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KKR & Co (KKR)
NYSE:KKR

KKR & Co (KKR) AI Stock Analysis

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KKR & Co

(NYSE:KKR)

Rating:70Neutral
Price Target:
$135.00
▲(9.40%Upside)
KKR's strong financial growth and earnings performance are tempered by high leverage and a relatively high valuation. Positive corporate events and earnings guidance support future growth, though market volatility poses risks.
Positive Factors
Growth Potential
KKR is positioned to capitalize on secular growth trends in private markets, such as private credit, infrastructure, private wealth, and insurance, due to its diverse business mix.
Market Confidence
The reduction in tariff risks with China is expected to boost market confidence and support a faster recovery in capital markets, benefiting KKR significantly.
Product Launch
The KKR/Capital products officially go live, with expectations for flows to ramp into year-end due to the strength of the Capital distribution force and the brands of Capital and KKR.
Negative Factors
Economic Risks
Downside risks involve a worsening economic backdrop, negative sentiment toward financial services stocks, and potential weakness in equity markets.
Market Volatility
Despite market volatility, monetization activity has been steady, with announcements for potential planned exits, indicating better-than-feared performance.

KKR & Co (KKR) vs. SPDR S&P 500 ETF (SPY)

KKR & Co Business Overview & Revenue Model

Company DescriptionKKR & 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 MoneyKKR & Co. generates revenue primarily through management fees, carried interest, and investment income. Management fees are earned by managing assets for institutional investors, such as pensions and endowments, and are typically calculated as a percentage of managed assets. Carried interest, a significant revenue stream, is the share of profits from investments that KKR retains once a certain threshold of returns is achieved for investors. Additionally, KKR invests its own capital alongside its clients' funds, earning investment income from these commitments. The firm also benefits from strategic partnerships and joint ventures, which can enhance its investment capabilities and expand its market reach.

KKR & Co Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 8.16%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong financial performance with significant capital raising and robust global operations. However, there are concerns about the impact of tariffs on existing portfolios and the volatility in the market environment. The insurance segment is also facing near-term pressures. Overall, while there are significant achievements, the challenges in the broader economic environment balance out the sentiment.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
Fee-related earnings per share increased by 22% year-over-year to $0.92. Total operating earnings per share rose 16% year-over-year to $1.24, and adjusted net income per share grew by 19% to $1.15. These figures are among the highest reported as a public company.
Significant Capital Raising
$31 billion of new capital was raised in Q1, with $64 billion committed but not yet earning fees, indicating strong future growth potential.
Record Embedded Gains
Gross unrealized performance income stands at $8.7 billion, marking a 25% increase year-over-year, showcasing the maturity and strength of the portfolio.
Resilient Global Operations
Nearly 80% of pretax earnings over the last 12 months were driven by recurring earnings streams, with management fees growing at a high teens CAGR over the past three years.
Positive Outlook on Infrastructure and Private Wealth
Infrastructure and private wealth segments showing strong momentum, with the K-Series suite of vehicles reaching $22 billion in AUM, up from $9 billion a year ago.
Negative Updates
Impact of Tariffs and Volatility
While 90% of the private equity portfolio is shielded from tariffs, there are still concerns about the impact of tariffs on existing portfolios, and the need for mitigating measures.
Insurance Segment Pressure
Insurance segment operating earnings are expected to remain around $250 million plus or minus for the next few quarters, with shifts in strategy putting near-term pressure on earnings.
Uncertain Market Environment
Volatility in the market due to tariffs and geopolitical tensions could impact monetization and capital raising efforts, despite current resilience.
Company Guidance
During KKR's First Quarter 2025 Earnings Conference Call, the guidance provided highlighted several key financial metrics. Fee-related earnings per share increased by 22% year-over-year to $0.92. Total operating earnings per share rose 16% to $1.24, while adjusted net income per share grew 19% to $1.15. The quarter's management fees reached $917 million, up 13% from the previous year, and total fee-related revenues were $1.2 billion, showing a 22% year-over-year increase. Fee-related earnings totaled $823 million, with an FRE margin of 69%. Insurance segment operating earnings were $259 million, and strategic holdings operating earnings were $31 million. Within the investment segment, realized performance income was $348 million, and realized investment income was $218 million, totaling $566 million in monetization activity, up nearly 40% year-over-year. KKR also noted its private equity portfolio was up 4% for the quarter and 11% over the last twelve months. Finally, the company increased its dividend to $0.74 per share on an annualized basis, marking the sixth consecutive year of dividend increase.

KKR & Co Financial Statement Overview

Summary
KKR demonstrates robust revenue and cash flow growth, with strong operational cash generation reflected in solid EBITDA margins. However, high debt levels pose leverage risks, despite stable equity ratios and moderate ROE. Overall, KKR is on a positive growth trajectory with effective cash management, though with caution advised regarding leverage.
Income Statement
72
Positive
KKR shows strong revenue growth with a significant increase from $5.56 billion in 2022 to $15.09 billion TTM (Trailing-Twelve-Months) in 2025, indicating a positive growth trajectory. The gross profit margin is healthy at 18.1%, although the net profit margin is lower at 14.6% due to high operational costs, as indicated by negative EBIT during TTM. EBITDA margin is strong at 56.3%, reflecting robust operational cash generation despite volatility in operating income.
Balance Sheet
68
Positive
KKR maintains a high debt-to-equity ratio of 1.85, signaling potential leverage risks. However, the equity ratio of 7.4% is relatively stable, showing that a portion of assets is financed by equity. Return on equity is moderate at 8.04%, suggesting efficient use of equity to generate profits amidst high leverage.
Cash Flow
75
Positive
Strong free cash flow growth from negative in 2022 to $7.53 billion TTM in 2025 highlights improved cash generation. Operating cash flow to net income ratio of 3.48 shows efficient cash conversion. The free cash flow to net income ratio of 3.41 indicates effective management in turning profits into cash, supporting financial flexibility.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
15.09B21.64B14.32B5.57B16.11B4.23B
Gross Profit
2.73B3.84B4.86B2.01B6.90B2.08B
EBIT
-122.47M926.20M2.14B-345.58M4.95B1.30B
EBITDA
8.49B9.17B9.50B1.35B14.98B6.70B
Net Income Common Stockholders
2.21B3.08B3.73B-521.66M4.73B2.00B
Balance SheetCash, Cash Equivalents and Short-Term Investments
117.64B112.56B20.35B12.82B10.09B5.36B
Total Assets
339.77B360.10B317.29B277.08B264.29B79.81B
Total Debt
49.53B50.82B49.39B44.07B39.29B33.42B
Net Debt
33.92B35.94B29.04B31.25B29.20B28.06B
Total Liabilities
282.86B298.11B258.92B223.42B206.15B39.01B
Stockholders Equity
21.42B23.65B22.86B17.73B17.58B13.72B
Cash FlowFree Cash Flow
7.53B6.51B-1.60B-5.36B-7.28B-6.11B
Operating Cash Flow
7.67B6.65B-1.49B-5.28B-7.18B-5.95B
Investing Cash Flow
-16.00B-19.05B-3.88B-13.65B-9.61B-153.39M
Financing Cash Flow
10.63B7.08B12.77B22.06B20.36B9.80B

KKR & Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price123.40
Price Trends
50DMA
114.26
Positive
100DMA
125.76
Negative
200DMA
132.73
Negative
Market Momentum
MACD
1.50
Positive
RSI
57.88
Neutral
STOCH
75.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KKR, the sentiment is Positive. The current price of 123.4 is above the 20-day moving average (MA) of 122.30, above the 50-day MA of 114.26, and below the 200-day MA of 132.73, indicating a neutral trend. The MACD of 1.50 indicates Positive momentum. The RSI at 57.88 is Neutral, neither overbought nor oversold. The STOCH value of 75.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KKR.

KKR & Co Risk Analysis

KKR & Co disclosed 74 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 1 New Risks
1.
Our insurance business relies on third parties to distribute its insurance products, and any disruption with our third-party distribution network could have a material adverse effect on us. Q4, 2024

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
AMAMP
79
Outperform
$49.39B17.6258.11%1.16%9.14%0.05%
BLBLK
78
Outperform
$152.67B23.9414.37%2.07%11.73%4.76%
71
Outperform
$56.79B100.5012.97%2.25%19.02%-22.75%
CGCG
70
Outperform
$16.71B15.6320.38%3.02%62.87%
KKKKR
70
Neutral
$109.91B53.509.03%0.57%-27.45%-46.67%
BXBX
68
Neutral
$167.13B41.6734.07%2.88%22.06%16.57%
64
Neutral
$12.85B9.817.59%16985.65%12.30%-7.71%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KKR
KKR & Co
123.40
15.06
13.90%
AMP
Ameriprise Financial
518.63
95.55
22.58%
BLK
BlackRock
989.05
239.23
31.90%
BX
Blackstone Group
140.45
23.88
20.49%
CG
Carlyle Group
46.28
6.76
17.11%
ARES
Ares Management
173.88
40.58
30.44%

KKR & Co Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
KKR & Co Completes $590M Subordinated Notes Offering
Positive
May 28, 2025

On May 28, 2025, KKR & Co. Inc. completed the offering of $590 million in subordinated notes due in 2065, with a 6.875% interest rate. This strategic move, guaranteed by KKR Group Partnership L.P., aims to strengthen the company’s financial positioning and provides flexibility for future operations, potentially impacting stakeholders by enhancing the company’s ability to manage its capital structure and investment strategies.

The most recent analyst rating on (KKR) stock is a Buy with a $121.00 price target. To see the full list of analyst forecasts on KKR & Co stock, see the KKR Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
KKR & Co Enters $550M Subordinated Notes Agreement
Neutral
May 23, 2025

On May 20, 2025, KKR & Co. Inc. and its subsidiary entered into an underwriting agreement with major financial institutions to issue and sell $550 million in subordinated notes due in 2065. This offering, expected to close on May 28, 2025, is guaranteed on a subordinated unsecured basis and includes a 30-day option for underwriters to purchase additional notes, potentially impacting KKR’s financial strategy and market positioning.

The most recent analyst rating on (KKR) stock is a Buy with a $137.00 price target. To see the full list of analyst forecasts on KKR & Co stock, see the KKR Stock Forecast page.

Financial Disclosures
KKR & Co Releases Financial Presentation for Stockholders
Neutral
May 7, 2025

On May 7, 2025, KKR & Co. Inc. released a presentation for its common stockholders and analysts, which is available on their website. This presentation serves as a channel for distributing financial and other important information, although it is not considered filed under the Securities Exchange Act of 1934.

Executive/Board ChangesBusiness Operations and Strategy
KKR & Co Appoints Timothy Barakett to Board
Positive
Mar 13, 2025

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.

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.