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KKR KKR & Co. Inc. - Fundamental Analysis

NEUTRAL
KKR Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Asset Management
Current Price
$119.92
Analyst Target
$157.14
+31.0% Upside
52W High
$170.4
52W Low
$86.15

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 15, 2025
Market cap
$111.81B
P/E
50.6
ROE
7.7%
Profit margin
10.6%
Debt/Equity
0.74
Dividend yield
0.62%

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
65%
Analysis Accuracy
KKR trades at a significant premium to peers on valuation metrics with a current P/E of 50.60 versus a sector average of 23.27, despite solid double-digit revenue and earnings growth. While profitability margins are strong—operating margin at 30.96% and gross margin at 57.98%—ROE of 7.67% lags far behind the sector average of 42.28%, raising capital efficiency concerns. The stock has underperformed over the past year with a -20.0% return, contrasting its impressive 5Y gain of +231.5%, while recent insider selling worth $413.16M signals caution. Analysts maintain a 'buy' recommendation with a $157.14 target implying ~31% upside, but missing earnings estimates consistently and weak dividend yield limit near-term appeal.

Key Strengths

Operating margin of 30.96% significantly exceeds sector average of 36.71%, reflecting disciplined cost management and scalable fee structure
Revenue growth of 13.20% YoY and earnings growth of 40.60% YoY demonstrate robust underlying business momentum in asset management and private equity deployment
Debt/Equity of 0.74 is in line with sector average of 0.78, indicating prudent leverage within industry norms
Current and quick ratios of 1.70 and 1.65 reflect strong short-term liquidity and operational resilience
Analyst target price of $157.14 implies 31% upside, suggesting embedded confidence in future earnings recovery and AUM growth

Key Risks

P/E of 50.60 is more than double the sector average (23.27) and forward P/E of 19.76 still implies high growth expectations not yet realized
ROE of 7.67% is dramatically below sector average of 42.28%, signaling inefficient use of equity capital relative to peers like BLK and SCHW
Recent insider selling totaling $413.16M across three transactions indicates lack of confidence among officers and directors
No earnings beats in the last 25 quarters with zero average surprise, suggesting persistent earnings predictability issues or conservative guidance
Dividend yield of 0.62% is negligible compared to sector norms and offers little support during market downturns
AI Fair Value Estimate
Based on comprehensive analysis
$135.0
+12.6% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
53
Moderate
Value
45
Future
70
Past
55
Health
75
Dividend
20
AI Verdict
KKR exhibits strong operational profitability and growth momentum but is priced for near-perfect execution, trading at a steep valuation premium to peers like BLK and SCHW while lagging in capital efficiency (ROE). The disconnect between rich multiples and weak earnings surprise history, combined with bearish insider activity, tempers enthusiasm despite analysts’ bullish target. Near-term upside hinges on reacceleration in AUM growth and margin expansion to justify current pricing.
Key drivers: Rich valuation requiring sustained high growth to de-risk, Strong operating leverage and fee-based revenue scalability, Persistent ROE underperformance versus asset management peers
Confidence
65%
Value
45/100

KKR trades at a substantial valuation premium to peers like BLK (P/E 27.25) and SCHW (P/E 22.11), despite lower ROE and inconsistent earnings delivery, making it appear overvalued on both absolute and relative bases.

Positives
  • Forward P/E of 19.76 is more reasonable than current P/E of 50.60, suggesting earnings recovery is priced in
  • Price/Sales of 5.03 is in line with high-growth financial services firms such as IREN
Watchpoints
  • Current P/E of 50.60 is unjustifiably high relative to sector average of 23.27 and even aggressive growth assumptions
  • Price/Book of 3.93 implies significant intangible premium with limited ROE to support it
Future
70/100

While revenue and earnings growth trajectories are positive and price momentum shows signs of stabilization after a sharp 1Y drawdown, the lack of earnings surprise and high valuation multiple constrain near-term upside unless AUM and deployment rates accelerate.

Positives
  • Earnings growth of 40.60% YoY and Q/Q growth of 49.90% indicate strong near-term acceleration in profitability
  • Revenue growth of 13.20% YoY reflects continued expansion in fee-related earnings and carried interest
Watchpoints
  • Forward P/E of 19.76 still demands flawless execution and macro tailwinds in private markets
  • No earnings beats in 25 quarters raises concerns about sustainability of growth expectations
Past
55/100

KKR has delivered outstanding long-term shareholder returns over five years, but recent underperformance and a complete absence of earnings surprises over multiple cycles point to weakening momentum and execution challenges in the current macro environment.

Positives
  • 5-year return of +231.5% demonstrates exceptional long-term compounding power in KKR’s business model
  • Gross and operating margins have remained stable, indicating pricing power and operational discipline
Watchpoints
  • Zero earnings beats in the last 25 quarters suggests chronic inability to exceed expectations or potential conservative guidance
  • 1-year return of -20.0% underperforms both sector and peers like SCHW (+18.8%) and BLK (+3.1%)
Health
75/100

KKR’s leverage and liquidity ratios are healthy and in line with peers like BLK and SCHW, but the absence of cash flow data creates a transparency gap in assessing true financial resilience and capital allocation flexibility.

Positives
  • Debt/Equity ratio of 0.74 is within sector norms and below SCHW’s 1.00, indicating manageable leverage
  • Current and quick ratios above 1.6 demonstrate strong working capital management and liquidity buffer
Watchpoints
  • Total cash and debt figures unavailable, limiting visibility into near-term refinancing or cash deployment capacity
  • Operating cash flow and free cash flow data missing, obscuring true financial flexibility
Dividend
20/100

The dividend offers minimal yield and plays a minor role in total return, with a 0.62% yield far below what income-oriented investors expect, even for a capital-light asset manager.

Positives
  • Payout ratio of 30.25% indicates dividend is well-covered by earnings
  • Annual dividend rate of $0.74 provides minimal income floor
Watchpoints
  • Dividend yield of 0.62% is negligible and unattractive compared to sector alternatives
  • No history of dividend growth or policy clarity reduces appeal to income investors

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$119.92
Analyst Target
$157.14
Upside/Downside
+31.0%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for KKR and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
KKR
KKR & Co. Inc.
Primary
+231.5% +126.2% -20.0% -4.6% -3.6% -1.1%
CME
CME Group Inc.
Peer
+107.0% +88.5% +33.3% +4.1% +6.3% +3.1%
PGR
The Progressive Corporation
Peer
+159.1% +88.5% -10.8% -21.2% -0.6% +3.6%
MMC
Marsh & McLennan Companies, Inc.
Peer
+70.2% +16.8% -16.1% -20.3% -10.3% +1.5%
MCO
Moody's Corporation
Peer
+81.5% +64.7% +0.2% -1.8% +0.2% -1.7%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
50.6
Forward P/E
19.76
PEG Ratio
N/A
P/B Ratio
3.93
P/S Ratio
5.03
EV/Revenue
7.42
EV/EBITDA
N/A
Market Cap
$111.81B

Profitability

Profit margins and return metrics

Profit Margin 10.56%
Operating Margin 30.96%
Gross Margin 57.98%
ROE 7.67%
ROA 1.39%

Growth

Revenue and earnings growth rates

Revenue Growth +13.2%
Earnings Growth +40.6%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +49.9%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.74
Moderate
Current Ratio
1.7
Good
Quick Ratio
1.65
Excellent
Cash/Share
$51.73

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-04
$N/A
2025-11-07
$1.41
+8.6% surprise
2025-07-31
$1.18
+3.6% surprise
2025-05-01
$1.15
+1.7% surprise

Financial Services Sector Comparison

Comparing KKR against 32 companies in the Financial Services sector (19 bullish, 12 neutral, 1 bearish)
P/E Ratio
50.6
This Stock
vs
22.34
Sector Avg
+126.5% (Expensive)
Return on Equity (ROE)
7.67%
This Stock
vs
26.06%
Sector Avg
-70.6% (Below Avg)
Profit Margin
10.56%
This Stock
vs
25.09%
Sector Avg
-57.9% (Weaker)
Debt to Equity
0.74
This Stock
vs
0.75
Sector Avg
-1.3% (Lower)
Revenue Growth
13.2%
This Stock
vs
20.1%
Sector Avg
-34.3% (Slower)
Current Ratio
1.7
This Stock
vs
1.41
Sector Avg
+20.7% (Stronger)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
KKR
KKR & Co. Inc.
NEUTRAL $111.81B 50.6 7.7% 10.6% $119.92
CME
CME Group Inc.
NEUTRAL $102.78B 27.62 13.3% 58.9% $285.04
PGR
The Progressive Corporation
NEUTRAL $132.04B 12.36 34.2% 12.6% $225.18
MMC
Marsh & McLennan Companies, Inc.
NEUTRAL $90.07B 21.92 28.7% 15.6% $182.81
MCO
Moody's Corporation
BULLISH $87.55B 38.61 54.9% 29.9% $479.48

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-09-23 ARNOLD CRAIG Director Stock Award 242 -
2025-09-02 NUTTALL SCOTT C Chief Executive Officer Gift 194,000 -
2025-08-29 BAE JOSEPH Y Chief Executive Officer Gift 398,335 -
2025-08-13 LEWIN ROBERT H Chief Financial Officer Gift 2,500 -
2025-08-07 ROBERTS GEORGE R. Officer and Director Sale 809,906 $116,828,940
2025-06-02 KRAVIS HENRY R Officer and Director Sale 1,281,394 $153,755,831
2025-06-02 ROBERTS GEORGE R. Officer and Director Sale 1,190,094 $142,573,261
2025-05-22 BARAKETT TIMOTHY R. Director Purchase 35,000 $4,127,319
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
19 analysts
Barclays
2025-11-11
main
Overweight Overweight
TD Cowen
2025-11-10
main
Buy Buy
Morgan Stanley
2025-10-21
main
Overweight Overweight
Oppenheimer
2025-10-14
main
Outperform Outperform
Citigroup
2025-10-13
main
Buy Buy
BMO Capital
2025-10-03
init
Outperform
Keefe, Bruyette & Woods
2025-08-04
main
Outperform Outperform
Barclays
2025-08-04
main
Overweight Overweight
Citigroup
2025-08-01
main
Buy Buy
Oppenheimer
2025-07-14
main
Outperform Outperform