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Kennedy-Wilson Holdings Inc. (KW)
NYSE:KW
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Kennedy-Wilson
(NYSE:KW)
58Neutral
Kennedy-Wilson (KW) vs. S&P 500 (SPY)
Market Cap
$1.30B
Dividend Yield6.36%
Average Volume (3M)595.84K
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth-5.12%
EPS Growth77.33%
CountryUS
Employees259
SectorReal Estate
Sector Strength69
IndustryReal Estate
Share Statistics
EPS (TTM)-0.56
Shares Outstanding138,007,900
10 Day Avg. Volume819,280
30 Day Avg. Volume595,843
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.57
Price to Cash Flow (P/CF)11.00
P/FCF Ratio37.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside0.45% Upside
Rating ConsensusHold
Number of Analyst Covering1
Kennedy-Wilson Business Overview & Revenue Model
Company DescriptionKennedy-Wilson (KW) is a global real estate investment company, focusing primarily on multifamily and commercial properties. The company operates across North America, Europe, and Asia, offering a broad array of real estate-related services, including property management, development, and investment management. Kennedy-Wilson is known for its expertise in acquiring, managing, and enhancing real estate assets to create value for its stakeholders.
How the Company Makes MoneyKennedy-Wilson makes money through a variety of revenue streams centered around its real estate activities. Key revenue sources include rental income from its owned multifamily and commercial properties, fees generated from property management services, and profits from the sale of real estate assets. Additionally, the company earns income through its investment management services, where it manages real estate investments on behalf of third-party investors. Strategic partnerships and joint ventures also play a significant role in the company's earnings, allowing Kennedy-Wilson to leverage additional capital and expertise to enhance property values and operational efficiencies.
Kennedy-Wilson Financial Statement Overview
Summary
Kennedy-Wilson's financial performance is mixed. While the company shows strong operational efficiencies with high gross and EBIT margins, it struggles with profitability due to fluctuating revenues and negative net income. The balance sheet is strong due to no debt, but declining equity poses risks. Cash flow has improved, but historical challenges with free cash flow remain.Income Statement
Kennedy-Wilson has experienced fluctuating revenue trends, with a recent decline from $562.6M to $531.4M. The company reported negative net income in recent years, indicating profitability challenges. However, the gross profit margin remains strong at 100% for 2024, suggesting efficiency in cost management. EBIT margin has significantly improved to 92.7% in 2024, showcasing operational efficiency.45
Neutral
Balance Sheet
The company has a healthy balance sheet with zero total debt as of 2024, reducing financial risk. However, stockholders' equity has decreased over recent years, impacting the equity ratio negatively. The Return on Equity (ROE) is currently negative due to net losses, which is a concern for investor returns. Overall, the balance sheet shows stability but faces challenges in equity growth.65
Positive
Cash Flow
Operating cash flow improved to $55.1M in 2024, reflecting better liquidity. The free cash flow turned positive, but the company has struggled with negative free cash flow in previous years. The operating cash flow to net income ratio suggests that the company is generating more cash than net income, which is positive for cash sustainability.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 531.40M | 562.60M | 540.00M | 453.60M | 450.90M | Gross Profit |
| 531.40M | 372.10M | 359.30M | 308.20M | 301.40M | EBIT |
| 492.60M | 54.30M | 227.70M | 288.00M | 25.50M | EBITDA |
| 385.90M | 212.10M | 400.60M | 454.30M | 205.10M | Net Income Common Stockholders |
| -33.00M | -303.80M | 93.70M | 330.40M | 110.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 217.50M | 313.70M | 439.30M | 524.80M | 965.10M | Total Assets |
| 6.96B | 7.71B | 8.27B | 7.88B | 7.33B | Total Debt |
| 4.78B | 5.30B | 5.59B | 5.43B | 5.09B | Net Debt |
| 4.57B | 4.98B | 5.15B | 4.91B | 4.13B | Total Liabilities |
| 5.33B | 5.91B | 6.26B | 6.07B | 5.66B | Stockholders Equity |
| 1.60B | 1.76B | 1.96B | 1.78B | 1.64B |
| Cash Flow | Free Cash Flow | |||
| 55.10M | -168.30M | -128.00M | -169.50M | -206.70M | Operating Cash Flow |
| 55.10M | 48.90M | 32.90M | -30.30M | -12.60M | Investing Cash Flow |
| 414.20M | -11.70M | -361.60M | -1.04B | 590.80M | Financing Cash Flow |
| -565.50M | -164.80M | 264.20M | 632.00M | -206.60M |
Kennedy-Wilson Technical Analysis
Negative
8.96
Price Trends
9.27
Negative
10.08
Negative
10.13
Negative
Market Momentum
0.09
Negative
41.79
Neutral
38.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KW, the sentiment is Negative. The current price of 8.96 is below the 20-day moving average (MA) of 9.25, below the 50-day MA of 9.27, and below the 200-day MA of 10.13, indicating a bearish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 38.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KW.
Kennedy-Wilson Risk Analysis
Kennedy-Wilson disclosed 40 risk factors in its most recent earnings report. Kennedy-Wilson reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kennedy-Wilson Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $37.78B | 40.04 | 11.61% | ― | 11.95% | -1.25% | |
71 Outperform | $11.44B | 21.39 | 8.37% | ― | 12.87% | 142.90% | |
64 Neutral | $14.56B | 944.18 | 1.32% | 1.94% | -1.30% | -80.81% | |
61 Neutral | $4.74B | 19.16 | -3.00% | 7.93% | 6.45% | -20.78% | |
58 Neutral | $1.30B | ― | -1.97% | 6.36% | -5.12% | 77.33% | |
57 Neutral | $271.58M | 24.35 | 1.69% | ― | -5.52% | ― | |
54 Neutral | $4.50B | 788.30 | 0.71% | 5.05% | 5.12% | ― |
* Real Estate Sector Average
Performance Comparison
KW
Kennedy-Wilson
8.96
1.24
16.06%
CBRE
CBRE Group
125.83
32.09
34.23%
JLL
Jones Lang Lasalle
245.77
59.71
32.09%
SLG
SL Green Realty
57.60
8.75
17.91%
VNO
Vornado Realty
36.40
10.97
43.14%
RMAX
Re/Max Holdings
8.61
0.36
4.36%
Kennedy-Wilson Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -2.29% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant financial growth and strategic achievements, particularly in investment management and capital deployment. While there are concerns about rising refinancing costs and regulatory uncertainty in some markets, the company's strong performance and strategic initiatives suggest a predominantly positive outlook.Highlights
Adjusted EBITDA Growth
Adjusted EBITDA nearly tripled from $190 million in 2023 to $540 million in 2024, indicating strong financial performance.
Investment Management Fees Surge
Investment management fees grew by 60% year-over-year to approximately $100 million in 2024, with the credit platform being a significant driver.
Successful Capital Deployment
Over $4 billion of capital was deployed, including $3.5 billion in debt originations and $800 million in rental housing and industrial acquisitions, an increase of over 50% from 2023 levels.
Record Fee-Bearing Capital
Fee-bearing capital reached a record $8.8 billion, indicating robust growth in their investment management business.
Strong Performance in Real Estate Portfolio
Same-property NOI for the apartment portfolio grew by 5.6% in Q4, with the portfolio ending the quarter at 95% occupancy.
Lowlights
Higher Refinancing Rates in Ireland
The company is refinancing Irish debt at mid-4% rates, up from just under 3%, indicating an increase in financing costs.
Uncertain Future for Rent Caps in Ireland
Current rent caps of 2% are set to expire at the end of 2025, with uncertainty surrounding potential changes by the Irish government.
Exposure to U.K. Economic Policies
Potential concerns related to U.K. office demand due to changes in national insurance and employee costs were noted.
Company Guidance
During the Kennedy-Wilson Fourth Quarter and 2024 Earnings Conference Call, the company provided several key metrics reflecting their performance and strategic direction. Adjusted EBITDA nearly tripled from $190 million in 2023 to $540 million in 2024. Investment management fees grew by 60% year-over-year to approximately $100 million, with significant contributions from their credit platform, which completed a record $1.4 billion in new loan originations in Q4. Overall, $4 billion of capital was deployed in 2024, including $3.5 billion in debt originations and $800 million in rental housing and industrial acquisitions, reflecting a 50% increase from 2023. The company also generated $122 million in cash proceeds from non-core asset sales in Q4, achieving their $550 million asset sale target for 2024. Looking ahead, they anticipate generating over $400 million in cash from asset sales in 2025. Their portfolio includes $28 billion in assets under management, with an estimated annual NOI of $467 million and a record $8.8 billion in fee-bearing capital.Kennedy-Wilson Corporate Events
Executive/Board Changes
Kennedy-Wilson Elects New Independent Directors
Neutral
Oct 22, 2024
Kennedy-Wilson Holdings, Inc. has elected Ms. Nadine I. Watt and Mr. Michael Eisner as independent directors, with terms expiring in 2027 and 2026 respectively. Ms. Watt, CEO of Watt Companies, brings her experience in real estate development, while Mr. Eisner, managing partner of Eisner, LLP, adds legal expertise. Both will receive an annual retainer and restricted stock units as part of their compensation package.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.