KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

NYSE:KD • US50155Q1004

12.24 USD
+0.9 (+7.94%)
At close: Feb 13, 2026
12.2 USD
-0.04 (-0.33%)
After Hours: 2/13/2026, 8:20:49 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

KD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
  • 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

  • The Return On Assets of KD (3.63%) is better than 64.37% of its industry peers.
  • KD has a better Return On Equity (33.22%) than 91.95% of its industry peers.
  • KD's Return On Invested Capital of 5.69% is in line compared to the rest of the industry. KD outperforms 59.77% 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 52.87% 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.
  • With a Gross Margin value of 21.22%, KD is not doing good in the industry: 80.46% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of KD has grown nicely.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KD is destroying value.
  • The number of shares outstanding for KD remains at a similar level compared to 1 year ago.
  • KD has more shares outstanding than it did 5 years ago.
  • KD has a better debt/assets ratio than last year.
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 1.42. This is a bad value and indicates that KD is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of KD (1.42) is worse than 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.
  • KD's Debt to FCF ratio of 12.93 is in line compared to the rest of the industry. KD outperforms 41.38% of its industry peers.
  • KD has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
  • KD has a Debt to Equity ratio of 2.45. This is in the lower half of the industry: KD underperforms 75.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.45
Debt/FCF 12.93
Altman-Z 1.42
ROIC/WACC0.69
WACC8.26%
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.
  • Looking at the Current ratio, with a value of 1.02, KD is doing worse than 77.01% of the companies in the same industry.
  • A Quick Ratio of 1.02 indicates that KD should not have too much problems paying its short term obligations.
  • The Quick ratio of KD (1.02) is worse than 75.86% 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

  • The Earnings Per Share has grown by an impressive 181.82% over the past year.
  • 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

  • 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.
  • The Revenue is expected to grow by 2.93% on average over the next years.
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

  • 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

9

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 7.90, which indicates a rather cheap valuation of KD.
  • Based on the Price/Earnings ratio, KD is valued cheaper than 89.66% of the companies in the same industry.
  • KD is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 3.33, the valuation of KD can be described as very cheap.
  • 97.70% of the companies in the same industry are more expensive than KD, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, KD is valued rather cheaply.
Industry RankSector Rank
PE 7.9
Fwd PE 3.33
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

  • KD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KD is cheaper than 96.55% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of KD indicates a somewhat cheap valuation: KD is cheaper than 77.01% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.56
EV/EBITDA 4
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.
  • 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%

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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, 8:20:49 PM)

After market: 12.2 -0.04 (-0.33%)

12.24

+0.9 (+7.94%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-09
Earnings (Next)05-08
Inst Owners84.75%
Inst Owner Change-2.24%
Ins Owners1.33%
Ins Owner Change-0.3%
Market Cap2.80B
Revenue(TTM)15.12B
Net Income(TTM)408.00M
Analysts84
Price Target38.79 (216.91%)
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)-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)0.02%
Revenue NY rev (3m)-0.35%
Valuation
Industry RankSector Rank
PE 7.9
Fwd PE 3.33
P/S 0.19
P/FCF 11.56
P/OCF 3.24
P/B 2.28
P/tB 10.4
EV/EBITDA 4
EPS(TTM)1.55
EY12.66%
EPS(NY)3.67
Fwd EY29.99%
FCF(TTM)1.06
FCFY8.65%
OCF(TTM)3.78
OCFY30.85%
SpS65.66
BVpS5.37
TBVpS1.18
PEG (NY)0.06
PEG (5Y)N/A
Graham Number13.69
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 1.42
F-Score7
WACC8.26%
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 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 7.9 and the Price/Book (PB) ratio is 2.28.


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.