KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

NYSE:KD • US50155Q1004

11.195 USD
-0.14 (-1.28%)
Last: Feb 13, 2026, 09:30 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, KD scores 4 out of 10 in our fundamental rating. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on KD.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • KD had positive earnings in the past year.
  • KD had a positive operating cash flow in the past year.
  • 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.
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's Return On Assets of 3.63% is fine compared to the rest of the industry. KD outperforms 64.37% of its industry peers.
  • Looking at the Return On Equity, with a value of 33.22%, KD belongs to the top of the industry, outperforming 91.95% of the companies in the same industry.
  • KD's Return On Invested Capital of 5.69% is fine compared to the rest of the industry. KD outperforms 60.92% of its industry peers.
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.
  • KD has a Operating Margin (3.38%) which is comparable to the rest of the 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

  • KD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.41. 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 1.41, KD is doing worse than 63.22% 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.
  • KD has a Debt to FCF ratio of 12.93. This is comparable to the rest of the industry: KD outperforms 41.38% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 2.45
Debt/FCF 12.93
Altman-Z 1.41
ROIC/WACC0.73
WACC7.81%
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 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 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's Quick ratio of 1.02 is on the low side compared to the rest of the industry. KD is outperformed by 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 132.73%, which is quite impressive.
  • KD shows a decrease in Revenue. In the last year, the revenue decreased by -6.20%.
  • 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)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

  • 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.
  • KD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.93% yearly.
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

  • 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

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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 8.75, which indicates a very decent valuation of KD.
  • 87.36% 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 (27.67), we can say KD is valued rather cheaply.
  • 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.
  • When comparing the Price/Forward Earnings ratio of KD to the average of the S&P500 Index (27.69), we can say KD is valued rather cheaply.
Industry RankSector Rank
PE 8.75
Fwd PE 3.05
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 96.55% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of KD indicates a rather cheap valuation: KD is cheaper than 80.46% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.57
EV/EBITDA 3.82
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)0.07
PEG (5Y)N/A
EPS Next 2Y88.77%
EPS Next 3Y63.72%

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

0

5. Dividend

5.1 Amount

  • No dividends for KD!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

KYNDRYL HOLDINGS INC

NYSE:KD (2/13/2026, 9:30:02 AM)

11.195

-0.14 (-1.28%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-09
Earnings (Next)05-08
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 (246.49%)
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 8.75
Fwd PE 3.05
P/S 0.17
P/FCF 10.57
P/OCF 2.96
P/B 2.08
P/tB 9.51
EV/EBITDA 3.82
EPS(TTM)1.28
EY11.43%
EPS(NY)3.67
Fwd EY32.78%
FCF(TTM)1.06
FCFY9.46%
OCF(TTM)3.78
OCFY33.73%
SpS65.66
BVpS5.37
TBVpS1.18
PEG (NY)0.07
PEG (5Y)N/A
Graham Number12.44
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 1.41
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)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 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 are the PE and PB ratios of KYNDRYL HOLDINGS INC (KD) stock?

The Price/Earnings (PE) ratio for KYNDRYL HOLDINGS INC (KD) is 8.75 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.