KKR & CO INC (KKR) Stock Fundamental Analysis
NYSE:KKR - New York Stock Exchange, Inc. - US48251W1045 - Common Stock - Currency: USD
Overall KKR gets a fundamental rating of 3 out of 10. We evaluated KKR against 233 industry peers in the Capital Markets industry. KKR may be in some trouble as it scores bad on both profitability and health. KKR shows excellent growth, but is valued quite expensive already.
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
KKR has a Return On Assets of 0.59%. This is in the lower half of the industry: KKR underperforms 69.66% of its industry peers.
The Return On Equity of KKR (7.99%) is comparable to the rest of the industry.
| 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
KKR's Profit Margin of 13.32% is in line compared to the rest of the industry. KKR outperforms 48.72% of its industry peers.
In the last couple of years the Profit Margin of KKR has declined.
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 63.68% of the companies in the same industry.
KKR's Gross Margin has declined in the last couple of years.
| 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
KKR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for KKR has been increased compared to 5 years ago.
The debt/assets ratio for KKR has been reduced compared to a year ago.
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.
KKR's Altman-Z score of 0.19 is on the low side compared to the rest of the industry. KKR is outperformed by 74.79% 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 of 6.64. This is comparable to the rest of the industry: KKR outperforms 58.55% of its industry peers.
KKR has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
KKR has a worse Debt to Equity ratio (1.82) than 77.35% of its industry peers.
| 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's Current ratio of 0.34 is on the low side compared to the rest of the industry. KKR is outperformed by 84.19% 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.
With a Quick ratio value of 0.34, KKR is not doing good in the industry: 84.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.99% over the past year.
KKR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.30% yearly.
Looking at the last year, KKR shows a very negative growth in Revenue. The Revenue has decreased by -24.06% in the last year.
KKR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.20% yearly.
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
The Earnings Per Share is expected to grow by 18.88% on average over the next years. This is quite good.
KKR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.30% yearly.
EPS Next Y8.5%
EPS Next 2Y19.53%
EPS Next 3Y19.51%
EPS Next 5Y18.88%
Revenue Next Year11.9%
Revenue Next 2Y21.69%
Revenue Next 3Y20.03%
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
A Price/Earnings ratio of 28.55 indicates a quite expensive valuation of KKR.
Based on the Price/Earnings ratio, KKR is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of KKR to the average of the S&P500 Index (27.30), we can say KKR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.74, the valuation of KKR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KKR is on the same level as its industry peers.
KKR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KKR indicates a somewhat cheap valuation: KKR is cheaper than 63.25% of the companies listed 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.
KKR's earnings are expected to grow with 19.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.36
PEG (5Y)1.23
EPS Next 2Y19.53%
EPS Next 3Y19.51%
5. Dividend
5.1 Amount
KKR has a yearly dividend return of 0.52%, which is pretty low.
Compared to an average industry Dividend Yield of 8.12, KKR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, KKR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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 28.32% 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.
DP28.32%
EPS Next 2Y19.53%
EPS Next 3Y19.51%
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 | 0.52% |
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)0%
PT rev (3m)-14.79%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-8.67%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-11.58%
Revenue NQ rev (1m)1.98%
Revenue NQ rev (3m)-6.5%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)-9.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 20.74 | ||
| 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)3.36
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 Y8.5%
EPS Next 2Y19.53%
EPS Next 3Y19.51%
EPS Next 5Y18.88%
Revenue 1Y (TTM)-24.06%
Revenue growth 3Y11.25%
Revenue growth 5Y38.2%
Sales Q2Q%4.57%
Revenue Next Year11.9%
Revenue Next 2Y21.69%
Revenue Next 3Y20.03%
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