KKR & Co Inc Achieves High Rating Despite Mixed Fundamentals

Investors take note: KKR & Co Inc's stock is rated 79%, reflecting a solid position using a contrarian investing strategy. However, mixed performance on key metrics, particularly in P/E and yield, could influence future stock valuation.

Date: 20-02-2025

AI Rating: 7

Overview of KKR & Co Inc's Performance

KKR & Co Inc has been rated high by the Contrarian Investor model, achieving a solid score of 79%. This suggests that KKR's fundamentals are improving and appealing according to the contrarian investment criteria. However, there are areas of concern that could influence stock pricing.

Earnings Per Share (EPS)
KRR's earnings trend indicates positive performance in both the immediate past and projected future. The company has successfully passed in the EPS growth rate category, which is a good indicator of revenue generating capacity over time.

Return on Equity (ROE)
The report highlights that KKR has passed the Return on Equity criteria, signaling effective management of shareholder equity and hinting at strong profitability relative to equity held by shareholders.

Profit Margins
KKR has also reported positive pre-tax profit margins, further indicating operational efficiency and effective cost management. These metrics help assure investors about the reliability of profit generation.

Investment Caution
However, potential investors should be cautious as KKR has failed on several crucial ratios which could concern some investors. These include:

P/E Ratio
Price/Cash Flow (P/CF) Ratio
Price/Dividend (P/D) Ratio
Yield

The failures in these key areas suggest that the stock may be overvalued in relation to its earnings and cash flow, and that dividend returns are lacking, which may deter income-focused investors.

In conclusion, while KKR shows promise with a strong EPS growth rate, good ROE, and healthy profit margins, the shortcomings in valuation metrics could impact its attractiveness to investors and subsequently influence stock prices.

Stocks: KKR