Down 25% YTD, is KKR & Co. Stock a Buy?

NYSE: KKR | KKR & Co. Inc. News, Ratings, and Charts

KKR – The shares of KKR & Co. (KKR) have slumped nearly 25% in price year-to-date despite the company advancing several strategies to boost its operational performance. So, let’s evaluate if it is worth betting on the stock at its current price level. Read on.

New York City’s KKR & Co. (KKR - Get Rating) is a multinational investment firm that specializes in alternative asset management, capital markets, and insurance. KKR manages hedge funds and sponsors investment funds that invest in private equity, credit, and real estate.

The company’s shares are down 24.4% in price year-to-date and 6.3% over the past three months to close yesterday’s trading session at $56.35. In addition, the stock is currently trading 32.8% below its 52-week high of $83.90, which it hit on Nov.4, 2021.

Last month the stock was downgraded by TheStreet from a “b” rating to a “c+” rating. Also, equity researchers at Goldman Sachs downgraded KKR from a “buy” rating to a “neutral”

rating.

Here is what could shape KKR’s performance in the near term:

Debt Financing

Last month, KKR priced an offering of $750 million of 4.8% senior notes due 2032, issued by KKR Group Finance Co. XII LLC, its indirect subsidiary. The notes will be guaranteed by KKR & Co. Inc. and KKR Group Partnership L.P. KKR expects to use the proceeds from the issue for general company purposes. The notes will be offered and sold to qualified institutional buyers in the United States under Rule 144A and to qualified institutional buyers outside the United States in accordance with Regulation S.

Inadequate Financials

KKR’s total revenues decreased 78% year-over-year to $1 billion for the first quarter ended March 31, 2022. Its investment income declined 42.9% from the prior-year quarter to $1.65 billion. The company reported a $73.77 million net loss compared to $1.64 billion in net income the prior-year quarter.

Poor Profitability

KKR’s 0.08% trailing-12-month asset turnover ratio is 60.7% lower than the 0.21% industry average. Its 14.6% trailing-12-month net income margin is 50.4% lower than the 29.3% industry average. Also, its trailing-12-month ROA and CAPEX/Sales multiple are negative 12.2% and 73.5%, respectively.

POWR Ratings Reflect Bleak Outlook

KKR has an overall D rating, which equates to Sell in our proprietary POWR Ratings system. The POWR ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. KKR has a D for Stability and Quality. The 1.48 stock beta is in sync with the Stability grade. In addition, the company’s poor profitability is consistent with the Quality grade.

Among the 35 stocks in the F-rated Private Equity industry, KKR is ranked last.

Beyond what I have stated above, one can view KKR ratings for Growth, Value, Momentum, and Sentiment here.

Bottom Line

KKR’s deteriorating fundamental performance could raise investors’ concerns over its prospects. In addition, analysts expect its EPS to decline 9.5% in the current quarter (ending June 30, 2022) and 1% next quarter (ending Sept. 30,  2022). So, we think the stock is best avoided now.

How Does KKR & Co. Inc. (KKR) Stack Up Against its Peers?

While KKR has an overall D rating, one might want to consider its industry peers, TCG BDC Inc. (CGBD - Get Rating) and Oaktree Strategic Income Corporation (OCSI - Get Rating), which have an overall B (Buy) rating.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


KKR shares were unchanged in premarket trading Friday. Year-to-date, KKR has declined -23.94%, versus a -11.85% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
KKRGet RatingGet RatingGet Rating
CGBDGet RatingGet RatingGet Rating
OCSIGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


How is the Stock Market Like a Helium Balloon?

Stocks have finally broke above 6,000 for the S&P 500 (SPY). The more important question is what comes next? Steve Reitmeister provides his answer in his latest market commentary.

Has the Bull Market Run Out of Steam?

It seems the S&P 500 (SPY) advance has stalled and cant crack above strong resistance at 6,000. Why is that happening? And what happens next? Read on for the answers...

Investors Remain “Cautiously Optimistic”

The S&P 500 (SPY) has made great advances since the lows of early April. Yet seem to be stuck under resistance at 6,000. What happens next depends on tariff talks. So let’s talk about the latest news on that front.

Bull Market Til Proven Otherwise

The phrase that paid for investors in 2025 was “Bull market til proven otherwise” Steve Reitmeister explains why in his latest market update and preview of top stock picks.

Investor Alert: Mission Accomplished?

The S&P 500 (SPY) has broken out above the 200 day moving average. Does that mean that bear market fears are now over? And should investors be riding the bull to new heights? Read on for Steve Reitmeister’s answer...

Read More Stories

More KKR & Co. Inc. (KKR) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All KKR News