KITE REALTY GROUP TRUST (KRG) Stock Fundamental Analysis
NYSE:KRG - US49803T3005 - REIT
22.59 USD
-0.15 (-0.66%)
22.59 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KRG. KRG was compared to 129 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
KRG had positive earnings in the past year.
In the past year KRG had a positive cash flow from operations.
In multiple years KRG reported negative net income over the last 5 years.
KRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KRG's Return On Assets of 2.52% is fine compared to the rest of the industry. KRG outperforms 71.32% of its industry peers.
KRG has a better Return On Equity (5.20%) than 66.67% of its industry peers.
KRG has a Return On Invested Capital of 2.35%. This is comparable to the rest of the industry: KRG outperforms 45.74% of 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 3.04%.
The 3 year average ROIC (1.52%) for KRG is below the current ROIC(2.35%), indicating increased profibility in the last year.
| 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
KRG has a Profit Margin of 20.14%. This is in the better half of the industry: KRG outperforms 72.09% of its industry peers.
KRG has a Operating Margin (22.63%) which is in line with its industry peers.
KRG's Operating Margin has been stable in the last couple of years.
KRG has a better Gross Margin (74.22%) than 70.54% of its industry peers.
KRG's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KRG is destroying value.
Compared to 1 year ago, KRG has about the same amount of shares outstanding.
Compared to 5 years ago, KRG has more shares outstanding
Compared to 1 year ago, KRG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that KRG is in the distress zone and has some risk of bankruptcy.
KRG has a better Altman-Z score (0.74) than 64.34% 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.
KRG's Debt to FCF ratio of 11.07 is amongst the best of the industry. KRG outperforms 87.60% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 11.07 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.35
WACC6.79%
2.3 Liquidity
KRG has a Current 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.
KRG has a Current ratio of 0.90. This is comparable to the rest of the industry: KRG outperforms 46.51% of its industry peers.
A Quick Ratio of 0.90 indicates that KRG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, KRG is in line with its industry, outperforming 48.06% 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.
KRG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.71% yearly.
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
The Earnings Per Share is expected to grow by 17.07% on average over the next years. This is quite good.
KRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
EPS Next Y61.82%
EPS Next 2Y18.59%
EPS Next 3Y17.07%
EPS Next 5YN/A
Revenue Next Year3.65%
Revenue Next 2Y3.16%
Revenue Next 3Y3.54%
Revenue Next 5Y4.11%
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
With a Price/Earnings ratio of 28.59, KRG can be considered very expensive at the moment.
KRG's Price/Earnings ratio is a bit cheaper when compared to the industry. KRG is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. KRG is around the same levels.
With a Price/Forward Earnings ratio of 51.81, KRG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRG is on the same level as its industry peers.
KRG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 51.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRG is valued a bit cheaper than 68.22% of the companies in the same industry.
79.84% 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 | 18.18 | ||
| EV/EBITDA | 13.29 |
4.3 Compensation for Growth
KRG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of KRG may justify a higher PE ratio.
KRG's earnings are expected to grow with 17.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y18.59%
EPS Next 3Y17.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.69%, KRG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.63, KRG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, KRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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.
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
KRG pays out 133.65% of its income as dividend. This is not a sustainable payout ratio.
DP133.65%
EPS Next 2Y18.59%
EPS Next 3Y17.07%
22.59
-0.15 (-0.66%)
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 Change4.94%
Ins Owners0.68%
Ins Owner Change-2.52%
Market Cap4.97B
Analysts76.25
Price Target26.62 (17.84%)
Short Float %4.52%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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)-0.38%
PT rev (3m)-2.53%
EPS NQ rev (1m)-8.02%
EPS NQ rev (3m)-10.88%
EPS NY rev (1m)50.51%
EPS NY rev (3m)39.25%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 51.81 | ||
| P/S | 5.79 | ||
| P/FCF | 18.18 | ||
| P/OCF | 11.54 | ||
| P/B | 1.5 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 13.29 |
EPS(TTM)0.79
EY3.5%
EPS(NY)0.44
Fwd EY1.93%
FCF(TTM)1.24
FCFY5.5%
OCF(TTM)1.96
OCFY8.66%
SpS3.9
BVpS15.09
TBVpS13.73
PEG (NY)0.46
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 | 0.74 |
F-Score6
WACC6.79%
ROIC/WACC0.35
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 Y61.82%
EPS Next 2Y18.59%
EPS Next 3Y17.07%
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y31.14%
Revenue growth 5Y21.71%
Sales Q2Q%2.11%
Revenue Next Year3.65%
Revenue Next 2Y3.16%
Revenue Next 3Y3.54%
Revenue Next 5Y4.11%
EBIT growth 1Y26.63%
EBIT growth 3Y74.13%
EBIT growth 5Y20.41%
EBIT Next Year232.69%
EBIT Next 3Y51.94%
EBIT Next 5Y38.86%
FCF growth 1Y14.86%
FCF growth 3Y86.16%
FCF growth 5Y26.84%
OCF growth 1Y6.13%
OCF growth 3Y61%
OCF growth 5Y24.87%