KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

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

23.31 USD
+0.31 (+1.35%)
At close: Feb 2, 2026
23.3 USD
-0.01 (-0.04%)
Pre-Market: 2/3/2026, 7:09:18 AM
Fundamental Rating

4

Overall KD gets a fundamental rating of 4 out of 10. We evaluated KD against 88 industry peers in the IT Services industry. There are concerns on the financial health of KD while its profitability can be described as average. 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

  • In the past year KD was profitable.
  • KD had a positive operating cash flow in the past year.
  • In the past 5 years KD reported 4 times negative net income.
  • 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

  • Looking at the Return On Assets, with a value of 3.63%, KD is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
  • With an excellent Return On Equity value of 33.22%, KD belongs to the best of the industry, outperforming 92.05% 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 60.23% 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's Profit Margin of 2.72% is in line compared to the rest of the industry. KD outperforms 52.27% of its industry peers.
  • KD has a Operating Margin (3.38%) which is comparable to the rest of the industry.
  • KD's Gross Margin of 21.22% is on the low side compared to the rest of the industry. KD is outperformed by 79.55% of its industry peers.
  • 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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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.
  • KD has about the same amout of shares outstanding than it did 1 year ago.
  • 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.
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 1.57. 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 1.57. This is in the lower half of the industry: KD underperforms 62.50% 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 42.05% 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.
  • With a Debt to Equity ratio value of 2.45, KD is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.45
Debt/FCF 12.93
Altman-Z 1.57
ROIC/WACC0.68
WACC8.38%
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 worse Current ratio (1.02) than 77.27% 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.
  • Looking at the Quick ratio, with a value of 1.02, KD is doing worse than 76.14% of the companies in the same industry.
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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4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 592.31% over the past year.
  • Looking at the last year, KD shows a decrease in Revenue. The Revenue has decreased by -1.90% in the last year.
  • The Revenue has been decreasing by -5.78% on average over the past years.
EPS 1Y (TTM)592.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%-1.4%

3.2 Future

  • The Earnings Per Share is expected to grow by 64.58% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, KD will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y132.2%
EPS Next 2Y90.11%
EPS Next 3Y64.58%
EPS Next 5YN/A
Revenue Next Year3.47%
Revenue Next 2Y3.53%
Revenue Next 3Y3.28%
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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8

4. Valuation

4.1 Price/Earnings Ratio

  • KD is valuated correctly with a Price/Earnings ratio of 12.14.
  • KD's Price/Earnings ratio is rather cheap when compared to the industry. KD is cheaper than 82.95% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.41. KD is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 6.26 indicates a rather cheap valuation of KD.
  • 94.32% of the companies in the same industry are more expensive than KD, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of KD to the average of the S&P500 Index (25.64), we can say KD is valued rather cheaply.
Industry RankSector Rank
PE 12.14
Fwd PE 6.26
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 92.05% of the companies in the same industry.
  • KD's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 22.02
EV/EBITDA 6.2
KD Per share dataKD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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 64.58% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y90.11%
EPS Next 3Y64.58%

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0

5. Dividend

5.1 Amount

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

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KYNDRYL HOLDINGS INC

NYSE:KD (2/2/2026, 8:18:40 PM)

Premarket: 23.3 -0.01 (-0.04%)

23.31

+0.31 (+1.35%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04
Earnings (Next)02-09
Inst Owners84.75%
Inst Owner Change-1.37%
Ins Owners1.33%
Ins Owner Change-0.3%
Market Cap5.33B
Revenue(TTM)15.01B
Net Income(TTM)408.00M
Analysts84.29
Price Target38.46 (64.99%)
Short Float %N/A
Short RatioN/A
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%
PT rev (3m)-12.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)0.09%
EPS NY rev (3m)9.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.37%
Valuation
Industry RankSector Rank
PE 12.14
Fwd PE 6.26
P/S 0.35
P/FCF 22.02
P/OCF 6.17
P/B 4.34
P/tB 19.81
EV/EBITDA 6.2
EPS(TTM)1.92
EY8.24%
EPS(NY)3.72
Fwd EY15.97%
FCF(TTM)1.06
FCFY4.54%
OCF(TTM)3.78
OCFY16.2%
SpS65.66
BVpS5.37
TBVpS1.18
PEG (NY)0.09
PEG (5Y)N/A
Graham Number15.23
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 1.57
F-Score7
WACC8.38%
ROIC/WACC0.68
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)592.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y132.2%
EPS Next 2Y90.11%
EPS Next 3Y64.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%-1.4%
Revenue Next Year3.47%
Revenue Next 2Y3.53%
Revenue Next 3Y3.28%
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 12.14 and the Price/Book (PB) ratio is 4.34.


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 132.2% in the next year.