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 230 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 expensive, but it does show an excellent growth.
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
KKR's Return On Assets of 0.85% is on the low side compared to the rest of the industry. KKR is outperformed by 70.43% of its industry peers.
With a decent Return On Equity value of 13.01%, KKR is doing good in the industry, outperforming 66.96% of the companies in the same industry.
KKR has a worse Return On Invested Capital (0.24%) than 71.74% 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
The Profit Margin of KKR (13.38%) is comparable to the rest of the industry.
KKR's Profit Margin has declined in the last couple of years.
The Operating Margin of KKR (3.88%) is worse than 71.74% of its industry peers.
In the last couple of years the Operating Margin of KKR has declined.
Looking at the Gross Margin, with a value of 34.00%, KKR is doing worse than 68.70% 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 | 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
Compared to 1 year ago, KKR has more shares outstanding
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 0.18, we must say that KKR is in the distress zone and has some risk of bankruptcy.
KKR has a Altman-Z score of 0.18. This is in the lower half of the industry: KKR underperforms 73.91% of its industry peers.
The Debt to FCF ratio of KKR is 7.65, which is on the high side as it means it would take KKR, 7.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.65, KKR is in line with its industry, outperforming 55.22% of the companies in the same industry.
KKR has a Debt/Equity ratio of 2.10. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.10, KKR is doing worse than 76.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 7.65 | ||
| Altman-Z | 0.18 |
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 has a worse Current ratio (0.29) than 80.87% of its industry peers.
A Quick Ratio of 0.29 indicates that KKR may have some problems paying its short term obligations.
KKR has a Quick ratio of 0.29. This is amonst the worse of the industry: KKR underperforms 80.87% 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.
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 51.25%.
KKR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.20% yearly.
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
The Earnings Per Share is expected to grow by 17.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 23.12% on average over the next years. This is a very strong growth
EPS Next Y13.9%
EPS Next 2Y21.47%
EPS Next 3Y20.98%
EPS Next 5Y17.22%
Revenue Next Year23.5%
Revenue Next 2Y25.63%
Revenue Next 3Y20.94%
Revenue Next 5Y23.12%
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 24.01, which indicates a rather expensive current valuation of KKR.
KKR's Price/Earnings ratio is a bit more expensive when compared to the industry. KKR is more expensive than 63.04% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.88, KKR is valued at the same level.
KKR is valuated rather expensively with a Price/Forward Earnings ratio of 21.08.
60.87% of the companies in the same industry are cheaper than KKR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KKR to the average of the S&P500 Index (21.20), we can say KKR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 21.08 |
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 63.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.6 | ||
| 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.
KKR's earnings are expected to grow with 20.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)1.03
EPS Next 2Y21.47%
EPS Next 3Y20.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, KKR is not a good candidate for dividend investing.
In the last 3 months the price of KKR has falen by -31.60%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KKR's Dividend Yield is slightly below the industry average, which is at 8.30.
With a Dividend Yield of 0.62, KKR pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of KKR has a limited annual growth rate of 4.39%.
KKR has been paying a dividend for at least 10 years, so it has 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.
KKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.9%
EPS Next 2Y21.47%
EPS Next 3Y20.98%
114.27
-0.08 (-0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners60.93%
Inst Owner Change0.04%
Ins Owners23.94%
Ins Owner Change0.01%
Market Cap101.50B
Analysts83.2
Price Target144.17 (26.17%)
Short Float %1.32%
Short Ratio1.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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)-16.82%
PT rev (3m)-14.96%
EPS NQ rev (1m)-6.21%
EPS NQ rev (3m)-15.03%
EPS NY rev (1m)-7.18%
EPS NY rev (3m)-11.75%
Revenue NQ rev (1m)-2.87%
Revenue NQ rev (3m)-17.21%
Revenue NY rev (1m)-7.23%
Revenue NY rev (3m)-10.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 21.08 | ||
| P/S | 4.41 | ||
| P/FCF | 15.6 | ||
| P/OCF | 15.26 | ||
| P/B | 4.29 | ||
| P/tB | 6.35 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.76
EY4.17%
EPS(NY)5.42
Fwd EY4.74%
FCF(TTM)7.33
FCFY6.41%
OCF(TTM)7.49
OCFY6.55%
SpS25.89
BVpS26.63
TBVpS17.99
PEG (NY)1.73
PEG (5Y)1.03
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 | 0.18 |
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 Y13.9%
EPS Next 2Y21.47%
EPS Next 3Y20.98%
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