KKR & Co (KKR) AI Stock Analysis

• Market Cap: $98.12B
• Dividend Yield: 0.74%
• Average Volume (3M): 7.81M
• Price to Earnings (P/E): 33.7
• Beta (1Y): 2.00
• Revenue Growth: 42.19%
• EPS Growth: -18.20%
• Country: US
• Employees: 4,834
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): 3.27
• Shares Outstanding: 888,250,550
• 10 Day Avg. Volume: 8,802,531
• 30 Day Avg. Volume: 7,813,557
• PEG Ratio: 7.50
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.09
• Price to Cash Flow (P/CF): -231.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $155.58
• Price Target Upside: 52.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

KKR's overall score reflects its strong financial performance and positive earnings call sentiment. However, challenges in technical indicators, high valuation metrics, and legal risks temper the outlook. The stock is on a positive trajectory but faces potential headwinds that require careful management.

Positive Factors

Financial performance

KKR's adjusted net income per share exceeded estimates, showing strong financial performance.

Fundraising and capital raising

The favorable growth outlook is supported by a fundraising supercycle, with potential upside to capital raising expectations for upcoming years.

Negative Factors

Earnings dilution

The issuance is expected to be 1.7% dilutive on a full-year basis.

Economic conditions

Downside risks involve a worsening economic backdrop, negative sentiment toward financial services stocks, and potential weakness in equity markets.

KKR & Co Business Overview & Revenue Model

Company Description

KKR & Co. Inc. 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. Inc. was founded in 1976 and is based in New York, New York with additional offices across North America, Europe, Australia, Sweden and Asia.

How the Company Makes Money

KKR makes money primarily through management fees and performance-based incentives. The firm charges management fees to its investors based on a percentage of the assets under management (AUM). Additionally, KKR earns performance fees, often referred to as carried interest, which is a share of the profits generated by its investments above a certain threshold. The firm's revenue is also bolstered by its capital markets business, which provides financing solutions and investment banking services to its portfolio companies and third-party clients. KKR's earnings are influenced by its ability to successfully manage and grow its investment portfolios, as well as its strategic partnerships and co-investment opportunities with other institutional investors.

KKR & Co Financial Statement Overview

Summary

KKR & Co demonstrates strong revenue growth and improving profitability, with a strengthened balance sheet. While cash flow management has improved, historical volatility and leverage pose potential risks. Overall, the company is on a positive trajectory, but careful financial management is essential to sustain growth and stability.

Income Statement

KKR & Co has shown a significant increase in total revenue and net income over the years, particularly from 2023 to 2024, indicating strong growth momentum. The gross profit margin and EBIT margin have improved markedly, suggesting enhanced operational efficiency. However, fluctuations in EBIT and EBITDA margins in earlier years highlight some volatility in profitability.

Balance Sheet

The balance sheet of KKR & Co reflects a stable equity position with a positive equity ratio. However, the historical presence of significant liabilities, although reduced recently, suggests potential leverage risks. The debt-to-equity ratio has been managed well as of the latest period, showing prudent financial management.

Cash Flow

KKR & Co's cash flow statements show improvement in free cash flow, particularly from 2023 to 2024, indicating better cash generation. Operating cash flow has turned positive recently, which is a positive sign. However, prior years' negative operating and free cash flows indicate earlier challenges in cash management that need ongoing attention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
21.64B	14.32B	5.57B	16.11B	4.23B
	Gross Profit
17.31B	4.86B	2.01B	6.90B	2.08B
	EBIT
16.24B	2.14B	-345.58M	4.95B	1.30B
	EBITDA
9.17B	9.50B	1.35B	14.98B	6.70B
	Net Income Common Stockholders
3.08B	3.73B	-521.66M	4.73B	2.00B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.06M	20.35B	12.82B	10.09B	5.36B
	Total Assets
360.10B	317.29B	277.08B	264.29B	79.81B
	Total Debt
50.82B	49.39B	44.07B	39.29B	33.42B
	Net Debt
35.94B	29.04B	31.25B	29.20B	28.06B
	Total Liabilities
298.11B	258.92B	223.42B	206.15B	39.01B
	Stockholders Equity
23.65B	22.86B	17.73B	17.58B	13.72B
Cash Flow		Free Cash Flow
6.51B	-1.60B	-5.36B	-7.28B	-6.11B
	Operating Cash Flow
6.65B	-1.49B	-5.28B	-7.18B	-5.95B
	Investing Cash Flow
-19.05B	-3.88B	-13.65B	-9.61B	-153.39M
	Financing Cash Flow
7.08B	12.77B	22.06B	20.36B	9.80B

KKR & Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 101.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KKR, the sentiment is Negative. The current price of 101.87 is below the 20-day moving average (MA) of 112.14, below the 50-day MA of 126.19, and below the 200-day MA of 132.16, indicating a bearish trend. The MACD of -4.02 indicates Negative momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 36.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KKR.

KKR & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMP	79 Outperform	$45.32B	14.31	68.31%	1.39%	11.38%	39.25%
BLK	76 Outperform	$139.07B	21.36	14.67%	2.29%	12.15%	15.17%
BX	74 Outperform	$151.91B	34.42	36.95%	2.88%	21.25%	97.42%
KKR	69 Neutral	$98.12B	33.71	13.23%	0.74%	42.19%	-18.20%
CG	67 Neutral	$14.29B	14.27	18.90%	3.54%	62.87%	―
ARES	67 Neutral	$44.90B	68.74	15.93%	3.17%	6.12%	-15.84%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%

KKR & Co Corporate Events

KKR & Co Appoints Timothy Barakett to Board

On March 13, 2025, KKR & Co. Inc. appointed Timothy R. Barakett to its Board of Directors, increasing the number of independent directors to ten out of fourteen total seats. Mr. Barakett, founder and CEO of TRB Advisors, brings significant experience from his previous roles, including his leadership at Atticus Capital and various positions at Harvard University. This appointment reflects KKR’s strategic efforts to strengthen its board with experienced leaders, potentially enhancing its governance and strategic decision-making capabilities.

KKR & Co Embraces Digital for Financial Disclosures

On February 24, 2025, KKR & Co. Inc. released a presentation for its common stockholders and analysts on its website. This move highlights the company’s ongoing use of digital platforms to disseminate important financial information, potentially impacting how stakeholders access and engage with KKR’s operational updates.

KKR & Co Faces Legal Battle Over Antitrust Issues

On January 14, 2025, KKR & Co. Inc., a prominent global investment firm, initiated legal action against U.S. antitrust authorities, including the Department of Justice and the Federal Trade Commission. This legal move comes in response to investigations into KKR’s compliance with premerger notification requirements under the Hart-Scott-Rodino Act for transactions in 2021 and 2022. KKR’s complaint challenges the constitutional validity of the antitrust authorities’ interpretations and penalties under the Act. Concurrently, the DOJ filed a civil complaint against KKR for alleged violations of the HSR Act, seeking civil penalties and equitable relief. KKR, asserting its cooperation over past years, plans a vigorous defense, citing governmental overreach and mischaracterization of its actions.