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NEW YORK (TheStreet) -- Kennedy-Wilson Holdings (KW) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate KENNEDY-WILSON HOLDINGS INC (KW) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and expanding profit margins. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- KW's very impressive revenue growth greatly exceeded the industry average of 0.4%. Since the same quarter one year prior, revenues leaped by 239.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- KENNEDY-WILSON HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KENNEDY-WILSON HOLDINGS INC reported poor results of -$0.20 versus -$0.09 in the prior year. This year, the market expects an improvement in earnings ($0.14 versus -$0.20).
- The gross profit margin for KENNEDY-WILSON HOLDINGS INC is rather high; currently it is at 65.79%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, KW's net profit margin of -0.17% significantly underperformed when compared to the industry average.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Real Estate Management & Development industry average, but is greater than that of the S&P 500. The net income increased by 90.5% when compared to the same quarter one year prior, rising from -$2.10 million to -$0.20 million.
- Although KW's debt-to-equity ratio of 2.88 is very high, it is currently less than that of the industry average.
- You can view the full analysis from the report here: KW Ratings Report