KENNEDY-WILSON HOLDINGS INC (KW)
US4893981070 - Common Stock
KW gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 66 industry peers in the Real Estate Management & Development industry. Both the profitability and financial health of KW have multiple concerns. KW does not seem to be growing, but still is valued expensively. KW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KW had negative earnings in the past year.
KW had a positive operating cash flow in the past year.
Of the past 5 years KW 4 years were profitable.
In multiple years KW reported negative operating cash flow during the last 5 years.
1.2 Ratios
KW's Return On Assets of -4.43% is in line compared to the rest of the industry. KW outperforms 48.48% of its industry peers.
With a Return On Equity value of -19.47%, KW perfoms like the industry average, outperforming 43.94% of the companies in the same industry.
KW's Return On Invested Capital of 0.56% is fine compared to the rest of the industry. KW outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.43% | ||
| ROE | -19.47% | ||
| ROIC | 0.56% |
ROA(3y)0.11%
ROA(5y)0.93%
ROE(3y)0.48%
ROE(5y)4.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KW has a Operating Margin of 9.65%. This is in the better half of the industry: KW outperforms 77.27% of its industry peers.
KW's Operating Margin has improved in the last couple of years.
KW does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.65% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y60.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KW is destroying value.
The number of shares outstanding for KW has been increased compared to 1 year ago.
KW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KW is higher compared to a year ago.
2.2 Solvency
KW has an Altman-Z score of 0.12. This is a bad value and indicates that KW is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.12, KW is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of KW is 108.34, which is on the high side as it means it would take KW, 108.34 years of fcf income to pay off all of its debts.
KW has a Debt to FCF ratio of 108.34. This is comparable to the rest of the industry: KW outperforms 54.55% of its industry peers.
KW has a Debt/Equity ratio of 3.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.02, KW is doing worse than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | 108.34 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.1
WACC5.71%
2.3 Liquidity
A Current Ratio of 0.62 indicates that KW may have some problems paying its short term obligations.
KW has a worse Current ratio (0.62) than 77.27% of its industry peers.
KW has a Quick Ratio of 0.62. This is a bad value and indicates that KW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.62, KW is doing worse than 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for KW have decreased strongly by -646.67% in the last year.
KW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.19%.
Measured over the past years, KW shows a decrease in Revenue. The Revenue has been decreasing by -6.17% on average per year.
EPS 1Y (TTM)-646.67%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-1212.5%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y7.41%
Revenue growth 5Y-6.17%
Revenue growth Q2Q2.15%
3.2 Future
Based on estimates for the next years, KW will show a very strong growth in Earnings Per Share. The EPS will grow by 23.40% on average per year.
Based on estimates for the next years, KW will show a decrease in Revenue. The Revenue will decrease by -5.72% on average per year.
EPS Next Y-6.35%
EPS Next 2Y23.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.61%
Revenue Next 2Y-5.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for KW. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KW is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
KW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KW is cheaper than 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.16 | ||
| EV/EBITDA | 29.04 |
4.3 Compensation for Growth
KW's earnings are expected to grow with 23.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.35%, KW is a good candidate for dividend investing.
In the last 3 months the price of KW has falen by -22.16%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KW's Dividend Yield is rather good when compared to the industry average which is at 4.61. KW pays more dividend than 96.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, KW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
5.2 History
On average, the dividend of KW grows each year by 10.46%, which is quite nice.
KW has paid a dividend for at least 10 years, which is a reliable track record.
KW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.46%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
KW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of KW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-50.18%
EPS Next 2Y23.4%
EPS Next 3YN/A
KENNEDY-WILSON HOLDINGS INC
NYSE:KW (4/26/2024, 7:04:00 PM)
After market: 8.5 0 (0%)8.5
+0.04 (+0.47%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | N/A | ||
| Fwd PE | N/A | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.43% | ||
| ROE | -19.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.65% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| 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)-646.67%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.19%
Revenue growth 3Y7.41%
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