KITE REALTY GROUP TRUST (KRG) Stock Fundamental Analysis
NYSE:KRG - New York Stock Exchange, Inc. - US49803T3005 - REIT - Currency: USD
Overall KRG gets a fundamental rating of 4 out of 10. We evaluated KRG against 128 industry peers in the Diversified REITs industry. There are concerns on the financial health of KRG while its profitability can be described as average. KRG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KRG was profitable.
KRG had a positive operating cash flow in the past year.
In multiple years KRG reported negative net income over the last 5 years.
In the past 5 years KRG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.06%, KRG perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
With a Return On Equity value of 0.12%, KRG is not doing good in the industry: 60.32% of the companies in the same industry are doing better.
The Return On Invested Capital of KRG (2.07%) is worse than 67.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KRG is in line with the industry average of 3.13%.
The 3 year average ROIC (1.45%) for KRG is below the current ROIC(2.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.06% | ||
| ROE | 0.12% | ||
| ROIC | 2.07% |
ROA(3y)0.19%
ROA(5y)-0.22%
ROE(3y)0.37%
ROE(5y)-0.45%
ROIC(3y)1.45%
ROIC(5y)1.13%
1.3 Margins
The Profit Margin of KRG (0.48%) is comparable to the rest of the industry.
The Operating Margin of KRG (21.20%) is comparable to the rest of the industry.
KRG's Operating Margin has been stable in the last couple of years.
KRG has a better Gross Margin (74.16%) than 69.05% of its industry peers.
In the last couple of years the Gross Margin of KRG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.2% | ||
| PM (TTM) | 0.48% | ||
| GM | 74.16% |
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
The debt/assets ratio for KRG is higher compared to a year ago.
2.2 Solvency
KRG has an Altman-Z score of 0.65. This is a bad value and indicates that KRG is not financially healthy and even has some risk of bankruptcy.
KRG has a Altman-Z score of 0.65. This is comparable to the rest of the industry: KRG outperforms 53.17% of its industry peers.
The Debt to FCF ratio of KRG is 11.60, which is on the high side as it means it would take KRG, 11.60 years of fcf income to pay off all of its debts.
KRG has a better Debt to FCF ratio (11.60) than 87.30% of its industry peers.
KRG has a Debt/Equity ratio of 0.97. This is a neutral value indicating KRG is somewhat dependend on debt financing.
KRG has a Debt to Equity ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 11.6 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.3
WACC6.89%
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.
Looking at the Current ratio, with a value of 0.90, KRG is doing worse than 60.32% of the companies in the same industry.
KRG has a Quick 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.
The Quick ratio of KRG (0.90) is comparable to the rest of the 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 40.91% over the past year.
The Revenue has been growing slightly by 2.28% in the past year.
The Revenue has been growing by 21.71% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)40.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y31.14%
Revenue growth 5Y21.71%
Sales Q2Q%7.21%
3.2 Future
The Earnings Per Share is expected to grow by 14.44% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y14.68%
EPS Next 2Y23.09%
EPS Next 3Y14.44%
EPS Next 5YN/A
Revenue Next Year2.72%
Revenue Next 2Y3.34%
Revenue Next 3Y3.77%
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
With a Price/Earnings ratio of 70.74, KRG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KRG is valued a bit more expensive than the industry average as 61.11% of the companies are valued more cheaply.
KRG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.62.
With a Price/Forward Earnings ratio of 61.68, KRG can be considered very expensive at the moment.
KRG's Price/Forward Earnings is on the same level as the industry average.
KRG is valuated expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.74 | ||
| Fwd PE | 61.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KRG.
77.78% 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 | 17.32 | ||
| EV/EBITDA | 13.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KRG's earnings are expected to grow with 14.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.82
PEG (5Y)N/A
EPS Next 2Y23.09%
EPS Next 3Y14.44%
5. Dividend
5.1 Amount
KRG has a Yearly Dividend Yield of 4.73%, which is a nice return.
Compared to an average industry Dividend Yield of 18.31, KRG has a dividend in line with its industry peers.
KRG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
5.2 History
The dividend of KRG decreases each year by -8.66%.
KRG has paid a dividend for at least 10 years, which is a reliable track record.
KRG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-8.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
KRG pays out 5448.12% of its income as dividend. This is not a sustainable payout ratio.
DP5448.12%
EPS Next 2Y23.09%
EPS Next 3Y14.44%
21.93
-0.25 (-1.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.96%
Inst Owner Change-93.82%
Ins Owners0.66%
Ins Owner Change-3.07%
Market Cap4.82B
Analysts78.67
Price Target29.35 (33.83%)
Short Float %4.02%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.66%
DP5448.12%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.14%
Min EPS beat(2)3.14%
Max EPS beat(2)13.15%
EPS beat(4)4
Avg EPS beat(4)20.08%
Min EPS beat(4)3.14%
Max EPS beat(4)32.01%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)0.06%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)1.96%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)1.96%
Revenue beat(8)5
Avg Revenue beat(8)0.15%
Revenue beat(12)9
Avg Revenue beat(12)1.87%
Revenue beat(16)13
Avg Revenue beat(16)2.14%
PT rev (1m)-6.87%
PT rev (3m)-4.78%
EPS NQ rev (1m)5.88%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)4.33%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.74 | ||
| Fwd PE | 61.68 | ||
| P/S | 5.72 | ||
| P/FCF | 17.32 | ||
| P/OCF | 11.5 | ||
| P/B | 1.45 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 13.73 |
EPS(TTM)0.31
EY1.41%
EPS(NY)0.36
Fwd EY1.62%
FCF(TTM)1.27
FCFY5.77%
OCF(TTM)1.91
OCFY8.7%
SpS3.83
BVpS15.08
TBVpS13.45
PEG (NY)4.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.06% | ||
| ROE | 0.12% | ||
| ROCE | 2.62% | ||
| ROIC | 2.07% | ||
| ROICexc | 2.11% | ||
| ROICexgc | 2.23% | ||
| OM | 21.2% | ||
| PM (TTM) | 0.48% | ||
| GM | 74.16% | ||
| FCFM | 33.03% |
ROA(3y)0.19%
ROA(5y)-0.22%
ROE(3y)0.37%
ROE(5y)-0.45%
ROIC(3y)1.45%
ROIC(5y)1.13%
ROICexc(3y)1.47%
ROICexc(5y)1.15%
ROICexgc(3y)1.54%
ROICexgc(5y)1.19%
ROCE(3y)1.83%
ROCE(5y)1.43%
ROICexcg growth 3Y82.59%
ROICexcg growth 5Y0.18%
ROICexc growth 3Y79.27%
ROICexc growth 5Y-0.92%
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-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 11.6 | ||
| Debt/EBITDA | 5.6 | ||
| Cap/Depr | 35.42% | ||
| Cap/Sales | 16.74% | ||
| Interest Coverage | 1.37 | ||
| Cash Conversion | 72.69% | ||
| Profit Quality | 6830.73% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.65 |
F-Score5
WACC6.89%
ROIC/WACC0.3
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)40.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
EPS Next Y14.68%
EPS Next 2Y23.09%
EPS Next 3Y14.44%
EPS Next 5YN/A
Revenue 1Y (TTM)2.28%
Revenue growth 3Y31.14%
Revenue growth 5Y21.71%
Sales Q2Q%7.21%
Revenue Next Year2.72%
Revenue Next 2Y3.34%
Revenue Next 3Y3.77%
Revenue Next 5YN/A
EBIT growth 1Y37.19%
EBIT growth 3Y74.13%
EBIT growth 5Y20.41%
EBIT Next Year234.5%
EBIT Next 3Y53.53%
EBIT Next 5YN/A
FCF growth 1Y10.32%
FCF growth 3Y86.16%
FCF growth 5Y26.84%
OCF growth 1Y6.18%
OCF growth 3Y61%
OCF growth 5Y24.87%