KITE REALTY GROUP TRUST (KRG)
US49803T3005 - REIT
We assign a fundamental rating of 4 out of 10 to KRG. KRG was compared to 130 industry peers in the Diversified REITs industry. The financial health of KRG is average, but there are quite some concerns on its profitability. KRG is not valued too expensively and it also shows 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.
In the past 5 years KRG always reported negative net income.
Each year in the past 5 years KRG had a positive operating cash flow.
1.2 Ratios
KRG has a Return On Assets of 0.55%. This is comparable to the rest of the industry: KRG outperforms 46.88% of its industry peers.
KRG's Return On Equity of 1.06% is in line compared to the rest of the industry. KRG outperforms 42.19% of its industry peers.
KRG has a Return On Invested Capital of 1.40%. This is in the lower half of the industry: KRG underperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KRG is below the industry average of 2.91%.
The 3 year average ROIC (0.68%) for KRG is below the current ROIC(1.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.06% | ||
| ROIC | 1.4% |
ROA(3y)-0.62%
ROA(5y)-0.67%
ROE(3y)-1.24%
ROE(5y)-1.41%
ROIC(3y)0.68%
ROIC(5y)1.3%
1.3 Margins
KRG has a Profit Margin (4.65%) which is in line with its industry peers.
KRG's Operating Margin of 14.53% is on the low side compared to the rest of the industry. KRG is outperformed by 64.84% of its industry peers.
KRG's Operating Margin has declined in the last couple of years.
KRG has a better Gross Margin (73.85%) than 68.75% of its industry peers.
KRG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.53% | ||
| PM (TTM) | 4.65% | ||
| GM | 73.85% |
OM growth 3Y-28.49%
OM growth 5Y-16.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KRG is destroying value.
KRG has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KRG has more shares outstanding
KRG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that KRG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KRG (0.76) is better than 64.84% of its industry peers.
KRG has a debt to FCF ratio of 11.15. This is a negative value and a sign of low solvency as KRG would need 11.15 years to pay back of all of its debts.
The Debt to FCF ratio of KRG (11.15) is better than 84.38% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that KRG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.79, KRG is doing good in the industry, outperforming 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 11.15 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.2
WACC7.09%
2.3 Liquidity
A Current Ratio of 1.07 indicates that KRG should not have too much problems paying its short term obligations.
KRG has a Current ratio of 1.07. This is comparable to the rest of the industry: KRG outperforms 41.41% of its industry peers.
A Quick Ratio of 1.07 indicates that KRG should not have too much problems paying its short term obligations.
KRG has a Quick ratio of 1.07. This is comparable to the rest of the industry: KRG outperforms 44.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
KRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 129.31%, which is quite impressive.
The Revenue has grown by 8.84% in the past year. This is quite good.
Measured over the past years, KRG shows a quite strong growth in Revenue. The Revenue has been growing by 17.45% on average per year.
EPS 1Y (TTM)129.31%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q125%
Revenue 1Y (TTM)8.84%
Revenue growth 3Y36.52%
Revenue growth 5Y17.45%
Revenue growth Q2Q3.44%
3.2 Future
Based on estimates for the next years, KRG will show a very strong growth in Earnings Per Share. The EPS will grow by 67.57% on average per year.
KRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.79% yearly.
EPS Next Y363.32%
EPS Next 2Y95.03%
EPS Next 3Y67.57%
EPS Next 5YN/A
Revenue Next Year4.42%
Revenue Next 2Y3.46%
Revenue Next 3Y3.47%
Revenue Next 5Y3.79%
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 129.06 indicates a quite expensive valuation of KRG.
Based on the Price/Earnings ratio, KRG is valued a bit more expensive than the industry average as 60.94% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 24.54, KRG is valued quite expensively.
With a Price/Forward Earnings ratio of 173.78, KRG can be considered very expensive at the moment.
KRG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.22, KRG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 129.06 | ||
| Fwd PE | 173.78 |
4.2 Price Multiples
KRG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KRG is cheaper than 60.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KRG is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.7 | ||
| EV/EBITDA | 13.65 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KRG's earnings are expected to grow with 67.57% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y95.03%
EPS Next 3Y67.57%
5. Dividend
5.1 Amount
KRG has a Yearly Dividend Yield of 4.43%, which is a nice return.
Compared to an average industry Dividend Yield of 6.17, KRG is paying slightly less dividend.
KRG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
The dividend of KRG decreases each year by -7.49%.
KRG has been paying a dividend for at least 10 years, so it has a reliable track record.
KRG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.49%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
KRG pays out 535.32% of its income as dividend. This is not a sustainable payout ratio.
DP535.32%
EPS Next 2Y95.03%
EPS Next 3Y67.57%
KITE REALTY GROUP TRUST
NYSE:KRG (12/11/2023, 4:05:00 PM)
After market: 21.94 0 (0%)21.94
-0.06 (-0.27%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 129.06 | ||
| Fwd PE | 173.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.53% | ||
| PM (TTM) | 4.65% | ||
| GM | 73.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)129.31%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y363.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.84%
Revenue growth 3Y36.52%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y