KITE REALTY GROUP TRUST (KRG) Stock Fundamental Analysis
NYSE:KRG - New York Stock Exchange, Inc. - US49803T3005 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to KRG. KRG was compared to 130 industry peers in the Diversified REITs industry. There are concerns on the financial health of KRG while its profitability can be described as average. KRG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KRG was profitable.
KRG had a positive operating cash flow in the past year.
In multiple years KRG reported negative net income over the last 5 years.
In the past 5 years KRG always reported a positive cash flow from operatings.
1.2 Ratios
KRG has a Return On Assets (0.20%) which is in line with its industry peers.
KRG has a Return On Equity of 0.42%. This is comparable to the rest of the industry: KRG outperforms 43.08% of its industry peers.
KRG has a Return On Invested Capital (2.39%) which is in line with its industry peers.
KRG had an Average Return On Invested Capital over the past 3 years of 1.52%. This is in line with the industry average of 3.16%.
The 3 year average ROIC (1.52%) for KRG is below the current ROIC(2.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.42% | ||
| ROIC | 2.39% |
ROA(3y)0.19%
ROA(5y)-0.22%
ROE(3y)0.37%
ROE(5y)-0.45%
ROIC(3y)1.52%
ROIC(5y)1.17%
1.3 Margins
KRG's Profit Margin of 1.59% is in line compared to the rest of the industry. KRG outperforms 43.85% of its industry peers.
KRG has a Operating Margin of 22.48%. This is comparable to the rest of the industry: KRG outperforms 50.77% of its industry peers.
In the last couple of years the Operating Margin of KRG has remained more or less at the same level.
Looking at the Gross Margin, with a value of 74.25%, KRG is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
In the last couple of years the Gross Margin of KRG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.48% | ||
| PM (TTM) | 1.59% | ||
| GM | 74.25% |
OM growth 3Y32.78%
OM growth 5Y-1.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.06%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRG is destroying value.
KRG has about the same amout of shares outstanding than it did 1 year ago.
KRG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KRG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that KRG is in the distress zone and has some risk of bankruptcy.
KRG has a better Altman-Z score (0.73) than 63.85% of its industry peers.
KRG has a debt to FCF ratio of 9.95. This is a negative value and a sign of low solvency as KRG would need 9.95 years to pay back of all of its debts.
The Debt to FCF ratio of KRG (9.95) is better than 93.08% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that KRG is somewhat dependend on debt financing.
KRG has a better Debt to Equity ratio (0.86) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.95 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.34
WACC7%
2.3 Liquidity
KRG has a Current Ratio of 0.53. This is a bad value and indicates that KRG is not financially healthy enough and could expect problems in meeting its short term obligations.
KRG's Current ratio of 0.53 is on the low side compared to the rest of the industry. KRG is outperformed by 78.46% of its industry peers.
KRG has a Quick Ratio of 0.53. This is a bad value and indicates that KRG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.53, KRG is doing worse than 77.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
KRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.00%, which is quite impressive.
Looking at the last year, KRG shows a small growth in Revenue. The Revenue has grown by 3.94% in the last year.
Measured over the past years, KRG shows a very strong growth in Revenue. The Revenue has been growing by 21.71% on average per year.
EPS 1Y (TTM)48%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%120%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y31.14%
Revenue growth 5Y21.71%
Sales Q2Q%6.7%
3.2 Future
KRG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.48% yearly.
KRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.18% yearly.
EPS Next Y7.52%
EPS Next 2Y14.63%
EPS Next 3Y16.48%
EPS Next 5YN/A
Revenue Next Year3.63%
Revenue Next 2Y3.29%
Revenue Next 3Y3.54%
Revenue Next 5Y4.18%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
KRG is valuated quite expensively with a Price/Earnings ratio of 59.92.
Compared to the rest of the industry, the Price/Earnings ratio of KRG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of KRG to the average of the S&P500 Index (27.19), we can say KRG is valued expensively.
The Price/Forward Earnings ratio is 54.42, which means the current valuation is very expensive for KRG.
KRG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KRG to the average of the S&P500 Index (35.33), we can say KRG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.92 | ||
| Fwd PE | 54.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRG is valued a bit cheaper than 61.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KRG indicates a rather cheap valuation: KRG is cheaper than 83.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.67 | ||
| EV/EBITDA | 13.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KRG does not grow enough to justify the current Price/Earnings ratio.
KRG's earnings are expected to grow with 16.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.97
PEG (5Y)N/A
EPS Next 2Y14.63%
EPS Next 3Y16.48%
5. Dividend
5.1 Amount
KRG has a Yearly Dividend Yield of 4.76%, which is a nice return.
Compared to an average industry Dividend Yield of 6.44, KRG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, KRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
The dividend of KRG decreases each year by -8.66%.
KRG has paid a dividend for at least 10 years, which is a reliable track record.
As KRG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-8.66%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
1658.04% of the earnings are spent on dividend by KRG. This is not a sustainable payout ratio.
DP1658.04%
EPS Next 2Y14.63%
EPS Next 3Y16.48%
22.17
-0.49 (-2.16%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.49%
Inst Owner Change-0.01%
Ins Owners0.68%
Ins Owner Change0.58%
Market Cap4.87B
Analysts77.33
Price Target27.31 (23.18%)
Short Float %4.38%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.66%
DP1658.04%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.98%
Min EPS beat(2)3.14%
Max EPS beat(2)32.82%
EPS beat(4)4
Avg EPS beat(4)20.28%
Min EPS beat(4)3.14%
Max EPS beat(4)32.82%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.89%
Min Revenue beat(2)1.96%
Max Revenue beat(2)3.83%
Revenue beat(4)2
Avg Revenue beat(4)0.91%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)3.83%
Revenue beat(8)5
Avg Revenue beat(8)0.39%
Revenue beat(12)9
Avg Revenue beat(12)1.26%
Revenue beat(16)13
Avg Revenue beat(16)2.13%
PT rev (1m)0%
PT rev (3m)-2.82%
EPS NQ rev (1m)-17.58%
EPS NQ rev (3m)-14.96%
EPS NY rev (1m)-7.48%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.92 | ||
| Fwd PE | 54.42 | ||
| P/S | 5.69 | ||
| P/FCF | 16.67 | ||
| P/OCF | 11.09 | ||
| P/B | 1.49 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 13.31 |
EPS(TTM)0.37
EY1.67%
EPS(NY)0.41
Fwd EY1.84%
FCF(TTM)1.33
FCFY6%
OCF(TTM)2
OCFY9.02%
SpS3.9
BVpS14.87
TBVpS13.39
PEG (NY)7.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.42% | ||
| ROCE | 3.03% | ||
| ROIC | 2.39% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.54% | ||
| OM | 22.48% | ||
| PM (TTM) | 1.59% | ||
| GM | 74.25% | ||
| FCFM | 34.15% |
ROA(3y)0.19%
ROA(5y)-0.22%
ROE(3y)0.37%
ROE(5y)-0.45%
ROIC(3y)1.52%
ROIC(5y)1.17%
ROICexc(3y)1.54%
ROICexc(5y)1.19%
ROICexgc(3y)1.63%
ROICexgc(5y)1.24%
ROCE(3y)1.92%
ROCE(5y)1.49%
ROICexcg growth 3Y86.98%
ROICexcg growth 5Y1.62%
ROICexc growth 3Y83.34%
ROICexc growth 5Y0.43%
OM growth 3Y32.78%
OM growth 5Y-1.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.06%
GM growth 5Y0.26%
F-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.95 | ||
| Debt/EBITDA | 4.8 | ||
| Cap/Depr | 37.1% | ||
| Cap/Sales | 17.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.62% | ||
| Profit Quality | 2142.87% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 0.73 |
F-Score6
WACC7%
ROIC/WACC0.34
Cap/Depr(3y)34.03%
Cap/Depr(5y)31.92%
Cap/Sales(3y)17.94%
Cap/Sales(5y)16.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%120%
EPS Next Y7.52%
EPS Next 2Y14.63%
EPS Next 3Y16.48%
EPS Next 5YN/A
Revenue 1Y (TTM)3.94%
Revenue growth 3Y31.14%
Revenue growth 5Y21.71%
Sales Q2Q%6.7%
Revenue Next Year3.63%
Revenue Next 2Y3.29%
Revenue Next 3Y3.54%
Revenue Next 5Y4.18%
EBIT growth 1Y38.54%
EBIT growth 3Y74.13%
EBIT growth 5Y20.41%
EBIT Next Year229.87%
EBIT Next 3Y51.52%
EBIT Next 5Y38.39%
FCF growth 1Y33.21%
FCF growth 3Y86.16%
FCF growth 5Y26.84%
OCF growth 1Y11.75%
OCF growth 3Y61%
OCF growth 5Y24.87%