NEW YORK (
-- Kennedy-Wilson Holdings
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in stock price during the past year, compelling growth in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- In its most recent trading session, KW has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The revenue fell significantly faster than the industry average of 10.8%. Since the same quarter one year prior, revenues fell by 27.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- 42.20% is the gross profit margin for KENNEDY-WILSON HOLDINGS INC which we consider to be strong. Regardless of KW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KW's net profit margin of 12.40% is significantly lower than the same period one year prior.
- The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels.
- KENNEDY-WILSON HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, KENNEDY-WILSON HOLDINGS INC continued to lose money by earning -$0.03 versus -$0.37 in the prior year. This year, the market expects an improvement in earnings ($0.07 versus -$0.03).
Kennedy-Wilson Holdings, Inc. operates as a diversified real estate company that provides investment and real estate services in the United States and Japan. The company operates in two business units, KW Investments and KW Services. Kennedy-Wilson has a market cap of $448.8 million and is part of the
industry. Shares are unchanged year to date as of the close of trading on Wednesday.
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