KKR & CO INC (KKR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KKR - US48251W1045 - Common Stock
116.77 USD
+0.77 (+0.66%)
116.45 USD
-0.32 (-0.27%)
Overall KKR gets a fundamental rating of 3 out of 10. We evaluated KKR against 237 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.
- In the past year KKR had a positive cash flow from operations.
- 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
- With a Return On Assets value of 0.57%, KKR is not doing good in the industry: 73.42% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 7.59%, KKR is in line with its industry, outperforming 48.10% of the companies in the same industry.
- The Return On Invested Capital of KKR (0.10%) is worse than 70.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 7.59% | ||
| ROIC | 0.1% |
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 (12.54%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of KKR has declined.
- KKR has a Operating Margin of 2.23%. This is in the lower half of the industry: KKR underperforms 70.89% of its industry peers.
- KKR's Operating Margin has declined in the last couple of years.
- KKR has a Gross Margin (39.40%) which is comparable to the rest of the industry.
- KKR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.23% | ||
| PM (TTM) | 12.54% | ||
| GM | 39.4% |
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.
- 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 0.16, we must say that KKR is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.16, KKR is doing worse than 71.31% of the companies in the same industry.
- The Debt to FCF ratio of KKR is 10.55, which is on the high side as it means it would take KKR, 10.55 years of fcf income to pay off all of its debts.
- KKR has a better Debt to FCF ratio (10.55) than 62.03% of its industry peers.
- A Debt/Equity ratio of 1.80 is on the high side and indicates that KKR has dependencies on debt financing.
- KKR's Debt to Equity ratio of 1.80 is on the low side compared to the rest of the industry. KKR is outperformed by 75.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 10.55 | ||
| Altman-Z | 0.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- KKR has a Current Ratio of 0.41. This is a bad value and indicates that KKR is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of KKR (0.41) is worse than 74.26% of its industry peers.
- KKR has a Quick Ratio of 0.41. This is a bad value and indicates that KKR is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of KKR (0.41) is worse than 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
- KKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.96%, which is quite good.
- 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.
- The Revenue for KKR has decreased by -25.29% 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)13.96%
EPS 3Y2.35%
EPS 5Y23.3%
EPS Q2Q%2.17%
Revenue 1Y (TTM)-25.29%
Revenue growth 3Y11.25%
Revenue growth 5Y38.2%
Sales Q2Q%-23.14%
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 17.77% 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 21.11% on average per year.
EPS Next Y6.18%
EPS Next 2Y19.02%
EPS Next 3Y19.43%
EPS Next 5Y17.77%
Revenue Next Year14.12%
Revenue Next 2Y22.78%
Revenue Next 3Y21.46%
Revenue Next 5Y21.11%
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.
- 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
- KKR is valuated rather expensively with a Price/Earnings ratio of 23.08.
- Based on the Price/Earnings ratio, KKR is valued a bit more expensive than the industry average as 64.98% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, KKR is valued at the same level.
- The Price/Forward Earnings ratio is 17.32, which indicates a rather expensive current valuation of KKR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KKR is on the same level as its industry peers.
- KKR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 17.32 |
4.2 Price Multiples
- KKR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KKR is cheaper than 62.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KKR does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as KKR's earnings are expected to grow with 19.43% in the coming years.
PEG (NY)3.74
PEG (5Y)0.99
EPS Next 2Y19.02%
EPS Next 3Y19.43%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.60%, KKR is not a good candidate for dividend investing.
- KKR's Dividend Yield is slightly below the industry average, which is at 5.87.
- With a Dividend Yield of 0.60, KKR pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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
- KKR pays out 31.82% of its income as dividend. This is a sustainable payout ratio.
- KKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.82%
EPS Next 2Y19.02%
EPS Next 3Y19.43%
KKR & CO INC / KKR FAQ
What is the ChartMill fundamental rating of KKR & CO INC (KKR) stock?
ChartMill assigns a fundamental rating of 3 / 10 to KKR.
What is the valuation status for KKR stock?
ChartMill assigns a valuation rating of 2 / 10 to KKR & CO INC (KKR). This can be considered as Overvalued.
What is the profitability of KKR stock?
KKR & CO INC (KKR) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for KKR stock?
The Price/Earnings (PE) ratio for KKR & CO INC (KKR) is 23.08 and the Price/Book (PB) ratio is 3.5.
What is the earnings growth outlook for KKR & CO INC?
The Earnings per Share (EPS) of KKR & CO INC (KKR) is expected to grow by 6.18% in the next year.