KKR & Co LP Stock Upgraded (KKR)
NEW YORK (
)
-- KKR
(NYSE:
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
Highlights from the ratings report include:
- Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, KKR & CO LP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for KKR & CO LP is rather high; currently it is at 58.20%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -80.90% is in-line with the industry average.
- Despite the weak revenue results, KKR has outperformed against the industry average of 32.3%. Since the same quarter one year prior, revenues fell by 21.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 2848.4% when compared to the same quarter one year ago, falling from $8.86 million to -$243.40 million.
- Net operating cash flow has significantly decreased to -$1,307.58 million or 217.59% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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Kohlberg Kravis Roberts & Co. is a private equity and venture capital firm specializing in acquisitions, leveraged buyouts, management buyouts, special situations, growth equity, mature, and middle market investments. The company has a P/E ratio of 21.3, above the average financial services industry P/E ratio of 19 and above the S&P 500 P/E ratio of 17.7. KKR has a market cap of $3.05 billion and is part of the
sector and
industry. Shares are up 13.3% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff
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