The Carlyle Group Inc. (CG) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

The Carlyle Group Inc. (CG) Financial Services Profile

The Carlyle Group Inc. is a global alternative asset manager specializing in private equity, real assets, and credit strategies. With a diverse portfolio spanning industries and geographies, Carlyle leverages its extensive network and deep sector expertise to generate returns for institutional and individual investors, competing with firms like BlackRock and Blackstone.

What Is the Investment Thesis for CG?

With a market capitalization of $15.5B and a profit margin of 13.7%, Carlyle demonstrates financial stability. The firm's dividend yield of 2.77% offers an income stream for investors. Growth catalysts include expanding its real assets portfolio and capitalizing on distressed debt opportunities. Key value drivers include the firm's ability to generate returns through active management and strategic deployment of capital. However, potential risks include market volatility and regulatory changes impacting the alternative asset management industry. The company's high beta of 2.04 suggests higher volatility compared to the market.

Based on FMP financials and quantitative analysis

CG Key Highlights

Market Cap of $15.5B reflects substantial investor confidence and scale within the asset management industry.

• P/E ratio of 42.54 indicates investor expectations for future earnings growth, though it is higher than some peers.
• Profit Margin of 13.7% demonstrates effective cost management and profitability in its investment activities.
• Gross Margin of 73.1% highlights the value-added nature of Carlyle's services and its ability to command premium fees.
• Dividend Yield of 2.77% provides an attractive income component for shareholders, supported by stable cash flows.

Who Are CG's Competitors?

CG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are CG's Key Strengths?

Diversified investment platform across multiple asset classes.

• Global presence with offices in 21 countries.
• Strong track record of generating returns for investors.
• Experienced management team with deep sector expertise.

What Are CG's Weaknesses?

High dependence on management and performance fees.

• Exposure to market volatility and economic cycles.
• Complex organizational structure.
• Potential for conflicts of interest in managing multiple funds.

What Could Drive CG Stock Higher?

Expansion of investment strategies into new sectors, such as sustainable energy and technology.

• Continued deployment of capital across existing investment platforms, driving asset growth.
• Strategic acquisitions and partnerships to enhance capabilities and expand market reach.
• Focus on operational improvements and cost efficiencies to increase profitability.

What Are the Key Risks for CG?

Financial-distress signal — its Altman Z-Score of 0.62 sits in the distress zone (elevated bankruptcy risk).

• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Rich valuation — a P/E of 42.54 runs well above the Financial Services sector’s ~17.50x, leaving little room for a miss.
• Market volatility and economic downturns impacting asset values and investment returns.
• Regulatory changes and increased scrutiny of the alternative asset management industry.
• Geopolitical risks and uncertainties affecting global investment activities.
• Competition from other asset managers and investment firms.
• Dependence on key personnel and investment professionals.

What Are the Growth Opportunities for CG?

• Growth opportunity 1: Expanding Real Assets Portfolio: Carlyle has a significant opportunity to expand its real assets portfolio, particularly in infrastructure and renewable energy. By leveraging its expertise in real estate and energy, Carlyle can capitalize on this trend and generate attractive returns for its investors. Timeline: Ongoing.
• Growth opportunity 2: Capitalizing on Distressed Debt Opportunities: With potential economic downturns on the horizon, Carlyle can capitalize on distressed debt opportunities. The distressed debt market tends to expand during periods of economic uncertainty, providing opportunities to acquire undervalued assets and generate high returns. Carlyle's Global Market Strategies segment is well-positioned to take advantage of these opportunities. Timeline: Ongoing.
• Growth opportunity 3: Increasing Investment Solutions Offerings: Carlyle can further grow by expanding its Investment Solutions segment, which provides customized investment solutions to institutions and high-net-worth individuals. As investors seek more tailored investment strategies, the demand for customized solutions is expected to increase. Carlyle can leverage its expertise across various asset classes to create innovative solutions that meet the specific needs of its clients. Timeline: Ongoing.
• Growth opportunity 4: Geographic Expansion in Emerging Markets: Carlyle has the opportunity to expand its presence in emerging markets, particularly in Asia and Africa. These markets offer high growth potential due to their rapidly expanding economies and increasing demand for investment capital. By establishing a stronger presence in these regions, Carlyle can tap into new sources of growth and diversify its geographic exposure. Timeline: Ongoing.
• Growth opportunity 5: Leveraging Technology and Data Analytics: Carlyle can enhance its investment capabilities by leveraging technology and data analytics. By investing in advanced data analytics tools and platforms, Carlyle can gain deeper insights into market trends, identify investment opportunities, and improve its risk management capabilities. This will enable the firm to make more informed investment decisions and generate superior returns. Timeline: Ongoing.

What Are CG's Competitive Advantages?

• Established brand reputation and track record in the alternative asset management industry.
• Extensive global network and relationships with institutional investors and industry experts.
• Deep sector expertise across a wide range of industries and geographies.
• Diversified investment platform spanning multiple asset classes and investment strategies.

What Does CG Do?

The Carlyle Group Inc., established in 1987, has evolved into a prominent global investment firm managing a diverse portfolio of assets. Founded in Washington, D.C., the firm operates across four primary segments: Corporate Private Equity, Real Assets, Global Market Strategies, and Investment Solutions. Carlyle’s Corporate Private Equity segment focuses on leveraged buyouts, strategic minority equity investments, and growth capital financings. The Real Assets segment invests in real estate, infrastructure, and energy sectors. The Global Market Strategies segment encompasses credit, distressed debt, and other market-oriented strategies. The Investment Solutions segment provides customized investment solutions to institutions and high-net-worth individuals. Carlyle's investment approach is characterized by its deep sector expertise, global network, and focus on creating long-term value. The firm invests across a wide array of industries, including aerospace, defense, consumer, retail, energy, healthcare, and technology. Geographically, Carlyle has a presence in North America, South America, Asia, Australia, and Europe, with offices in 21 countries. Carlyle differentiates itself through its ability to originate, structure, and lead equity investments, often taking either a majority or minority stake in its portfolio companies. The firm's investment horizon typically ranges from three to six years, aligning with its strategy of enhancing operational performance and driving growth within its portfolio companies. With a market capitalization of $15.5B, Carlyle continues to be a significant player in the alternative asset management industry.

What Products and Services Does CG Offer?

• Invests in management-led/leveraged buyouts.
• Engages in privatizations and divestitures.
• Makes strategic minority equity investments.
• Offers structured credit and global distressed opportunities.
• Provides venture and growth capital financings.
• Manages fund of fund investments.

How Does CG Make Money?

• Generates revenue through management fees charged on assets under management.
• Earns performance-based incentive fees (carried interest) from successful investments.
• Deploys capital across four segments: Corporate Private Equity, Real Assets, Global Market Strategies, and Investment Solutions.
• Focuses on long-term value creation through active management and operational improvements.

What Industry Does CG Operate In?

The Carlyle Group operates within the asset management industry, which is characterized by increasing demand for alternative investments. The industry is experiencing growth driven by institutional investors seeking higher returns in a low-interest-rate environment. Carlyle competes with major players such as BlackRock, Inc. (BLK), Blackstone Inc. (BX), Brookfield Asset Management (BAM), Apollo Global Management, Inc. (APO), and Ares Management Corporation (ARES). These firms manage trillions of dollars in assets across various investment strategies. The industry is also subject to regulatory scrutiny and evolving investor preferences, requiring firms to adapt and innovate to maintain their competitive edge.

Who Are CG's Key Customers?

• Institutional investors, including pension funds, sovereign wealth funds, and endowments.
• High-net-worth individuals and family offices.
• Corporations seeking strategic investments and partnerships.
• Fund of fund investors.

Company Profile

The Carlyle Group Inc. operates in the Asset Management industry within the Financial Services sector. It is headquartered in Washington, US. The company is led by CEO Harvey Mitchell Schwartz. CG has traded publicly since 2012.

The Carlyle Group Inc. Financial Trajectory

The Carlyle Group Inc. (CG) reported $1.15B in revenue for Q2 FY2026, reflecting 506.4% growth compared to the prior quarter. The company recorded net income of $137.1M, with diluted EPS of $0.37. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Financial Services. Across the four most recent quarters, CG averaged $0.24 in diluted EPS.

How The Carlyle Group Inc. Is Valued

The Carlyle Group Inc. carries a market capitalization of $15.5B, placing it in the large-cap category. Analyst price targets span from $45.00 to $70.00, with a consensus of $56.71. At the current price of $43.07, that implies approximately 32% upside potential. Relative to its peer group, CG's quantitative score of 28/100 is below the peer average of 63/100.

Return on equity for The Carlyle Group Inc. stands at 9.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.4%, showing how much profit it generates from its asset base. CG trades at a trailing price-to-earnings ratio of 42.54, above the Financial Services sector average of ~17.50x. A current ratio of 1.99 indicates the company holds enough short-term assets to cover its near-term obligations.

The Carlyle Group Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 0.62 places it in the distress zone, a signal of elevated financial risk.

The Carlyle Group Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 3.5% above estimates on average.

Over the past six months, The Carlyle Group Inc. insiders filed 36 SEC Form 4 transactions — 8 sales and 28 purchases. On net that is roughly 824K shares disposed (about $40.7M), a signal worth weighing alongside the fundamentals.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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