The Carlyle Group Inc.
The Carlyle Group Inc. Fundamental Analysis
The Carlyle Group Inc. (CG) shows moderate financial fundamentals with a PE ratio of 22.23, profit margin of 17.55%, and ROE of 14.18%. The company generates $4.6B in annual revenue with strong year-over-year growth of 19.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CG's fundamental strength across five key dimensions:
Efficiency Score
WeakCG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCG trades at attractive valuation levels.
Growth Score
ModerateCG shows steady but slowing expansion.
Financial Health Score
ModerateCG shows balanced financial health with some risks.
Profitability Score
WeakCG struggles to sustain strong margins.
Key Financial Metrics
Is CG Expensive or Cheap?
P/E Ratio
CG trades at 22.23 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CG's PEG of -1.06 indicates potential undervaluation.
Price to Book
The market values The Carlyle Group Inc. at 3.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.46 times EBITDA. This is generally considered low.
How Well Does CG Make Money?
Net Profit Margin
For every $100 in sales, The Carlyle Group Inc. keeps $17.55 as profit after all expenses.
Operating Margin
Core operations generate 25.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.18 in profit for every $100 of shareholder equity.
ROA
The Carlyle Group Inc. generates $2.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Carlyle Group Inc. generates limited operating cash flow of $-1.64B, signaling weaker underlying cash strength.
Free Cash Flow
The Carlyle Group Inc. generates weak or negative free cash flow of $-1.74B, restricting financial flexibility.
FCF Per Share
Each share generates $-4.81 in free cash annually.
FCF Yield
CG converts -9.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
15.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How CG Stacks Against Its Sector Peers
| Metric | CG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.23 | 18.88 | Worse (Expensive) |
| ROE | 14.18% | 814.00% | Weak |
| Net Margin | 17.55% | 840.00% | Weak |
| Debt/Equity | 2.41 | 0.99 | Weak (High Leverage) |
| Current Ratio | 15.72 | 618.46 | Strong Liquidity |
| ROA | 2.78% | -20768.00% (disorted) | Weak |
CG outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Carlyle Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
123.59%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
126.29%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
942.40%
Industry Style: Value, Dividend, Cyclical
High Growth