KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KD - US50155Q1004 - Common Stock
24.33 USD
-0.88 (-3.49%)
24.35 USD
+0.02 (+0.08%)
Taking everything into account, KD scores 4 out of 10 in our fundamental rating. KD was compared to 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.
1. Profitability
1.1 Basic Checks
- KD had positive earnings in the past year.
- KD had a positive operating cash flow in the past year.
- KD had negative earnings in 4 of the past 5 years.
- Of the past 5 years KD 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of KD (3.63%) is better than 63.64% of its industry peers.
- KD has a Return On Equity of 33.22%. This is amongst the best in the industry. KD outperforms 92.05% of its industry peers.
- KD has a better Return On Invested Capital (5.69%) than 60.23% of its industry peers.
| 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
- With a Profit Margin value of 2.72%, KD perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
- KD's Operating Margin of 3.38% is in line compared to the rest of the industry. KD outperforms 48.86% of its industry peers.
- Looking at the Gross Margin, with a value of 21.22%, KD is doing worse than 79.55% of the companies in the same industry.
- KD's Gross Margin has improved in the last couple of years.
| 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.
- 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.
2.2 Solvency
- Based on the Altman-Z score of 1.59, we must say that KD is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.59, KD is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- 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 in line with its industry peers.
- KD has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of KD (2.45) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 12.93 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.69
WACC8.28%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that KD should not have too much problems paying its short term obligations.
- KD has a Current ratio of 1.02. This is in the lower half of the industry: KD underperforms 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.
- The Quick ratio of KD (1.02) is worse than 76.14% 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 592.31%, which is quite impressive.
- 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
- Based on estimates for the next years, KD will show a very strong growth in Earnings Per Share. The EPS will grow by 64.58% 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 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.67 indicates a correct valuation of KD.
- Compared to the rest of the industry, the Price/Earnings ratio of KD indicates a rather cheap valuation: KD is cheaper than 80.68% of the companies listed in the same industry.
- KD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.94.
- Based on the Price/Forward Earnings ratio of 6.54, the valuation of KD can be described as very cheap.
- Based on the Price/Forward Earnings ratio, KD is valued cheaper than 94.32% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of KD to the average of the S&P500 Index (23.94), we can say KD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 6.54 |
4.2 Price Multiples
- 92.05% of the companies in the same industry are more expensive than KD, based on the Enterprise Value to EBITDA ratio.
- KD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.98 | ||
| EV/EBITDA | 6.4 |
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.
- A more expensive valuation may be justified as KD's earnings are expected to grow with 64.58% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y90.11%
EPS Next 3Y64.58%
5. Dividend
5.1 Amount
- No dividends for KD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.33
-0.88 (-3.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-03 2026-02-03/amc
Inst Owners84.75%
Inst Owner Change0.03%
Ins Owners1.33%
Ins Owner Change-0.84%
Market Cap5.56B
Revenue(TTM)15.01B
Net Income(TTM)408.00M
Analysts84.29
Price Target38.46 (58.08%)
Short Float %8.1%
Short Ratio8.05
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%
PT rev (3m)-12.03%
EPS NQ rev (1m)-3.3%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0.09%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-1.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 6.54 | ||
| P/S | 0.37 | ||
| P/FCF | 22.98 | ||
| P/OCF | 6.44 | ||
| P/B | 4.53 | ||
| P/tB | 20.67 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)1.92
EY7.89%
EPS(NY)3.72
Fwd EY15.3%
FCF(TTM)1.06
FCFY4.35%
OCF(TTM)3.78
OCFY15.52%
SpS65.66
BVpS5.37
TBVpS1.18
PEG (NY)0.1
PEG (5Y)N/A
Graham Number15.23
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 | 1.59 |
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)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 12.67 and the Price/Book (PB) ratio is 4.53.
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.