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 130 industry peers in the Diversified REITs industry. KRG has a medium profitability rating, but doesn't score so well on its financial health evaluation. KRG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
KRG had positive earnings in the past year.
KRG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KRG reported negative net income in multiple years.
KRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KRG has a Return On Assets (0.06%) which is comparable to the rest of the industry.
KRG's Return On Equity of 0.12% is on the low side compared to the rest of the industry. KRG is outperformed by 60.00% of its industry peers.
KRG has a worse Return On Invested Capital (2.07%) than 65.38% 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 3.19%.
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
Looking at the Profit Margin, with a value of 0.48%, KRG is in line with its industry, outperforming 41.54% of the companies in the same industry.
KRG has a Operating Margin of 21.20%. This is comparable to the rest of the industry: KRG outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of KRG has remained more or less at the same level.
KRG's Gross Margin of 74.16% is fine compared to the rest of the industry. KRG outperforms 70.77% of its industry peers.
KRG's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRG is destroying value.
KRG has about the same amout of shares outstanding than it did 1 year ago.
KRG has more shares outstanding than it did 5 years ago.
KRG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.62, we must say that KRG is in the distress zone and has some risk of bankruptcy.
KRG has a Altman-Z score of 0.62. This is comparable to the rest of the industry: KRG outperforms 58.46% of its industry peers.
KRG has a debt to FCF ratio of 11.60. This is a negative value and a sign of low solvency as KRG would need 11.60 years to pay back of all of its debts.
KRG has a better Debt to FCF ratio (11.60) than 90.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.97, KRG is in line with its industry, outperforming 58.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 11.6 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.3
WACC6.98%
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.
KRG has a Current ratio (0.90) which is comparable to the rest of the industry.
A Quick Ratio of 0.90 indicates that KRG may have some problems paying its short term obligations.
KRG has a Quick ratio of 0.90. This is comparable to the rest of the industry: KRG outperforms 53.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
KRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.91%, which is quite impressive.
KRG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
Measured over the past years, KRG shows a very strong growth in Revenue. The Revenue has been growing by 21.71% on average per year.
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
KRG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.63% yearly.
Based on estimates for the next years, KRG will show a small growth in Revenue. The Revenue will grow by 3.65% on average per year.
EPS Next Y13.38%
EPS Next 2Y23.75%
EPS Next 3Y23.63%
EPS Next 5YN/A
Revenue Next Year2.44%
Revenue Next 2Y3.25%
Revenue Next 3Y1.32%
Revenue Next 5Y3.65%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 69.65, KRG can be considered very expensive at the moment.
KRG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of KRG to the average of the S&P500 Index (28.33), we can say KRG is valued expensively.
Based on the Price/Forward Earnings ratio of 61.43, the valuation of KRG can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of KRG to the average of the S&P500 Index (21.37), we can say KRG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.65 | ||
| Fwd PE | 61.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KRG.
Based on the Price/Free Cash Flow ratio, KRG is valued a bit cheaper than the industry average as 76.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 13.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as KRG's earnings are expected to grow with 23.63% in the coming years.
PEG (NY)5.2
PEG (5Y)N/A
EPS Next 2Y23.75%
EPS Next 3Y23.63%
5. Dividend
5.1 Amount
KRG has a Yearly Dividend Yield of 4.92%, which is a nice return.
Compared to an average industry Dividend Yield of 16.87, 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
5.2 History
The dividend of KRG decreases each year by -8.66%.
KRG has been paying a dividend for at least 10 years, so it has 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
5448.12% of the earnings are spent on dividend by KRG. This is not a sustainable payout ratio.
DP5448.12%
EPS Next 2Y23.75%
EPS Next 3Y23.63%
21.59
+0.42 (+1.98%)
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-0.02%
Ins Owners0.66%
Ins Owner Change-0.58%
Market Cap4.75B
Analysts77.33
Price Target28.11 (30.2%)
Short Float %3.5%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
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)-1.98%
PT rev (3m)-10.82%
EPS NQ rev (1m)10.81%
EPS NQ rev (3m)-3.53%
EPS NY rev (1m)-1.14%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.65 | ||
| Fwd PE | 61.43 | ||
| P/S | 5.64 | ||
| P/FCF | 17.07 | ||
| P/OCF | 11.33 | ||
| P/B | 1.43 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 13.45 |
EPS(TTM)0.31
EY1.44%
EPS(NY)0.35
Fwd EY1.63%
FCF(TTM)1.27
FCFY5.86%
OCF(TTM)1.91
OCFY8.83%
SpS3.83
BVpS15.07
TBVpS13.44
PEG (NY)5.2
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 | 0.62 |
F-Score5
WACC6.98%
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 Y13.38%
EPS Next 2Y23.75%
EPS Next 3Y23.63%
EPS Next 5YN/A
Revenue 1Y (TTM)2.28%
Revenue growth 3Y31.14%
Revenue growth 5Y21.71%
Sales Q2Q%7.21%
Revenue Next Year2.44%
Revenue Next 2Y3.25%
Revenue Next 3Y1.32%
Revenue Next 5Y3.65%
EBIT growth 1Y37.19%
EBIT growth 3Y74.13%
EBIT growth 5Y20.41%
EBIT Next Year230.94%
EBIT Next 3Y52.92%
EBIT Next 5Y38.33%
FCF growth 1Y10.32%
FCF growth 3Y86.16%
FCF growth 5Y26.84%
OCF growth 1Y6.18%
OCF growth 3Y61%
OCF growth 5Y24.87%