KKRNEUTRAL

Gross Margin

27.7%

Higher than 5% of Financial Services sector peers

Updated 70h ago

Sector Performance

5th percentile

KKR

27.7%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

KKR's current gross margin of 27.7% means that for every dollar of revenue, the company keeps about 27.7 cents after paying the direct costs of providing its financial services.

This is well below the sector median of 69.7%, placing KKR in the 5th percentile among its Financial Services peers. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 72.2%, driven by a drop from 99.5% in the prior quarter. The combination of a gross margin far below the sector median and a steep quarterly fall points to higher risk, as it suggests a sudden compression in profitability. This metric contradicts the overall NEUTRAL verdict because the weak level and negative trend signal that the stock may face underlying margin pressure.

Frequently Asked Questions

What does the Gross Margin tell investors about KKR?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does KKR's Gross Margin compare to its sector?

KKR's Gross Margin of 27.7% compares to a Financial Services sector median of 68.5%, placing it in the 5th percentile.

Who are KKR's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: CACC (63.0%), HDB (58.4%), COF (57.8%), AFL (57.5%), HSBC (56.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.