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KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

NYSE:KD - New York Stock Exchange, Inc. - US50155Q1004 - Common Stock - Currency: USD

36.825  -0.95 (-2.5%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to KD. KD was compared to 82 industry peers in the IT Services industry. Both the profitability and financial health of KD have multiple concerns. KD has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year KD was profitable.
In the past year KD had a positive cash flow from operations.
In the past 5 years KD always reported negative net income.
In multiple years KD reported negative operating cash flow during the last 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 0 1B -1B -2B

1.2 Ratios

With a Return On Assets value of 1.39%, KD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
KD's Return On Equity of 12.61% is fine compared to the rest of the industry. KD outperforms 71.95% of its industry peers.
With a Return On Invested Capital value of 3.09%, KD perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
Industry RankSector Rank
ROA 1.39%
ROE 12.61%
ROIC 3.09%
ROA(3y)-10.92%
ROA(5y)-11.74%
ROE(3y)-73.36%
ROE(5y)-55.47%
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 -20 -40 -60 -80 -100

1.3 Margins

KD's Profit Margin of 0.91% is in line compared to the rest of the industry. KD outperforms 47.56% of its industry peers.
KD has a Operating Margin (1.55%) which is comparable to the rest of the industry.
KD has a worse Gross Margin (20.08%) than 81.71% of its industry peers.
In the last couple of years the Gross Margin of KD has grown nicely.
Industry RankSector Rank
OM 1.55%
PM (TTM) 0.91%
GM 20.08%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y16.04%
GM growth 5Y8.73%
KD Yearly Profit, Operating, Gross MarginsKD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 10 -10

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KD is destroying value.
There is no outstanding debt for KD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
KD Yearly Shares OutstandingKD Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 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 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 1.94 indicates that KD is not a great score, but indicates only limited risk for bankruptcy at the moment.
KD has a Altman-Z score of 1.94. This is in the lower half of the industry: KD underperforms 62.20% of its industry peers.
KD has a Debt/Equity ratio of 2.81. This is a high value indicating a heavy dependency on external financing.
KD has a worse Debt to Equity ratio (2.81) than 84.15% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.81
Debt/FCF N/A
Altman-Z 1.94
ROIC/WACC0.35
WACC8.87%
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 0 2B 4B

2.3 Liquidity

A Current Ratio of 1.09 indicates that KD should not have too much problems paying its short term obligations.
The Current ratio of KD (1.09) is worse than 75.61% of its industry peers.
KD has a Quick Ratio of 1.09. This is a normal value and indicates that KD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.09, KD is doing worse than 74.39% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
KD Yearly Current Assets VS Current LiabilitesKD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 218.39% over the past year.
EPS 1Y (TTM)218.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%240%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.3%

3.2 Future

The Earnings Per Share is expected to grow by 58.87% on average over the next years. This is a very strong growth
KD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.93% yearly.
EPS Next Y75.8%
EPS Next 2Y70.7%
EPS Next 3Y58.87%
EPS Next 5YN/A
Revenue Next Year3.05%
Revenue Next 2Y2.82%
Revenue Next 3Y3.06%
Revenue Next 5Y2.93%

3.3 Evolution

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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4

4. Valuation

4.1 Price/Earnings Ratio

KD is valuated quite expensively with a Price/Earnings ratio of 35.75.
KD's Price/Earnings ratio is in line with the industry average.
KD's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
Based on the Price/Forward Earnings ratio of 20.34, the valuation of KD can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KD is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.80. KD is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 35.75
Fwd PE 20.34
KD Price Earnings VS Forward Price EarningsKD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

73.17% of the companies in the same industry are more expensive than KD, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.23
KD Per share dataKD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 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 58.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y70.7%
EPS Next 3Y58.87%

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0

5. Dividend

5.1 Amount

KD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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KYNDRYL HOLDINGS INC

NYSE:KD (8/1/2025, 12:25:08 PM)

36.825

-0.95 (-2.5%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners80.66%
Inst Owner Change-0.49%
Ins Owners1.38%
Ins Owner Change5.24%
Market Cap8.52B
Analysts85.71
Price Target48.44 (31.54%)
Short Float %5.04%
Short Ratio6.77
Dividend
Industry RankSector 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)2
Avg EPS beat(2)127.42%
Min EPS beat(2)22.49%
Max EPS beat(2)232.34%
EPS beat(4)4
Avg EPS beat(4)85.77%
Min EPS beat(4)11.74%
Max EPS beat(4)232.34%
EPS beat(8)7
Avg EPS beat(8)40.97%
EPS beat(12)8
Avg EPS beat(12)26.09%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.11%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-2.76%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)-0.59%
Revenue beat(8)1
Avg Revenue beat(8)-1.84%
Revenue beat(12)3
Avg Revenue beat(12)-0.86%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.49%
PT rev (3m)11.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
Industry RankSector Rank
PE 35.75
Fwd PE 20.34
P/S 0.56
P/FCF N/A
P/OCF 16.84
P/B 7.79
P/tB 96.84
EV/EBITDA 11.23
EPS(TTM)1.03
EY2.8%
EPS(NY)1.81
Fwd EY4.92%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)2.19
OCFY5.94%
SpS65.28
BVpS4.73
TBVpS0.38
PEG (NY)0.47
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.39%
ROE 12.61%
ROCE 3.91%
ROIC 3.09%
ROICexc 4.12%
ROICexgc 5.31%
OM 1.55%
PM (TTM) 0.91%
GM 20.08%
FCFM N/A
ROA(3y)-10.92%
ROA(5y)-11.74%
ROE(3y)-73.36%
ROE(5y)-55.47%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y16.04%
GM growth 5Y8.73%
F-Score8
Asset Turnover1.52
Health
Industry RankSector Rank
Debt/Equity 2.81
Debt/FCF N/A
Debt/EBITDA 3.3
Cap/Depr 81.47%
Cap/Sales 3.75%
Interest Coverage 2.13
Cash Conversion 54.41%
Profit Quality N/A
Current Ratio 1.09
Quick Ratio 1.09
Altman-Z 1.94
F-Score8
WACC8.87%
ROIC/WACC0.35
Cap/Depr(3y)74.34%
Cap/Depr(5y)67.87%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)218.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%240%
EPS Next Y75.8%
EPS Next 2Y70.7%
EPS Next 3Y58.87%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.3%
Revenue Next Year3.05%
Revenue Next 2Y2.82%
Revenue Next 3Y3.06%
Revenue Next 5Y2.93%
EBIT growth 1Y185.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year9459.94%
EBIT Next 3Y389.74%
EBIT Next 5Y143.05%
FCF growth 1Y-106.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-53.02%
OCF growth 3Y-10.2%
OCF growth 5Y-7.63%