KKR & CO INC (KKR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KKR - US48251W1045 - Common Stock
121.25 USD
-2.23 (-1.81%)
120.51 USD
-0.74 (-0.61%)
KKR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 238 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
- 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.
- KKR had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- KKR's Return On Assets of 0.57% is on the low side compared to the rest of the industry. KKR is outperformed by 73.11% of its industry peers.
- Looking at the Return On Equity, with a value of 7.59%, KKR is in line with its industry, outperforming 48.32% of the companies in the same industry.
- With a Return On Invested Capital value of 0.10%, KKR is not doing good in the industry: 70.17% of the companies in the same industry are doing better.
| 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
- With a Profit Margin value of 12.54%, KKR perfoms like the industry average, outperforming 42.02% of the companies in the same industry.
- KKR's Profit Margin has declined in the last couple of years.
- KKR has a worse Operating Margin (2.23%) than 70.59% of its industry peers.
- KKR's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 39.40%, KKR perfoms like the industry average, outperforming 41.18% 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 | 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.
- The number of shares outstanding for KKR has been increased compared to 5 years ago.
- KKR has a better debt/assets ratio than last year.
2.2 Solvency
- KKR has an Altman-Z score of 0.17. 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 0.17. This is in the lower half of the industry: KKR underperforms 71.43% of its industry peers.
- KKR has a debt to FCF ratio of 10.55. This is a negative value and a sign of low solvency as KKR would need 10.55 years to pay back of all of its debts.
- The Debt to FCF ratio of KKR (10.55) is better than 61.76% 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.
- Looking at the Debt to Equity ratio, with a value of 1.80, KKR is doing worse than 76.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 10.55 | ||
| Altman-Z | 0.17 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.41 indicates that KKR may have some problems paying its short term obligations.
- KKR's Current ratio of 0.41 is on the low side compared to the rest of the industry. KKR is outperformed by 74.37% of its industry peers.
- A Quick Ratio of 0.41 indicates that KKR may have some problems paying its short term obligations.
- KKR has a worse Quick ratio (0.41) than 74.37% 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.
- 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 negative growth in Revenue. The Revenue has decreased by -25.29% 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)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
- The Earnings Per Share is expected to grow by 17.77% on average over the next years. This is quite good.
- The Revenue is expected to grow by 21.11% on average over the next years. This is a very strong growth
EPS Next Y9.09%
EPS Next 2Y20.07%
EPS Next 3Y19.8%
EPS Next 5Y17.77%
Revenue Next Year16.41%
Revenue Next 2Y22.49%
Revenue Next 3Y20.77%
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.
- 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 23.96, KKR is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of KKR indicates a slightly more expensive valuation: KKR is more expensive than 65.97% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of KKR to the average of the S&P500 Index (27.21), we can say KKR is valued inline with the index average.
- KKR is valuated rather expensively with a Price/Forward Earnings ratio of 17.67.
- 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 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 17.67 |
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 62.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.25 | ||
| 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 19.80% in the coming years.
PEG (NY)2.64
PEG (5Y)1.03
EPS Next 2Y20.07%
EPS Next 3Y19.8%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.60%, KKR is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.10, KKR is paying slightly less dividend.
- 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.
- 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
- 31.82% 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.
DP31.82%
EPS Next 2Y20.07%
EPS Next 3Y19.8%
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 23.96 and the Price/Book (PB) ratio is 3.63.
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 9.09% in the next year.