KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis
NYSE:KD • US50155Q1004
12.51 USD
-0.28 (-2.19%)
At close: Feb 20, 2026
12.46 USD
-0.05 (-0.4%)
After Hours: 2/20/2026, 8:04:00 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. While KD is still in line with the averages on profitability rating, there are concerns on its financial health. KD may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- KD had negative earnings in 4 of the past 5 years.
- KD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- KD has a Return On Assets of 3.63%. This is in the better half of the industry: KD outperforms 64.37% of its industry peers.
- KD has a better Return On Equity (33.22%) than 91.95% 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
- Looking at the Profit Margin, with a value of 2.72%, KD is in line with its industry, outperforming 52.87% of the companies in the same industry.
- 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's Gross Margin of 21.22% is on the low side compared to the rest of the industry. KD is outperformed by 80.46% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- 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.
- KD has a Altman-Z score of 1.42. This is in the lower half of the industry: KD underperforms 63.22% 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.
- 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's Debt to Equity ratio of 2.45 is on the low side compared to the rest of the industry. KD is outperformed by 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 12.93 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.69
WACC8.2%
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 worse Current ratio (1.02) than 77.01% 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.
- With a Quick ratio value of 1.02, KD is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
| 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 181.82%, which is quite impressive.
- Looking at the last year, KD shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
- KD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.78% yearly.
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
- KD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 63.72% yearly.
- 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 Year1.09%
Revenue Next 2Y0.75%
Revenue Next 3Y0.87%
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 8.07, the valuation of KD can be described as very reasonable.
- KD's Price/Earnings ratio is rather cheap when compared to the industry. KD is cheaper than 89.66% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.99. KD is valued rather cheaply when compared to this.
- KD is valuated cheaply with a Price/Forward Earnings ratio of 3.41.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KD indicates a rather cheap valuation: KD is cheaper than 97.70% of the companies listed in the same industry.
- KD is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 3.41 |
4.2 Price Multiples
- 96.55% of the companies in the same industry are more expensive than KD, based on the Enterprise Value to EBITDA ratio.
- 77.01% of the companies in the same industry are more expensive than KD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.82 | ||
| EV/EBITDA | 4.05 |
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)0.06
PEG (5Y)N/A
EPS Next 2Y88.77%
EPS Next 3Y63.72%
5. Dividend
5.1 Amount
- No dividends for KD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
12.51
-0.28 (-2.19%)
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 Change0.17%
Ins Owners1.33%
Ins Owner Change-0.3%
Market Cap2.86B
Revenue(TTM)15.12B
Net Income(TTM)408.00M
Analysts84
Price Target38.79 (210.07%)
Short Float %8.78%
Short Ratio4.37
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)-6.32%
EPS NQ rev (3m)-2.69%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)9.46%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)-2.3%
Revenue NY rev (3m)-2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 3.41 | ||
| P/S | 0.19 | ||
| P/FCF | 11.82 | ||
| P/OCF | 3.31 | ||
| P/B | 2.33 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 4.05 |
EPS(TTM)1.55
EY12.39%
EPS(NY)3.67
Fwd EY29.34%
FCF(TTM)1.06
FCFY8.46%
OCF(TTM)3.78
OCFY30.18%
SpS65.66
BVpS5.37
TBVpS1.18
PEG (NY)0.06
PEG (5Y)N/A
Graham Number13.69
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
WACC8.2%
ROIC/WACC0.69
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 Y131.83%
EPS Next 2Y88.77%
EPS Next 3Y63.72%
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 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 8.07 and the Price/Book (PB) ratio is 2.33.
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.