KITE REALTY GROUP TRUST (KRG) Stock Fundamental Analysis
NYSE:KRG - New York Stock Exchange, Inc. - US49803T3005 - REIT - Currency: USD
Taking everything into account, KRG scores 4 out of 10 in our fundamental rating. KRG was compared to 129 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
KRG had positive earnings in the past year.
In the past year KRG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KRG reported negative net income in multiple years.
In the past 5 years KRG always reported a positive cash flow from operatings.
1.2 Ratios
KRG's Return On Assets of 0.20% is in line compared to the rest of the industry. KRG outperforms 42.64% of its industry peers.
The Return On Equity of KRG (0.42%) is comparable to the rest of the industry.
The Return On Invested Capital of KRG (2.39%) is comparable to the rest of the industry.
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 3.15%.
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 has a Profit Margin of 1.59%. This is comparable to the rest of the industry: KRG outperforms 43.41% of its industry peers.
KRG has a Operating Margin (22.48%) which is comparable to the rest of the industry.
KRG's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 74.25%, KRG is in the better half of the industry, outperforming 70.54% 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
KRG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KRG has about the same amount of shares outstanding.
The number of shares outstanding for KRG has been increased compared to 5 years ago.
The debt/assets ratio for KRG is higher compared to a year ago.
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 Altman-Z score of 0.73. This is in the better half of the industry: KRG outperforms 62.79% 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 93.02% of its industry peers.
KRG has a Debt/Equity ratio of 0.86. This is a neutral value indicating KRG is somewhat dependend on debt financing.
KRG has a Debt to Equity ratio of 0.86. This is in the better half of the industry: KRG outperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.95 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.29
WACC8.18%
2.3 Liquidity
A Current Ratio of 0.53 indicates that KRG may have some problems paying its short term obligations.
KRG has a worse Current ratio (0.53) than 78.29% 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.
KRG's Quick ratio of 0.53 is on the low side compared to the rest of the industry. KRG is outperformed by 77.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.00% over the past year.
Looking at the last year, KRG shows a small growth in Revenue. The Revenue has grown by 3.94% in the last year.
KRG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.71% yearly.
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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.16% yearly.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y16.21%
EPS Next 2Y20.27%
EPS Next 3Y23.16%
EPS Next 5YN/A
Revenue Next Year2.52%
Revenue Next 2Y3.03%
Revenue Next 3Y3.18%
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
A Price/Earnings ratio of 61.11 indicates a quite expensive valuation of KRG.
KRG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of KRG to the average of the S&P500 Index (26.34), we can say KRG is valued expensively.
Based on the Price/Forward Earnings ratio of 50.42, the valuation of KRG can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRG is on the same level as its industry peers.
KRG is valuated expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.11 | ||
| Fwd PE | 50.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRG is valued a bit cheaper than 60.47% 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 82.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17 | ||
| EV/EBITDA | 13.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KRG's earnings are expected to grow with 23.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.77
PEG (5Y)N/A
EPS Next 2Y20.27%
EPS Next 3Y23.16%
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 6.77, KRG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 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 been paying a dividend for at least 10 years, so it has 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
KRG pays out 1658.04% of its income as dividend. This is not a sustainable payout ratio.
DP1658.04%
EPS Next 2Y20.27%
EPS Next 3Y23.16%
22.61
+0.28 (+1.25%)
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 Change0.28%
Ins Owners0.68%
Ins Owner Change1.24%
Market Cap4.97B
Analysts77.33
Price Target27.31 (20.79%)
Short Float %4.59%
Short Ratio4.96
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)-0.36%
PT rev (3m)-4.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.04%
EPS NY rev (1m)0%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.11 | ||
| Fwd PE | 50.42 | ||
| P/S | 5.8 | ||
| P/FCF | 17 | ||
| P/OCF | 11.31 | ||
| P/B | 1.52 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 13.29 |
EPS(TTM)0.37
EY1.64%
EPS(NY)0.45
Fwd EY1.98%
FCF(TTM)1.33
FCFY5.88%
OCF(TTM)2
OCFY8.84%
SpS3.9
BVpS14.87
TBVpS13.39
PEG (NY)3.77
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
WACC8.18%
ROIC/WACC0.29
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 Y16.21%
EPS Next 2Y20.27%
EPS Next 3Y23.16%
EPS Next 5YN/A
Revenue 1Y (TTM)3.94%
Revenue growth 3Y31.14%
Revenue growth 5Y21.71%
Sales Q2Q%6.7%
Revenue Next Year2.52%
Revenue Next 2Y3.03%
Revenue Next 3Y3.18%
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%