KKR & Co. Inc. Fundamental Analysis (NYSE: KKR)
KKR & Co. Inc. (NYSE: KKR) shows weak financial fundamentals with a PE ratio of 32.21, profit margin of 14.93%, and ROE of 10.32%. The company generates $21.2B in annual revenue with weak year-over-year growth of -10.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KKR's fundamental strength across five key dimensions:
Efficiency Score
WeakKKR struggles to generate sufficient returns from assets.
Valuation Score
ModerateKKR shows balanced valuation metrics.
Growth Score
WeakKKR faces weak or negative growth trends.
Financial Health Score
ModerateKKR shows balanced financial health with some risks.
Profitability Score
WeakKKR struggles to sustain strong margins.
Key Financial Metrics
Is KKR Expensive or Cheap?
P/E Ratio
KKR trades at 32.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KKR's PEG of 0.66 indicates potential undervaluation.
Price to Book
The market values KKR & Co. 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 6.06 times EBITDA. This is generally considered low.
How Well Does KKR Make Money?
Net Profit Margin
For every $100 in sales, KKR & Co. Inc. keeps $14.93 as profit after all expenses.
Operating Margin
Core operations generate 17.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.32 in profit for every $100 of shareholder equity.
ROA
KKR & Co. Inc. generates $0.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KKR & Co. Inc. produces operating cash flow of $2.49B, showing steady but balanced cash generation.
Free Cash Flow
KKR & Co. Inc. generates strong free cash flow of $2.35B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.61 in free cash annually.
FCF Yield
KKR converts 2.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How KKR Stacks Against Its Sector Peers
| Metric | KKR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.21 | 21.03 | Worse (Expensive) |
| ROE | 10.32% | 647.00% | Weak |
| Net Margin | 14.93% | -1591.00% (disorted) | Strong |
| Debt/Equity | 1.63 | 0.90 | Weak (High Leverage) |
| Current Ratio | 9.17 | 912.43 | Strong Liquidity |
| ROA | 0.76% | -579.00% (disorted) | Weak |
KKR outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KKR & Co. Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
187.79%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-25.17%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
202.82%
Industry Style: Value, Dividend, Cyclical
High Growth