KKR & CO INC (KKR) Stock Fundamental Analysis
NYSE:KKR - New York Stock Exchange, Inc. - US48251W1045 - Common Stock - Currency: USD
Taking everything into account, KKR scores 4 out of 10 in our fundamental rating. KKR was compared to 227 industry peers in the Capital Markets industry. KKR may be in some trouble as it scores bad on both profitability and health. KKR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
KKR had positive earnings in the past year.
In the past year KKR had a positive cash flow from operations.
KKR had positive earnings in 4 of the past 5 years.
In the past 5 years KKR reported 4 times negative operating cash flow.
1.2 Ratios
The Return On Assets of KKR (0.85%) is worse than 70.93% of its industry peers.
The Return On Equity of KKR (13.01%) is better than 66.08% of its industry peers.
The Return On Invested Capital of KKR (0.24%) is worse than 72.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 13.01% | ||
| ROIC | 0.24% |
ROA(3y)0.56%
ROA(5y)1.17%
ROE(3y)8.09%
ROE(5y)12.88%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KKR has a Profit Margin of 13.38%. This is comparable to the rest of the industry: KKR outperforms 46.70% of its industry peers.
KKR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.88%, KKR is doing worse than 72.69% of the companies in the same industry.
KKR's Operating Margin has declined in the last couple of years.
KKR has a Gross Margin of 34.00%. This is in the lower half of the industry: KKR underperforms 68.28% of its industry peers.
In the last couple of years the Gross Margin of KKR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.88% | ||
| PM (TTM) | 13.38% | ||
| GM | 34% |
OM growth 3Y-48.74%
OM growth 5Y-33%
PM growth 3Y-21.17%
PM growth 5Y-20.91%
GM growth 3Y-19.35%
GM growth 5Y-18.14%
2. Health
2.1 Basic Checks
KKR has more shares outstanding than it did 1 year ago.
KKR has more shares outstanding than it did 5 years ago.
KKR has a better debt/assets ratio than last year.
2.2 Solvency
KKR has an Altman-Z score of 0.16. This is a bad value and indicates that KKR is not financially healthy and even has some risk of bankruptcy.
KKR's Altman-Z score of 0.16 is on the low side compared to the rest of the industry. KKR is outperformed by 74.45% of its industry peers.
KKR has a debt to FCF ratio of 7.65. This is a slightly negative value and a sign of low solvency as KKR would need 7.65 years to pay back of all of its debts.
The Debt to FCF ratio of KKR (7.65) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.10 is on the high side and indicates that KKR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.10, KKR is doing worse than 76.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 7.65 | ||
| Altman-Z | 0.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.29 indicates that KKR may have some problems paying its short term obligations.
KKR's Current ratio of 0.29 is on the low side compared to the rest of the industry. KKR is outperformed by 80.62% of its industry peers.
KKR has a Quick Ratio of 0.29. 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 0.29 is on the low side compared to the rest of the industry. KKR is outperformed by 80.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.18% over the past year.
Measured over the past years, KKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.30% on average per year.
KKR shows a strong growth in Revenue. In the last year, the Revenue has grown by 51.25%.
The Revenue has been growing by 38.20% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)39.18%
EPS 3Y2.35%
EPS 5Y23.3%
EPS Q2Q%32%
Revenue 1Y (TTM)51.25%
Revenue growth 3Y11.25%
Revenue growth 5Y38.2%
Sales Q2Q%-8.86%
3.2 Future
Based on estimates for the next years, KKR will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.22% on average per year.
Based on estimates for the next years, KKR will show a very strong growth in Revenue. The Revenue will grow by 23.12% on average per year.
EPS Next Y22.71%
EPS Next 2Y24.17%
EPS Next 3Y21.87%
EPS Next 5Y17.22%
Revenue Next Year23.5%
Revenue Next 2Y25.63%
Revenue Next 3Y20.94%
Revenue Next 5Y23.12%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.72, the valuation of KKR can be described as rather expensive.
Based on the Price/Earnings ratio, KKR is valued a bit more expensive than 62.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of KKR to the average of the S&P500 Index (28.29), we can say KKR is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.70, which indicates a rather expensive current valuation of KKR.
KKR's Price/Forward Earnings ratio is in line with the industry average.
KKR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 17.7 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, KKR is valued a bit cheaper than the industry average as 65.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.11 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
KKR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KKR's earnings are expected to grow with 21.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)0.93
EPS Next 2Y24.17%
EPS Next 3Y21.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, KKR is not a good candidate for dividend investing.
The stock price of KKR dropped by -34.40% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
KKR's Dividend Yield is slightly below the industry average, which is at 8.84.
With a Dividend Yield of 0.69, KKR pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of KKR has a limited annual growth rate of 4.39%.
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)4.39%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
19.90% of the earnings are spent on dividend by KKR. This is a low number and sustainable payout ratio.
The dividend of KKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.9%
EPS Next 2Y24.17%
EPS Next 3Y21.87%
103.37
+1.32 (+1.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners60.93%
Inst Owner Change0.01%
Ins Owners23.94%
Ins Owner Change0.01%
Market Cap91.82B
Analysts83.2
Price Target172.79 (67.16%)
Short Float %1.42%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.69
Dividend Growth(5Y)4.39%
DP19.9%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.66%
Min EPS beat(2)2.32%
Max EPS beat(2)13%
EPS beat(4)4
Avg EPS beat(4)4.2%
Min EPS beat(4)0.41%
Max EPS beat(4)13%
EPS beat(8)8
Avg EPS beat(8)5.21%
EPS beat(12)11
Avg EPS beat(12)5.44%
EPS beat(16)15
Avg EPS beat(16)9.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-27.68%
Max Revenue beat(2)25.78%
Revenue beat(4)2
Avg Revenue beat(4)6.11%
Min Revenue beat(4)-27.68%
Max Revenue beat(4)29.4%
Revenue beat(8)4
Avg Revenue beat(8)6.55%
Revenue beat(12)6
Avg Revenue beat(12)7.56%
Revenue beat(16)10
Avg Revenue beat(16)52.09%
PT rev (1m)-0.31%
PT rev (3m)1.92%
EPS NQ rev (1m)-4.23%
EPS NQ rev (3m)-13.24%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-4.93%
Revenue NQ rev (1m)-2.92%
Revenue NQ rev (3m)-17.21%
Revenue NY rev (1m)-7.23%
Revenue NY rev (3m)-10.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 17.7 | ||
| P/S | 3.99 | ||
| P/FCF | 14.11 | ||
| P/OCF | 13.81 | ||
| P/B | 3.88 | ||
| P/tB | 5.75 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.76
EY4.6%
EPS(NY)5.84
Fwd EY5.65%
FCF(TTM)7.33
FCFY7.09%
OCF(TTM)7.49
OCFY7.24%
SpS25.89
BVpS26.63
TBVpS17.99
PEG (NY)0.96
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 13.01% | ||
| ROCE | 0.29% | ||
| ROIC | 0.24% | ||
| ROICexc | 0.25% | ||
| ROICexgc | 0.32% | ||
| OM | 3.88% | ||
| PM (TTM) | 13.38% | ||
| GM | 34% | ||
| FCFM | 28.3% |
ROA(3y)0.56%
ROA(5y)1.17%
ROE(3y)8.09%
ROE(5y)12.88%
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 3Y-47.13%
ROICexcg growth 5Y-30.66%
ROICexc growth 3Y-47.94%
ROICexc growth 5Y-33.63%
OM growth 3Y-48.74%
OM growth 5Y-33%
PM growth 3Y-21.17%
PM growth 5Y-20.91%
GM growth 3Y-19.35%
GM growth 5Y-18.14%
F-Score6
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 7.65 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 0.3 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 211.57% | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.16 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.87%
Cap/Sales(5y)1.27%
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 Y22.71%
EPS Next 2Y24.17%
EPS Next 3Y21.87%
EPS Next 5Y17.22%
Revenue 1Y (TTM)51.25%
Revenue growth 3Y11.25%
Revenue growth 5Y38.2%
Sales Q2Q%-8.86%
Revenue Next Year23.5%
Revenue Next 2Y25.63%
Revenue Next 3Y20.94%
Revenue Next 5Y23.12%
EBIT growth 1Y-61.91%
EBIT growth 3Y-42.97%
EBIT growth 5Y-7.41%
EBIT Next Year38.2%
EBIT Next 3Y21.21%
EBIT Next 5Y-2.66%
FCF growth 1Y506.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y545.16%
OCF growth 3YN/A
OCF growth 5YN/A