Kyndryl HoldingsKD +2.08%50 Return-on-Tangible-Equity is 29.37% as of Mar. 2026. GuruFocus rates KD with a GF Score™ of 50/100 and a GF Value™ of $23.63 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,470 Software companies, Kyndryl Holdings ranks better than 86.96% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Kyndryl Holdings's annualized net income for the quarter that ended in Mar. 2026 was $68 Mil. Kyndryl Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $232 Mil. Therefore, Kyndryl Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 29.37%.
The historical rank and industry rank for Kyndryl Holdings's Return-on-Tangible-Equity or its related term are showing as below:
KD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -359.69 Med: -48.81 Max: 215.38
Current: 81.41
During the past 8 years, Kyndryl Holdings's highest Return-on-Tangible-Equity was 215.38%. The lowest was -359.69%. And the median was -48.81%.
KD's Return-on-Tangible-Equity is ranked better than 86.96% of 2470
companies
in the Software industry
Industry Median: 8.77
vs KD: 81.41
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Kyndryl Holdings Return-on-Tangible-Equity Related Terms
Kyndryl Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kyndryl Holdings's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KD vs INOD, VNET, PONY: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Kyndryl Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kyndryl Holdings Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Kyndryl Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kyndryl Holdings's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 29.37% mean?
Kyndryl Holdings (KD) has a Return-on-Tangible-Equity of 29.37% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Kyndryl Holdings and its competitors. According to the industry distribution chart, Kyndryl Holdings ranks #322 out of 2470 companies in the Software industry, placing it in the top 13%.
Is Kyndryl Holdings' Return-on-Tangible-Equity too high?
Kyndryl Holdings' current Return-on-Tangible-Equity is 29.37%. The Software industry median Return-on-Tangible-Equity is 8.77. Kyndryl Holdings' value of 29.37% is 234.9% above this industry median. Based on the distribution chart, Kyndryl Holdings ranks #322 out of 2470 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Kyndryl Holdings has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Kyndryl Holdings' Return-on-Tangible-Equity compare to INOD and VNET?
According to the Software industry distribution chart, Kyndryl Holdings ranks #322 out of 2470 companies for Return-on-Tangible-Equity. This places Kyndryl Holdings in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.77. Kyndryl Holdings' value of 29.37% is 234.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.77, based on 2,470 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kyndryl Holdings's current Return-on-Tangible-Equity of 29.37% is 234.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Kyndryl Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kyndryl Holdings's current Return-on-Tangible-Equity is 29.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kyndryl Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kyndryl Holdings (KD) is currently considered Possible Value Trap. The stock's GF Value™ is $23.63, compared to a current price of $12.25 — trading 48.2% below its estimated fair value. The current Return-on-Tangible-Equity is 29.37% and 234.9% above the Software industry median of 8.77. Kyndryl Holdings' overall GF Score™ is 50/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Kyndryl Holdings (KD), the current Return-on-Tangible-Equity is 29.37% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kyndryl Holdings (KD) Overvalued in 2026?
Based on GuruFocus' analysis, Kyndryl Holdings stock appears to be undervalued.
The current stock price of $12.25 is trading 48.2% below its estimated GF Value™ of $23.63.
GuruFocus considers Kyndryl Holdings to be Possible Value Trap.
Key valuation signals for KD:
Return-on-Tangible-Equity: 29.37%
GF Value™: $23.63 vs. price of $12.25 (48.2% below fair value)
Industry Position: 234.9% above the Software median (#322 of 2470)
No single metric tells the full story. See the KD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kyndryl Holdings Inc is a technology services and infrastructure services provider company. It provides advisory, implementation, and managed services across a range of technology domains to help customers manage and modernize enterprise IT environments in support of their business and transformation objectives. The company's reportable segments consist of the following: Principal Markets which represents its operations in operations in Australia / New Zealand, Canada, France, Germany, India, Italy, Spain, Portugal, and the United Kingdom / Ireland, United States, Japan, and Strategic Markets. It derives maximum revenue from the United States.
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