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KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

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

40.4767  +0.11 (+0.26%)

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 may be in some trouble as it scores bad on both profitability and health. 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

KD had positive earnings in the past year.
In the past year KD had a positive cash flow from operations.
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

KD's Return On Assets of 1.39% is in line compared to the rest of the industry. KD outperforms 50.00% of its industry peers.
KD has a Return On Equity of 12.61%. This is in the better half of the industry: KD outperforms 71.95% of its industry peers.
The Return On Invested Capital of KD (3.09%) is comparable to the rest of the 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 has a Profit Margin (0.91%) which is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 1.55%, KD is in line with its industry, outperforming 45.12% of the companies in the same industry.
KD has a Gross Margin of 20.08%. This is amonst the worse of the industry: KD underperforms 81.71% of its industry peers.
KD's Gross Margin has improved in the last couple of years.
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

KD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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

An Altman-Z score of 1.98 indicates that KD is not a great score, but indicates only limited risk for bankruptcy at the moment.
KD has a worse Altman-Z score (1.98) than 62.20% of its industry peers.
A Debt/Equity ratio of 2.81 is on the high side and indicates that KD has dependencies on debt financing.
KD has a worse Debt to Equity ratio (2.81) than 82.93% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.81
Debt/FCF N/A
Altman-Z 1.98
ROIC/WACC0.35
WACC8.8%
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.
KD's Current ratio of 1.09 is on the low side compared to the rest of the industry. KD is outperformed by 74.39% 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 73.17% 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

KD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.49% yearly.
KD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.93% yearly.
EPS Next Y92%
EPS Next 2Y70.98%
EPS Next 3Y62.49%
EPS Next 5YN/A
Revenue Next Year3.44%
Revenue Next 2Y3.01%
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 -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 39.30.
KD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.55. KD is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 20.47, KD is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KD indicates a somewhat cheap valuation: KD is cheaper than 64.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, KD is valued at the same level.
Industry RankSector Rank
PE 39.3
Fwd PE 20.47
KD Price Earnings VS Forward Price EarningsKD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KD indicates a somewhat cheap valuation: KD is cheaper than 73.17% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.93
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.
KD's earnings are expected to grow with 62.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y70.98%
EPS Next 3Y62.49%

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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 (6/12/2025, 11:03:59 AM)

40.4767

+0.11 (+0.26%)

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 Change2.15%
Ins Owners0.81%
Ins Owner Change5.21%
Market Cap9.42B
Analysts85.71
Price Target44.45 (9.82%)
Short Float %5.13%
Short Ratio5.16
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)1.87%
PT rev (3m)-2.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 39.3
Fwd PE 20.47
P/S 0.62
P/FCF N/A
P/OCF 18.61
P/B 8.61
P/tB 107.03
EV/EBITDA 11.93
EPS(TTM)1.03
EY2.54%
EPS(NY)1.98
Fwd EY4.89%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)2.17
OCFY5.37%
SpS64.92
BVpS4.7
TBVpS0.38
PEG (NY)0.43
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 1.98
F-Score8
WACC8.8%
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 3Y62.49%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.3%
Revenue Next Year3.44%
Revenue Next 2Y3.01%
Revenue Next 3Y3.25%
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%