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The Carlyle Group Inc. (CG) Stock Analysis

Financial Services

The Carlyle Group Inc.

$45.65

+$0.22 (+0.48%)

Last Updated: May 26, 2026

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Analysis

Company Overview

The Carlyle Group Inc. operates as a specialized investment firm focused on direct and fund of fund investments across the private markets. Within its direct investment portfolio, the company executes strategies including management-led leveraged buyouts, privatizations, divestitures, strategic minority equity investments, structured credit, and global distressed and corporate opportunities. This entity functions within the Financial Services sector, specifically categorized under the Asset Management industry, where it identifies capital allocation opportunities and manages external funds for institutional investors. As of the latest reporting period, the company holds a market capitalization of $16.49B and generates annual revenue of $4.03B while employing approximately 2,500 individuals. These valuation and revenue figures position the organization as a significant player in the asset management landscape, indicating substantial asset under management and a robust operational footprint that supports its diverse investment thesis.

Financial Health

The company reported total revenue of $4.03B and net income of $808.70M for the trailing twelve months, while the EBITDA figure is not disclosed in the available data. The substantial gap between the $4.03B in revenue and the $808.70M in net income highlights a highly efficient cost structure typical of asset management, where operating expenses are controlled relative to the scale of assets managed. Although specific free cash flow data is not provided, the company maintains a cash balance of $3.21B against total debt of $13.89B, suggesting a reliance on leverage to finance its investment activities. The balance sheet reflects a highly leveraged position, underscored by a debt-to-equity ratio of 196.87, which is characteristic of private equity firms but requires careful monitoring of refinancing risks. Liquidity is supported by a current ratio of 1.85, indicating that the company possesses sufficient current assets to cover its short-term liabilities with a comfortable margin of safety. Return on equity stands at 14.1% while return on assets is 3.6%, metrics that reveal management's effectiveness in generating returns on shareholders' capital versus the broader asset base, with the lower ROA reflecting the high leverage employed in the business model.

Valuation Assessment

Analysts observe a trailing P/E ratio of 20.95 compared to a forward P/E of 8.48, implying that the market currently prices in significantly higher expected earnings growth for the future relative to the current fiscal performance. The price-to-book ratio is recorded at 2.83, which indicates that the stock trades at a premium to its book value, reflecting the intangible value of the investment portfolio and the quality of the underlying assets. Alternative valuation metrics such as the price-to-sales ratio of 4.09 and the unavailable EV/EBITDA provide additional context, with the P/S ratio suggesting the market values the company's top-line growth potential above its immediate profitability. The stock has demonstrated significant price volatility, trading between a 52-week low of $33.02 and a 52-week high of $69.85, meaning the current valuation sits within a range that reflects recent market sentiment shifts. Furthermore, the beta of 2.06 indicates that the stock price is expected to be twice as volatile as the broader market, exposing investors to heightened sensitivity during periods of market fluctuation.

Growth & Income

Revenue growth is reported at an impressive 93.9% year-over-year, while earnings growth reaches 70.2% year-over-year, demonstrating that profitability is expanding at a slightly slower pace than the top line, which suggests that revenue expansion is occurring but perhaps with increasing operating leverage or one-time adjustments affecting the bottom line. The company offers a dividend yield of 3.1% with a payout ratio of 64.2%, a combination that suggests the dividend is supported by current earnings, though the high payout ratio requires that earnings remain stable to avoid cutting the distribution. Given the high payout ratio and strong earnings growth, the company appears to balance returning capital to shareholders while maintaining reserves for investment needs rather than strictly reinvesting all earnings. Overall, the growth and income profile presents a hybrid characteristic where substantial year-over-year revenue and earnings expansion coexist with a meaningful dividend yield that rewards income-focused investors.

Peer Comparison

The Carlyle Group Inc. (CG) operates in the Asset Management industry. Here is how it compares to its closest peers by market capitalization:

Company Ticker Market Cap P/E Ratio
The Carlyle Group Inc. CG $16.43B 31.3
BlackRock, Inc. BLK $167.25B 27.1
Blackstone Inc. BX $144.37B 30.3
Brookfield Corporation BN.TO $142.06B 89.6

The Asset Management industry average P/E ratio is 28.6x. The Carlyle Group Inc. trades at a P/E of 31.3.

This analysis is AI-generated for informational purposes only and should not be considered financial advice. Data may be delayed or inaccurate. Always do your own research and consult a qualified financial advisor before making investment decisions.

About The Carlyle Group Inc.

The Carlyle Group Inc. is an investment firm specializing in direct and fund of fund investments. Within direct investments, it specializes in management-led/ Leveraged buyouts, privatizations, divestitures, strategic minority equity investments, structured credit, global distressed and corporate opportunities, small and middle market, equity private placements, consolidations and buildups, senior debt, mezzanine and leveraged finance, and venture and growth capital financings, seed/startup, early venture, emerging growth, turnaround, mid venture, late venture, PIPES, recapitalization. The firm invests across four segments which include Corporate Private Equity, Real Assets, Global Market Strategies, and Solutions. The firm typically invests in industrial, agribusiness, ecological sector, fintech, airports, parking, Plastics, Rubber, diversified natural resources, minerals, farming, aerospace, defense, automotive, consumer, retail, industrial, infrastructure, energy, power, healthcare, software, software enabled services, semiconductors, communications infrastructure, financial technology, utilities, gaming, systems and related supply chain, electronic systems, systems, oil and gas, processing facilities, power generation assets, technology, systems, real estate, financial services, transportation, business services, telecommunications, media, and logistics sectors. Within the industrial sector, the firm invests in manufacturing, building products, packaging, chemicals, metals and mining, forestry and paper products, and industrial consumables and services. In consumer and retail sectors, it invests in food and beverage, retail, restaurants, consumer products, domestic consumption, consumer services, personal care products, direct marketing, and education. Within aerospace, defense, business services, and government services sectors, it seeks to invest in defense electronics, manufacturing and services, government contracting and services, information technology, distribution companies, supply chains, aftermarket services, cybersecurity and digital resilience, digital transformation. Within healthcare, biotech and medtech innovation, life sciences, healthcare IT, pharmacy, pharma commercialization. In telecommunication and media sectors, it invests in cable TV, directories, publishing, entertainment and content delivery services, wireless infrastructure/services, fixed line networks, satellite services, broadband and Internet, and infrastructure. Within real estate, the firm invests in office, hotel, industrial, retail, for sale residential, student housing, hospitality, multifamily residential, homebuilding and building products, and senior living sectors. The firm seeks to make investments in growing business including those with overleveraged balance sheets. The firm seeks to hold its investments for four to six years. In the healthcare sector, it invests in healthcare services, outsourcing services, companies running clinical trials for pharmaceutical companies, managed care, pharmaceuticals, pharmaceutical related services, healthcare IT, medical, products, and devices. It seeks to invest in companies based in Sub-Saharan focusing on Ghana, Kenya, Mozambique, Botswana, Nigeria, Uganda, West Africa, North Africa and South Africa focusing on Tanzania and Zambia; Asia focusing on Pakistan, India, Hong Kong, South East Asia, Indonesia, Philippines, Malaysia, Singapore, Vietnam, Taiwan, Korea, and Japan; Australia; New Zealand; Europe focusing on France, Italy, Denmark, United Kingdom, Germany, Austria, Belgium, Finland, Iceland, Ireland, Netherlands, Norway, Portugal, Spain, Benelux , Sweden, Switzerland, Hungary, Poland, and Russia; Middle East focusing on Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Turkey, and UAE; North America focusing on United States which further invest in Southeastern United States, Texas, Boston, San Francisco Bay Area and Pacific Northwest; Asia Pacific; Soviet Union, Central-Eastern Europe, and Israel; Nordic region; and South America focusing on Mexico, Argentina, Brazil, Chile, and Peru. The firm seeks to invest in food, financial, and healthcare industries in Western China. In the real estate sector, the firm seeks to invest in various locations across Europe focusing on France and Central Europe, United States, Asia focusing on China, and Latin America. It typically invests between $2.24 million and $50 million for venture investments and between $50 million and $2 billion for buyouts in companies with enterprise value of between $31.57 million and $1000 million and sales value of $50 million and $300 million. It seeks to invest in companies with market capitalization greater than $50 million and EBITDA between $5 million to $25 million. It prefers to take a majority or a minority stake. While investing in Japan, it does not invest in companies with more than 1,000 employees and prefers companies' worth between $100 million and $150 million. The firm originates, structures, and acts as lead equity investor in the transactions. The Carlyle Group Inc. was founded in 1987 and is based in Washington, District of Columbia with additional offices across North America, South America, Asia, Australia and Europe.

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Key Statistics

Market Cap
$16.43B
P/E Ratio
31.27
52-Week High
$69.85
52-Week Low
$43.98
Avg Volume
3.37M
Beta
1.89
Dividend Yield
3.07%

Data provided by Yahoo Finance via yfinance. Updated daily.

Company Info

Exchange
NASDAQ
Country
United States
Employees
2,500