📊 KW Key Takeaways
Is Kennedy-Wilson Holdings, Inc. (KW) a Good Investment?
Kennedy-Wilson faces severe financial distress with interest coverage of 0.2x, unable to cover interest expenses from operating income. Negative operating cash flow of -$87.9M combined with 2.9x debt-to-equity leverage creates unsustainable debt dynamics. Declining revenue (-5.7% YoY) and collapsing net income (-263% YoY) signal deteriorating operational fundamentals.
Fundamentals show contracting revenue and a swing to net losses while leverage remains elevated and interest coverage is below 1x, signaling pressure on debt service. Although the company maintains a sizable asset base and positive operating income, cash generation is minimal relative to obligations. Until operating cash flow and coverage improve, the risk profile outweighs the upside.
Kennedy-Wilson Holdings, Inc. Key Strengths (KW)
- Acceptable operating margin of 11.1% and net margin of 11.7% demonstrate core profitability
- Maintains $184.6M in cash equivalents for near-term liquidity needs
- Real estate asset base of $6.8B provides collateral value and diversified revenue streams
- Large asset base with positive equity ($6.62B assets, $1.54B equity)
- Positive operating income and 7.5% operating margin
- Cash and equivalents of $184.5M provide liquidity buffer
KW Stock Risks: Kennedy-Wilson Holdings, Inc. Investment Risks
- Interest coverage of 0.2x indicates critical inability to service debt from operating earnings
- Negative operating cash flow of -$87.9M shows company is burning cash rather than generating it
- Debt-to-equity ratio of 2.90x represents excessive leverage unsustainable relative to equity base
- Revenue decline of 5.7% YoY combined with 263% net income decline signals operational deterioration
- Limited cash position ($184.6M) relative to $4.4B long-term debt creates refinancing risk
- Interest coverage at 0.6x indicates strained debt service
- High leverage (Debt/Equity 2.87x; $4.40B long-term debt)
- Negative net margin and thin FCF (2.3%) amid revenue decline
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.0x to demonstrate debt serviceability
- Operating cash flow - critical to return to positive territory for sustainability
- Debt-to-equity ratio - trajectory toward 2.0x or below needed to reduce financial stress
- Revenue stabilization and operating margin trends
- Interest coverage ratio trend
- Operating cash flow and FCF margin
Kennedy-Wilson Holdings, Inc. (KW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
KW Profit Margin, ROE & Profitability Analysis
KW vs Real Estate Sector: How Kennedy-Wilson Holdings, Inc. Compares
How Kennedy-Wilson Holdings, Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kennedy-Wilson Holdings, Inc. Stock Overvalued? KW Valuation Analysis 2026
Based on fundamental analysis, Kennedy-Wilson Holdings, Inc. shows some fundamental concerns relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kennedy-Wilson Holdings, Inc. Balance Sheet: KW Debt, Cash & Liquidity
KW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kennedy-Wilson Holdings, Inc.'s revenue has remained relatively flat over the 5-year period, with a 1% decline. The most recent EPS of $-2.46 indicates the company is currently unprofitable.
KW Revenue Growth, EPS Growth & YoY Performance
KW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $117.2M | $24.5M | $0.10 |
| Q3 2025 | $116.4M | -$10.2M | $-0.15 |
| Q2 2025 | $132.0M | $5.6M | $-0.05 |
| Q1 2025 | $128.3M | -$29.6M | $0.19 |
| Q3 2024 | $127.5M | -$45.5M | $-0.56 |
| Q2 2024 | $132.0M | -$10.6M | $-0.01 |
| Q1 2024 | $132.2M | -$28.7M | $0.19 |
| Q3 2023 | $139.6M | $23.6M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kennedy-Wilson Holdings, Inc. Dividends, Buybacks & Capital Allocation
KW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kennedy-Wilson Holdings, Inc. (CIK: 0001408100)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KW
What is the AI rating for KW?
Kennedy-Wilson Holdings, Inc. (KW) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KW's key strengths?
Claude: Acceptable operating margin of 11.1% and net margin of 11.7% demonstrate core profitability. Maintains $184.6M in cash equivalents for near-term liquidity needs. ChatGPT: Large asset base with positive equity ($6.62B assets, $1.54B equity). Positive operating income and 7.5% operating margin.
What are the risks of investing in KW?
Claude: Interest coverage of 0.2x indicates critical inability to service debt from operating earnings. Negative operating cash flow of -$87.9M shows company is burning cash rather than generating it. ChatGPT: Interest coverage at 0.6x indicates strained debt service. High leverage (Debt/Equity 2.87x; $4.40B long-term debt).
What is KW's revenue and growth?
Kennedy-Wilson Holdings, Inc. reported revenue of $117.2M.
Does KW pay dividends?
Kennedy-Wilson Holdings, Inc. pays dividends, with $16.7M distributed to shareholders in the trailing twelve months.
Where can I find KW SEC filings?
Official SEC filings for Kennedy-Wilson Holdings, Inc. (CIK: 0001408100) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KW's EPS?
Kennedy-Wilson Holdings, Inc. has a diluted EPS of $0.10.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KW's fundamental grade?
Based on our AI fundamental analysis in May 2026, Kennedy-Wilson Holdings, Inc. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KW stock overvalued or undervalued?
Valuation metrics for KW: ROE of 0.9% (sector avg: 8%), net margin of 11.7% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is KW's AI grade for 2026?
Our dual AI analysis gives Kennedy-Wilson Holdings, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KW's free cash flow?
Kennedy-Wilson Holdings, Inc.'s operating cash flow is $-87.9M, with capital expenditures of N/A. FCF margin is -75.0%.
How does KW compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 11.7% (avg: 20%), ROE 0.9% (avg: 8%), current ratio N/A (avg: 1.5).
Is Kennedy-Wilson Holdings, Inc. carrying too much debt?
KW has a debt-to-equity ratio of 2.90x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.