NYSE:KW

Stock Analysis Report

Kennedy-Wilson Holdings

Executive Summary

Kennedy-Wilson Holdings, Inc. operates as a real estate investment company.

Snowflake

Fundamentals

Questionable track record unattractive dividend payer.

Risks

  • Kennedy-Wilson Holdings is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Kennedy-Wilson Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.5%

NYSE:KW

-2.8%

US Real Estate

-1.0%

US Market


1 Year Return

-1.9%

NYSE:KW

-10.6%

US Real Estate

-0.4%

US Market

KW outperformed the Real Estate industry which returned -10.5% over the past year.

KW underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

KWIndustryMarket
7 Day-3.5%-2.8%-1.0%
30 Day0.5%-2.7%-3.3%
90 Day-0.1%2.6%0.8%
1 Year2.2%-1.9%-9.8%-10.6%1.9%-0.4%
3 Year9.4%-2.2%24.2%20.9%39.4%30.4%
5 Year-6.2%-19.4%3.8%0.2%54.2%37.1%

Price Volatility Vs. Market

How volatile is Kennedy-Wilson Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kennedy-Wilson Holdings undervalued based on future cash flows and its price relative to the stock market?

33.21x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Kennedy-Wilson Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Kennedy-Wilson Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Kennedy-Wilson Holdings is overvalued based on earnings compared to the US Real Estate industry average.

Kennedy-Wilson Holdings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Kennedy-Wilson Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Kennedy-Wilson Holdings is overvalued based on assets compared to the US Real Estate industry average.


Next Steps

Future Growth

How is Kennedy-Wilson Holdings expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-174.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kennedy-Wilson Holdings's revenue is expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).

Kennedy-Wilson Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Kennedy-Wilson Holdings's revenue growth is expected to exceed the United States of America market average.

Kennedy-Wilson Holdings's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Kennedy-Wilson Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Kennedy-Wilson Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Kennedy-Wilson Holdings performed over the past 5 years?

47.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Kennedy-Wilson Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Kennedy-Wilson Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Kennedy-Wilson Holdings's 1-year earnings growth is negative, it can't be compared to the US Real Estate industry average.


Return on Equity

Kennedy-Wilson Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kennedy-Wilson Holdings used its assets more efficiently than the US Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Kennedy-Wilson Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kennedy-Wilson Holdings's financial position?


Financial Position Analysis

Kennedy-Wilson Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Kennedy-Wilson Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Kennedy-Wilson Holdings's level of debt (401.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (81.6% vs 401.7% today).

Debt is not well covered by operating cash flow (0%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 0.2x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Kennedy-Wilson Holdings's current dividend yield, its reliability and sustainability?

4.17%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Kennedy-Wilson Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Kennedy-Wilson Holdings's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Kennedy-Wilson Holdings has been paying a dividend for less than 10 years.

Dividend payments have increased, but Kennedy-Wilson Holdings only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Kennedy-Wilson Holdings's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Bill McMorrow (72yo)

31.6yrs

Tenure

US$13,426,907

Compensation

Mr. William J. McMorrow, also known as Bill, serves as the Chief Executive Officer of Kennedy Wilson Commercial Investment Group. Mr. McMorrow has been the Chairman and Chief Executive Officer at Kennedy-W ...


CEO Compensation Analysis

Bill's remuneration is higher than average for companies of similar size in United States of America.

Bill's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.6yrs

Average Tenure

47yo

Average Age

The average tenure for the Kennedy-Wilson Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.3yrs

Average Tenure

68.5yo

Average Age

The average tenure for the Kennedy-Wilson Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$282,55520 Mar 19
Trevor Bowen
EntityIndividual
Shares13,500
Max PriceUS$20.93
BuyUS$149,10007 Mar 19
Richard Boucher
EntityIndividual
Shares7,100
Max PriceUS$21.00

Ownership Breakdown


Management Team

  • Gautam Doshi

    Managing Director

    • Tenure: 1.6yrs
  • Kent Mouton (66yo)

    Executive VP

    • Tenure: 8.6yrs
    • Compensation: $4.70m
  • Mike Collins

    Chief Operating Officer of Kennedy Wilson Europe

    • Tenure: 3.3yrs
  • Justin Enbody (38yo)

    Chief Financial Officer

    • Tenure: 7.3yrs
    • Compensation: $4.25m
  • In Lee (38yo)

    Senior VP

    • Tenure: 6.6yrs
  • Mary Ricks (55yo)

    President & Director

    • Tenure: 1.0yrs
    • Compensation: $9.83m
  • Matt Windisch (39yo)

    Executive Vice President

    • Tenure: 7.6yrs
    • Compensation: $5.08m
  • Bill McMorrow (72yo)

    Chairman & CEO

    • Tenure: 31.6yrs
    • Compensation: $13.43m
  • Daven Bhavsar

    Vice President of Investor Relations

  • Regina Finnegan

    Executive VP and Director of Global Risk Management & Human Resources

    • Tenure: 2.6yrs

Board Members

  • Sanaz Zaimi (48yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: $334.07k
  • Kent Mouton (66yo)

    Executive VP

    • Tenure: 24.6yrs
    • Compensation: $4.70m
  • Mary Ricks (55yo)

    President & Director

    • Tenure: 1.5yrs
    • Compensation: $9.83m
  • John Taylor (69yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: $380.35k
  • Bill McMorrow (72yo)

    Chairman & CEO

    • Tenure: 31.6yrs
    • Compensation: $13.43m
  • Dave Minella (66yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: $381.19k
  • Jerry Solomon (68yo)

    Director

    • Tenure: 18.6yrs
    • Compensation: $381.19k
  • Stanley Zax (81yo)

    Director

    • Tenure: 9.0yrs
    • Compensation: $381.19k
  • Cathy L. Hendrickson (72yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: $391.19k
  • Norm Creighton (83yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: $393.13k

Company Information

Kennedy-Wilson Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kennedy-Wilson Holdings, Inc.
  • Ticker: KW
  • Exchange: NYSE
  • Founded: 1977
  • Industry: real estate operating companies
  • Sector: real estate
  • Market Cap: US$2.970b
  • Shares outstanding: 142.53m
  • Website: Click here

Number of Employees


Location

  • Kennedy-Wilson Holdings, Inc.
  • 151 South El Camino Drive
  • Beverly Hills
  • California
  • 90212
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KWNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2009
13KDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2009
0JQILSE (London Stock Exchange)YesCommon StockGBUSDNov 2009

Biography

Kennedy-Wilson Holdings, Inc. operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 00:35
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.