KYNDRYL HOLDINGS INC (KD) Fundamental Analysis & Valuation

NYSE:KD • US50155Q1004

Current stock price

12.95 USD
+0.74 (+6.06%)
At close:
12.93 USD
-0.02 (-0.15%)
After Hours:

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

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

  • Looking at the Return On Assets, with a value of 2.22%, KD is in line with its industry, outperforming 57.95% of the companies in the same industry.
  • KD has a Return On Equity of 20.94%. This is amongst the best in the industry. KD outperforms 82.95% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.64%, KD is in the better half of the industry, outperforming 64.77% of the companies in the same industry.
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

  • With a Profit Margin value of 1.65%, KD perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
  • Looking at the Operating Margin, with a value of 3.46%, KD is in line with its industry, outperforming 51.14% of the companies in the same industry.
  • KD has a worse Gross Margin (21.59%) than 79.55% of its industry peers.
  • KD's Gross Margin has improved in the last couple of years.
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

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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.
  • The number of shares outstanding for KD has been increased compared to 5 years ago.
  • 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

  • KD has an Altman-Z score of 1.35. This is a bad value and indicates that KD is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.35, KD is doing worse than 64.77% of the companies in the same industry.
  • 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.
  • KD's Debt to FCF ratio of 10.44 is in line compared to the rest of the industry. KD outperforms 47.73% of its industry peers.
  • A Debt/Equity ratio of 1.92 is on the high side and indicates that KD has dependencies on debt financing.
  • KD has a Debt to Equity ratio of 1.92. This is in the lower half of the industry: KD underperforms 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 10.44
Altman-Z 1.35
ROIC/WACC0.8
WACC8.32%
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

  • KD has a Current 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 Current ratio (0.86) than 82.95% of its industry peers.
  • A Quick Ratio of 0.86 indicates that KD may have some problems paying its short term obligations.
  • The Quick ratio of KD (0.86) is worse than 81.82% 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

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

4

3. KD Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 181.82% over the past year.
  • The Revenue has been growing slightly by 0.11% in the past 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 43.42% 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 Y68.75%
EPS Next 2Y59.9%
EPS Next 3Y43.42%
EPS Next 5YN/A
Revenue Next Year1.09%
Revenue Next 2Y0.75%
Revenue Next 3Y0.87%
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 -6

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9

4. KD Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 8.35, which indicates a very decent valuation of KD.
  • Based on the Price/Earnings ratio, KD is valued cheaper than 90.91% of the companies in the same industry.
  • KD is valuated cheaply when we compare the Price/Earnings ratio to 25.54, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 4.92, the valuation of KD can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, KD is valued cheaper than 94.32% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.70. KD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.35
Fwd PE 4.92
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 96.59% of the companies listed in the same industry.
  • KD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KD is cheaper than 85.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.83
EV/EBITDA 3.42
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 43.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y59.9%
EPS Next 3Y43.42%

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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%

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KD Fundamentals: All Metrics, Ratios and Statistics

KYNDRYL HOLDINGS INC

NYSE:KD (3/23/2026, 8:04:00 PM)

After market: 12.93 -0.02 (-0.15%)

12.95

+0.74 (+6.06%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-09
Earnings (Next)05-08
Inst Owners86.25%
Inst Owner Change0.29%
Ins Owners1.11%
Ins Owner Change0.26%
Market Cap2.92B
Revenue(TTM)15.12B
Net Income(TTM)250.00M
Analysts76
Price Target31.17 (140.69%)
Short Float %7.95%
Short Ratio3.17
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)-51.37%
EPS NQ rev (3m)-54.82%
EPS NY rev (1m)-27.21%
EPS NY rev (3m)-27.26%
Revenue NQ rev (1m)-4.71%
Revenue NQ rev (3m)-7.66%
Revenue NY rev (1m)-2.32%
Revenue NY rev (3m)-2.3%
Valuation
Industry RankSector Rank
PE 8.35
Fwd PE 4.92
P/S 0.19
P/FCF 9.83
P/OCF 2.84
P/B 2.45
P/tB 12.16
EV/EBITDA 3.42
EPS(TTM)1.55
EY11.97%
EPS(NY)2.63
Fwd EY20.33%
FCF(TTM)1.32
FCFY10.17%
OCF(TTM)4.56
OCFY35.24%
SpS67.08
BVpS5.3
TBVpS1.06
PEG (NY)0.12
PEG (5Y)N/A
Graham Number13.59
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 1.35
F-Score7
WACC8.32%
ROIC/WACC0.8
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 Y68.75%
EPS Next 2Y59.9%
EPS Next 3Y43.42%
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 Fundamental Analysis 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 8.35 and the Price/Book (PB) ratio is 2.45.


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 68.75% in the next year.