD has a worse Altman-Z score (1.57) than 63.22% of its industry peers.
  • 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.
  • KD has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
  • KD has a worse Debt to Equity ratio (2.45) than 75.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.45
Debt/FCF 12.93
Altman-Z 1.57
ROIC/WACC0.68
WACC8.36%
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 1.02 indicates that KD should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.02, KD is not doing good in the industry: 78.16% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.02 indicates that KD should not have too much problems paying 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 RankSector Rank
Current Ratio 1.02
Quick Ratio 1.02
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

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

4

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.
  • 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

  • Based on estimates for the next years, KD will show a very strong growth in Earnings Per Share. The EPS will grow by 63.72% 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 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.
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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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.23 indicates a correct valuation of KD.
  • 79.31% of the companies in the same industry are more expensive than KD, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of KD to the average of the S&P500 Index (27.93), we can say KD is valued rather cheaply.
  • A Price/Forward Earnings ratio of 6.40 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 94.25% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.77, KD is valued rather cheaply.
Industry RankSector Rank
PE 12.23
Fwd PE 6.4
KD Price Earnings VS Forward Price EarningsKD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KD indicates a rather cheap valuation: KD is cheaper than 89.66% of the companies listed in the same industry.
  • KD's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 22.19
EV/EBITDA 6.24
KD Per share dataKD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 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.
  • KD's earnings are expected to grow with 63.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
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. Dividend

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

KYNDRYL HOLDINGS INC

NYSE:KD (2/6/2026, 8:04:00 PM)

Premarket: 10.96 -12.53 (-53.34%)

23.49

+1.42 (+6.43%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04
Earnings (Next)02-09
Inst Owners84.75%
Inst Owner Change-1.26%
Ins Owners1.33%
Ins Owner Change-0.3%
Market Cap5.37B
Revenue(TTM)15.01B
Net Income(TTM)408.00M
Analysts84.29
Price Target38.79 (65.13%)
Short Float %8.56%
Short Ratio9.92
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)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 RankSector Rank
PE 12.23
Fwd PE 6.4
P/S 0.36
P/FCF 22.19
P/OCF 6.22
P/B 4.37
P/tB 19.96
EV/EBITDA 6.24
EPS(TTM)1.92
EY8.17%
EPS(NY)3.67
Fwd EY15.62%
FCF(TTM)1.06
FCFY4.51%
OCF(TTM)3.78
OCFY16.07%
SpS65.66
BVpS5.37
TBVpS1.18
PEG (NY)0.09
PEG (5Y)N/A
Graham Number15.23
Profitability
Industry RankSector 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 RankSector 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 1.57
F-Score7
WACC8.36%
ROIC/WACC0.68
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 Y131.83%
EPS Next 2Y88.77%
EPS Next 3Y63.72%
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 Year3.49%
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 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 are the PE and PB ratios of KYNDRYL HOLDINGS INC (KD) stock?

The Price/Earnings (PE) ratio for KYNDRYL HOLDINGS INC (KD) is 12.23 and the Price/Book (PB) ratio is 4.37.


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.