KENNEDY-WILSON HOLDINGS INC (KW) Stock Fundamental Analysis
USA - NYSE:KW - US4893981070 - Common Stock
8.4 USD
+0.08 (+0.96%)
8.4 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to KW. KW was compared to 64 industry peers in the Real Estate Management & Development industry. KW has a bad profitability rating. Also its financial health evaluation is rather negative. KW does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year KW has reported negative net income.
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
KW's Return On Assets of -1.35% is in line compared to the rest of the industry. KW outperforms 46.88% of its industry peers.
Looking at the Return On Equity, with a value of -5.85%, KW is in line with its industry, outperforming 48.44% of the companies in the same industry.
KW has a Return On Invested Capital (0.90%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KW is significantly below the industry average of 6.56%.
The last Return On Invested Capital (0.90%) for KW is above the 3 year average (0.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.35% | ||
| ROE | -5.85% | ||
| ROIC | 0.9% |
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 13.51% is fine compared to the rest of the industry. KW outperforms 76.56% of its industry peers.
Looking at the Gross Margin, with a value of 71.67%, KW belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
KW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.51% | ||
| PM (TTM) | N/A | ||
| GM | 71.67% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KW is destroying value.
Compared to 1 year ago, KW has less shares outstanding
The number of shares outstanding for KW has been reduced compared to 5 years ago.
The debt/assets ratio for KW has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.09, we must say that KW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.09, KW is doing worse than 68.75% of the companies in the same industry.
KW has a Debt/Equity ratio of 2.96. This is a high value indicating a heavy dependency on external financing.
KW has a Debt to Equity ratio of 2.96. This is in the lower half of the industry: KW underperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.09 |
ROIC/WACC0.15
WACC6.21%
2.3 Liquidity
KW has a Current 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.
KW's Current ratio of 0.62 is on the low side compared to the rest of the industry. KW is outperformed by 78.13% 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.
With a Quick ratio value of 0.62, KW is not doing good in the industry: 76.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
KW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.00%, which is quite impressive.
KW shows a decrease in Revenue. In the last year, the revenue decreased by -4.58%.
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)75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%88.37%
Revenue 1Y (TTM)-4.58%
Revenue growth 3Y5.42%
Revenue growth 5Y-1.35%
Sales Q2Q%2.8%
3.2 Future
KW is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -38.31% yearly.
Based on estimates for the next years, KW will show a quite strong growth in Revenue. The Revenue will grow by 13.86% on average per year.
EPS Next Y-56.34%
EPS Next 2Y-38.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-28.13%
Revenue Next 2Y13.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 accelerating.
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
62.50% of the companies in the same industry are more expensive than KW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.71 |
4.3 Compensation for Growth
A cheap valuation may be justified as KW's earnings are expected to decrease with -38.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-38.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.82%, KW is a good candidate for dividend investing.
KW's Dividend Yield is rather good when compared to the industry average which is at 3.46. KW pays more dividend than 95.31% 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 | 5.82% |
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
KW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-121.75%
EPS Next 2Y-38.31%
EPS Next 3YN/A
8.4
+0.08 (+0.96%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners85.25%
Inst Owner Change-2.01%
Ins Owners13.45%
Ins Owner Change0%
Market Cap1.16B
Analysts41.82
Price Target8.52 (1.43%)
Short Float %2.87%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
Yearly Dividend1.04
Dividend Growth(5Y)4.8%
DP-121.75%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.07%
Min EPS beat(2)-53.3%
Max EPS beat(2)71.44%
EPS beat(4)2
Avg EPS beat(4)46.82%
Min EPS beat(4)-53.3%
Max EPS beat(4)171.7%
EPS beat(8)4
Avg EPS beat(8)-127.68%
EPS beat(12)7
Avg EPS beat(12)91.93%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-20.61%
Min Revenue beat(2)-22.28%
Max Revenue beat(2)-18.93%
Revenue beat(4)1
Avg Revenue beat(4)-8.87%
Min Revenue beat(4)-22.28%
Max Revenue beat(4)26.69%
Revenue beat(8)5
Avg Revenue beat(8)3.17%
Revenue beat(12)8
Avg Revenue beat(12)2.92%
Revenue beat(16)12
Avg Revenue beat(16)3.99%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)18.6%
EPS NQ rev (3m)16.67%
EPS NY rev (1m)-3.66%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)-42.89%
Revenue NY rev (3m)-43.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.2 | ||
| P/FCF | N/A | ||
| P/OCF | 82.15 | ||
| P/B | 0.74 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 25.71 |
EPS(TTM)-0.67
EYN/A
EPS(NY)-1.07
Fwd EYN/A
FCF(TTM)-0.61
FCFYN/A
OCF(TTM)0.1
OCFY1.22%
SpS3.82
BVpS11.33
TBVpS11.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.35% | ||
| ROE | -5.85% | ||
| ROCE | 1.14% | ||
| ROIC | 0.9% | ||
| ROICexc | 0.95% | ||
| ROICexgc | 0.97% | ||
| OM | 13.51% | ||
| PM (TTM) | N/A | ||
| GM | 71.67% | ||
| 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-Score7
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 21.72 | ||
| Cap/Depr | 69.35% | ||
| Cap/Sales | 18.63% | ||
| Interest Coverage | 0.29 | ||
| Cash Conversion | 6.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.09 |
F-Score7
WACC6.21%
ROIC/WACC0.15
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)75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%88.37%
EPS Next Y-56.34%
EPS Next 2Y-38.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.58%
Revenue growth 3Y5.42%
Revenue growth 5Y-1.35%
Sales Q2Q%2.8%
Revenue Next Year-28.13%
Revenue Next 2Y13.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.89%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year83.76%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-261.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.94%
OCF growth 3YN/A
OCF growth 5YN/A