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 129 industry peers in the Diversified REITs industry. KRG has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
KRG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KRG reported negative net income in multiple years.
KRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.20%, KRG perfoms like the industry average, outperforming 42.64% of the companies in the same industry.
KRG has a Return On Equity (0.42%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.39%, KRG is in line with its industry, outperforming 43.41% of the companies in the same 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 last Return On Invested Capital (2.39%) for KRG is above the 3 year average (1.52%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 1.59%, KRG is in line with its industry, outperforming 43.41% of the companies in the same industry.
The Operating Margin of KRG (22.48%) is comparable to the rest of the industry.
KRG's Operating Margin has been stable in the last couple of years.
KRG has a better Gross Margin (74.25%) than 70.54% of its industry peers.
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.
KRG has more shares outstanding than it did 5 years ago.
KRG has a worse debt/assets ratio than last year.
2.2 Solvency
KRG has an Altman-Z score of 0.71. This is a bad value and indicates that KRG is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.71, KRG is doing good in the industry, outperforming 62.79% of the companies in the same industry.
The Debt to FCF ratio of KRG is 9.95, which is on the high side as it means it would take KRG, 9.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KRG (9.95) is better than 93.02% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that KRG is somewhat dependend on debt financing.
The Debt to Equity ratio of KRG (0.86) is better than 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.95 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.29
WACC8.19%
2.3 Liquidity
A Current Ratio of 0.53 indicates that KRG may have some problems paying its short term obligations.
The Current ratio of KRG (0.53) is worse than 78.29% of its industry peers.
A Quick Ratio of 0.53 indicates that KRG may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, KRG is not doing good in the industry: 77.52% of the companies in the same industry are doing better.
| 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.
KRG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.94%.
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 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
The Price/Earnings ratio is 60.35, which means the current valuation is very expensive for KRG.
Compared to the rest of the industry, the Price/Earnings ratio of KRG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.32, KRG is valued quite expensively.
KRG is valuated quite expensively with a Price/Forward Earnings ratio of 49.79.
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 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.35 | ||
| Fwd PE | 49.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRG is valued a bit cheaper than the industry average as 61.24% of the companies are valued more expensively.
KRG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KRG is cheaper than 82.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.79 | ||
| EV/EBITDA | 13.16 |
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 23.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.72
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.
KRG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| 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 2Y20.27%
EPS Next 3Y23.16%
22.33
+0.07 (+0.31%)
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 Cap4.91B
Analysts77.33
Price Target27.31 (22.3%)
Short Float %4.42%
Short Ratio4.63
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 | 60.35 | ||
| Fwd PE | 49.79 | ||
| P/S | 5.73 | ||
| P/FCF | 16.79 | ||
| P/OCF | 11.17 | ||
| P/B | 1.5 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)0.37
EY1.66%
EPS(NY)0.45
Fwd EY2.01%
FCF(TTM)1.33
FCFY5.96%
OCF(TTM)2
OCFY8.95%
SpS3.9
BVpS14.87
TBVpS13.39
PEG (NY)3.72
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 | 0.71 |
F-Score6
WACC8.19%
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%