KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

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

23.49 USD
+1.42 (+6.43%)
At close: Feb 6, 2026
23.8 USD
+0.31 (+1.32%)
After Hours: 2/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, KD scores 4 out of 10 in our fundamental rating. KD was compared to 87 industry peers in the IT Services industry. KD has a medium profitability rating, but doesn't score so well on its financial health evaluation. KD may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

4

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.
  • 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

  • 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.
  • Looking at the Return On Equity, with a value of 33.22%, KD belongs to the top of the industry, outperforming 92.05% of the companies in the same industry.
  • KD has a Return On Invested Capital of 5.69%. This is in the better half 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 has a Profit Margin (2.72%) which is comparable to the rest of the industry.
  • KD has a Operating Margin of 3.38%. This is comparable to the rest of the industry: KD outperforms 48.86% of its industry peers.
  • 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.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
  • Compared to 1 year ago, KD has an improved debt to assets ratio.
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

  • Based on the Altman-Z score of 1.57, we must say that KD is in the distress zone and has some risk of bankruptcy.
  • KD has a worse Altman-Z score (1.57) than 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 has a Debt to FCF ratio of 12.93. This is comparable to the rest of the industry: KD outperforms 42.05% of its industry peers.
  • A Debt/Equity ratio of 2.45 is on the high side and indicates that KD has dependencies on debt financing.
  • The Debt to Equity ratio of KD (2.45) is worse than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.45
Debt/FCF 12.93
Altman-Z 1.57
ROIC/WACC0.69
WACC8.29%
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 1.02 indicates that KD should not have too much problems paying 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.
  • With a Quick ratio value of 1.02, KD is not doing good in the industry: 76.14% 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

  • 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.
  • The Revenue has decreased by -1.90% in the past 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

  • KD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 63.72% yearly.
  • 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

  • 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 -4 -6

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.23 indicates a correct valuation of KD.
  • Based on the Price/Earnings ratio, KD is valued a bit cheaper than the industry average as 79.55% of the companies are valued more expensively.
  • KD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.93.
  • Based on the Price/Forward Earnings ratio of 6.40, the valuation of KD can be described as very cheap.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of KD indicates a rather cheap valuation: KD is cheaper than 94.32% of the companies listed 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 27.77.
Industry RankSector Rank
PE 12.23
Fwd PE 6.4
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 89.77% of the companies in the same industry.
  • KD's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 22.19
EV/EBITDA 6.24
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)0.09
PEG (5Y)N/A
EPS Next 2Y88.77%
EPS Next 3Y63.72%

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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 (2/6/2026, 8:04:00 PM)

After market: 23.8 +0.31 (+1.32%)

23.49

+1.42 (+6.43%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04
Earnings (Next)02-09
Inst Owners84.75%
Inst Owner Change-1.26%
Ins Owners1.33%
Ins Owner Change-0.3%
Market Cap5.37B
Revenue(TTM)15.01B
Net Income(TTM)408.00M
Analysts84.29
Price Target38.79 (65.13%)
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 12.23
Fwd PE 6.4
P/S 0.36
P/FCF 22.19
P/OCF 6.22
P/B 4.37
P/tB 19.96
EV/EBITDA 6.24
EPS(TTM)1.92
EY8.17%
EPS(NY)3.67
Fwd EY15.62%
FCF(TTM)1.06
FCFY4.51%
OCF(TTM)3.78
OCFY16.07%
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
WACC8.29%
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 Y131.83%
EPS Next 2Y88.77%
EPS Next 3Y63.72%
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 Year3.49%
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 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 12.23 and the Price/Book (PB) ratio is 4.37.


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.