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 232 industry peers in the Capital Markets industry. Both the profitability and financial health of KKR have multiple concerns. KKR shows excellent growth, but is valued quite expensive already.
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
The Return On Assets of KKR (0.59%) is worse than 69.40% 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
With a Profit Margin value of 13.32%, KKR perfoms like the industry average, outperforming 48.71% of the companies in the same 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.
With a Gross Margin value of 41.20%, KKR is not doing good in the industry: 63.36% of the companies in the same industry are doing better.
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
The number of shares outstanding for KKR has been increased compared to 1 year ago.
KKR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KKR has an improved debt to assets ratio.
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 has a Altman-Z score of 0.16. This is in the lower half of the industry: KKR underperforms 74.57% of its industry peers.
The Debt to FCF ratio of KKR is 6.64, which is on the high side as it means it would take KKR, 6.64 years of fcf income to pay off all of its debts.
KKR's Debt to FCF ratio of 6.64 is in line compared to the rest of the industry. KKR outperforms 57.33% 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 76.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 0.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
KKR has a Current 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 Current ratio value of 0.34, KKR is not doing good in the industry: 83.62% of the companies in the same industry are doing better.
A Quick Ratio of 0.34 indicates that KKR may have some problems paying its short term obligations.
KKR's Quick ratio of 0.34 is on the low side compared to the rest of the industry. KKR is outperformed by 83.62% 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.
Based on estimates for the next years, KKR will show a very strong growth in Revenue. The Revenue will grow by 20.30% on average per year.
EPS Next Y9.34%
EPS Next 2Y19.9%
EPS Next 3Y19.79%
EPS Next 5Y18.88%
Revenue Next Year11.34%
Revenue Next 2Y21.69%
Revenue Next 3Y20.23%
Revenue Next 5Y20.3%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 25.51, which means the current valuation is very expensive for KKR.
KKR's Price/Earnings ratio is a bit more expensive when compared to the industry. KKR is more expensive than 64.66% of the companies in the same industry.
When comparing the Price/Earnings ratio of KKR to the average of the S&P500 Index (26.55), we can say KKR is valued inline with the index average.
The Price/Forward Earnings ratio is 18.41, which indicates a rather expensive current valuation of KKR.
KKR's Price/Forward Earnings is on the same level as the industry average.
KKR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, KKR is valued a bit cheaper than 66.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| 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 19.79% in the coming years.
PEG (NY)2.73
PEG (5Y)1.09
EPS Next 2Y19.9%
EPS Next 3Y19.79%
5. Dividend
5.1 Amount
KKR has a yearly dividend return of 0.61%, which is pretty low.
KKR's Dividend Yield is slightly below the industry average, which is at 8.22.
With a Dividend Yield of 0.61, KKR pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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.
The dividend of KKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.32%
EPS Next 2Y19.9%
EPS Next 3Y19.79%
126
+1.98 (+1.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners60.93%
Inst Owner Change1.16%
Ins Owners23.94%
Ins Owner Change-1.18%
Market Cap112.22B
Analysts84.8
Price Target147.23 (16.85%)
Short Float %1.52%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)-15.06%
EPS NQ rev (1m)-1.93%
EPS NQ rev (3m)-15.92%
EPS NY rev (1m)-4%
EPS NY rev (3m)-11.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.53%
Revenue NY rev (1m)-6.17%
Revenue NY rev (3m)-16.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 18.41 | ||
| P/S | 6.81 | ||
| P/FCF | 14.91 | ||
| P/OCF | 14.63 | ||
| P/B | 4.09 | ||
| P/tB | 5.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.94
EY3.92%
EPS(NY)6.84
Fwd EY5.43%
FCF(TTM)8.45
FCFY6.71%
OCF(TTM)8.61
OCFY6.84%
SpS18.5
BVpS30.84
TBVpS21.99
PEG (NY)2.73
PEG (5Y)1.09
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 | 0.16 |
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)37.99%
EPS 3Y2.35%
EPS 5Y23.3%
EPS Q2Q%18.56%
EPS Next Y9.34%
EPS Next 2Y19.9%
EPS Next 3Y19.79%
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