KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:KD • US50155Q1004

12.12 USD
+1 (+8.99%)
At close: Feb 11, 2026
12.1 USD
-0.02 (-0.17%)
After Hours: 2/11/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

4

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.
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 63.22% 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 decent Return On Invested Capital value of 5.69%, KD is doing good in the industry, outperforming 60.92% of the companies in the same industry.
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 (2.72%) which is in line with its industry peers.
  • With a Operating Margin value of 3.38%, KD perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
  • Looking at the Gross Margin, with a value of 21.22%, KD is doing worse than 80.46% of the companies in the same industry.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KD is destroying value.
  • KD has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, KD has more shares outstanding
  • The debt/assets ratio for KD has been reduced compared to a year ago.
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 1.40. This is a bad value and indicates that KD is not financially healthy and even has some risk of bankruptcy.
  • KD has a Altman-Z score of 1.40. 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.
  • KD has a Debt to FCF ratio (12.93) which 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.
  • With a Debt to Equity ratio value of 2.45, KD is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.45
Debt/FCF 12.93
Altman-Z 1.4
ROIC/WACC0.72
WACC7.88%
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's Current ratio of 1.02 is on the low side compared to the rest of the industry. KD is outperformed by 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.
  • With a Quick ratio value of 1.02, KD is not doing good in the industry: 77.01% of the companies in the same industry are doing better.
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 132.73% over the past year.
  • The Revenue has decreased by -6.20% in the past year.
  • KD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.78% yearly.
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.
  • 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 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

  • With a Price/Earnings ratio of 9.47, the valuation of KD can be described as very reasonable.
  • Based on the Price/Earnings ratio, KD is valued cheaper than 90.80% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.23. KD is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 3.30 indicates a rather cheap valuation of KD.
  • Based on the Price/Forward Earnings ratio, KD is valued cheaper than 98.85% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, KD is valued rather cheaply.
Industry RankSector Rank
PE 9.47
Fwd PE 3.3
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 83.91% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.45
EV/EBITDA 3.78
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%

More info and screens

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

0

5. Dividend

5.1 Amount

  • KD does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

KYNDRYL HOLDINGS INC

NYSE:KD (2/11/2026, 8:04:00 PM)

After market: 12.1 -0.02 (-0.17%)

12.12

+1 (+8.99%)

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 Cap2.77B
Revenue(TTM)15.06B
Net Income(TTM)408.00M
Analysts84
Price Target38.79 (220.05%)
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 9.47
Fwd PE 3.3
P/S 0.18
P/FCF 11.45
P/OCF 3.21
P/B 2.26
P/tB 10.3
EV/EBITDA 3.78
EPS(TTM)1.28
EY10.56%
EPS(NY)3.67
Fwd EY30.28%
FCF(TTM)1.06
FCFY8.74%
OCF(TTM)3.78
OCFY31.15%
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 1.4
F-Score7
WACC7.88%
ROIC/WACC0.72
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 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 9.47 and the Price/Book (PB) ratio is 2.26.


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.