KKR & Co is a company that helps other companies with money stuff, like buying and selling. They are doing well and growing. The debt-to-equity ratio tells us how much they owe to others (debt) compared to what they own (equity). KKR & Co has a moderate amount of debt relative to what they own.
Key takeaways:
- KKR & Co might be undervalued because their price-to-earnings and price-to-book ratios are low compared to similar companies in the Capital Markets industry. This means people might not realize how good they are yet. However, their stock price might also be high based on their revenue, which is measured by the price-sales ratio.
- KKR & Co has strong financial performance and growth potential because of their high return on equity (ROE), earnings before interest, taxes, depreciation, and amortization (EBITDA), and revenue growth. But they have a low gross profit margin, which means they don't make much money from each dollar of sales.
Read from source...
- The article does not provide any information about the methodology or sources used for the industry comparisons, which makes it hard to evaluate its validity and reliability.
- The article uses several financial ratios without explaining what they mean, how they are calculated, or how they can be interpreted, which may confuse readers who are not familiar with these concepts.
- The article compares KKR & Co with its "top 4 peers" without specifying which ones they are, which may mislead readers into thinking that the comparison is representative of the whole industry, when in reality it may not be.
- The article uses vague and subjective terms like "undervalued", "relatively high", and "growth potential" to describe KKR & Co's performance and prospects, without providing any objective or quantifiable criteria to support these claims.
- The article does not address any of the challenges, risks, or limitations that KKR & Co may face in its operations or industry, which may give readers a biased or incomplete picture of the company's situation and outlook.
1. Buy KKR & Co with a target price of $70 per share, as the company has strong revenue growth, high ROE, EBITDA, and low PE and PB ratios, indicating undervaluation compared to its peers in the Capital Markets industry.
2. Sell Blackstone Group (BX) with a stop-loss at $150 per share, as the company has a high PS ratio, suggesting that its stock price may be overvalued based on its revenue.