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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3364
Positioning
Market Dominance
Manufacturing
Computer Software
$9.6B
Martin J. Schroeter
Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and cloud services, application, data, and artificial intelligence services. It serves financial, telecommunications, retail, automobile, and transportation industries.
Headcount
90.0K
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = KD ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$KD Kyndryl Holdings, Inc. | 41 | 64 | 73 | 11 | 20.4x | 10.2x | 10.5% | 1.2% | 21.1% | 1.8% | 0.9% | 3.2% | 0.0% | 761.0x | $9.6B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Kyndryl Holdings, Inc. (KD) receives a "Reduce" rating with a composite score of 41.4/100. It ranks #3364 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
Pending Verification
Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
High volatility — wider range of outcomes increases timing risk
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for KD.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 64 | 72 | -8DRAG |
| MOMENTUM | 11 | 3 | +8ALPHA |
| VALUATION | 73 | 75 | -2NEUTRAL |
| INVESTMENT | 38 | 71 | -33DRAG |
| STABILITY | 33 | 21 | +12ALPHA |
| SHORT INT | 24 | 10 | +14ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 10.5% (sector -1.9%)
GM 21% vs sector 44%, OM 2% vs sector 3%
Capital turnover N/A
Rev growth 3%, 6yr history
Interest coverage 4.3x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Kyndryl Holdings, Inc. (KD) as a Reduce with a composite score of 41.4/100 at a current price of $11.72. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Kyndryl Holdings, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 41.4/100 places it at rank #3364 in our full universe.
No Moat
High
Poor
Undervalued
Value factor score of 73 suggests attractive pricing.
Stable competitive position in a defensive sector.
Leverage of 761% D/E amplifies downside risk.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
Kyndryl Holdings, Inc. represents a reduce based on multi-factor quantitative performance.
Kyndryl Holdings, Inc. receives a Reduce rating from our analysis, with a composite score of 41.4/100 and 2 out of 5 stars, ranking #3364 out of 7,333 stocks. KD's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 64/100, KD shows adequate but unremarkable business quality. The company reports a return on equity of 10.5% (sector avg: -1.9%), gross margins of 21.1% (sector avg: 44.1%), net margins of 0.9% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
KD carries a solid value score of 73/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 20.44x, an EV/EBITDA of 10.22x, a P/B ratio of 2.15x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
Kyndryl Holdings, Inc.'s investment score of 38/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 3.2% vs. a sector average of 6.7% and a return on assets of 1.2% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
Kyndryl Holdings, Inc. is experiencing notably weak momentum with a score of just 11/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 3.2% year-over-year, while a beta of 1.32 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
KD's stability score of 33/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.32 and a debt-to-equity ratio of 761.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
Kyndryl Holdings, Inc.'s short interest score of 24/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include above-average market sensitivity (beta: 1.32), elevated leverage (D/E: 761.00x). At $9.6B (mid-cap), KD carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Kyndryl Holdings, Inc. is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3364 of 7,333 overall (54th percentile). Key comparisons include ROE of 10.5% exceeding the -1.9% sector median and operating margins of 1.8% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While KD currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Momentum (11) would have the largest impact on the composite score.
EV/EBITDA 11% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 655% BELOW SECTOR MEDIAN
Gross Margin 52% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
In February 2026, Kyndryl Holdings disclosed material weaknesses in its internal controls over financial reporting, delayed its quarterly filing, saw the departure of senior executives including its CFO and General Counsel, and became the subject of SEC scrutiny alongside a wave of securities class action lawsuits. These governance and reporting concerns now sit alongside Kyndryl’s push into agentic AI, cybersecurity, and mission-critical services, creating a complex mix of operational...
If you are trying to figure out whether Kyndryl Holdings is a bargain or a value trap at its current share price, the key is understanding what the market is really pricing in. The stock has been volatile recently, with a 6.8% decline over the last 7 days, a 52.9% decline over the last 30 days, and a 55.2% decline year to date, adding to a 69.3% decline over the past year and a 27.3% decline over three years. These sharp moves have put valuation front and center, as investors weigh what the...
Kyndryl, a leading provider of mission‑critical enterprise technology services, and the University of Liverpool's Civic Health Innovation Labs (CHIL), will collaborate to explore how emerging AI technologies could be utilized to strengthen future healthcare services.