Kyndryl Holdings, Inc. (KD) stock analysis
Close on Nov 11, 2026Market cap $3.73BP/E –Yield 0.00%
StockData Score
Prices as of Nov 11, 2026How the score works
Weak1 of 30 checks passed
Kyndryl passes 1 of the 30 checks behind our score; 18 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 1/6
- Past performance
- 0/6
- Financial health
- 0/6
- Dividend
- 0/6
What stands out
Gross margin improving
Gross margin was 22.3% over the last twelve months, against 21.2% a year earlier.
What to watch
Margin of safety under 20%
The price is 73.5% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $17.13 is above our fair value estimate of $9.87.
High debt
Debt is 434% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew -6.8% a year over the last three fiscal years, short of the 10% we look for.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Kyndryl's price-to-book of 3.46 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $17.13 is above our fair value estimate of $9.87.
Margin of safety under 20%
The price is 73.5% above fair value, so there is no margin of safety.
Growth1/6
Revenue growing under 10% a year
Revenue grew -6.8% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -0.7% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance lowered
Kyndryl lowered its fiscal year 2026 Constant-currency revenue decline outlook on Feb 9, 2026.
Gross margin improving
Gross margin was 22.3% over the last twelve months, against 21.2% a year earlier.
Past performance0/6
Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.
Financial health0/6
High debt
Debt is 434% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 16.9% of total debt; we look for at least 20%.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.95 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.22; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Kyndryl has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$9.87
The share price is 73% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/B | 3.1× | 2.9× | 3.3× | $15.50 | 40% |
| P/Sleft out, too far from the others | 1.6× | 0.2× | 2.8× | $106.13 | – |
| Earnings power | 12.0% cost of equity | – | – | $6.12 | 60% |
| Fair value | $9.87 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/B at month end
- Own 5-year median 2.9
- Computer Programming, Data Processing, and Other Computer Related Services median 3.3
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $65.02M
- Value traded per 1% price move
- $21.63M
Downside
High risk
- Typical loss in a bad month
- 53.6%
- Volatility (annualized)
- 81%
- Sharpe ratio, 1 year
- -0.48
- Beta to the S&P 500 (5Y)
- 1.42
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2026
Gross margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +0.2% | – | -4.2% | – | |
| Gross profit | +4.6% | – | +9.3% | – | |
| EPS, diluted | -19.0% | – | – | – | |
| Free cash flow | +0.9% | – | – | – |
Returns and balance sheet
7 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2019 | FY2026 | Trend |
|---|---|---|---|---|
| Current ratio | – | – | 0.88 | |
| Debt to equity | – | – | 4.85 | |
| Capex to revenue | – | 5.9% | 4.0% | |
| Diluted shares | – | 224M | 234M |
Where the cash went
Fiscal 2020 to 2026, five years combined
Kyndryl generated $3.09B from operations and spent $4.05B on capital expenditure, dividends and share buybacks. 90% of that went back into the business.
DuPont needs revenue, assets and equity
This company does not report all three for consecutive years.
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero–
- Cash generatingOperating cash flow above zero$948.00M
- Return on assets improvedROA up on the prior year– → –
- Earnings backed by cashOperating cash flow above net income$948.00M vs –
- Less leverageLong-term debt to assets fell27.7% → 31.1%
- Better liquidityCurrent ratio rose1.07 → 0.88
- No dilutionShare count did not rise239M → 234M
- Gross margin improvedGross margin up on the prior year20.87% → 21.79%
- More efficientAsset turnover rose1.42 → 1.44
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