KKR Quantitative Stock Analysis

Validea's guru fundamental report rates KKR & CO INC (KKR) at 54% using the Martin Zweig Growth Investor model, falling below the typical 80-90% threshold for investment interest. While the large-cap investment services firm demonstrates strong revenue and sales growth, it fails several critical Zweig criteria, including P/E ratio, consistent positive earnings growth for the current and past quarters, and long-term EPS growth, indicating a misalignment with the model's preference for persistent accelerating earnings and reasonable valuations.

Analysis

KKR & CO INC (KKR) received a 54% rating from Validea's Martin Zweig Growth Investor model, falling significantly short of the 80% threshold for 'some interest' and 90% for 'strong interest'. This assessment, based on a strategy prioritizing persistent accelerating earnings and sales growth with reasonable valuations and low debt, suggests a fundamental mismatch for the large-cap investment services firm.

While KKR passed criteria for revenue growth in relation to EPS growth, sales growth rate, current quarter earnings, and quarterly earnings one year ago, it failed on several critical metrics. These include its P/E ratio, positive earnings growth rate for the current quarter, earnings growth rate for the past several quarters, EPS growth for the current quarter relative to historical rates, earnings persistence, and long-term EPS growth.

The multiple 'FAIL' ratings, particularly concerning earnings consistency, growth acceleration, and valuation, indicate KKR does not meet the stringent requirements of the Zweig model. This divergence is notable given Zweig's historical success, with his newsletter averaging 15.9% annual returns over 15 years, suggesting potential concerns for investors prioritizing these specific growth and value characteristics.

Key Decisions for Investors

• Investors should exercise caution when considering KKR, as its 54% rating from the Martin Zweig Growth Investor model indicates a significant misalignment with a historically successful growth strategy.
• A deeper analysis of KKR's earnings consistency, long-term growth prospects, and current valuation (P/E ratio) is warranted, given the model's specific failures in these areas.
• Consider if KKR's current investment thesis aligns with the Zweig model's emphasis on persistent, accelerating earnings and reasonable valuations, or if alternative growth metrics are more appropriate for your portfolio strategy.