# KKR & Co. (KKR.US)

Canonical: https://gigainvestors.com/s/KKR

Analysis as of: 2026-10-16T07:29:37.754Z. Financial observations: FY2007–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $87.63 per share; close as of 2026-10-15.

Estimated value: low $55.85 per share, central $62.96 per share, high $72.41 per share. Buy at or below the central value $62.96 per share. Valuation as of 2026-10-16T07:29:37.754Z; scenarios are not confidence intervals.

Expected annual return: 7.9% at the stated quote. About 7.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.84×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.34×

- FY2018: 0.13×

- FY2019: 0.31×

- FY2020: 0.31×

- FY2021: 0.31×

- FY2022: -0.06×

- FY2023: 0.15×

- FY2024: 0.04×

- FY2025: 0.03×

- LTM to Jun 2026: 0.08×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 21.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 2.2%

- ROIC, second-lowest year: 0.5%

- Typical minus recent gross margin: 21.1 pp

- Typical gross margin (annual median): 38.8%

- Recent gross margin (lower of latest and 3-year median): 17.8%

- Years with nonpositive capital: 2

- Capital spending / revenue: 1.2%

- ROIC including acquisitions, ten-year median: 3.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 2.8%

- FY2018: 1.1%

- FY2019: 3.3%

- FY2020: 2.8%

- FY2021: 9.6%

- FY2022: -0.6%

- FY2023: 2.4%

- FY2024: 1.0%

- FY2025: 0.5%

- LTM to Jun 2026: 2.0%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.25×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $17B

- Net income, five-year total: $13B

- Return on incremental invested capital: 2.6%

- Working capital / revenue, annual change: 71.9 pp

- Working capital / revenue, change between three-year averages: 378.1 pp

- Working capital / revenue, final three-year average: 322.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.50×

- FY2022: -10.14×

- FY2023: 0.78×

- FY2024: -0.25×

- FY2025: 0.95×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 1.1% vs 1.0%

- Per-share earnings: 1.01 to 3.22 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 7.1%

- Ordinary dilution, 5-year annual growth: 9.4%

- Market cap gain: $106B

- Cumulative retained earnings: $7.9B

- Diluted shares, 10-year annual growth: 7.1%

- Diluted shares, 5-year annual growth: 9.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 15.6%

- Per-share value change: $2.20

- Per-share value, starting three-year median: $1.01

- Per-share value, ending three-year median: $3.22

- Buybacks concentrated in cheaper years (correlation): 0.32

- Average buyback yield: 1.1%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $3.8B

- Cumulative net income, 10 years: $20B

- ROIC, first three-year median: 1.1%

- ROIC, last three-year median: 1.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.64

- FY2017: $2.01

- FY2018: $2.12

- FY2019: $3.54

- FY2020: $3.28

- FY2021: $7.36

- FY2022: -$0.59

- FY2023: $4.09

- FY2024: $3.22

- FY2025: $2.48

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 0.5%

- Receivables to sales index (DSRI): 0.58×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 151.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.20×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.32×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 4.5%

- FY2017: 9.9%

- FY2018: 17.2%

- FY2019: 12.6%

- FY2020: 10.0%

- FY2021: 4.5%

- FY2022: 1.7%

- FY2023: 1.6%

- FY2024: -1.0%

- FY2025: 0.5%

## Holders

- [Chuck Akre](https://gigainvestors.com/AC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Nick Train](https://gigainvestors.com/LT): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Jeffrey Ubben](https://gigainvestors.com/VA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 48% since Jan 2025 · "The bottom line declined from $1.32 in the prior-year quarter." (finance.yahoo.com, Feb 2026) · sales +8.2%

Story as of 2026-10-16T09:59:01.038Z; price observation 2026-10-15.

Price needs cash profits to grow 5.3% a year for ten years

- 2025-07-31: KKR Q2 Earnings Surpass Estimates as AUM Rises Y/Y, Stock Gains ([finance.yahoo.com](https://finance.yahoo.com/news/kkr-q2-earnings-surpass-estimates-162400972.html))

- 2025-10-16: Market Chatter: KKR Forgoes FiberCop Dividends as Line Losses Increase ([finance.yahoo.com](https://finance.yahoo.com/news/market-chatter-kkr-forgoes-fibercop-131258723.html))

- 2025-11-07: KKR Revenue, Profit Rise on Growth in Insurance Business ([finance.yahoo.com](https://finance.yahoo.com/m/c219c868-4859-3473-a689-6ed5bd784008/kkr-revenue%2C-profit-rise-on.html))

- 2026-05-07: KKR Shares Slip as Weak ANI Outlook Overshadows Q1 Earnings Beat ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/kkr-shares-slip-weak-ani-124600770.html))

- 2026-07-31: KKR (KKR) Is Up 5.2% After Record Q2 Earnings And Landmark Kuwait Infrastructure Deal ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/kkr-kkr-5-2-record-140802993.html))

- 2026-08-01: KKR Tops Record Earnings as Fundraising Hits $133B Mark ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/kkr-tops-record-earnings-fundraising-081414763.html))

### Sales · FY2025–2026

sales +8.2%; source https://www.sec.gov/Archives/edgar/data/1404912/000140491226000007/kkr-20251231.htm; observed 2026-02-27.

- FY2017: $3.6B 

- FY2018: $2.4B 

- FY2019: $4.2B 

- FY2020: $4.2B 

- FY2021: $16B 

- FY2022: $5.7B 

- FY2023: $14B 

- FY2024: $22B 

- FY2025: $19B 

- FY2026: $21B 

### Gross margin · FY2026

gross margin 22.5%; source https://www.sec.gov/Archives/edgar/data/1404912/000140491226000007/kkr-20251231.htm; observed 2026-02-27.

- FY2017: 52.3% 

- FY2018: 42.6% 

- FY2019: 49.8% 

- FY2020: 49.1% 

- FY2021: 42.5% 

- FY2022: 35.2% 

- FY2023: 33.5% 

- FY2024: 17.6% 

- FY2025: 17.8% 

- FY2026: 22.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in asset management; annual sales are USD 19.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1404912/000140491226000007/kkr-20251231.htm#000140491226000007 (filed 2026-02-27); FY2025: revenue 19464307000; grossProfit 3456678000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 17.6% to 33.5% during 2023–25; it earns 2.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 33.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 17.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1404912/000140491226000007/kkr-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 17.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2017,0.02812904962594905],[2018,0.010507574509067854],[2019,0.032937668727235365],[2020,0.027598069989542284],[2021,0.09579885253539545],[2022,-0.005575723618449863],[2023,0.024188233020630417],[2024,0.010412014092430977],[2025,0.0050139206381637075],[2026,0.019542719951126594]]; median 0.021865476485878506. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 6.5% of cash earnings; earns 2.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 64762184; upkeep 22816; owner earnings 309307000. Growth capex / owner earnings = 0.20937833285376664.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 98069484; upkeep 52516; owner earnings 1018305000. Growth capex / owner earnings = 0.09630659183643407.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 0; upkeep 105227000; owner earnings 1082577188.5304217. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 207190140; upkeep 171860; cash acquisitions 0; owner earnings 2005049000. Growth capex plus acquisitions / owner earnings = 0.10333420280501873.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 2367233.423391521; upkeep 151018766.57660848; cash acquisitions 0; owner earnings 1720578831.870624. Growth capex plus acquisitions / owner earnings = 0.0013758354918372731.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 102049000; cash acquisitions 473779000; owner earnings 7106755586.494837. Growth capex plus acquisitions / owner earnings = 0.06666600451271115.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 0; upkeep 85056000; owner earnings 5287706000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 1524447797.9150262; upkeep -1416054797.9150262; cash acquisitions 0; owner earnings 2912901640.2775936. Growth capex plus acquisitions / owner earnings = 0.5233433827067877.

- Source: https://www.sec.gov/Archives/edgar/data/1404912/000140491226000007/kkr-20251231.htm (filed 2026-02-27); FY2025: growth capex 0; upkeep 160765000; cash acquisitions 146273000; owner earnings 2245759161.5719175. Growth capex plus acquisitions / owner earnings = 0.0651329859866257.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Incremental return on capital 0.02626118504237394, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,307643000],[2017,345337000],[2018,355705000],[2019,304850000],[2020,353879000],[2021,419630000],[2022,513341000],[2023,615032000],[2024,612068000],[2025,768538000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1404912/000140491226000007/kkr-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 122919000 USD.

### Are managers owners

Insiders own 23% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KKR.US SharesStats.PercentInsiders = 23.047 percentage points; cache date 2026-10-16.

### What could break it

"Our capital markets activities expose us to material risks." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1404912/000140491226000007/kkr-20251231.htm (filed 2026-02-27); Our capital markets activities expose us to material risks.

### What the price says

The price assumes cash profits grow 5.3% yearly over ten years; actual decline was 2.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 0.06292455815859166. Price 87.63; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.9879913161818954 → FY2025 2.3499982698264357. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $14.19 per share

- 2016-11: $15.30 per share

- 2016-12: $15.39 per share

- 2017-01: $17.36 per share

- 2017-02: $18.03 per share

- 2017-03: $18.23 per share

- 2017-04: $18.98 per share

- 2017-05: $18.42 per share

- 2017-06: $18.60 per share

- 2017-07: $19.38 per share

- 2017-08: $19.01 per share

- 2017-09: $20.33 per share

- 2017-10: $20.05 per share

- 2017-11: $19.92 per share

- 2017-12: $21.06 per share

- 2018-01: $24.08 per share

- 2018-02: $21.46 per share

- 2018-03: $20.30 per share

- 2018-04: $20.94 per share

- 2018-05: $22.23 per share

- 2018-06: $24.85 per share

- 2018-07: $27.38 per share

- 2018-08: $26.08 per share

- 2018-09: $27.27 per share

- 2018-10: $23.65 per share

- 2018-11: $22.92 per share

- 2018-12: $19.63 per share

- 2019-01: $22.45 per share

- 2019-02: $22.23 per share

- 2019-03: $23.49 per share

- 2019-04: $24.45 per share

- 2019-05: $22.28 per share

- 2019-06: $25.27 per share

- 2019-07: $26.75 per share

- 2019-08: $25.84 per share

- 2019-09: $26.85 per share

- 2019-10: $28.83 per share

- 2019-11: $29.49 per share

- 2019-12: $29.17 per share

- 2020-01: $31.90 per share

- 2020-02: $28.60 per share

- 2020-03: $23.47 per share

- 2020-04: $25.21 per share

- 2020-05: $27.75 per share

- 2020-06: $30.88 per share

- 2020-07: $35.37 per share

- 2020-08: $35.82 per share

- 2020-09: $34.34 per share

- 2020-10: $34.15 per share

- 2020-11: $37.93 per share

- 2020-12: $40.49 per share

- 2021-01: $38.95 per share

- 2021-02: $45.56 per share

- 2021-03: $48.85 per share

- 2021-04: $56.58 per share

- 2021-05: $55.69 per share

- 2021-06: $59.24 per share

- 2021-07: $63.76 per share

- 2021-08: $64.29 per share

- 2021-09: $60.88 per share

- 2021-10: $79.67 per share

- 2021-11: $74.45 per share

- 2021-12: $74.50 per share

- 2022-01: $71.16 per share

- 2022-02: $60.12 per share

- 2022-03: $58.47 per share

- 2022-04: $50.97 per share

- 2022-05: $54.81 per share

- 2022-06: $46.29 per share

- 2022-07: $55.46 per share

- 2022-08: $50.56 per share

- 2022-09: $43.00 per share

- 2022-10: $48.63 per share

- 2022-11: $51.92 per share

- 2022-12: $46.42 per share

- 2023-01: $55.81 per share

- 2023-02: $56.35 per share

- 2023-03: $52.52 per share

- 2023-04: $53.07 per share

- 2023-05: $51.49 per share

- 2023-06: $56.00 per share

- 2023-07: $59.38 per share

- 2023-08: $62.81 per share

- 2023-09: $61.60 per share

- 2023-10: $55.40 per share

- 2023-11: $75.84 per share

- 2023-12: $82.85 per share

- 2024-01: $86.58 per share

- 2024-02: $98.26 per share

- 2024-03: $100.58 per share

- 2024-04: $93.07 per share

- 2024-05: $102.84 per share

- 2024-06: $105.24 per share

- 2024-07: $123.45 per share

- 2024-08: $123.77 per share

- 2024-09: $130.58 per share

- 2024-10: $138.24 per share

- 2024-11: $162.87 per share

- 2024-12: $147.91 per share

- 2025-01: $167.07 per share

- 2025-02: $135.59 per share

- 2025-03: $115.61 per share

- 2025-04: $114.27 per share

- 2025-05: $121.46 per share

- 2025-06: $133.03 per share

- 2025-07: $146.58 per share

- 2025-08: $139.49 per share

- 2025-09: $129.95 per share

- 2025-10: $118.33 per share

- 2025-11: $122.31 per share

- 2025-12: $127.48 per share

- 2026-01: $114.26 per share

- 2026-02: $87.68 per share

- 2026-03: $92.50 per share

- 2026-04: $104.34 per share

- 2026-05: $95.94 per share

- 2026-06: $91.78 per share

- 2026-07: $101.43 per share

- 2026-08: $109.72 per share

- 2026-09: $91.30 per share

- 2026-10: $87.16 per share

## Annual estimated value (USD per share)

- FY2016: low $68.84 per share, central $77.63 per share, high $89.33 per share

- FY2017: low $82.50 per share, central $93.38 per share, high $107.87 per share

- FY2018: low $23.71 per share, central $26.77 per share, high $30.85 per share

- FY2019: low $38.54 per share, central $43.62 per share, high $50.37 per share

- FY2020: low $34.23 per share, central $38.48 per share, high $44.14 per share

- FY2021: low $156.01 per share, central $220.36 per share, high $257.83 per share

- FY2022: low $41.87 per share, central $54.22 per share, high $62.65 per share

- FY2023: low $158.83 per share, central $169.32 per share, high $183.29 per share

- FY2024: low $200.01 per share, central $254.22 per share, high $285.78 per share

- FY2025: low $44.73 per share, central $50.89 per share, high $59.10 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:22.225Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1404912/000140491226000007/kkr-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.