Education
About Us
Working with TipRanks
Follow Us
KKR & Co (KKR)
NYSE:KKR
Top Page
KKR & Co
(NYSE:KKR)67Neutral
Positive Factors
Financial Performance
KKR's adjusted net income per share exceeded estimates, showing strong financial performance.
Fundraising
KKR is expected to have a strong fundraising year in 2025 with several flagship funds marketing, potentially boosting its inflows significantly.
Negative Factors
Earnings
There is a slight reduction in near-term earnings per share due to lower management and transaction fees.
KKR & Co (KKR) vs. S&P 500 (SPY)
Market Cap
$107.28B
Dividend Yield0.53%
Average Volume (3M)5.32M
Price to Earnings (P/E)36.9
Beta (1Y)1.89
Revenue Growth42.19%
EPS Growth-18.20%
CountryUS
Employees4,490
SectorFinancial
Sector Strength93
IndustryAsset Management Services
Share Statistics
EPS (TTM)3.27
Shares Outstanding888,250,550
10 Day Avg. Volume6,915,969
30 Day Avg. Volume5,319,989
Financial Highlights & Ratios
PEG Ratio7.50
Price to Book (P/B)N/A
Price to Sales (P/S)4.25
Price to Cash Flow (P/CF)15.70
P/FCF Ratio16.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$174.23Price Target Upside44.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
KKR & Co Business Overview & Revenue Model
Company DescriptionKKR & Co Inc. (KKR) is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and hedge funds. Founded in 1976 and headquartered in New York City, KKR operates through a network of offices around the world, providing a wide range of investment management services to institutional investors and high-net-worth individuals. The firm is recognized for its expertise in private equity and has a reputation for driving growth and value creation in its portfolio companies.
How the Company Makes MoneyKKR 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.85
Very Positive
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.70
Positive
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.60
Neutral
| 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
Negative
120.78
Price Trends
147.59
Negative
147.65
Negative
131.20
Negative
Market Momentum
-6.48
Positive
26.33
Positive
34.85
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 120.78 is below the 20-day moving average (MA) of 138.62, below the 50-day MA of 147.59, and below the 200-day MA of 131.20, indicating a bearish trend. The MACD of -6.48 indicates Positive momentum. The RSI at 26.33 is Positive, neither overbought nor oversold. The STOCH value of 34.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KKR.
KKR & Co Risk Analysis
KKR & Co disclosed 78 risk factors in its most recent earnings report. KKR & Co reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KKR & Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $78.68B | 19.24 | 26.53% | 1.28% | -20.40% | -13.30% | |
68 Neutral | $16.28B | 16.25 | 16.08% | 2.90% | 62.87% | ― | |
67 Neutral | $107.28B | 36.86 | 13.01% | 0.53% | 42.19% | -18.20% | |
66 Neutral | $51.10B | 77.73 | 13.09% | 2.19% | 6.12% | -15.84% | |
65 Neutral | $193.19B | 43.77 | 33.81% | 2.49% | 21.25% | 97.42% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
54 Neutral | C$124.40B | 50.76 | 21.63% | 2.73% | ― | ― |
* Financial Sector Average
Performance Comparison
KKR
KKR & Co
120.78
24.34
25.24%
APO
Apollo Global Management
137.92
30.62
28.54%
BX
Blackstone Group
150.73
30.62
25.49%
CG
Carlyle Group
45.06
-0.22
-0.49%
ARES
Ares Management
160.99
28.66
21.66%
TSE:BAM
Brookfield Asset Management Ltd. Class A
75.98
20.83
37.77%
KKR & Co Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -25.91% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance for KKR in 2024, with record earnings growth, significant capital raising, and expansion in private wealth and strategic holdings. However, short-term challenges in private equity performance and insurance operating earnings were noted. Overall, the sentiment is positive with confidence in continued growth and strategic initiatives.Highlights
Strong Year-End Financial Performance
Fee related earnings per share increased by 24% year-over-year, reaching $0.94, the second highest quarterly figure in KKR's history. Adjusted net income per share rose by 32% year-over-year to $1.32.
Record Annual Performance
For the year, fee related earnings per share and adjusted net income per share grew by 37% and 38% respectively, both marking record annual figures for KKR.
Robust Capital Raising
KKR raised $27 billion in the quarter, contributing to a total of $114 billion for 2024, marking the second most active year in its history. This is a significant increase from $70 billion in 2023.
Expansion in Private Wealth
Assets under management from individuals reached approximately $100 billion, with significant growth in K-Series vehicles, which increased from $7 billion to $18 billion year-over-year.
Strategic Holdings Growth
KKR plans to increase stakes in three businesses by $2.1 billion, with $1.1 billion coming from KKR itself. This is expected to drive future earnings and management fees.
Lowlights
Flat Private Equity Performance
The private equity portfolio was flat in Q4, despite a 14% appreciation for the year, indicating potential volatility or underperformance in the short term.
Challenges with Insurance Operating Earnings
Insurance operating earnings are expected to remain flat in the near term as KKR shifts its strategy, which may impact short-term ROE and accounting P&L.
Company Guidance
In KKR's fourth quarter 2024 earnings call, the company demonstrated strong financial performance with fee related earnings per share (FRE) increasing by 24% year-over-year to $0.94, and adjusted net income (ANI) rising by 32% to $1.32 per share. For the full year, FRE per share reached $3.66, and ANI per share hit $4.70, marking record annual figures with growth rates of 37% and 38%, respectively. The firm's management fees for Q4 were $906 million, up 15% from the previous year, while total fee related revenues climbed 17% to $1.3 billion. KKR's insurance operating earnings were $250 million, and Strategic Holdings operating earnings were $8 million, contributing to total operating earnings of $1.23 per share. The company also highlighted its robust asset management business, having raised $27 billion in the quarter and $114 billion throughout 2024, a record year for capital raising. KKR plans to increase its annual dividend from $0.70 to $0.74 per share starting with the first quarter of 2025, reflecting confidence in its growth trajectory.KKR & Co Corporate Events
Business Operations and StrategyFinancial Disclosures
KKR & Co Embraces Digital for Financial Disclosures
Neutral
Feb 25, 2025
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.
Legal ProceedingsRegulatory Filings and Compliance
KKR & Co Faces Legal Battle Over Antitrust Issues
Negative
Jan 14, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.