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 does not seem to be growing, but still is valued expensively. Finally KW also has an excellent dividend rating.
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.
KW had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: KW reported negative operating cash flow in multiple years.
1.2 Ratios
KW has a Return On Assets of -4.80%. This is comparable to the rest of the industry: KW outperforms 41.67% of its industry peers.
KW has a worse Return On Equity (-22.15%) than 61.67% of its industry peers.
The Return On Invested Capital of KW (0.79%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.8% | ||
| ROE | -22.15% | ||
| ROIC | 0.79% |
ROA(3y)0.11%
ROA(5y)0.93%
ROE(3y)0.48%
ROE(5y)4.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 13.63%, KW is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of KW has grown nicely.
KW's Gross Margin of 68.39% is amongst the best of the industry. KW outperforms 85.00% of its industry peers.
In the last couple of years the Gross Margin of KW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.63% | ||
| PM (TTM) | N/A | ||
| GM | 68.39% |
OM growth 3YN/A
OM growth 5Y60.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-12.67%
GM growth 5Y-6.63%
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.
Compared to 1 year ago, KW has more shares outstanding
KW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KW has a worse debt to assets ratio.
2.2 Solvency
KW has an Altman-Z score of 0.11. This is a bad value and indicates that KW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.11, KW is doing worse than 70.00% of the companies in the same industry.
A Debt/Equity ratio of 3.24 is on the high side and indicates that KW has dependencies on debt financing.
The Debt to Equity ratio of KW (3.24) is worse than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.11 |
ROIC/WACC0.14
WACC5.73%
2.3 Liquidity
KW has a Current Ratio of 0.77. 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 Current ratio of 0.77. This is in the lower half of the industry: KW underperforms 75.00% of its industry peers.
KW has a Quick Ratio of 0.77. 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 Quick ratio, with a value of 0.77, KW is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
KW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -396.15%.
KW shows a decrease in Revenue. In the last year, the revenue decreased by -3.77%.
The Revenue has been decreasing by -6.17% on average over the past years.
EPS 1Y (TTM)-396.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%15.15%
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y7.41%
Revenue growth 5Y-6.17%
Sales Q2Q%-9.7%
3.2 Future
Based on estimates for the next years, KW will show a very strong growth in Earnings Per Share. The EPS will grow by 24.58% on average per year.
Based on estimates for the next years, KW will show a decrease in Revenue. The Revenue will decrease by -9.49% on average per year.
EPS Next Y45.57%
EPS Next 2Y24.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-16.32%
Revenue Next 2Y-9.49%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
KW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
Based on the Enterprise Value to EBITDA ratio, KW is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.98 |
4.3 Compensation for Growth
KW's earnings are expected to grow with 24.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.45%, KW is a good candidate for dividend investing.
KW's Dividend Yield is rather good when compared to the industry average which is at 3.28. KW pays more dividend than 96.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, KW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
5.2 History
On average, the dividend of KW grows each year by 10.46%, which is quite nice.
KW has paid a dividend for at least 10 years, which is a reliable track record.
KW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.46%
Div Incr Years0
Div Non Decr Years12
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.
KW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-45.24%
EPS Next 2Y24.58%
EPS Next 3YN/A
8.89
+0.11 (+1.25%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners92.13%
Inst Owner Change-0.82%
Ins Owners13.59%
Ins Owner Change7.96%
Market Cap1.22B
Analysts40
Price Target10.1 (13.61%)
Short Float %2.64%
Short Ratio5.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
Yearly Dividend1.24
Dividend Growth(5Y)10.46%
DP-45.24%
Div Incr Years0
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.76%
Min EPS beat(2)-2.58%
Max EPS beat(2)24.1%
EPS beat(4)2
Avg EPS beat(4)-77.58%
Min EPS beat(4)-457.47%
Max EPS beat(4)125.62%
EPS beat(8)4
Avg EPS beat(8)-116.68%
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)2
Avg Revenue beat(2)27%
Min Revenue beat(2)26.69%
Max Revenue beat(2)27.31%
Revenue beat(4)4
Avg Revenue beat(4)20.7%
Min Revenue beat(4)10.27%
Max Revenue beat(4)27.31%
Revenue beat(8)7
Avg Revenue beat(8)11.78%
Revenue beat(12)11
Avg Revenue beat(12)10.16%
Revenue beat(16)13
Avg Revenue beat(16)7.76%
PT rev (1m)0%
PT rev (3m)17.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.27 | ||
| P/FCF | N/A | ||
| P/OCF | 15.84 | ||
| P/B | 0.76 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 26.98 |
EPS(TTM)-2.58
EYN/A
EPS(NY)-1.1
Fwd EYN/A
FCF(TTM)-1.95
FCFYN/A
OCF(TTM)0.56
OCFY6.31%
SpS3.92
BVpS11.74
TBVpS11.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.8% | ||
| ROE | -22.15% | ||
| ROCE | 1.07% | ||
| ROIC | 0.79% | ||
| ROICexc | 0.83% | ||
| ROICexgc | 0.85% | ||
| OM | 13.63% | ||
| PM (TTM) | N/A | ||
| GM | 68.39% | ||
| FCFM | N/A |
ROA(3y)0.11%
ROA(5y)0.93%
ROE(3y)0.48%
ROE(5y)4.09%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y47.8%
ROICexc growth 3YN/A
ROICexc growth 5Y48.27%
OM growth 3YN/A
OM growth 5Y60.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-12.67%
GM growth 5Y-6.63%
F-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 23.25 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.27 | ||
| Cash Conversion | 34.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.11 |
F-Score5
WACC5.73%
ROIC/WACC0.14
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)-396.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%15.15%
EPS Next Y45.57%
EPS Next 2Y24.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y7.41%
Revenue growth 5Y-6.17%
Sales Q2Q%-9.7%
Revenue Next Year-16.32%
Revenue Next 2Y-9.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y41.15%
EBIT growth 3YN/A
EBIT growth 5Y50.21%
EBIT Next Year55.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-638.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y55.13%
OCF growth 3YN/A
OCF growth 5Y-12.08%