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. 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.
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.
- 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.
1.2 Ratios
- KD has a better Return On Assets (3.63%) than 64.37% 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.
- With a Return On Invested Capital value of 5.69%, KD perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
| 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
- 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's Operating Margin of 3.38% is in line compared to the rest of the industry. KD outperforms 48.28% of its industry peers.
- The Gross Margin of KD (21.22%) is worse than 80.46% of its industry peers.
- In the last couple of years the Gross Margin of KD has grown nicely.
| 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
- 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.
- KD has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for KD has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.43, we must say that KD is in the distress zone and has some risk of bankruptcy.
- KD has a Altman-Z score of 1.43. This is in the lower half of the industry: KD underperforms 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.
- Looking at the Debt to FCF ratio, with a value of 12.93, KD is in line with its industry, outperforming 40.23% of the companies in the same industry.
- A Debt/Equity ratio of 2.45 is on the high side and indicates that KD has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.45, KD is doing worse than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 12.93 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.69
WACC8.28%
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 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.
- KD's Quick ratio of 1.02 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 | ||
|---|---|---|---|
| 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.
- KD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
- 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 63.72% on average over the next years. This is a very strong growth
- 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
- 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.
- When comparing the Price/Earnings ratio of KD to the average of the S&P500 Index (26.99), we can say KD is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 3.41, the valuation of KD can be described as very cheap.
- Based on the Price/Forward Earnings ratio, KD is valued cheaply inside the industry as 96.55% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of KD to the average of the S&P500 Index (28.06), we can say KD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 3.41 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KD is valued cheaply inside the industry as 96.55% of the companies are valued more expensively.
- 72.41% 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 | 4.11 |
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 63.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y88.77%
EPS Next 3Y63.72%
5. Dividend
5.1 Amount
- KD does not give a dividend.
| 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 Change-2.24%
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)0.02%
Revenue NY rev (3m)-0.35%
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 | 4.11 |
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 | 1.43 |
F-Score7
WACC8.28%
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.