NEW YORK ( TheStreet) -- Kennedy-Wilson Holdings (NYSE: KW) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- KW's very impressive revenue growth greatly exceeded the industry average of 8.3%. Since the same quarter one year prior, revenues leaped by 72.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- This stock has managed to rise its share value by 38.52% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Management & Development industry. The net income increased by 326.7% when compared to the same quarter one year prior, rising from $2.34 million to $9.99 million.
- The gross profit margin for KENNEDY-WILSON HOLDINGS INC is currently very high, coming in at 96.80%. It has increased significantly from the same period last year. Along with this, the net profit margin of 30.60% significantly outperformed against the industry average.
- KW's debt-to-equity ratio of 0.78 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
-- Written by a member of TheStreet RatingsStaff