NYSE:KW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Kennedy-Wilson Holdings

Market Cap

US$3.0b

Last Updated

2021/06/20 22:44 UTC

Data Sources

Company Financials +

Executive Summary

Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. More Details


Snowflake Analysis

Average dividend payer with poor track record.


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

Stable Share Price: KW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: KW's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-5.2%

KW

-1.8%

US Real Estate

-1.9%

US Market


1 Year Return

23.7%

KW

79.6%

US Real Estate

38.2%

US Market

Return vs Industry: KW underperformed the US Real Estate industry which returned 79.6% over the past year.

Return vs Market: KW underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

KWIndustryMarket
7 Day-5.2%-1.8%-1.9%
30 Day-1.0%0.5%1.1%
90 Day-5.8%-11.1%4.3%
1 Year30.5%23.7%82.5%79.6%40.4%38.2%
3 Year6.3%-7.5%30.0%21.8%57.5%47.8%
5 Year32.2%7.4%70.2%48.4%127.2%101.7%

Long-Term 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?

28.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KW ($19.57) is trading above our estimate of fair value ($12.7)

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 (28.1x) compared to the US Real Estate industry average (23.5x).

PE vs Market: KW is poor value based on its PE Ratio (28.1x) compared to the US market (18.9x).


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 (2.1x) compared to the US Real Estate industry average (1.4x).


Future Growth

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

-74.6%

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 (-74.6% per year).

Earnings vs Market: KW's earnings are forecast to decline over the next 3 years (-74.6% per year).

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

Revenue vs Market: KW's revenue (7.4% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: KW's revenue (7.4% 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


Past Performance

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

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KW has a large one-off gain of $394.3M impacting its March 31 2021 financial results.

Growing Profit Margin: KW's current net profit margins (20.6%) are lower than last year (35%).


Past Earnings Growth Analysis

Earnings Trend: KW's earnings have grown significantly by 25.6% 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 (-55.7%) over the past year, making it difficult to compare to the Real Estate industry average (-7.5%).


Return on Equity

High ROE: KW's Return on Equity (6.8%) is considered low.


Financial Health

How is Kennedy-Wilson Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KW's short term assets ($1.7B) exceed its short term liabilities ($485.0M).

Long Term Liabilities: KW's short term assets ($1.7B) do not cover its long term liabilities ($5.5B).


Debt to Equity History and Analysis

Debt Level: KW's debt to equity ratio (334.5%) is considered high.

Reducing Debt: KW's debt to equity ratio has increased from 161.8% to 334.5% over the past 5 years.

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

Interest Coverage: Insufficient data to determine if KW's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

4.50%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 20 2021Ex Dividend DateJun 29 2021Dividend Pay DateJul 08 20219 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: KW's dividend (4.5%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: KW's dividend (4.5%) is in the top 25% of dividend payers in the US market (3.49%)


Stability and Growth of Payments

Stable Dividend: KW's dividends per share have been stable in the past 10 years.

Growing Dividend: KW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (126.2%), KW's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Bill McMorrow (73 yo)

33.42yrs

Tenure

US$16,444,951

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 ($USD16.44M) is above average for companies of similar size in the US market ($USD5.38M).

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


Leadership Team

Experienced Management: KW's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: KW's board of directors are considered experienced (3.3 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 been diluted in the past year, with total shares outstanding growing by 6.5%.


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$2.991b
  • Shares outstanding: 152.83m
  • 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


Biography

Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investmen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 22:44
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.