KENNEDY-WILSON HOLDINGS INC (KW) Stock Fundamental Analysis
USA - NYSE:KW - US4893981070 - Common Stock
8.11 USD
+0.08 (+1%)
8.11 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. Both the profitability and financial health of KW have multiple concerns. 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.
In the past year KW had a positive cash flow from operations.
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 -1.35%, KW is in line with its industry, outperforming 45.31% of the companies in the same industry.
The Return On Equity of KW (-5.85%) is comparable to the rest of the 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 6.26%.
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 78.13% of its industry peers.
KW has a better Gross Margin (71.67%) than 87.50% of its industry peers.
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
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.
KW's Altman-Z score of 0.08 is on the low side compared to the rest of the industry. KW is outperformed by 73.44% of its industry peers.
A Debt/Equity ratio of 2.96 is on the high side and indicates that KW has dependencies on debt financing.
KW has a worse Debt to Equity ratio (2.96) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.08 |
ROIC/WACC0.15
WACC6.12%
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.
Looking at the Current ratio, with a value of 0.62, KW is doing worse than 79.69% of the companies in the same industry.
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.
KW has a Quick ratio of 0.62. This is in the lower half of the industry: KW underperforms 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 75.00% over the past year.
Looking at the last year, KW shows a decrease in Revenue. The Revenue has decreased by -4.58% in the last year.
The Revenue has been decreasing by -1.35% on average over the past years.
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
The Earnings Per Share is expected to decrease by -38.31% on average over the next years. This is quite bad
The Revenue is expected to decrease by -14.23% on average over the next years. This is quite bad
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 2Y-14.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less 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
KW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KW is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.52 |
4.3 Compensation for Growth
KW's earnings are expected to decrease with -38.31% in the coming years. This may justify a cheaper valuation.
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 5.98%, KW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.57, KW pays a better dividend. On top of this KW pays more dividend than 95.31% of the companies listed in the same industry.
KW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
5.2 History
The dividend of KW has a limited annual growth rate of 4.80%.
KW has been paying a dividend for at least 10 years, so it has 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
8.11
+0.08 (+1%)
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 Change0.17%
Ins Owners13.45%
Ins Owner Change0%
Market Cap1.12B
Revenue(TTM)527.00M
Net Income(TTM)-91500000
Analysts41.82
Price Target8.52 (5.06%)
Short Float %2.69%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
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)-42.86%
EPS NQ rev (3m)-19.05%
EPS NY rev (1m)0%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)-44.2%
Revenue NQ rev (3m)-44.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-43.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.12 | ||
| P/FCF | N/A | ||
| P/OCF | 79.32 | ||
| P/B | 0.72 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 25.52 |
EPS(TTM)-0.67
EYN/A
EPS(NY)-1.07
Fwd EYN/A
FCF(TTM)-0.61
FCFYN/A
OCF(TTM)0.1
OCFY1.26%
SpS3.82
BVpS11.33
TBVpS11.15
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
ROICexgc growth 3YN/A
ROICexgc 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 | 0.08 |
F-Score7
WACC6.12%
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 2Y-14.23%
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
KENNEDY-WILSON HOLDINGS INC / KW FAQ
What is the fundamental rating for KW stock?
ChartMill assigns a fundamental rating of 2 / 10 to KW.
What is the valuation status for KW stock?
ChartMill assigns a valuation rating of 1 / 10 to KENNEDY-WILSON HOLDINGS INC (KW). This can be considered as Overvalued.
What is the profitability of KW stock?
KENNEDY-WILSON HOLDINGS INC (KW) has a profitability rating of 3 / 10.
How financially healthy is KENNEDY-WILSON HOLDINGS INC?
The financial health rating of KENNEDY-WILSON HOLDINGS INC (KW) is 1 / 10.
Is the dividend of KENNEDY-WILSON HOLDINGS INC sustainable?
The dividend rating of KENNEDY-WILSON HOLDINGS INC (KW) is 5 / 10 and the dividend payout ratio is -121.75%.