Logo image of KD

KYNDRYL HOLDINGS INC (KD) Stock Fundamental Analysis

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

43.41  +1.04 (+2.45%)

After market: 43.41 0 (0%)

Fundamental Rating

3

KD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the IT Services industry. KD has a bad profitability rating. Also its financial health evaluation is rather negative. KD does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

Quickly go to:

3

1. Profitability

1.1 Basic Checks

In the past year KD was profitable.
KD had a positive operating cash flow in the past year.
In the past 5 years KD always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: KD reported negative operating cash flow in multiple 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 has a Return On Assets (1.39%) which is comparable to the rest of the industry.
KD's Return On Equity of 12.61% is fine compared to the rest of the industry. KD outperforms 71.60% of its industry peers.
KD has a Return On Invested Capital (3.09%) which is in line with 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 has a Operating Margin (1.55%) which is in line with its industry peers.
KD's Gross Margin of 20.08% is on the low side compared to the rest of the industry. KD is outperformed by 81.48% 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

More info and screens

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.
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 2.03 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 2.03. This is in the lower half of the industry: KD underperforms 64.20% 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.
The Debt to Equity ratio of KD (2.81) is worse than 82.72% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.81
Debt/FCF N/A
Altman-Z 2.03
ROIC/WACC0.34
WACC8.97%
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 has a worse Current ratio (1.09) than 74.07% of its industry peers.
A Quick Ratio of 1.09 indicates that KD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, KD is doing worse than 72.84% 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

More info and screens

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

Based on estimates for the next years, KD will show a very strong growth in Earnings Per Share. The EPS will grow by 62.49% on average per year.
The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y83.4%
EPS Next 2Y71.46%
EPS Next 3Y62.49%
EPS Next 5YN/A
Revenue Next Year3.46%
Revenue Next 2Y2.98%
Revenue Next 3Y3.26%
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

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

KD is valuated quite expensively with a Price/Earnings ratio of 42.15.
KD's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, KD is valued quite expensively.
With a Price/Forward Earnings ratio of 22.98, KD is valued on the expensive side.
KD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. KD is around the same levels.
Industry RankSector Rank
PE 42.15
Fwd PE 22.98
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

Based on the Enterprise Value to EBITDA ratio, KD is valued a bit cheaper than the industry average as 71.60% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.69
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 62.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y71.46%
EPS Next 3Y62.49%

More info and screens

0

5. Dividend

5.1 Amount

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

More info and screens

KYNDRYL HOLDINGS INC

NYSE:KD (7/3/2025, 7:43:11 PM)

After market: 43.41 0 (0%)

43.41

+1.04 (+2.45%)

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 Owners80.66%
Inst Owner Change2.15%
Ins Owners1.38%
Ins Owner Change5.24%
Market Cap10.10B
Analysts85.71
Price Target46.81 (7.83%)
Short Float %4.7%
Short Ratio6.05
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)7.27%
PT rev (3m)3.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)0%
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 42.15
Fwd PE 22.98
P/S 0.67
P/FCF N/A
P/OCF 19.96
P/B 9.23
P/tB 114.78
EV/EBITDA 12.69
EPS(TTM)1.03
EY2.37%
EPS(NY)1.89
Fwd EY4.35%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)2.17
OCFY5.01%
SpS64.92
BVpS4.7
TBVpS0.38
PEG (NY)0.51
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 2.03
F-Score8
WACC8.97%
ROIC/WACC0.34
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 Y83.4%
EPS Next 2Y71.46%
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 Year3.46%
Revenue Next 2Y2.98%
Revenue Next 3Y3.26%
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%