(KD) Kyndryl Holdings - Overview
Sector: Technology | Industry: Information Technology Services | Exchange: NYSE (USA) | Market Cap: 2.615m USD | Total Return: -68.6% in 12m
Avg Turnover: 51.0M
Qual. Beats: -2
Rev. Trend: -81.8%
Qual. Beats: 0
Warnings
Altman Z'' -15.00 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Kyndryl Holdings, Inc. is a global IT infrastructure services provider that manages and modernizes complex information systems. Spun off from IBM in 2021, the company operates across several technical domains, including cloud services, core enterprise computing, artificial intelligence, and cybersecurity. Its client base spans diverse sectors such as finance, healthcare, and telecommunications.
The company operates within the IT consulting and services sector, a capital-intensive industry characterized by long-term service contracts and high switching costs for enterprise clients. Kyndryl’s business model focuses on hybrid cloud environments and edge computing, reflecting a broader industry shift away from traditional on-premise data centers toward integrated, multi-cloud architectures. The firm also maintains strategic partnerships to co-develop specialized technologies, such as its healthcare AI collaboration with the University of Liverpool.
Investors can evaluate these industry trends and specific financial metrics further on ValueRay. Kyndryl remains headquartered in New York and continues to reposition its portfolio toward higher-margin advisory and integration services.
- Legacy contract restructuring shifts revenue mix toward higher-margin advisory and cloud services
- Strategic hyperscaler partnerships drive enterprise cloud migration and infrastructure modernization revenue
- Transition from IBM spinoff dependencies improves operational efficiency and EBITDA margins
- Kyndryl Consult expansion accelerates growth in high-demand AI and security services
- Labor cost inflation and global IT spending slowdowns pressure service delivery margins
| Net Income: 198.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.96 > 0.02 and ΔFCF/TA 78.84 > 1.0 |
| NWC/Revenue: -26.58% < 20% (prev 1.92%; Δ -28.50% < -1%) |
| CFO/TA 0.53 > 3% & CFO 948.0m > Net Income 198.0m |
| Net Debt (2.82b) to EBITDA (2.69b): 1.05 < 3 |
| Current Ratio: 0.20 > 1.5 & < 3 |
| Outstanding Shares: last quarter (228.0m) vs 12m ago -5.28% < -2% |
| Gross Margin: 21.79% > 18% (prev 0.21%; Δ 2.16k% > 0.5%) |
| Asset Turnover: 246.8% > 50% (prev 144.1%; Δ 102.7% > 0%) |
| Interest Coverage Ratio: 6.59 > 6 (EBITDA TTM 2.69b / Interest Expense TTM 93.0m) |
| A: -2.25 (Total Current Assets 1.03b - Total Current Liabilities 5.04b) / Total Assets 1.78b |
| B: -1.06 (Retained Earnings -1.89b / Total Assets 1.78b) |
| C: 0.10 (EBIT TTM 613.0m / Avg Total Assets 6.12b) |
| D: -0.04 (Book Value of Equity -398.0m / Total Liabilities 9.97b) |
| Altman-Z'' = -17.60 = D |
| DSRI: 0.06 (Receivables 84.0m/1.34b, Revenue 15.1b/15.1b) |
| GMI: 0.97 (GM 21.79% / 21.13%) |
| AQI: 0.06 (AQ_t 0.02 / AQ_t-1 0.25) |
| SGI: 1.00 (Revenue 15.1b / 15.1b) |
| TATA: -0.42 (NI 198.0m - CFO 948.0m) / TA 1.78b) |
| Beneish M = -4.81 (Cap -4..+1) = AAA |
As of May 25, 2026, the stock is trading at USD 12.29 with a total of 2,625,286 shares traded.
Over the past week, the price has changed by +8.57%,
over one month by -9.43%,
over three months by +5.49% and
over the past year by -68.62%.
Kyndryl Holdings has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy KD.
- StrongBuy: 3
- Buy: 3
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 14.7 | 19.6% |
P/E Trailing = 13.6471
P/E Forward = 5.6948
P/S = 0.1733
P/B = 2.7756
Revenue TTM = 15.1b USD
EBIT TTM = 613.0m USD
EBITDA TTM = 2.69b USD
Long Term Debt = 2.29b USD (from longTermDebt, two quarters ago)
Short Term Debt = 1.09b USD (from shortTermDebt, two quarters ago)
Debt = 5.44b USD (from shortLongTermDebtTotal, two quarters ago) + Leases 875.0m
Net Debt = 2.82b USD (calculated: Debt 5.44b - CCE 2.62b)
Enterprise Value = 5.43b USD (2.62b + Debt 5.44b - CCE 2.62b)
Interest Coverage Ratio = 6.59 (Ebit TTM 613.0m / Interest Expense TTM 93.0m)
EV/FCF = 3.19x (Enterprise Value 5.43b / FCF TTM 1.70b)
FCF Yield = 31.35% (FCF TTM 1.70b / Enterprise Value 5.43b)
FCF Margin = 11.28% (FCF TTM 1.70b / Revenue TTM 15.1b)
Net Margin = 1.31% (Net Income TTM 198.0m / Revenue TTM 15.1b)
Gross Margin = 21.79% ((Revenue TTM 15.1b - Cost of Revenue TTM 11.8b) / Revenue TTM)
Gross Margin QoQ = 22.47% (prev 21.85%)
Tobins Q-Ratio = 3.05 (Enterprise Value 5.43b / Total Assets 1.78b)
Interest Expense / Debt = 1.71% (Interest Expense 93.0m / Debt 5.44b)
Taxrate = 21.0% (US default 21%)
NOPAT = 484.3m (EBIT 613.0m * (1 - 21.00%))
Current Ratio = 0.21 (Total Current Assets 1.03b / Total Current Liabilities 4.95b)
Debt / Equity = 4.56 (Debt 5.44b / totalStockholderEquity, two quarters ago 1.19b)
Debt / EBITDA = 1.05 (Net Debt 2.82b / EBITDA 2.69b)
Debt / FCF = 1.65 (Net Debt 2.82b / FCF TTM 1.70b)
Total Stockholder Equity = 1.22b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.24% (Net Income 198.0m / Total Assets 1.78b)
RoE = 16.25% (Net Income TTM 198.0m / Total Stockholder Equity 1.22b)
RoCE = 17.45% (EBIT 613.0m / Capital Employed (Equity 1.22b + L.T.Debt 2.29b))
RoIC = 40.14% (NOPAT 484.3m / Invested Capital 1.21b)
WACC = 4.66% (E(2.62b)/V(8.06b) * Re(11.55%) + D(5.44b)/V(8.06b) * Rd(1.71%) * (1-Tc(0.21)))
Discount Rate = 11.55% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 17.98 | Cagr: -0.31%
[DCF] Terminal Value 75.00% ; FCFF base≈1.73b ; Y1≈1.69b ; Y5≈1.69b
[DCF] Fair Price = 105.0 (EV 26.5b - Net Debt 2.82b = Equity 23.7b / Shares 225.4m; r=8.35% [WACC [floored]]; 5y FCF grow -3.18% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -4.0 | # QB: -2
Revenue Correlation: -81.75 | Revenue CAGR: -3.63% | SUE: 0.11 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.04 | Chg30d=-108.82% | Revisions=-33% | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.48 | Chg30d=-9.48% | Revisions=-20% | Analysts=4
EPS current Year (2027-03-31): EPS=1.92 | Chg30d=-14.57% | Revisions=-43% | GrowthEPS=+31.6% | GrowthRev=-1.1%
EPS next Year (2028-03-31): EPS=2.64 | Chg30d=-2.37% | Revisions=-14% | GrowthEPS=+37.4% | GrowthRev=+1.2%
[Analyst] Revisions Ratio: -43%