KD Stock Analysis: Kyndryl Holdings | NYSE
Information Technology Services | NYSE, USA | Market Cap: 2.701m USD | 12M Return: -71.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 51.5M
Qual. Beats: -1
Rev. Trend: -81.8%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 4.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Kyndryl Holdings, Inc. (NYSE: KD) is a global technology services company specializing in IT infrastructure services for enterprise clients across the United States, Japan, and other international markets. Its service portfolio spans cloud services, core enterprise and managed infrastructure services, application, data and AI services, digital workplace services, security and resiliency services, and network and edge services. The company serves a diversified mix of industries, including financial services, healthcare, public sector, technology, media and telecom, retail, travel and logistics, and automotive manufacturing. Incorporated in 2020 and headquartered in New York, Kyndryl is classified within the Information Technology sector under IT Consulting & Other Services.
The company was created through the 2021 spin-off of IBMs managed infrastructure services business, positioning it as one of the worlds largest independent providers of IT infrastructure management. Kyndryls business model centers on long-term, often multi-year service contracts that help enterprises modernize, operate, and manage complex hybrid cloud and on-premises IT environments.
- Revenue decline narrows as AI bookings accelerate with hyperscalers
- Adjusted EBITDA margin expansion continues on cost actions
- Yen volatility pressures Japan segment revenue translation
| Net Income: 198.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 0.79 > 1.0 |
| NWC/Revenue: -5.16% < 20% (prev 1.92%; Δ -7.08% < -1%) |
| CFO/TA 0.08 > 3% & CFO 948.0m > Net Income 198.0m |
| Net Debt (3.20b) to EBITDA (2.58b): 1.24 < 3 |
| Current Ratio: 0.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (228.0m) vs 12m ago -5.28% < -2% |
| Gross Margin: 21.79% > 18% (prev 21.13%; Δ 0.67% > 0.5%) |
| Asset Turnover: 131.2% > 50% (prev 144.1%; Δ -12.84% > 0%) |
| Interest Coverage Ratio: 5.44 > 6 (EBIT TTM 506.0m / Interest Expense TTM 93.0m) |
| A: -0.06 (Total Current Assets 5.53b - Total Current Liabilities 6.31b) / Total Assets 12.6b |
| B: -0.15 (Retained Earnings -1.87b / Total Assets 12.6b) |
| C: 0.04 (EBIT TTM 506.0m / Avg Total Assets 11.5b) |
| D: 0.10 (Book Value of Equity 1.18b / Total Liabilities 11.3b) |
| Altman-Z'' = -0.49 = B |
| DSRI: 0.96 (Receivables 1.30b/1.34b, Revenue 15.1b/15.1b) |
| GMI: 0.97 (GM 21.13% / 21.79%) |
| AQI: 1.19 (AQ_t 0.29 / AQ_t-1 0.25) |
| SGI: 1.00 (Revenue 15.1b / 15.1b) |
| TATA: -0.06 (NI 198.0m - CFO 948.0m) / TA 12.6b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of July 10, 2026, the stock is trading at USD 12.07 with a total of 2,010,113 shares traded. Over the past week, the price has changed by +0.58%, over one month by +4.68%, over three months by -5.63% and over the past year by -71.83%.
Current recommended Stop Loss: 11.30 (which is 6.4% or 1.2 ATR below the current price).
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 | 14.1 | 16.8% |
P/E Trailing = 14.4118
P/E Forward = 5.4318
P/S = 0.179
P/B = 2.2521
Revenue TTM = 15.1b USD
EBIT TTM = 506.0m USD
EBITDA TTM = 2.58b USD
Long Term Debt = 2.29b USD (from longTermDebt, last quarter)
Short Term Debt = 2.06b USD (from shortTermDebt, last quarter)
Debt = 5.82b USD (from shortLongTermDebtTotal, last quarter) + Leases 867.0m
Net Debt = 3.20b USD (calculated: Debt 5.82b - CCE 2.62b)
Enterprise Value = 5.90b USD (2.70b + Debt 5.82b - CCE 2.62b)
Interest Coverage Ratio = 5.44 (Ebit TTM 506.0m / Interest Expense TTM 93.0m)
EV/FCF = 17.36x (Enterprise Value 5.90b / FCF TTM 340.0m)
FCF Yield = 5.76% (FCF TTM 340.0m / Enterprise Value 5.90b)
FCF Margin = 2.25% (FCF TTM 340.0m / 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 = 0.47 (Enterprise Value 5.90b / Total Assets 12.6b)
Interest Expense / Debt = 1.60% (Interest Expense 93.0m / Debt 5.82b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 399.7m (EBIT 506.0m * (1 - 21.00%))
Current Ratio = 0.88 (Total Current Assets 5.53b / Total Current Liabilities 6.31b)
Debt / Equity = 4.96 (Debt 5.82b / totalStockholderEquity, last quarter 1.18b)
Debt / EBITDA = 1.24 (Net Debt 3.20b / EBITDA 2.58b)
Debt / FCF = 9.41 (Net Debt 3.20b / FCF TTM 340.0m)
Total Stockholder Equity = 1.21b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.72% (Net Income 198.0m / Total Assets 12.6b)
RoE = 16.40% (Net Income TTM 198.0m / Total Stockholder Equity 1.21b)
RoCE = 14.46% (EBIT 506.0m / Capital Employed (Equity 1.21b + L.T.Debt 2.29b))
RoIC = 5.29% (NOPAT 399.7m / Invested Capital 7.55b)
WACC = 4.62% (E(2.70b)/V(8.52b) * Re(11.86%) + D(5.82b)/V(8.52b) * Rd(1.60%) * (1-Tc(0.21)))
Discount Rate = 11.86% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 17.98 | Cagr: -0.31%
[DCF] Terminal Value 77.97% ; FCFF base≈284.4m ; Y1≈326.0m ; Y5≈479.8m
[DCF] Fair Price = 18.23 (EV 7.22b - Net Debt 3.20b = Equity 4.02b / Shares 220.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -4.0 | # QB: -1
Revenue Correlation: -81.75 | Revenue CAGR: -3.63% | SUE: 0.11 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.06 | Chg30d=+0.00% | Revisions=-57% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.44 | Chg30d=+0.00% | Revisions=-50% | Analysts=5
EPS current Year (2027-03-31): EPS=1.88 | Chg30d=+0.00% | Revisions=-62% | GrowthEPS=+28.7% | GrowthRev=-1.2%
EPS next Year (2028-03-31): EPS=2.57 | Chg30d=-0.82% | Revisions=-38% | GrowthEPS=+36.8% | GrowthRev=+0.6%
[Analyst] Revisions Ratio: -75% (up=1, down=16)