KENNEDY-WILSON HOLDINGS INC (KW) Stock Fundamental Analysis
NYSE:KW - New York Stock Exchange, Inc. - US4893981070 - Common Stock - Currency: USD
Taking everything into account, KW scores 2 out of 10 in our fundamental rating. KW was compared to 64 industry peers in the Real Estate Management & Development industry. Both the profitability and financial health of KW have multiple concerns. KW is valued expensive and it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: KW reported negative net income in multiple years.
In multiple years KW reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.01%, KW is in line with its industry, outperforming 45.31% of the companies in the same industry.
KW's Return On Equity of -9.26% is in line compared to the rest of the industry. KW outperforms 46.88% of its industry peers.
KW has a Return On Invested Capital (0.81%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KW is below the industry average of 5.47%.
The last Return On Invested Capital (0.81%) for KW is above the 3 year average (0.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.01% | ||
| ROE | -9.26% | ||
| ROIC | 0.81% |
ROA(3y)-1.58%
ROA(5y)0.1%
ROE(3y)-6.98%
ROE(5y)0.46%
ROIC(3y)0.53%
ROIC(5y)N/A
1.3 Margins
KW's Operating Margin of 12.94% is fine compared to the rest of the industry. KW outperforms 79.69% of its industry peers.
KW's Gross Margin of 71.16% is amongst the best of the industry. KW outperforms 85.94% of its industry peers.
In the last couple of years the Gross Margin of KW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.94% | ||
| PM (TTM) | N/A | ||
| GM | 71.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y-6.78%
2. Health
2.1 Basic Checks
KW 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 KW has been reduced compared to 1 year ago.
The number of shares outstanding for KW has been reduced compared to 5 years ago.
Compared to 1 year ago, KW has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.08, we must say that KW is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.08, KW is not doing good in the industry: 67.19% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.21 is on the high side and indicates that KW has dependencies on debt financing.
The Debt to Equity ratio of KW (3.21) is worse than 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.08 |
ROIC/WACC0.13
WACC6.08%
2.3 Liquidity
A Current Ratio of 0.72 indicates that KW may have some problems paying its short term obligations.
KW has a worse Current ratio (0.72) than 76.56% of its industry peers.
KW has a Quick Ratio of 0.72. This is a bad value and indicates that KW is not financially healthy enough and could expect problems in meeting its short term obligations.
KW has a Quick ratio of 0.72. This is in the lower half of the industry: KW underperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.70% over the past year.
The Revenue has decreased by -7.67% in the past year.
Measured over the past years, KW shows a decrease in Revenue. The Revenue has been decreasing by -1.35% on average per year.
EPS 1Y (TTM)46.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-257.89%
Revenue 1Y (TTM)-7.67%
Revenue growth 3Y5.42%
Revenue growth 5Y-1.35%
Sales Q2Q%-5.94%
3.2 Future
Based on estimates for the next years, KW will show a very negative growth in Earnings Per Share. The EPS will decrease by -26.50% on average per year.
The Revenue is expected to grow by 14.17% on average over the next years. This is quite good.
EPS Next Y-58.18%
EPS Next 2Y-26.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year26.35%
Revenue Next 2Y14.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for KW. In the last year negative earnings were reported.
Also next year KW is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
KW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KW is cheaper than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.99 |
4.3 Compensation for Growth
KW's earnings are expected to decrease with -26.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.50%, KW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.53, KW pays a better dividend. On top of this KW pays more dividend than 95.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
5.2 History
The dividend of KW has a limited annual growth rate of 4.80%.
KW has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of KW are negative and hence is the payout ratio. KW will probably not be able to sustain this dividend level.
DP-88.7%
EPS Next 2Y-26.5%
EPS Next 3YN/A
7.59
-0.07 (-0.91%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners87.24%
Inst Owner Change-0.65%
Ins Owners13.42%
Ins Owner Change10.03%
Market Cap1.05B
Analysts41.82
Price Target8.52 (12.25%)
Short Float %3.05%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
Yearly Dividend1.04
Dividend Growth(5Y)4.8%
DP-88.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)59.2%
Min EPS beat(2)-53.3%
Max EPS beat(2)171.7%
EPS beat(4)2
Avg EPS beat(4)34.98%
Min EPS beat(4)-53.3%
Max EPS beat(4)171.7%
EPS beat(8)4
Avg EPS beat(8)-64.16%
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)0
Avg Revenue beat(2)-21.63%
Min Revenue beat(2)-22.28%
Max Revenue beat(2)-20.97%
Revenue beat(4)2
Avg Revenue beat(4)2.69%
Min Revenue beat(4)-22.28%
Max Revenue beat(4)27.31%
Revenue beat(8)6
Avg Revenue beat(8)6.79%
Revenue beat(12)9
Avg Revenue beat(12)5.29%
Revenue beat(16)13
Avg Revenue beat(16)5.7%
PT rev (1m)0%
PT rev (3m)-10.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.01 | ||
| P/FCF | N/A | ||
| P/OCF | 119.28 | ||
| P/B | 0.67 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 26.99 |
EPS(TTM)-1.05
EYN/A
EPS(NY)-0.9
Fwd EYN/A
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)0.06
OCFY0.84%
SpS3.78
BVpS11.27
TBVpS11.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.01% | ||
| ROE | -9.26% | ||
| ROCE | 1.03% | ||
| ROIC | 0.81% | ||
| ROICexc | 0.86% | ||
| ROICexgc | 0.87% | ||
| OM | 12.94% | ||
| PM (TTM) | N/A | ||
| GM | 71.16% | ||
| FCFM | N/A |
ROA(3y)-1.58%
ROA(5y)0.1%
ROE(3y)-6.98%
ROE(5y)0.46%
ROIC(3y)0.53%
ROIC(5y)N/A
ROICexc(3y)0.55%
ROICexc(5y)N/A
ROICexgc(3y)0.56%
ROICexgc(5y)N/A
ROCE(3y)0.67%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y-6.78%
F-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 23.67 | ||
| Cap/Depr | 90.73% | ||
| Cap/Sales | 24.88% | ||
| Interest Coverage | 0.27 | ||
| Cash Conversion | 4.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 0.08 |
F-Score5
WACC6.08%
ROIC/WACC0.13
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)46.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-257.89%
EPS Next Y-58.18%
EPS Next 2Y-26.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.67%
Revenue growth 3Y5.42%
Revenue growth 5Y-1.35%
Sales Q2Q%-5.94%
Revenue Next Year26.35%
Revenue Next 2Y14.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year88.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-589.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-64.52%
OCF growth 3YN/A
OCF growth 5YN/A