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KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

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

39.35  0 (0%)

After market: 39.35 0 (0%)

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. KD has a bad profitability rating. Also its financial health evaluation is rather negative. KD has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

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 each of the past 5 years.
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.
Looking at the Return On Equity, with a value of 12.61%, KD is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
KD's Return On Invested Capital of 3.09% is in line compared to the rest of the industry. KD outperforms 51.22% of its industry peers.
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 has a Profit Margin (0.91%) which is in line with its industry peers.
KD's Operating Margin of 1.55% is in line compared to the rest of the industry. KD outperforms 46.34% of its industry peers.
With a Gross Margin value of 20.08%, KD is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KD is destroying value.
KD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

KD has an Altman-Z score of 1.96. This is not the best score and indicates that KD is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of KD (1.96) is comparable to the rest of the industry.
KD has a Debt/Equity ratio of 2.81. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KD (2.81) is worse than 80.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.81
Debt/FCF N/A
Altman-Z 1.96
ROIC/WACC0.35
WACC8.92%
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 71.95% 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.
KD's Quick ratio of 1.09 is on the low side compared to the rest of the industry. KD is outperformed by 70.73% of its industry peers.
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 57.07% on average over the next years. This is a very strong growth
Based on estimates for the next years, KD will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y92%
EPS Next 2Y70.98%
EPS Next 3Y57.07%
EPS Next 5YN/A
Revenue Next Year3.4%
Revenue Next 2Y2.92%
Revenue Next 3Y3.25%
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 -6

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4

4. Valuation

4.1 Price/Earnings Ratio

KD is valuated quite expensively with a Price/Earnings ratio of 38.20.
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 26.03.
A Price/Forward Earnings ratio of 19.90 indicates a rather expensive valuation of KD.
Based on the Price/Forward Earnings ratio, KD is valued a bit cheaper than 64.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KD to the average of the S&P500 Index (21.94), we can say KD is valued inline with the index average.
Industry RankSector Rank
PE 38.2
Fwd PE 19.9
KD Price Earnings VS Forward Price EarningsKD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

KD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KD is cheaper than 73.17% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.67
KD Per share dataKD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 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.
A more expensive valuation may be justified as KD's earnings are expected to grow with 57.07% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y70.98%
EPS Next 3Y57.07%

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0

5. Dividend

5.1 Amount

No dividends for KD!.
Industry RankSector Rank
Dividend Yield N/A

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KYNDRYL HOLDINGS INC

NYSE:KD (5/22/2025, 4:15:00 PM)

After market: 39.35 0 (0%)

39.35

0 (0%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)07-31 2025-07-31/amc
Inst Owners77.92%
Inst Owner Change2.08%
Ins Owners0.81%
Ins Owner Change0.18%
Market Cap9.16B
Analysts85.71
Price Target43.63 (10.88%)
Short Float %5.17%
Short Ratio4.83
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)-3.87%
PT rev (3m)11.4%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.68%
Valuation
Industry RankSector Rank
PE 38.2
Fwd PE 19.9
P/S 0.61
P/FCF N/A
P/OCF 18.1
P/B 8.37
P/tB 104.05
EV/EBITDA 11.67
EPS(TTM)1.03
EY2.62%
EPS(NY)1.98
Fwd EY5.03%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)2.17
OCFY5.53%
SpS64.92
BVpS4.7
TBVpS0.38
PEG (NY)0.42
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 1.96
F-Score8
WACC8.92%
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 Y92%
EPS Next 2Y70.98%
EPS Next 3Y57.07%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.3%
Revenue Next Year3.4%
Revenue Next 2Y2.92%
Revenue Next 3Y3.25%
Revenue Next 5Y2.93%
EBIT growth 1Y185.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year9467.13%
EBIT Next 3Y387.88%
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%