NYSE:KW

Stock Analysis Report

Kennedy-Wilson Holdings

Executive Summary

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

Snowflake

Fundamentals

Unattractive 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


Market Performance


7 Day Return

4.0%

KW

-0.2%

US Real Estate

0.07%

US Market


1 Year Return

22.4%

KW

8.6%

US Real Estate

8.9%

US Market

Return vs Industry: KW exceeded the US Real Estate industry which returned 8.6% over the past year.

Return vs Market: KW exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

KWIndustryMarket
7 Day4.0%-0.2%0.07%
30 Day2.6%-1.4%-0.3%
90 Day7.1%-2.0%-1.6%
1 Year27.6%22.4%9.6%8.6%11.3%8.9%
3 Year23.5%10.1%27.9%24.9%46.3%36.8%
5 Year2.2%-12.8%8.5%5.0%62.1%44.3%

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?

36.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KW ($22.74) is trading above our estimate of fair value ($6.62)

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 (36.2x) compared to the Real Estate industry average (21.6x).

PE vs Market: KW is poor value based on its PE Ratio (36.2x) compared to the US market (17.8x).


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 (2.6x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

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

-155.8%

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 (-155.8% per year).

Earnings vs Market: KW's earnings are forecast to decline over the next 3 years (-155.8% per year).

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

Revenue vs Market: KW's revenue (0.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: KW's revenue (0.1% 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?

47.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KW's earnings have grown significantly by 47.3% 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 (-55.1%) over the past year, making it difficult to compare to the Real Estate industry average (-22.6%).


Return on Equity

High ROE: KW's Return on Equity (14.6%) is considered low.


Return on Assets

ROA vs Industry: KW's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: KW's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Kennedy-Wilson Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KW's short term assets ($616.6M) exceeds its short term liabilities ($510.6M)

Long Term Liabilities: KW's short term assets (616.6M) do not cover its long term liabilities (5.2B)


Debt to Equity History and Analysis

Debt Level: KW's debt to equity ratio (401.7%) is considered high

Reducing Debt: KW's debt to equity ratio has increased from 81.6% to 401.7% over the past 5 years.

Debt Coverage: KW's debt is not well covered by operating cash flow (0.03%).

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?

3.69%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KW's dividend (3.69%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KW's dividend (3.69%) is in the top 25% of dividend payers in the US market (3.68%)

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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (130.7%), 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

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

3.4yrs

Average management tenure


CEO

Bill McMorrow (72yo)

31.8yrs

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 ($USD13.43M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: KW's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

12.5yrs

Average Tenure

68.5yo

Average Age

Experienced Board: KW's board of directors are seasoned and experienced ( 12.5 years average tenure).


Insider Trading

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


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

  • Bill McMorrow (72yo)

    Chairman & CEO

    • Tenure: 31.8yrs
    • Compensation: US$13.43m
  • Kent Mouton (66yo)

    Executive VP

    • Tenure: 24.8yrs
    • Compensation: US$4.70m
  • Mary Ricks (55yo)

    President & Director

    • Tenure: 1.7yrs
    • Compensation: US$9.83m
  • Matt Windisch (39yo)

    Executive Vice President

    • Tenure: 7.8yrs
    • Compensation: US$5.08m
  • Justin Enbody (38yo)

    Chief Financial Officer

    • Tenure: 7.5yrs
    • Compensation: US$4.25m
  • Mike Collins

    Chief Operating Officer of Kennedy Wilson Europe

    • Tenure: 3.4yrs
  • Daven Bhavsar

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Gautam Doshi

    Managing Director

    • Tenure: 1.8yrs
  • Regina Finnegan

    Executive VP and Director of Global Risk Management & Human Resources

    • Tenure: 2.8yrs
  • Juliana Dalton

    Head of Corporate Affairs - Europe

    • Tenure: 1.8yrs

Board Members

  • Bill McMorrow (72yo)

    Chairman & CEO

    • Tenure: 31.8yrs
    • Compensation: US$13.43m
  • Stanley Zax (81yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$381.19k
  • Norm Creighton (83yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$393.13k
  • Kent Mouton (66yo)

    Executive VP

    • Tenure: 24.8yrs
    • Compensation: US$4.70m
  • Mary Ricks (55yo)

    President & Director

    • Tenure: 1.7yrs
    • Compensation: US$9.83m
  • Jerry Solomon (68yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: US$381.19k
  • Dave Minella (66yo)

    Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$381.19k
  • Cathy L. Hendrickson (72yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$391.19k
  • John Taylor (69yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$380.35k
  • Sanaz Zaimi (49yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$334.07k

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$3.241b
  • Shares outstanding: 142.53m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:14
End of Day Share Price2019/10/22 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.