KYNDRYL HOLDINGS INC (KD) Fundamental Analysis & Valuation

NYSE:KD • US50155Q1004

Current stock price

13.06 USD
+0.15 (+1.16%)
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

  • KD had positive earnings in the past year.
  • 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

  • KD's Return On Assets of 2.22% is in line compared to the rest of the industry. KD outperforms 57.95% of its industry peers.
  • The Return On Equity of KD (20.94%) is better than 82.95% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.64%, KD is in the better half of 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.
  • KD has a Operating Margin (3.46%) which is comparable to the rest of the industry.
  • KD's Gross Margin of 21.59% is on the low side compared to the rest of the industry. KD is outperformed by 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

  • 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.
  • 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 1.36. This is a bad value and indicates that KD is not financially healthy and even has some risk of bankruptcy.
  • KD has a worse Altman-Z score (1.36) than 63.64% of its industry peers.
  • The Debt to FCF ratio of KD is 10.44, which is on the high side as it means it would take KD, 10.44 years of fcf income to pay off all of its debts.
  • KD has a Debt to FCF ratio (10.44) which is comparable to the rest of the industry.
  • KD has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.92, 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 1.92
Debt/FCF 10.44
Altman-Z 1.36
ROIC/WACC0.82
WACC8.09%
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 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 has a Current ratio of 0.86. This is amonst the worse of the industry: KD underperforms 81.82% of its industry peers.
  • A Quick Ratio of 0.86 indicates that KD may have some problems paying its short term obligations.
  • KD has a Quick ratio of 0.86. This is amonst the worse of the industry: KD underperforms 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

  • The Earnings Per Share has grown by an impressive 181.82% over the past year.
  • KD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
  • The Revenue has been decreasing by -5.78% on average over the past years.
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

  • KD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.42% yearly.
  • The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y68.75%
EPS Next 2Y59.9%
EPS Next 3Y43.42%
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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9

4. KD Valuation Analysis

4.1 Price/Earnings Ratio

  • KD is valuated reasonably with a Price/Earnings ratio of 8.43.
  • 89.77% of the companies in the same industry are more expensive than KD, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.21, KD is valued rather cheaply.
  • The Price/Forward Earnings ratio is 4.96, which indicates a rather cheap valuation of KD.
  • 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
Industry RankSector Rank
PE 8.43
Fwd PE 4.96
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 95.45% of the companies in the same industry.
  • 80.68% of the companies in the same industry are more expensive than KD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.91
EV/EBITDA 3.54
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 43.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y59.9%
EPS Next 3Y43.42%

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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 (4/7/2026, 1:36:06 PM)

13.06

+0.15 (+1.16%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-09
Earnings (Next)05-08
Inst Owners86.25%
Inst Owner Change0%
Ins Owners1.11%
Ins Owner Change0.26%
Market Cap2.94B
Revenue(TTM)15.12B
Net Income(TTM)250.00M
Analysts76
Price Target31.17 (138.67%)
Short Float %8.42%
Short Ratio3.16
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)0%
PT rev (3m)-18.96%
EPS NQ rev (1m)7.48%
EPS NQ rev (3m)-52.8%
EPS NY rev (1m)-27.21%
EPS NY rev (3m)-27.26%
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 8.43
Fwd PE 4.96
P/S 0.19
P/FCF 9.91
P/OCF 2.86
P/B 2.47
P/tB 12.27
EV/EBITDA 3.54
EPS(TTM)1.55
EY11.87%
EPS(NY)2.63
Fwd EY20.16%
FCF(TTM)1.32
FCFY10.09%
OCF(TTM)4.56
OCFY34.95%
SpS67.08
BVpS5.3
TBVpS1.06
PEG (NY)0.12
PEG (5Y)N/A
Graham Number13.59
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 1.36
F-Score7
WACC8.09%
ROIC/WACC0.82
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 Y68.75%
EPS Next 2Y59.9%
EPS Next 3Y43.42%
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 Year367.51%
EBIT Next 3Y71.12%
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 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.


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.