Validea Detailed Fundamental Analysis

Validea's guru fundamental report indicates that KKR & CO INC (KKR) receives a 68% rating based on their Small-Cap Growth Investor model, which is based on the published strategy of Motley Fool. While KKR passes criteria such as profit margin, insider holdings, and cash flow from operations, it fails in areas including relative strength, sales and EPS growth comparison, and the Fool Ratio. The model shows interest in the stock, but not strong interest, as a score of 80% or above typically signals strategy interest and 90% or above indicates strong interest.

Analysis

KKR & CO INC (KKR) scores 68% under Validea's Small-Cap Growth Investor model, which is based on the Motley Fool strategy, indicating a moderate level of interest from this particular framework, below the 80% threshold for notable interest and the 90% mark for strong interest. The assessment reveals a bifurcated fundamental profile: KKR meets criteria for profit margin, insider holdings, cash flow from operations, profit margin consistency, cash and cash equivalents, accounts receivable to sales, and price. Conversely, the company underperforms on several critical growth, market sentiment, and valuation metrics, failing tests for relative strength, year-over-year sales and EPS growth comparison, "The Fool Ratio" (P/E to growth), average shares outstanding, sales, daily dollar volume, and income tax percentage. Research and development as a percentage of sales is rated neutral. It is noteworthy that KKR, a large-cap growth stock, is being evaluated using a model designed for small-cap growth stocks, which may influence the applicability of certain criteria and the overall score.

Key Decisions for Investors

• Investors should weigh KKR's solid operational fundamentals, such as strong profit margins and cash flow, against the model's flagged weaknesses in growth metrics and relative market performance before adjusting positions.
• The failure on 'The Fool Ratio' suggests potential valuation concerns from this specific model's perspective, warranting a closer look at KKR's price-to-earnings relative to its growth outlook.
• Given the mixed signals and the application of a small-cap model to a large-cap stock, it would be prudent to cross-reference these findings with other analytical tools and broader market assessments pertinent to large-cap investment services firms.