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 5 out of 10 to KRG. KRG was compared to 130 industry peers in the Diversified REITs industry. While KRG is still in line with the averages on profitability rating, there are concerns on its financial health. KRG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KRG was profitable.
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 has a Return On Assets of 2.52%. This is in the better half of the industry: KRG outperforms 70.77% of its industry peers.
KRG's Return On Equity of 5.20% is fine compared to the rest of the industry. KRG outperforms 68.46% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.35%, KRG is in line with its industry, outperforming 43.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KRG is in line with the industry average of 3.15%.
The last Return On Invested Capital (2.35%) for KRG is above the 3 year average (1.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 5.2% | ||
| ROIC | 2.35% |
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
With a decent Profit Margin value of 20.14%, KRG is doing good in the industry, outperforming 74.62% of the companies in the same industry.
The Operating Margin of KRG (22.63%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KRG has remained more or less at the same level.
With a decent Gross Margin value of 74.22%, KRG is doing good in 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 | 22.63% | ||
| PM (TTM) | 20.14% | ||
| GM | 74.22% |
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.
The number of shares outstanding for KRG remains at a similar level compared to 1 year ago.
KRG has more shares outstanding than it did 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 0.69, we must say that KRG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KRG (0.69) is better than 63.08% of its industry peers.
The Debt to FCF ratio of KRG is 11.07, which is on the high side as it means it would take KRG, 11.07 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.07, KRG belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
KRG has a Debt/Equity ratio of 0.89. This is a neutral value indicating KRG is somewhat dependend on debt financing.
KRG's Debt to Equity ratio of 0.89 is fine compared to the rest of the industry. KRG outperforms 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 11.07 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.34
WACC6.84%
2.3 Liquidity
A Current Ratio of 0.90 indicates that KRG may have some problems paying its short term obligations.
KRG's Current ratio of 0.90 is in line compared to the rest of the industry. KRG outperforms 49.23% of its industry peers.
KRG has a Quick Ratio of 0.90. 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 0.90, KRG is in line with its industry, outperforming 50.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 338.89% over the past year.
The Revenue has been growing slightly by 3.60% in the past 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)338.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%525%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y31.14%
Revenue growth 5Y21.71%
Sales Q2Q%2.11%
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.
The Revenue is expected to grow by 4.18% on average over the next years.
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 26.51.
Based on the Price/Earnings ratio, KRG is valued a bit cheaper than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, KRG is valued at the same level.
A Price/Forward Earnings ratio of 51.40 indicates a quite expensive valuation of KRG.
The rest of the industry has a similar Price/Forward Earnings ratio as KRG.
KRG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 51.4 |
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.
82.31% of the companies in the same industry are more expensive than KRG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.85 | ||
| EV/EBITDA | 12.81 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
KRG's earnings are expected to grow with 16.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.53
PEG (5Y)N/A
EPS Next 2Y14.63%
EPS Next 3Y16.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.03%, KRG is a good candidate for dividend investing.
KRG's Dividend Yield is comparable with the industry average which is at 6.72.
Compared to an average S&P500 Dividend Yield of 2.39, KRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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.
KRG has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-8.66%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
133.65% of the earnings are spent on dividend by KRG. This is not a sustainable payout ratio.
DP133.65%
EPS Next 2Y14.63%
EPS Next 3Y16.48%
20.94
-0.51 (-2.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.67%
Inst Owner Change-0.85%
Ins Owners0.68%
Ins Owner Change0.58%
Market Cap4.60B
Analysts76.25
Price Target26.72 (27.6%)
Short Float %4.85%
Short Ratio7.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.66%
DP133.65%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)312.94%
Min EPS beat(2)32.82%
Max EPS beat(2)593.05%
EPS beat(4)4
Avg EPS beat(4)160.54%
Min EPS beat(4)3.14%
Max EPS beat(4)593.05%
EPS beat(8)8
Avg EPS beat(8)133.82%
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)1
Avg Revenue beat(2)1.62%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)3.83%
Revenue beat(4)2
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)3.83%
Revenue beat(8)4
Avg Revenue beat(8)0.09%
Revenue beat(12)8
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)1.89%
PT rev (1m)-1.78%
PT rev (3m)-3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.96%
EPS NY rev (1m)-7.04%
EPS NY rev (3m)-5.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 51.4 | ||
| P/S | 5.37 | ||
| P/FCF | 16.85 | ||
| P/OCF | 10.7 | ||
| P/B | 1.39 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 12.81 |
EPS(TTM)0.79
EY3.77%
EPS(NY)0.41
Fwd EY1.95%
FCF(TTM)1.24
FCFY5.93%
OCF(TTM)1.96
OCFY9.35%
SpS3.9
BVpS15.09
TBVpS13.73
PEG (NY)3.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 5.2% | ||
| ROCE | 2.98% | ||
| ROIC | 2.35% | ||
| ROICexc | 2.42% | ||
| ROICexgc | 2.54% | ||
| OM | 22.63% | ||
| PM (TTM) | 20.14% | ||
| GM | 74.22% | ||
| FCFM | 31.87% |
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 Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 11.07 | ||
| Debt/EBITDA | 4.98 | ||
| Cap/Depr | 39.69% | ||
| Cap/Sales | 18.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.95% | ||
| Profit Quality | 158.24% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.69 |
F-Score6
WACC6.84%
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)338.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%525%
EPS Next Y7.52%
EPS Next 2Y14.63%
EPS Next 3Y16.48%
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y31.14%
Revenue growth 5Y21.71%
Sales Q2Q%2.11%
Revenue Next Year3.63%
Revenue Next 2Y3.29%
Revenue Next 3Y3.54%
Revenue Next 5Y4.18%
EBIT growth 1Y26.63%
EBIT growth 3Y74.13%
EBIT growth 5Y20.41%
EBIT Next Year232.69%
EBIT Next 3Y51.94%
EBIT Next 5Y38.39%
FCF growth 1Y14.86%
FCF growth 3Y86.16%
FCF growth 5Y26.84%
OCF growth 1Y6.13%
OCF growth 3Y61%
OCF growth 5Y24.87%