KYNDRYL HOLDINGS INC (KD) Fundamental Analysis & Valuation

NYSE:KD • US50155Q1004

Current stock price

13.415 USD
-0.87 (-6.06%)
Last:

This KD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. KD Profitability Analysis

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.
  • 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 (2.22%) is comparable to the rest of the industry.
  • KD's Return On Equity of 20.94% is amongst the best of the industry. KD outperforms 84.09% of its industry peers.
  • With a decent Return On Invested Capital value of 6.64%, KD is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Industry RankSector Rank
ROA 2.22%
ROE 20.94%
ROIC 6.64%
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

  • Looking at the Profit Margin, with a value of 1.65%, KD is in line with its industry, outperforming 52.27% of the companies in the same industry.
  • With a Operating Margin value of 3.46%, KD perfoms like the industry average, outperforming 51.14% of the companies in the same industry.
  • KD has a worse Gross Margin (21.59%) than 79.55% of its industry peers.
  • KD's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 3.46%
PM (TTM) 1.65%
GM 21.59%
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

1

2. KD Health Analysis

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.
  • The number of shares outstanding for KD remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, KD has more shares outstanding
  • 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 1.38. This is a bad value and indicates that KD is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.38, KD is doing worse than 61.36% of the companies in the same industry.
  • KD has a debt to FCF ratio of 10.44. This is a negative value and a sign of low solvency as KD would need 10.44 years to pay back of all of its debts.
  • KD's Debt to FCF ratio of 10.44 is in line compared to the rest of the industry. KD outperforms 47.73% of its industry peers.
  • KD has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
  • KD's Debt to Equity ratio of 1.92 is on the low side compared to the rest of the industry. KD is outperformed by 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 10.44
Altman-Z 1.38
ROIC/WACC0.72
WACC9.18%
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

  • A Current Ratio of 0.86 indicates that KD may have some problems paying its short term obligations.
  • KD's Current ratio of 0.86 is on the low side compared to the rest of the industry. KD is outperformed by 81.82% of its industry peers.
  • KD has a Quick Ratio of 0.86. This is a bad value and indicates that KD is not financially healthy enough and could expect problems in meeting its short term obligations.
  • KD's Quick ratio of 0.86 is on the low side compared to the rest of the industry. KD is outperformed by 80.68% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.86
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. KD Growth Analysis

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%.
  • 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 43.04% on average per year.
  • KD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.93% yearly.
EPS Next Y71.6%
EPS Next 2Y55.78%
EPS Next 3Y43.04%
EPS Next 5YN/A
Revenue Next Year0.87%
Revenue Next 2Y0.47%
Revenue Next 3Y0.67%
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 -6

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8

4. KD Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 8.65 indicates a reasonable valuation of KD.
  • Based on the Price/Earnings ratio, KD is valued cheaply inside the industry as 84.09% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.50, KD is valued rather cheaply.
  • KD is valuated cheaply with a Price/Forward Earnings ratio of 5.37.
  • KD's Price/Forward Earnings ratio is rather cheap when compared to the industry. KD is cheaper than 93.18% of the companies in the same industry.
  • KD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.65
Fwd PE 5.37
KD Price Earnings VS Forward Price EarningsKD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 95.45% of the companies in the same industry are more expensive than KD, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, KD is valued a bit cheaper than the industry average as 78.41% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.18
EV/EBITDA 3.77
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.
  • KD's earnings are expected to grow with 43.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y55.78%
EPS Next 3Y43.04%

More info and screens

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

0

5. KD Dividend Analysis

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

KD Fundamentals: All Metrics, Ratios and Statistics

KYNDRYL HOLDINGS INC

NYSE:KD (4/23/2026, 2:31:05 PM)

13.415

-0.87 (-6.06%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-09
Earnings (Next)05-06
Inst Owners84.04%
Inst Owner Change0.33%
Ins Owners1.18%
Ins Owner Change0.26%
Market Cap3.02B
Revenue(TTM)15.12B
Net Income(TTM)250.00M
Analysts76
Price Target27.34 (103.8%)
Short Float %8.9%
Short Ratio3.2
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)1
Avg EPS beat(2)-6.56%
Min EPS beat(2)-16.32%
Max EPS beat(2)3.2%
EPS beat(4)2
Avg EPS beat(4)-6.5%
Min EPS beat(4)-23.42%
Max EPS beat(4)10.53%
EPS beat(8)6
Avg EPS beat(8)39.63%
EPS beat(12)9
Avg EPS beat(12)25.14%
EPS beat(16)10
Avg EPS beat(16)17.94%
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-5.92%
Max Revenue beat(2)-3.57%
Revenue beat(4)0
Avg Revenue beat(4)-4.02%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)-2.24%
Revenue beat(8)0
Avg Revenue beat(8)-3.39%
Revenue beat(12)1
Avg Revenue beat(12)-2.56%
Revenue beat(16)3
Avg Revenue beat(16)-1.65%
PT rev (1m)-12.27%
PT rev (3m)-28.9%
EPS NQ rev (1m)7.48%
EPS NQ rev (3m)-52.8%
EPS NY rev (1m)1.69%
EPS NY rev (3m)-26.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.69%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-2.52%
Valuation
Industry RankSector Rank
PE 8.65
Fwd PE 5.37
P/S 0.2
P/FCF 10.18
P/OCF 2.94
P/B 2.53
P/tB 12.6
EV/EBITDA 3.77
EPS(TTM)1.55
EY11.55%
EPS(NY)2.5
Fwd EY18.63%
FCF(TTM)1.32
FCFY9.82%
OCF(TTM)4.56
OCFY34.02%
SpS67.08
BVpS5.3
TBVpS1.06
PEG (NY)0.12
PEG (5Y)N/A
Graham Number13.5905 (1.31%)
Profitability
Industry RankSector Rank
ROA 2.22%
ROE 20.94%
ROCE 8.41%
ROIC 6.64%
ROICexc 8.47%
ROICexgc 10.53%
OM 3.46%
PM (TTM) 1.65%
GM 21.59%
FCFM 1.96%
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 Turnover1.34
Health
Industry RankSector Rank
Debt/Equity 1.92
Debt/FCF 10.44
Debt/EBITDA 1.74
Cap/Depr 92.31%
Cap/Sales 4.84%
Interest Coverage 4.52
Cash Conversion 78.13%
Profit Quality 118.8%
Current Ratio 0.86
Quick Ratio 0.86
Altman-Z 1.38
F-Score7
WACC9.18%
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)181.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-41.57%
EPS Next Y71.6%
EPS Next 2Y55.78%
EPS Next 3Y43.04%
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 Year0.87%
Revenue Next 2Y0.47%
Revenue Next 3Y0.67%
Revenue Next 5Y2.93%
EBIT growth 1Y123.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year369.22%
EBIT Next 3Y71.14%
EBIT Next 5Y31.72%
FCF growth 1Y205.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y220.56%
OCF growth 3YN/A
OCF growth 5Y-3.66%

KYNDRYL HOLDINGS INC / KD Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for KYNDRYL HOLDINGS INC?

ChartMill assigns a fundamental rating of 3 / 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.


What is the profitability of KD stock?

KYNDRYL HOLDINGS INC (KD) has a profitability rating of 4 / 10.


How financially healthy is KYNDRYL HOLDINGS INC?

The financial health rating of KYNDRYL HOLDINGS INC (KD) is 1 / 10.