KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis
USA - NYSE:KD - US50155Q1004 - Common Stock
28.89 USD
-0.01 (-0.03%)
We assign a fundamental rating of 3 out of 10 to KD. KD was compared to 85 industry peers in the IT Services industry. Both the profitability and financial health of KD have multiple concerns. KD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KD had positive earnings in the past year.
In the past year KD had a positive cash flow from operations.
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.
1.2 Ratios
KD has a Return On Assets of 2.58%. This is comparable to the rest of the industry: KD outperforms 55.29% of its industry peers.
KD has a better Return On Equity (24.09%) than 87.06% of its industry peers.
KD has a Return On Invested Capital (4.45%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 24.09% | ||
| ROIC | 4.45% |
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
Looking at the Profit Margin, with a value of 1.97%, KD is in line with its industry, outperforming 48.24% of the companies in the same industry.
With a Operating Margin value of 2.72%, KD perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
Looking at the Gross Margin, with a value of 20.81%, KD is doing worse than 83.53% of the companies in the same industry.
In the last couple of years the Gross Margin of KD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.72% | ||
| PM (TTM) | 1.97% | ||
| GM | 20.81% |
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
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
Compared to 1 year ago, KD has an improved debt to assets ratio.
2.2 Solvency
KD has an Altman-Z score of 1.60. 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 (1.60) than 65.88% of its industry peers.
The Debt to FCF ratio of KD is 13.26, which is on the high side as it means it would take KD, 13.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KD (13.26) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.44 is on the high side and indicates that KD has dependencies on debt financing.
KD has a Debt to Equity ratio of 2.44. This is amonst the worse of the industry: KD underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 13.26 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.53
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.05 indicates that KD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, KD is doing worse than 76.47% of the companies in the same industry.
KD has a Quick Ratio of 1.05. This is a normal value and indicates that KD is financially healthy and should not expect problems in meeting its short term obligations.
KD's Quick ratio of 1.05 is on the low side compared to the rest of the industry. KD is outperformed by 74.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
KD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 264.63%, which is quite impressive.
The Revenue has decreased by -3.44% in the past year.
The Revenue has been decreasing by -5.78% on average over the past years.
EPS 1Y (TTM)264.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%640%
Revenue 1Y (TTM)-3.44%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%0.11%
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 61.55% on average per year.
The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y111.8%
EPS Next 2Y82.65%
EPS Next 3Y61.55%
EPS Next 5YN/A
Revenue Next Year3.86%
Revenue Next 2Y3.13%
Revenue Next 3Y3.2%
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.
4. Valuation
4.1 Price/Earnings Ratio
KD is valuated rather expensively with a Price/Earnings ratio of 21.40.
Based on the Price/Earnings ratio, KD is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KD to the average of the S&P500 Index (27.08), we can say KD is valued slightly cheaper.
KD is valuated reasonably with a Price/Forward Earnings ratio of 8.41.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KD indicates a rather cheap valuation: KD is cheaper than 92.94% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.09. KD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.4 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
89.41% 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 | 28.18 | ||
| EV/EBITDA | 7.19 |
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 61.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y82.65%
EPS Next 3Y61.55%
5. Dividend
5.1 Amount
KD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:KD (10/28/2025, 10:13:02 AM)
28.89
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners80.69%
Inst Owner Change-0.05%
Ins Owners1.35%
Ins Owner Change4.27%
Market Cap6.68B
Revenue(TTM)15.06B
Net Income(TTM)297.00M
Analysts83.08
Price Target43.72 (51.33%)
Short Float %6.99%
Short Ratio7.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-3.77%
Min EPS beat(2)-23.42%
Max EPS beat(2)15.88%
EPS beat(4)3
Avg EPS beat(4)61.82%
Min EPS beat(4)-23.42%
Max EPS beat(4)232.34%
EPS beat(8)7
Avg EPS beat(8)53.08%
EPS beat(12)9
Avg EPS beat(12)26.78%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.29%
Min Revenue beat(2)-4.34%
Max Revenue beat(2)-2.24%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)-1.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.5%
Revenue beat(12)2
Avg Revenue beat(12)-1.4%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-8.05%
PT rev (3m)-9.74%
EPS NQ rev (1m)-8.33%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)-4.81%
EPS NY rev (3m)20.48%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.4 | ||
| Fwd PE | 8.41 | ||
| P/S | 0.44 | ||
| P/FCF | 28.18 | ||
| P/OCF | 7.74 | ||
| P/B | 5.42 | ||
| P/tB | 24.55 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)1.35
EY4.67%
EPS(NY)3.44
Fwd EY11.89%
FCF(TTM)1.03
FCFY3.55%
OCF(TTM)3.73
OCFY12.92%
SpS65.16
BVpS5.33
TBVpS1.18
PEG (NY)0.19
PEG (5Y)N/A
Graham Number12.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 24.09% | ||
| ROCE | 5.64% | ||
| ROIC | 4.45% | ||
| ROICexc | 5.58% | ||
| ROICexgc | 6.69% | ||
| OM | 2.72% | ||
| PM (TTM) | 1.97% | ||
| GM | 20.81% | ||
| FCFM | 1.57% |
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-Score8
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 13.26 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 83.02% | ||
| Cap/Sales | 4.16% | ||
| Interest Coverage | 3.47 | ||
| Cash Conversion | 74.2% | ||
| Profit Quality | 79.8% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.6 |
F-Score8
WACC8.4%
ROIC/WACC0.53
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)264.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%640%
EPS Next Y111.8%
EPS Next 2Y82.65%
EPS Next 3Y61.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.44%
Revenue growth 3Y-6.9%
Revenue growth 5Y-5.78%
Sales Q2Q%0.11%
Revenue Next Year3.86%
Revenue Next 2Y3.13%
Revenue Next 3Y3.2%
Revenue Next 5Y2.93%
EBIT growth 1Y617.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year387.8%
EBIT Next 3Y80.09%
EBIT Next 5Y31.72%
FCF growth 1Y192.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y173.1%
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 3 / 10 to KD.
Can you provide the valuation status for KYNDRYL HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to KYNDRYL HOLDINGS INC (KD). This can be considered as Fairly Valued.
Can you provide the profitability details for KYNDRYL HOLDINGS INC?
KYNDRYL HOLDINGS INC (KD) has a profitability rating of 3 / 10.
What is the valuation of KYNDRYL HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KYNDRYL HOLDINGS INC (KD) is 21.4 and the Price/Book (PB) ratio is 5.42.