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 3 out of 10 in our fundamental rating. KKR was compared to 233 industry peers in the Capital Markets industry. KKR has a bad profitability rating. Also its financial health evaluation is rather negative. KKR is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
KKR had positive earnings in the past year.
KKR had a positive operating cash flow in the past year.
Of the past 5 years KKR 4 years were profitable.
In the past 5 years KKR reported 4 times negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.59%, KKR is doing worse than 69.96% of the companies in the same industry.
KKR has a Return On Equity (7.99%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 7.99% | ||
| ROIC | N/A |
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
The Profit Margin of KKR (13.32%) is comparable to the rest of the industry.
KKR's Profit Margin has declined in the last couple of years.
KKR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 41.20%, KKR is doing worse than 63.95% of the companies in the same industry.
In the last couple of years the Gross Margin of KKR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 13.32% | ||
| GM | 41.2% |
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
The number of shares outstanding for KKR has been increased compared to 1 year ago.
Compared to 5 years ago, KKR has more shares outstanding
Compared to 1 year ago, KKR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.19, we must say that KKR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KKR (0.19) is worse than 74.68% of its industry peers.
KKR has a debt to FCF ratio of 6.64. This is a slightly negative value and a sign of low solvency as KKR would need 6.64 years to pay back of all of its debts.
KKR has a Debt to FCF ratio (6.64) which is comparable to the rest of the industry.
KKR has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.82, KKR is not doing good in the industry: 77.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 0.19 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.34 indicates that KKR may have some problems paying its short term obligations.
KKR has a Current ratio of 0.34. This is amonst the worse of the industry: KKR underperforms 84.55% of its industry peers.
KKR has a Quick Ratio of 0.34. 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 Quick ratio of 0.34. This is amonst the worse of the industry: KKR underperforms 84.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
KKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.99%, which is quite impressive.
The Earnings Per Share has been growing by 23.30% on average over the past years. This is a very strong growth
The Revenue for KKR has decreased by -24.06% in the past year. This is quite bad
The Revenue has been growing by 38.20% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)37.99%
EPS 3Y2.35%
EPS 5Y23.3%
EPS Q2Q%18.56%
Revenue 1Y (TTM)-24.06%
Revenue growth 3Y11.25%
Revenue growth 5Y38.2%
Sales Q2Q%4.57%
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 18.88% on average per year.
KKR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.30% yearly.
EPS Next Y9.03%
EPS Next 2Y19.5%
EPS Next 3Y19.61%
EPS Next 5Y18.88%
Revenue Next Year11.34%
Revenue Next 2Y21.69%
Revenue Next 3Y20.23%
Revenue Next 5Y20.3%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
With a Price/Earnings ratio of 28.55, KKR can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KKR is valued a bit more expensive than the industry average as 68.24% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.30. KKR is around the same levels.
KKR is valuated rather expensively with a Price/Forward Earnings ratio of 20.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KKR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of KKR to the average of the S&P500 Index (21.76), we can say KKR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 20.75 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, KKR is valued a bit cheaper than 63.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.69 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as KKR's earnings are expected to grow with 19.61% in the coming years.
PEG (NY)3.16
PEG (5Y)1.23
EPS Next 2Y19.5%
EPS Next 3Y19.61%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, KKR is not a good candidate for dividend investing.
KKR's Dividend Yield is slightly below the industry average, which is at 8.10.
Compared to an average S&P500 Dividend Yield of 2.37, KKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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.
As KKR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.39%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
28.32% 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.
DP28.32%
EPS Next 2Y19.5%
EPS Next 3Y19.61%
141.05
-2 (-1.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners61.19%
Inst Owner Change0%
Ins Owners23.56%
Ins Owner Change-1.21%
Market Cap125.62B
Analysts84.62
Price Target147.23 (4.38%)
Short Float %1.47%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.69
Dividend Growth(5Y)4.39%
DP28.32%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.88%
Min EPS beat(2)-0.56%
Max EPS beat(2)2.32%
EPS beat(4)3
Avg EPS beat(4)3.96%
Min EPS beat(4)-0.56%
Max EPS beat(4)13%
EPS beat(8)7
Avg EPS beat(8)4.02%
EPS beat(12)10
Avg EPS beat(12)4.44%
EPS beat(16)14
Avg EPS beat(16)8.13%
Revenue beat(2)1
Avg Revenue beat(2)-5.75%
Min Revenue beat(2)-27.68%
Max Revenue beat(2)16.18%
Revenue beat(4)2
Avg Revenue beat(4)2.8%
Min Revenue beat(4)-27.68%
Max Revenue beat(4)25.78%
Revenue beat(8)5
Avg Revenue beat(8)9.68%
Revenue beat(12)7
Avg Revenue beat(12)11.38%
Revenue beat(16)10
Avg Revenue beat(16)35.58%
PT rev (1m)1.41%
PT rev (3m)-14.79%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-13.43%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-11.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-15.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 20.75 | ||
| P/S | 7.62 | ||
| P/FCF | 16.69 | ||
| P/OCF | 16.37 | ||
| P/B | 4.57 | ||
| P/tB | 6.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.94
EY3.5%
EPS(NY)6.8
Fwd EY4.82%
FCF(TTM)8.45
FCFY5.99%
OCF(TTM)8.61
OCFY6.11%
SpS18.5
BVpS30.84
TBVpS21.99
PEG (NY)3.16
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 7.99% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 13.32% | ||
| GM | 41.2% | ||
| FCFM | 45.68% |
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 6.64 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.88% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 342.98% | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 0.19 |
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)37.99%
EPS 3Y2.35%
EPS 5Y23.3%
EPS Q2Q%18.56%
EPS Next Y9.03%
EPS Next 2Y19.5%
EPS Next 3Y19.61%
EPS Next 5Y18.88%
Revenue 1Y (TTM)-24.06%
Revenue growth 3Y11.25%
Revenue growth 5Y38.2%
Sales Q2Q%4.57%
Revenue Next Year11.34%
Revenue Next 2Y21.69%
Revenue Next 3Y20.23%
Revenue Next 5Y20.3%
EBIT growth 1Y-107.75%
EBIT growth 3Y-42.97%
EBIT growth 5Y-7.41%
EBIT Next Year28.03%
EBIT Next 3Y28.74%
EBIT Next 5Y31.25%
FCF growth 1Y191.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y194.38%
OCF growth 3YN/A
OCF growth 5YN/A