Kennedy Wilson Return On Equity vs. Current Valuation

KW Stock  USD 11.48  0.22  1.95%   
Considering Kennedy Wilson's profitability and operating efficiency indicators, Kennedy Wilson's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Kennedy Wilson's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.17)
Current Value
(0.16)
Quarterly Volatility
0.10146651
 
Credit Downgrade
 
Yuan Drop
 
Covid
Price To Sales Ratio is likely to drop to 2.90 in 2024. Days Sales Outstanding is likely to drop to 186.24 in 2024. At this time, Kennedy Wilson's Operating Income is fairly stable compared to the past year. Net Income Applicable To Common Shares is likely to climb to about 77.2 M in 2024, despite the fact that Income Before Tax is likely to grow to (319.9 M).
For Kennedy Wilson profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kennedy Wilson to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kennedy Wilson Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kennedy Wilson's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kennedy Wilson Holdings over time as well as its relative position and ranking within its peers.
  

Kennedy Wilson's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Real Estate Management & Development space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Kennedy Wilson. If investors know Kennedy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Kennedy Wilson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.40)
Dividend Share
0.72
Earnings Share
(2.63)
Revenue Per Share
3.497
Quarterly Revenue Growth
(0.10)
The market value of Kennedy Wilson Holdings is measured differently than its book value, which is the value of Kennedy that is recorded on the company's balance sheet. Investors also form their own opinion of Kennedy Wilson's value that differs from its market value or its book value, called intrinsic value, which is Kennedy Wilson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Kennedy Wilson's market value can be influenced by many factors that don't directly affect Kennedy Wilson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kennedy Wilson's value and its price as these two are different measures arrived at by different means. Investors typically determine if Kennedy Wilson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kennedy Wilson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Kennedy Wilson Holdings Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Kennedy Wilson's current stock value. Our valuation model uses many indicators to compare Kennedy Wilson value to that of its competitors to determine the firm's financial worth.
Kennedy Wilson Holdings is rated fifth overall in return on equity category among its peers. It is rated third overall in current valuation category among its peers . At this time, Kennedy Wilson's Return On Equity is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Kennedy Wilson by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Kennedy Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Kennedy Wilson

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.17
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Kennedy Wilson

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
7.2 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Kennedy Current Valuation vs Competition

Kennedy Wilson Holdings is rated third overall in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Real Estate industry is now estimated at about 76.99 Billion. Kennedy Wilson holds roughly 7.2 Billion in current valuation claiming about 9% of equities listed under Real Estate industry.

Kennedy Wilson Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Kennedy Wilson, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kennedy Wilson will eventually generate negative long term returns. The profitability progress is the general direction of Kennedy Wilson's change in net profit over the period of time. It can combine multiple indicators of Kennedy Wilson, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-404.4 M-384.2 M
Operating Income54.3 M69.6 M
Income Before Tax-336.7 M-319.9 M
Net Income Applicable To Common Shares74.5 M77.2 M
Net Loss-303.8 M-288.6 M
Income Tax Expense-55.3 M-52.5 M
Total Other Income Expense Net-391 M-371.4 M
Net Loss-6.3 M-6 M
Non Operating Income Net Other205.2 M247.4 M
Interest Income38.2 M36.3 M
Net Interest Income-252.5 M-265.1 M
Change To Netincome-84.9 M-89.1 M
Net Loss(2.19)(2.08)
Income Quality(0.16)(0.15)
Net Income Per E B T 0.90  0.49 

Kennedy Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Kennedy Wilson. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Kennedy Wilson position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Kennedy Wilson's important profitability drivers and their relationship over time.

Use Kennedy Wilson in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Kennedy Wilson position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kennedy Wilson will appreciate offsetting losses from the drop in the long position's value.

Kennedy Wilson Pair Trading

Kennedy Wilson Holdings Pair Trading Analysis

The ability to find closely correlated positions to Kennedy Wilson could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kennedy Wilson when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Kennedy Wilson - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Kennedy Wilson Holdings to buy it.
The correlation of Kennedy Wilson is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Kennedy Wilson moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kennedy Wilson Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Kennedy Wilson can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Kennedy Wilson position

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Conservative Funds
Conservative Funds Theme
Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative Funds theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Conservative Funds Theme or any other thematic opportunities.
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Additional Tools for Kennedy Stock Analysis

When running Kennedy Wilson's price analysis, check to measure Kennedy Wilson's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Kennedy Wilson is operating at the current time. Most of Kennedy Wilson's value examination focuses on studying past and present price action to predict the probability of Kennedy Wilson's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Kennedy Wilson's price. Additionally, you may evaluate how the addition of Kennedy Wilson to your portfolios can decrease your overall portfolio volatility.