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Kennedy-Wilson Holdings

KW
25
Real Estate - Development · Real Estate
Price
$10.92
-0.01 (-0.09%)
Market Cap
$1.52B
Winston Score
25
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

1.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 140.1M (2021) → 137.9M (2025)

Kennedy-Wilson is a real estate company that buys, manages, and sells properties — mainly apartment buildings and commercial spaces like offices and retail centers. Its main customers are renters, businesses that lease space, and investors who want exposure to real estate. The company focuses heavily on the western United States, Ireland, and the United Kingdom.

Kennedy-Wilson makes money through rental income from the properties it owns, fees for managing real estate on behalf of outside investors, and profits when it sells properties at a higher price than it paid. It operates across the U.S., Ireland, and the U.K., with a portfolio worth several billion dollars in total assets. The company's main competitive edge is its long track record and relationships in those specific markets, but its low returns on invested capital and sensitivity to rising interest rates are key risks, since higher borrowing costs make real estate deals more expensive and can pressure property values.

Winston Score History

Score breakdown

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Quality

Gross Margin
16.0%
Thin — 16.0% gross margin
Operating Margin
9.6%
Modest — 9.6% operating margin
ROCE
0.2%
Weak — 0.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-6.4%
Shrinking sales (-6.4% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
58%
Weak — only 58% of profit becomes cash
FCF Margin
-6.9%
Burning cash (-6.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
3.15
Heavy debt load (3.15)
Interest Cover
0.18x
Dangerous — barely covers interest (0.2x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)
89.1x
Expensive — P/E 89.1

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend Yield
4.40%
Healthy income — 4.40% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
+0.0%
Dividend flat

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