Key Takeaways
- Quality is soft at 42/100 – a 1.3% net margin and 3.84x debt-to-equity are offset only partly by a 91.3% FCF yield, an outsized figure worth digging into rather than taking at face value.
- Growth is negative across the board: revenue down 0.8% over the trailing year and earnings down 73.1%, continuing a five-year revenue CAGR decline of 3.9%.
- Opportunity scores 86/100 on a 16.35 P/E and 4.04 EV/EBITDA, with the stock trading near the low end ($13.90 vs. an $11.00-$43.41 two-year range).
Kyndryl Holdings shares sit at $13.90, just above the $11.00 two-year low and far below the $43.41 two-year high. This Kyndryl Holdings stock analysis examines a stock priced for distress against a balance sheet and cash-generation profile that don’t fully match that story.
What Is Happening With the Stock Price
At $13.90, Kyndryl Holdings sits at the lower end of its two-year range – a ratio of roughly 0.09 between the current price and the $11.00-$43.41 band, putting it firmly in low-end territory rather than anywhere near its highs. The $3.07B market cap reflects a stock the market has treated with real skepticism since its 2021 spin-off, and the recent trading range shows that skepticism hasn’t eased.
Quality: Is This a Financially Sound Business?
Quality is the weak pillar here at 42/100. Net profit margin of just 1.3% and operating margin of 4.1% point to a low-margin IT-services model, though gross margin of 21.8% and return on equity of 15.1% show some underlying profitability. Return on assets of 3.3% is thin. Debt-to-equity of 3.84 is elevated, and a current ratio of 0.88 with a quick ratio of 0.63 leaves limited short-term cushion. One number stands out for the wrong reason: free cash flow of $2.8B against a $3.07B market cap works out to a 91.3% FCF yield – an unusually large figure worth treating with caution, since swings that size often reflect one-time working-capital or divestiture-related items rather than a sustainable run-rate.
Growth: Does This Company Have Real Upside?
Growth scores just 29/100, and this Kyndryl Holdings stock analysis finds the numbers explain why. Trailing-twelve-month revenue is down 0.8%, continuing a five-year revenue CAGR decline of 3.9%, and earnings fell 73.1% over the trailing year – a sharp deterioration in profitability even as the top line held roughly flat. The business still looks to be working through legacy-contract runoff since its spin-off, with EV/Revenue of just 0.36 showing the market isn’t pricing in a growth turnaround.
Opportunity: Is Now a Good Time to Enter?
Opportunity is the standout score at 86/100. A P/E of 16.35 and EV/EBITDA of 4.04 are both inexpensive, and Price/Book of 2.63 is reasonable given the return on equity. With the stock trading near the low end of its two-year range, the valuation case is the strongest part of the story – the open question is whether the shrinking top line and thin margins catch up before the cheap multiple gets re-rated.
Kyndryl Holdings Stock Analysis: The Bottom Line
Kyndryl Holdings presents a split picture: a statistically cheap stock (86/100 Opportunity score) sitting on weak Quality (42/100) and negative Growth (29/100) trends. StreetBriefs’ scoring model lands on a Hold, reflecting that the valuation discount alone isn’t yet enough to overcome shrinking revenue and a steep earnings decline – a data-driven signal for further research, not a personalized recommendation to transact. The bull case rests on the deep discount and outsized free cash flow closing the gap to book value; the bear case is that revenue keeps sliding and the cheap multiple stays cheap. This Kyndryl Holdings stock analysis is based on Yahoo Finance data as of August 06, 2026, which may be delayed or contain errors; this is informational content only, not investment advice – do your own due diligence and consult a licensed advisor.
Financial Metrics Summary
| Metric | Value |
|---|---|
| Price & Valuation | |
| Current Price | $13.90 |
| 2-Year Low | $11.00 |
| 2-Year High | $43.41 |
| Market Cap | $3.07B |
| P/E Ratio | 16.35 |
| EV / Revenue | 0.36 |
| Our Scores | |
| Quality Score | 42 / 100 |
| Growth Score | 29 / 100 |
| Opportunity Score | 86 / 100 |
| Profitability | |
| Earnings Per Share | $0.85 |
| Return on Assets | 3.3% |
| Return on Equity | 15.1% |
| Net Profit Margin | 1.3% |
| Gross Margin | 21.8% |
| Operating Margin | 4.1% |
| Growth | |
| Revenue Growth (5Y CAGR) | -3.9% |
| Revenue Growth (TTM) | -0.8% |
| Earnings Growth (TTM) | -73.1% |
| Balance Sheet | |
| Debt-to-Equity | 3.84 |
| Current Ratio | 0.88 |
| Quick Ratio | 0.63 |
| Income & Dividends | |
| Payout Ratio | 0.0% |
Data as of August 06, 2026
Our Three-Pillar Assessment
| Quality |
42/100 |
| Growth |
29/100 |
| Opportunity |
86/100 |
Quality measures business fundamentals: profitability, cash flow discipline, and balance sheet strength.
Growth captures revenue momentum, gross margin scalability, and the Rule of 40 efficiency test.
Opportunity signals entry timing: current valuation versus history and price position in the 2-year range.
Current price: $13.90 trading 68% below its 2-year high of $43.41.
This analysis is done using financial data from Yahoo Finance.
Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.
