NYSE:KW

Stock Analysis Report

Kennedy-Wilson Holdings

Executive Summary

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

Rewards

Revenue is forecast to grow 8.39% per year

Risk Analysis

Earnings are forecast to decline by an average of -113.7% per year for the next 3 years

Interest payments are not well covered by earnings

Dividend of 3.99% is not well covered by earnings

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Second-rate dividend payer with concerning outlook.


Similar Companies

Jones Lang LaSalle

NYSE:JLL

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

Stable Share Price: KW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

KW

-0.6%

US Real Estate

0.5%

US Market


1 Year Return

2.8%

KW

8.3%

US Real Estate

20.3%

US Market

Return vs Industry: KW underperformed the US Real Estate industry which returned 8.3% over the past year.

Return vs Market: KW underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

KWIndustryMarket
7 Day-1.3%-0.6%0.5%
30 Day-1.7%2.0%2.0%
90 Day-1.3%9.6%9.4%
1 Year7.0%2.8%9.2%8.3%22.8%20.3%
3 Year13.4%0.8%28.7%25.6%50.1%40.4%
5 Year-2.7%-17.5%15.5%11.7%73.1%54.1%

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 compared to its fair value and its price relative to the market?

32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KW ($22.05) is trading above our estimate of fair value ($8.55)

Significantly Below Fair Value: KW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KW is poor value based on its PE Ratio (32x) compared to the Real Estate industry average (21.8x).

PE vs Market: KW is poor value based on its PE Ratio (32x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: KW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KW is overvalued based on its PB Ratio (2.5x) compared to the US Real Estate industry average (1.4x).


Next Steps

Future Growth

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

-113.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KW's earnings are forecast to decline over the next 3 years (-113.7% per year).

Earnings vs Market: KW's earnings are forecast to decline over the next 3 years (-113.7% per year).

High Growth Earnings: KW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KW's revenue (8.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: KW's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

45.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KW has a large one-off gain of $435.7M impacting its September 30 2019 financial results.

Growing Profit Margin: KW's current net profit margins (14.3%) are lower than last year (26.6%).


Past Earnings Growth Analysis

Earnings Trend: KW's earnings have grown significantly by 45.6% per year over the past 5 years.

Accelerating Growth: KW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KW had negative earnings growth (-55.5%) over the past year, making it difficult to compare to the Real Estate industry average (-31.1%).


Return on Equity

High ROE: KW's Return on Equity (15.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kennedy-Wilson Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KW's short term assets ($606.6M) exceed its short term liabilities ($514.4M).

Long Term Liabilities: KW's short term assets ($606.6M) do not cover its long term liabilities ($5.1B).


Debt to Equity History and Analysis

Debt Level: KW's debt to equity ratio (402.3%) is considered high.

Reducing Debt: KW's debt to equity ratio has increased from 101.9% to 402.3% over the past 5 years.

Debt Coverage: KW's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: KW's interest payments on its debt are not well covered by EBIT (0.2x coverage).


Balance Sheet

Inventory Level: KW has a low level of unsold assets or inventory.

Debt Coverage by Assets: KW's 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?

3.99%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: KW's dividend (3.99%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: KW's dividend (3.99%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KW has been paying a dividend for less than 10 years.

Growing Dividend: KW's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (121.8%), KW's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KW's dividends in 3 years are forecast to be covered by earnings (64.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Bill McMorrow (72yo)

32.1yrs

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

Compensation vs Market: Bill's total compensation ($USD13.43M) is above average for companies of similar size in the US market ($USD4.89M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William McMorrow
Chairman & CEO32.1yrsUS$13.43m8.76% $275.4m
Mary Ricks
President & Director2yrsUS$9.83m1.17% $36.7m
Justin Enbody
Chief Financial Officer7.8yrsUS$4.25m0.27% $8.4m
Kent Mouton
Executive VP25.1yrsUS$4.70m0.32% $10.1m
Matt Windisch
Executive Vice President8.1yrsUS$5.08m0.46% $14.3m
Daven Bhavsar
Vice President of Investor Relations0yrsno datano data
Regina Finnegan
Executive VP and Director of Global Risk Management & Human Resources3.1yrsno datano data
Michael Collins
Chief Operating Officer of Kennedy Wilson Europe3.8yrsno datano data
Gautam Doshi
Managing Director2.1yrsno datano data
Juliana Dalton
Head of Corporate Affairs - Europe2.1yrsno datano data

3.8yrs

Average Tenure

55yo

Average Age

Experienced Management: KW's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William McMorrow
Chairman & CEO32.1yrsUS$13.43m8.76% $275.4m
Mary Ricks
President & Director2yrsUS$9.83m1.17% $36.7m
Kent Mouton
Executive VP25.1yrsUS$4.70m0.32% $10.1m
Stanley Zax
Independent Director9.5yrsUS$381.19k0.22% $7.0m
Norman Creighton
Independent Director16.1yrsUS$393.13k0.23% $7.3m
Jerry Solomon
Director19.1yrsUS$381.19k0.10% $3.3m
David Minella
Lead Independent Director1.8yrsUS$381.19k1.68% $52.8m
Cathy L. Hendrickson
Independent Director16.1yrsUS$391.19k0.048% $1.5m
John Taylor
Independent Director2yrsUS$380.35k0.014% $452.4k
Sanaz Zaimi
Independent Director1.8yrsUS$334.07k0.014% $452.4k

12.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: KW's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$3.144b
  • Shares outstanding: 142.45m
  • Website: https://www.kennedywilson.com

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 on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company owns interest in approximately 53 million square feet of property, including 28,613 multifamily rental units; and 18.9 million square feet of commercial property. It also provides real estate services primarily to financial services clients. In addition, the company is involved in the development, redevelopment, and entitlement of real estate properties; and management of real estate properties for third parties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:58
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
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.