NYSE:KKR.PRA

Stock Analysis Report

Executive Summary

KKR & Co. Inc. is a private equity and real estate investment firm specializing in direct and fund of fund investments.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has KKR's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KKR.PRA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

KKR.PRA

-4.2%

US Capital Markets

-4.2%

US Market


1 Year Return

-2.4%

KKR.PRA

12.0%

US Capital Markets

14.0%

US Market

Return vs Industry: KKR.PRA underperformed the US Capital Markets industry which returned 21.7% over the past year.

Return vs Market: KKR.PRA underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

KKR.PRAIndustryMarket
7 Day1.0%-4.2%-4.2%
30 Day5.4%-2.1%-1.8%
90 Day-0.08%1.1%2.6%
1 Year4.0%-2.4%14.3%12.0%16.3%14.0%
3 Yearn/a35.2%27.6%43.2%34.0%
5 Yearn/a74.5%58.3%65.9%47.6%

Price Volatility Vs. Market

How volatile is KKR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KKR undervalued compared to its fair value and its price relative to the market?

6.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KKR.PRA ($26.25) is trading above our estimate of fair value ($20.9)

Significantly Below Fair Value: KKR.PRA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KKR.PRA is good value based on its PE Ratio (6.7x) compared to the Capital Markets industry average (36.1x).

PE vs Market: KKR.PRA is good value based on its PE Ratio (6.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KKR.PRA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KKR.PRA is good value based on its PB Ratio (1.4x) compared to the US Capital Markets industry average (6.6x).

Future Growth

How is KKR forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-22.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KKR.PRA's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if KKR.PRA's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KKR.PRA's revenue is expected to decline over the next 3 years (-22.1% per year).

High Growth Revenue: KKR.PRA's revenue is forecast to decline over the next 3 years (-22.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KKR.PRA's Return on Equity is forecast to be low in 3 years time (10.8%).

Past Performance

How has KKR performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if KKR.PRA has high quality earnings.

Growing Profit Margin: Insufficient data to determine if KKR.PRA's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: KKR.PRA's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: KKR.PRA's earnings growth over the past year (67.8%) exceeds its 5-year average (15.8% per year).

Earnings vs Industry: KKR.PRA earnings growth over the past year (67.8%) exceeded the Capital Markets industry 20.6%.


Return on Equity

High ROE: KKR.PRA's Return on Equity (15.4%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is KKR's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: KKR.PRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: KKR.PRA's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: KKR.PRA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if KKR.PRA has a sufficient allowance for bad loans.

Low Risk Liabilities: KKR.PRA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if KKR.PRA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: KKR.PRA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if KKR.PRA has an appropriate level of bad loans.

Dividend

What is KKR's current dividend yield, its reliability and sustainability?

2.24%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: KKR.PRA's dividend (2.24%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: KKR.PRA's dividend (2.24%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: KKR.PRA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KKR.PRA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.2%), KKR.PRA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KKR.PRA's dividends in 3 years are forecast to be well covered by earnings (41.2% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average management tenure


CEO

George Roberts (75yo)

US$113,711,704

Compensation

Mr. George R. Roberts, J.D. serves as a Co-Chief Executive Officer and Co-Chairman at KKR & Co. Inc. (formerly, KKR & Co. L.P.) and KKR Management LLC. Mr. Roberts co-founded KKR & Co. and KKR Management L ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD113.71M) is above average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: George's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
George Roberts
Co-Founder0yrsUS$113.71mno data
Henry Kravis
Co-Founder0yrsUS$113.43mno data
Joseph Bae
Co-President1.5yrsUS$143.91mno data
Scott Nuttall
Co-President1.5yrsUS$144.35mno data
William Janetschek
Chief Financial Officer0yrsUS$10.67mno data
David Sorkin
Secretary & General Counsel12yrsUS$7.40mno data
Henry McVey
Chief Investment Officer of Kkr Balance Sheet and Head of Global Macro & Asset Allocation0yrsno datano data
Usman Rabbani
MD and Global Head of Innovation & Technology0yrsno datano data
Edward Brandman
Member, MD & Chief Information Officer11.2yrsno datano data
Craig Larson
Head of Investor Relations7.7yrsno datano data

7.7yrs

Average Tenure

55yo

Average Age

Experienced Management: KKR.PRA's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Roberts
Co-Founder0yrsUS$113.71mno data
Henry Kravis
Co-Founder0yrsUS$113.43mno data
Joseph Bae
Co-President1.5yrsUS$143.91mno data
Scott Nuttall
Co-President1.5yrsUS$144.35mno data
Joseph Grundfest
Director8.5yrsUS$275.00kno data
Patricia Russo
Independent Director7.8yrsUS$225.00kno data
John Hess
Independent Director7.5yrsUS$225.00kno data
Thomas Schoewe
Independent Director7.8yrsUS$250.00kno data
Robert Scully
Independent Director8.5yrsUS$265.00kno data
David Petraeus
Member & Chairman of the KKR Global Institute5.7yrsno datano data

7.6yrs

Average Tenure

66yo

Average Age

Experienced Board: KKR.PRA's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

KKR & Co. Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KKR & Co. Inc.
  • Ticker: KKR.PRA
  • Exchange: NYSE
  • Founded: 1976
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$18.513b
  • Market Cap: US$11.885b
  • Shares outstanding: 835.42m
  • Website: https://www.kkr.com

Number of Employees


Location

  • KKR & Co. Inc.
  • 9 West 57th Street
  • Suite 4200
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KR51DB (Deutsche Boerse AG)Common UnitsDEEURJul 2010
KKRC *BMV (Bolsa Mexicana de Valores)Common UnitsMXMXNJul 2010
KKRNYSE (New York Stock Exchange)YesClass A common stockUSUSDJul 2010
0Z1WLSE (London Stock Exchange)YesClass A common stockGBUSDJul 2010
KKR.PRANYSE (New York Stock Exchange)6.75% PFD SER AUSUSDMar 2016
KKR.PRBNYSE (New York Stock Exchange)6.50% PFD SER BUSUSDJun 2016
KKR.PRBNYSE (New York Stock Exchange)6.50% PFD SER BUSUSDJul 2018

Biography

KKR & Co. L.P. is a private equity and real estate investment firm specializing in direct and fund of fund investments. It specializes in acquisitions, leveraged buyouts, management buyouts, credit special situations, growth equity, mature, mezzanine, distressed, turnaround, lower middle market and middle market investments. The firm considers investments in all industries with a focus on software, security, semiconductors, consumer electronics, internet of things (iot), internet, information services, information technology infrastructure, financial technology, network and cyber security architecture, engineering and operations, content, technology and hardware, energy and infrastructure, real estate, services industry with a focus on business services, intelligence, industry-leading franchises and companies in natural resource, containers and packaging, agriculture, airports, ports, forestry, electric utilities, textiles, apparel and luxury goods, household durables, digital media, insurance, brokerage houses, non-durable goods distribution, supermarket retailing, grocery stores, food, beverage, and tobacco, hospitals, entertainment venues and production companies, publishing, printing services, capital goods, financial services, specialized finance, pipelines, and renewable energy. In energy and infrastructure, it focuses on the upstream oil and gas and equipment, minerals and royalties and services verticals. In real estate, the firm seeks to invest in private and public real estate securities including property-level equity, debt and special situations transactions and businesses with significant real estate holdings, and oil and natural gas properties. The firm also invests in asset services sector that encompasses a broad array of B2B, B2C and B2G services verticals including asset-based, transport, logistics, leisure/hospitality, resource and utility support, infra-like, mission-critical, and environmental services. Within Americas, the firm prefers to invest in consumer products; chemicals, metals and mining; energy and natural resources; financial services; healthcare; industrials; media and communications; retail; and technology. Within Europe, the firm invests in consumer and retail; energy; financial services; health care; industrials and chemicals; media and digital; and telecom and technologies. Within Asia, it invests in consumer products; energy and resources; financial services; healthcare; industrials; logistics; media and telecom; retail; real estate; and technology. It also seeks to make impact investments focused on identifying and investing behind businesses with positive social or environmental impact. The firm seeks to invest in mid to high-end residential developments, but can invest in other projects throughout Mainland China through outright ownership, joint ventures, and merger. It invests globally with a focus on Australia, emerging and developed Asia, Middle East and Africa, Nordic, Southeast Asia, Asia Pacific, Ireland, Hong Kong, Japan, Taiwan, India, Vietnam, Malaysia, Singapore, Indonesia, France, Germany, Netherlands, United Kingdom, Caribbean, Mexico, South America, North America, Brazil, Latin America, Korea with a focus on South Korea, and United States of America. In the United States and Europe, the firm focuses on buyouts of large, publicly traded companies. It seeks to invest $30 million to $717 million in companies with enterprise values between $500 million to $2389 million. The firm prefers to invest in a range of debt and public equity investing and may co-invest. It seeks a board seat in its portfolio companies and a controlling ownership of a company or a strategic minority positions. The firm may acquire majority and minority equity interests, particularly when making private equity investments in Asia or sponsoring investments as part of a large investor consortium. The firm typically holds its investment for a period of five to seven years and more and exits through initial public offerings, secondary offerings, and sales to strategic buyers. KKR & Co. L.P. was founded in 1976 and is based in New York, New York with additional offices across North America, Europe, Australia, and Asia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/01/24 00:38
End of Day Share Price2019/01/23 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.