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Kennedy-Wilson Holdings Inc. (KW)
NYSE:KW
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Kennedy-Wilson
(NYSE:KW)
50Neutral
Kennedy-Wilson (KW) vs. S&P 500 (SPY)
Market Cap
$923.80M
Dividend Yield7.18%
Average Volume (3M)1.13M
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-7.27%
EPS Growth46.78%
CountryUS
Employees244
SectorReal Estate
Sector Strength67
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.30
Shares Outstanding138,293,290
10 Day Avg. Volume1,477,600
30 Day Avg. Volume1,127,393
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)0.74
Price to Sales (P/S)0.00
P/FCF Ratio34.64
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 Upside34.73% Upside
Rating ConsensusHold
Number of Analyst Covering1
Kennedy-Wilson Business Overview & Revenue Model
Company DescriptionKennedy-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 investment management platform. It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. As of December 31, 2021, the company had ownership interests in 10,460 multifamily units, 4.9 million square feet of office space, 3.4 million square feet of retail and industrial space, and one hotel. It is also involved in the development, redevelopment, and entitlement of real estate properties. The company was founded in 1977 and is headquartered in Beverly Hills, California.
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
Neutral
6.68
Price Trends
7.39
Negative
8.28
Negative
9.43
Negative
Market Momentum
-0.22
Negative
48.42
Neutral
42.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KW, the sentiment is Neutral. The current price of 6.68 is above the 20-day moving average (MA) of 6.48, below the 50-day MA of 7.39, and below the 200-day MA of 9.43, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 42.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KW.
Kennedy-Wilson Risk Analysis
Kennedy-Wilson disclosed 37 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.44B | 15.24 | 9.53% | ― | 1.24% | 1205.18% | |
70 Outperform | $883.32M | ― | -52.95% | ― | 83.50% | 8.45% | |
67 Neutral | $494.42M | 12.93 | 8.36% | 11.61% | -18.14% | -55.82% | |
60 Neutral | $2.82B | 10.29 | 0.39% | 8508.26% | 5.90% | -17.41% | |
60 Neutral | $2.14B | 29.46 | 5.32% | 1.04% | 13.87% | 90.42% | |
53 Neutral | $1.14B | ― | -1.09% | 1.68% | 14.79% | 82.32% | |
50 Neutral | $923.80M | ― | -6.10% | 7.18% | -7.27% | 46.78% |
* Real Estate Sector Average
Performance Comparison
KW
Kennedy-Wilson
6.68
-3.11
-31.77%
MMI
Marcus & Millichap
29.37
-4.81
-14.07%
RMR
The RMR Group
15.23
-6.53
-30.01%
NMRK
Newmark Group
11.59
0.80
7.41%
CWK
Cushman & Wakefield
10.36
-1.09
-9.52%
REAX
Real Brokerage
4.33
-0.72
-14.26%
Kennedy-Wilson Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 1.06%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong capital deployment, asset growth, and investment management fee increases. However, the company faced challenges with a GAAP EPS loss and pricing pressures in the loan origination market due to increased competition.Q1-2025 Updates
Positive Updates
Strong Capital Deployment
Deployed or committed approximately $1 billion of new capital in Q1, with a strong pipeline expected to reach $3.5 billion for the first half of 2025, compared to $4 billion for all of 2024.
Growth in Assets Under Management
Assets under management grew by 26% over the past two years to $29 billion, producing approximately $575 million in estimated annual NOI and fees.
Investment Management Fee Growth
Investment management fees grew by 17% in Q1 to $25 million, with a target of 20% to 25% annual growth.
Reduction in Unsecured Debt
Paid down unsecured debt by $250 million over the last two years, with plans to reduce it further using proceeds from asset sales.
Strong Portfolio Performance
The stabilized portfolio generates estimated annual NOI of $473 million, with a focus on rental housing and industrial sectors.
Negative Updates
GAAP EPS Loss
GAAP EPS for the first quarter totaled a loss of $0.30 per share compared to income of $0.19 per share in Q1 of 2024.
Pricing Pressure on Loan Originations
Experienced downward pressure on spreads for loan originations, with a decrease of 30 to 40 basis points on average.
Increased Competition in Loan Market
Faced more competition from life insurance companies, banks, and private lenders, affecting pricing and spreads.
Company Guidance
During the Kennedy-Wilson First Quarter 2025 Earnings Conference Call, the company provided several key metrics and insights into their performance and strategic initiatives. In Q1 2025, Kennedy-Wilson deployed or committed approximately $1 billion of new capital, primarily through their credit platform, with a pipeline totaling $2.5 billion of loan originations and real estate equity acquisitions. They anticipate total capital deployment of $3.5 billion for the first half of 2025, compared to $4 billion for all of 2024. The company's assets under management have grown by 26% over the past two years to $29 billion, with rental housing comprising 66% of their portfolio. Investment management fees increased by 17% in Q1 to $25 million, and the company aims for an annual fee revenue growth target of 20% to 25%. The call highlighted a focus on asset sales and unsecured debt reductions, aiming to generate $400 million to $450 million of cash from asset sales and recaps by year-end. Their total debt is 96% fixed or hedged, with a weighted average maturity of 4.8 years and an effective interest rate of 4.7%.Kennedy-Wilson Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Kennedy-Wilson Completes Recapitalization, Raises $125 Million
Neutral
May 14, 2025
On May 13, 2025, Kennedy-Wilson Holdings completed a recapitalization transaction involving a hotel property, resulting in $125 million in cash and a reduction of its ownership stake in a joint venture from 50% to 35%. The company plans to use these funds to reduce its unsecured debt, including amounts owed under its corporate line of credit and the Kennedy Wilson Europe Unsecured Notes due November 2025.
The most recent analyst rating on (KW) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Kennedy-Wilson stock, see the KW Stock Forecast page.
Spark’s Take on KW Stock
According to Spark, TipRanks’ AI Analyst, KW is a Neutral.
Kennedy-Wilson’s stock reflects a balance of strengths and challenges. Strong capital deployment and improved cash flows are positive, while profitability issues and negative valuation metrics are significant concerns. The bearish technical indicators and competition in the loan market add further pressure, resulting in a moderate stock score.
To see Spark’s full report on KW stock, click here.
Financial Disclosures
Kennedy-Wilson Releases 2024 Financial Statements
Negative
Apr 25, 2025
On April 25, 2025, Kennedy Wilson Europe Real Estate Limited released its audited financial statements for the year ended December 31, 2024. The company reported a decrease in gross revenues from £165.6 million in 2023 to £113.0 million in 2024, primarily due to asset sales, including The Shelbourne Hotel. Despite a loss of £61.8 million after taxation, the company remains in a strong financial position with significant loan repayments and a cash balance of £49.8 million at year-end.
Spark’s Take on KW Stock
According to Spark, TipRanks’ AI Analyst, KW is a Neutral.
Kennedy-Wilson’s overall stock score reflects a mix of strengths and challenges. The strong performance in the latest earnings call and improvements in cash flow are significant positives, contributing to a positive outlook. However, the company’s technical indicators suggest bearish momentum, and valuation concerns due to negative earnings put downward pressure on the score. The absence of debt and a high dividend yield are notable strengths, but consistent profitability and equity growth remain areas for improvement.
To see Spark’s full report on KW stock, click here.
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.