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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Kkr & Co. Inc. (XNYS:KKR) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
KKR
Name:
KKR & CO. INC. (XNYS:KKR)
Sector:
904.93M
Industry:
Asset Management
CEO:
Mr. Henry Kravis
Total Employees:
3,238
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -244.63% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF KKR & CO. INC.(KKR) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND ASSET MANAGEMENT INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
49.25
One Month Price Target:
$49.67
Six Month Price Target :
$51.8
Likely Price in One Year's Time:
Ticker:
$54.34
Likely Trading Range Today Under (Normal Volatility)
$49.07
Price Upper limit ($) :
$49.54
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$46.49
This week:
$43.08
This month :
$36.92
Other Primary facts
Market Cap:
41.72B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
859.83M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
18.05%
-13.69%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$62.04
$56.10
$36.46
$42.40
Medium risk (<10%) entry points
Buy Call
Sell Call
$54.16
Buy Put:
Sell Put:
$52.89
$44.32
$45.61
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
KKR
Sharpe Ratio:
3.81%
Comparison:
KKR, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 374.44% higher than the industry
& ratio is 67.37% higher than the market/S&P 500 average
Average Returns/Yield of
KKR
Daily returns:
0.12%
Weekly returns:
0.58%
Monthly returns:
2.30%
Yearly returns:
9.18%
Comparison of returns:
Average annual returns/yield (last 3 years) is 200.57% above industry average
Classification:
KKR, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.19
Statistical test of Returns:
KKR has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.78%
Weekly Volatility:
6.22%
Monthly Volatility:
12.44%
Yearly Volatility:
43.11%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.61%
Volatility in last five trading days has been -78.07% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.60%
Weekly VaR:
-12.52%
Monthly VaR:
-25.04%
How Much Can the price of
KKR
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-21%
Worst case (decline):
-86.76%
This translates to price declining to:
$38.99
This translates to price declining to:
$6.52
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
KKR is a 76.76% riskier investment compared to the market/S&P 500 & is 51.43% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 7.09% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
KKR
Beta in relation to market/S&P 500--1.54
Expected beta in 1 year's time:
0.906
Expected beta in 3 year's time:
1.281
Unlevered (debt free) Beta:
0.126
Beta in relation to Nasdaq (XNAS):
1.125
Beta in relation to all global stocks::
0.89
Beta Comparison & Analysis
Beta of competitors/peers::
1.065
Beta is 44.49% higher than peers
Average Industry Beta:
1.694
Beta is -9.21% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
34.63%
Sustainable growth rate is 22.84% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.139
Alpha is -349.69% below industry average alpha yield
Alpha is 886% higher than market/& is unsustainably high
Analysis of Cost of Capital of
KKR
Equity cost of capital:
0.137
Equity cost of capital is -7.24% below industry mean WACC
Unlevered (without debt) cost of capital:
1.12%
Before-tax cost of debt:
-
After-tax cost of debt:
-
Overall debt rating:
-
Weighted average cost of capital (WACC):
-
-
Key Per-Share Metrics & Analysis
Revenue per share:
$14.74
Revenue growth rate per share of (3Y):
0.74
Annual revenue growth rate is 354.66% above the industry average
EPS:
$4.47
Expected Annual growth rate of EPS (3Y):
25.76%
Expected future EPS growth rate is -7.25% lower than the Asset Management industry
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: 7.76%
Equity growth rate per share is -63.27% lower than the industry
Debt per share
$0.00
EBITDA per share
$6.60
Valuation Analysis Today of
KKR
P/E Ratio:
37.17
P/E Ratio of Competitors/Peers:
8.17
P/E ratio is 354.96% higher than main peers & is 130.20% higher than the industry
Stock price/value with industry average P/E ratio: $72.18
KKR is -31.77% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $22.46
Present value of the expected future dividends only: $5.26
P/S (Price to Sales ratio):
3.34
Price to sales ratio is -51.24% below the industry mean
P/B (Price to book value ratio):
0.74
-
-
Net income growth rate (3Y):
276.87%
Net income growth rate is 90.45% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 0.45%
Dividend yeild: 1.20%
Previous Dividend: $0.16
Previous adjusted dividend: $0.16
Previous Dividend: $0.59
Expected next dividend best case: $0.16
Expected next dividend worst case: $0.15
Average dividend payment (long-term): $0.14
Average dividend increase/decrease (growth rate) % per period: 2.23%
Expected next dividend payment date: 29/08/2022
Expected next dividend record date: 15/08/2022
Expected next dividend declaration date: 08/01/2022
Previous dividend payment date: 31/05/2022
Previous dividend record date: 16/05/2022
Previous dividend declaration date: 05/03/2022
Dividend History:
2022-05-13--$0.16
2021-11-12--$0.15
2021-05-14--$0.15
2022-02-17--$0.15
2021-08-13--$0.15
2021-02-19--$0.14
Dividend growth rate is -59.61% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
1233.31%
Net debt to equity ratio:
-52.98%
Debt to assets ratio:
78.57%
Net debt to assets ratio:
-3.13%
Debt-to-asset ratio is 50.32% above industry average
Ability to repay debt:
Interest coverage ratio:
6.43
Interest coverage ratio is -89.18% less than industry average
Looking forward:
Debt growth rate:
16.88%
Annual debt growth is -344% lower than industry average debt growth rate
Debt repayment rate in last quarter: 100.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.771
Statistical significance of correlation:
KKR has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.576
Stock price is 33.92% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.576
Correlation of price movement with Nasdaq (^IXIC):
0.002
Covariance of price movement with the market:
0.004
Kurtosis
5.514
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.2
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
KKR
Gross Profit Margin Ratio:
202%
Operating Profit Margin Ratio:
30.28%
Operating profit margin is -35.63% lower than the industry
Net Profit Margin Ratio:
202%
Effective Tax Rate:
8.77%
Effective tax rate is -64.10% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
24.24%
Return on equity (ROE) is -4.11% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
1.43%
Return on assets (ROA) is -75.49% lower than the industry
Financial Leverage:
4.7x
Current Ratio:
1.35
Current ratio is -64.85% below industry average
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 8.5 years
Stock based compensation to net income ratio:
4.43%
In-depth Efficiency Analysis
Revenue generated per employee:
3.9M
Each employee generates 182% more revenue than industry average revenue per employee
EBITDA generated per employee:
1.8M
Each employee generates -331% less EBITDA than industry average revenue per employee
Profit generated per employee:
1.2M
Each employee generates -195% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
279.5K
Each employee generates -333% less free cash flow than industry average revenue per employee
Assets/Capital per employee
457.5K
Each employee generates -333% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
KKR
The Travelers Companies, Inc. (XNYS:TRV)
AFLAC INCORPORATED (XNYS:AFL)
APOLLO GLOBAL MANAGEMENT, INC. (XNYS:APO)
Banco Bilbao Vizcaya Argentaria SA (XNYS:BBVA)
MANULIFE FINANCIAL CORP (XNYS:MFC)
Itau Unibanco Holding SA (XNYS:ITUB)
Nu Holdings Ltd (XNYS:NU)
PRU
NATWEST GROUP PLC (XNYS:NWG)
Current Analyst Ratings
Strong buy�17%
Buy�25%
Hold�17%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
12.68B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
6.98B
5.70B
-
1.86B
1.86B
-
-
1.86B
1.47B
882.82M
74.96M
5.68B
3.84B
3.81B
10.39B
911.37M
3.81B
Statement of Cash Flow
Date:
Period:
74.96M
Differed Income Tax :
-
Stock Based Compensation :
168.79M
Change in Working Capital :
- 429538.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
916.82M
Investments in PP&E:
- 11888.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
8.32B
88.77B
97.10B
-
-
-
97.10B
-
-
1.48B
-
-
-
1.48B
170.68B
266.29B
-
-
-
-
-
-
-
-
-
208.99B
208.99B
5.91M
7.51B
- 1650212.0K
9.85B
March 31, 2022 at 6:00:00 AM
9.87B
15.71B
224.71B
-
-
- 8324897.0K
-
- 1985941.00K
- 1997829.00K
- 5484370.00K
-
- 346651.00K
- 17250.00K
9.99B
4.15B
-
-
-
10.53B
916.82M
- 11888.00K
904.93M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
KKR
2023
2024
2025
2026
2027
$54.61
$107.78
$118.92
$131.22
$144.78