KENNEDY-WILSON HOLDINGS INC (KW) Stock Fundamental Analysis
NYSE:KW - New York Stock Exchange, Inc. - US4893981070 - Common Stock - Currency: USD
KW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 64 industry peers in the Real Estate Management & Development industry. There are concerns on the financial health of KW while its profitability can be described as average. KW has a expensive valuation and it also scores bad on growth. 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.
The reported net income has been mixed in the past 5 years: KW reported negative net income in multiple 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
The Return On Assets of KW (-1.10%) is comparable to the rest of the industry.
KW's Return On Equity of -4.78% is in line compared to the rest of the industry. KW outperforms 53.13% of its industry peers.
KW has a Return On Invested Capital of 0.84%. This is in the better half of the industry: KW outperforms 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KW is significantly below the industry average of 5.55%.
The 3 year average ROIC (0.53%) for KW is below the current ROIC(0.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.1% | ||
| ROE | -4.78% | ||
| ROIC | 0.84% |
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
Looking at the Operating Margin, with a value of 12.89%, KW belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
Looking at the Gross Margin, with a value of 70.34%, 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 | 12.89% | ||
| PM (TTM) | N/A | ||
| GM | 70.34% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KW is destroying value.
KW has less shares outstanding than it did 1 year ago.
KW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KW has remained at the same level compared to a year ago.
2.2 Solvency
KW has an Altman-Z score of 0.06. This is a bad value and indicates that KW is not financially healthy and even has some risk of bankruptcy.
KW's Altman-Z score of 0.06 is on the low side compared to the rest of the industry. KW is outperformed by 67.19% of its industry peers.
A Debt/Equity ratio of 2.99 is on the high side and indicates that KW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.99, KW is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.06 |
ROIC/WACC0.15
WACC5.79%
2.3 Liquidity
KW has a Current Ratio of 0.50. 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 0.50 is on the low side compared to the rest of the industry. KW is outperformed by 84.38% of its industry peers.
A Quick Ratio of 0.50 indicates that KW may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, KW is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
KW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.24%, which is quite impressive.
Looking at the last year, KW shows a decrease in Revenue. The Revenue has decreased by -5.55% in the last year.
The Revenue has been decreasing by -1.35% on average over the past years.
EPS 1Y (TTM)77.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%113.48%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y5.42%
Revenue growth 5Y-1.35%
Sales Q2Q%-3.28%
3.2 Future
The Earnings Per Share is expected to decrease by -22.06% on average over the next years. This is quite bad
The Revenue is expected to grow by 14.71% on average over the next years. This is quite good.
EPS Next Y-42.54%
EPS Next 2Y-22.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.56%
Revenue Next 2Y14.71%
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
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
65.63% 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 | 25.12 |
4.3 Compensation for Growth
KW's earnings are expected to decrease with -22.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.07%, KW is a good candidate for dividend investing.
In the last 3 months the price of KW has falen by -30.15%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.72, KW pays a better dividend. On top of this KW pays more dividend than 95.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, KW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
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.
KW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.8%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
KW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-187.84%
EPS Next 2Y-22.06%
EPS Next 3YN/A
6.37
+0.02 (+0.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners89.37%
Inst Owner Change-0.11%
Ins Owners14.39%
Ins Owner Change9.59%
Market Cap879.12M
Analysts41.82
Price Target9.49 (48.98%)
Short Float %2.45%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
Yearly Dividend1.04
Dividend Growth(5Y)4.8%
DP-187.84%
Div Incr Years0
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)84.56%
Min EPS beat(2)-2.58%
Max EPS beat(2)171.7%
EPS beat(4)3
Avg EPS beat(4)79.71%
Min EPS beat(4)-2.58%
Max EPS beat(4)171.7%
EPS beat(8)4
Avg EPS beat(8)-110.45%
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)2.86%
Min Revenue beat(2)-20.97%
Max Revenue beat(2)26.69%
Revenue beat(4)3
Avg Revenue beat(4)12.89%
Min Revenue beat(4)-20.97%
Max Revenue beat(4)27.31%
Revenue beat(8)6
Avg Revenue beat(8)9.07%
Revenue beat(12)10
Avg Revenue beat(12)7.29%
Revenue beat(16)13
Avg Revenue beat(16)6.76%
PT rev (1m)-1.59%
PT rev (3m)-6.06%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)32.14%
EPS NY rev (1m)27.57%
EPS NY rev (3m)27.57%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)64.46%
Revenue NY rev (1m)-1.67%
Revenue NY rev (3m)64.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.65 | ||
| P/FCF | N/A | ||
| P/OCF | 15.96 | ||
| P/B | 0.55 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 25.12 |
EPS(TTM)-0.56
EYN/A
EPS(NY)-0.8
Fwd EYN/A
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)0.4
OCFY6.27%
SpS3.85
BVpS11.6
TBVpS11.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.1% | ||
| ROE | -4.78% | ||
| ROCE | 1.07% | ||
| ROIC | 0.84% | ||
| ROICexc | 0.87% | ||
| ROICexgc | 0.88% | ||
| OM | 12.89% | ||
| PM (TTM) | N/A | ||
| GM | 70.34% | ||
| 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-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 22.07 | ||
| Cap/Depr | 99.93% | ||
| Cap/Sales | 27.89% | ||
| Interest Coverage | 0.27 | ||
| Cash Conversion | 25.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 0.06 |
F-Score6
WACC5.79%
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)77.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%113.48%
EPS Next Y-42.54%
EPS Next 2Y-22.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y5.42%
Revenue growth 5Y-1.35%
Sales Q2Q%-3.28%
Revenue Next Year25.56%
Revenue Next 2Y14.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y26.15%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year91.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y44.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.68%
OCF growth 3YN/A
OCF growth 5YN/A