KKR & CO INC (KKR) Stock Fundamental Analysis
NYSE:KKR - New York Stock Exchange, Inc. - US48251W1045 - Common Stock - Currency: USD
KKR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 225 industry peers in the Capital Markets industry. Both the profitability and financial health of KKR have multiple concerns. KKR is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year KKR was profitable.
KKR had a positive operating cash flow in the past year.
Of the past 5 years KKR 4 years were profitable.
KKR had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
KKR's Return On Assets of 0.83% is on the low side compared to the rest of the industry. KKR is outperformed by 70.32% of its industry peers.
KKR has a better Return On Equity (12.42%) than 67.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.27%, KKR is doing worse than 74.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 12.42% | ||
| ROIC | 0.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KKR has a Profit Margin of 12.41%. This is comparable to the rest of the industry: KKR outperforms 43.38% of its industry peers.
KKR's Profit Margin has declined in the last couple of years.
KKR has a Operating Margin of 4.08%. This is in the lower half of the industry: KKR underperforms 73.52% of its industry peers.
KKR's Operating Margin has declined in the last couple of years.
The Gross Margin of KKR (33.28%) is worse than 71.23% of its industry peers.
KKR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.08% | ||
| PM (TTM) | 12.41% | ||
| GM | 33.28% |
OM growth 3Y-15.94%
OM growth 5Y-9.85%
PM growth 3Y-23.66%
PM growth 5Y-22.42%
GM growth 3Y-12.91%
GM growth 5Y-14.28%
2. Health
2.1 Basic Checks
There is no outstanding debt for KKR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
KKR has an Altman-Z score of 0.20. This is a bad value and indicates that KKR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.20, KKR is doing worse than 75.34% of the companies in the same industry.
KKR has a debt to FCF ratio of 6.42. This is a slightly negative value and a sign of low solvency as KKR would need 6.42 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.42, KKR perfoms like the industry average, outperforming 58.90% of the companies in the same industry.
A Debt/Equity ratio of 2.06 is on the high side and indicates that KKR has dependencies on debt financing.
KKR's Debt to Equity ratio of 2.06 is on the low side compared to the rest of the industry. KKR is outperformed by 77.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 0.2 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
KKR has a Current Ratio of 0.28. This is a bad value and indicates that KKR is not financially healthy enough and could expect problems in meeting its short term obligations.
KKR has a worse Current ratio (0.28) than 82.65% of its industry peers.
KKR has a Quick Ratio of 0.28. This is a bad value and indicates that KKR is not financially healthy enough and could expect problems in meeting its short term obligations.
KKR's Quick ratio of 0.28 is on the low side compared to the rest of the industry. KKR is outperformed by 82.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.18% over the past year.
The Earnings Per Share has been growing by 23.30% on average over the past years. This is a very strong growth
Looking at the last year, KKR shows a very strong growth in Revenue. The Revenue has grown by 56.05%.
Measured over the past years, KKR shows a very strong growth in Revenue. The Revenue has been growing by 40.89% on average per year.
EPS 1Y (TTM)39.18%
EPS 3Y2.35%
EPS 5Y23.3%
EPS Q2Q%32%
Revenue 1Y (TTM)56.05%
Revenue growth 3Y14.88%
Revenue growth 5Y40.89%
Sales Q2Q%-8.86%
3.2 Future
KKR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.22% yearly.
The Revenue is expected to grow by 19.17% on average over the next years. This is quite good.
EPS Next Y23.89%
EPS Next 2Y24.5%
EPS Next 3Y22.06%
EPS Next 5Y17.22%
Revenue Next Year38.76%
Revenue Next 2Y28.38%
Revenue Next 3Y19.17%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.78, which means the current valuation is very expensive for KKR.
Based on the Price/Earnings ratio, KKR is valued a bit more expensive than the industry average as 70.32% of the companies are valued more cheaply.
KKR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.42, which indicates a rather expensive current valuation of KKR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KKR indicates a slightly more expensive valuation: KKR is more expensive than 62.10% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. KKR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 22.42 |
4.2 Price Multiples
KKR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.15 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as KKR's earnings are expected to grow with 22.06% in the coming years.
PEG (NY)1.16
PEG (5Y)1.19
EPS Next 2Y24.5%
EPS Next 3Y22.06%
5. Dividend
5.1 Amount
KKR has a yearly dividend return of 0.50%, which is pretty low.
KKR's Dividend Yield is slightly below the industry average, which is at 10.00.
Compared to an average S&P500 Dividend Yield of 2.29, KKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
The dividend of KKR has a limited annual growth rate of 0.22%.
KKR has paid a dividend for at least 10 years, which is a reliable track record.
KKR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.22%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
20.15% of the earnings are spent on dividend by KKR. This is a low number and sustainable payout ratio.
KKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.15%
EPS Next 2Y24.5%
EPS Next 3Y22.06%
132.22
-2.33 (-1.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners61.58%
Inst Owner Change0.41%
Ins Owners23.96%
Ins Owner Change0.01%
Market Cap117.44B
Analysts83.33
Price Target172.6 (30.54%)
Short Float %1.5%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.7
Dividend Growth(5Y)0.22%
DP20.15%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.05%
Min EPS beat(2)1.09%
Max EPS beat(2)13%
EPS beat(4)4
Avg EPS beat(4)5.69%
Min EPS beat(4)0.41%
Max EPS beat(4)13%
EPS beat(8)8
Avg EPS beat(8)5.7%
EPS beat(12)11
Avg EPS beat(12)7.77%
EPS beat(16)15
Avg EPS beat(16)10.27%
Revenue beat(2)1
Avg Revenue beat(2)11.35%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)25.78%
Revenue beat(4)2
Avg Revenue beat(4)12.04%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)29.4%
Revenue beat(8)5
Avg Revenue beat(8)24.62%
Revenue beat(12)7
Avg Revenue beat(12)19.92%
Revenue beat(16)11
Avg Revenue beat(16)60.9%
PT rev (1m)1.8%
PT rev (3m)13.66%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-1.86%
EPS NY rev (1m)-4.01%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 22.42 | ||
| P/S | 4.87 | ||
| P/FCF | 15.15 | ||
| P/OCF | 14.93 | ||
| P/B | 4.88 | ||
| P/tB | 7.19 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.76
EY3.6%
EPS(NY)5.9
Fwd EY4.46%
FCF(TTM)8.73
FCFY6.6%
OCF(TTM)8.86
OCFY6.7%
SpS27.14
BVpS27.11
TBVpS18.4
PEG (NY)1.16
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 12.42% | ||
| ROCE | 0.32% | ||
| ROIC | 0.27% | ||
| ROICexc | 0.28% | ||
| ROICexgc | 0.35% | ||
| OM | 4.08% | ||
| PM (TTM) | 12.41% | ||
| GM | 33.28% | ||
| FCFM | 32.16% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-15.94%
OM growth 5Y-9.85%
PM growth 3Y-23.66%
PM growth 5Y-22.42%
GM growth 3Y-12.91%
GM growth 5Y-14.28%
F-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 6.42 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 0.34 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 259.14% | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 0.2 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)39.18%
EPS 3Y2.35%
EPS 5Y23.3%
EPS Q2Q%32%
EPS Next Y23.89%
EPS Next 2Y24.5%
EPS Next 3Y22.06%
EPS Next 5Y17.22%
Revenue 1Y (TTM)56.05%
Revenue growth 3Y14.88%
Revenue growth 5Y40.89%
Sales Q2Q%-8.86%
Revenue Next Year38.76%
Revenue Next 2Y28.38%
Revenue Next 3Y19.17%
Revenue Next 5YN/A
EBIT growth 1Y-58.37%
EBIT growth 3Y-3.43%
EBIT growth 5Y27.01%
EBIT Next Year58.31%
EBIT Next 3Y14.81%
EBIT Next 5Y-2.66%
FCF growth 1Y331.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y342.22%
OCF growth 3YN/A
OCF growth 5YN/A