Validea Detailed Fundamental Analysis

Validea's guru fundamental report indicates that KKR & CO INC (KKR) rates highest using their Small-Cap Growth Investor model, based on the Motley Fool strategy, achieving a 68% rating. While the strategy favors KKR's profit margin consistency, insider holdings, and cash flow, the stock fails key tests including relative strength, sales and EPS growth comparison, and the Fool Ratio, indicating mixed signals for investors following this particular growth strategy.

Analysis

KKR & CO INC (KKR), a large-cap growth stock, has been evaluated by Validea using its Small-Cap Growth Investor model, which is based on the Motley Fool strategy, yielding a 68% rating. This score is below the 80% level that typically signals strategy interest and significantly below the 90% mark for strong interest, indicating a lukewarm assessment according to this specific framework. KKR demonstrates positive underlying fundamentals by passing criteria such as Profit Margin, Insider Holdings, Cash Flow From Operations, Profit Margin Consistency, Cash and Cash Equivalents, and Accounts Receivable to Sales. However, the company fails several critical tests for this growth-oriented model, including Relative Strength, year-over-year comparison of Sales and EPS Growth, "The Fool Ratio" (P/E to Growth), Sales volume, Average Shares Outstanding, Daily Dollar Volume, and Income Tax Percentage. The neutral stance on R&D as a percentage of sales further contributes to the mixed picture. This specific model, therefore, highlights a dichotomy: while KKR shows some financial health indicators, its growth characteristics and valuation, from this strategy's perspective, are currently unconvincing.

Key Decisions for Investors

• Investors aligning with the Motley Fool growth strategy as interpreted by Validea should note KKR's 68% score, which suggests it does not strongly meet the model's criteria for investment despite being a large-cap entity.
• Key weaknesses identified, such as failing grades for Relative Strength, Sales growth, year-over-year Sales and EPS growth comparison, and "The Fool Ratio" (P/E to Growth), may deter investors prioritizing robust growth momentum and favorable valuation metrics under this specific framework.
• While KKR passes on several fundamental health checks like profit margin consistency and insider holdings, the numerous failed criteria, particularly those related to growth, valuation, and trading metrics, necessitate careful evaluation against an investor's specific adherence to this model's requirements.