Here's Why Kennedy-Wilson Holdings (NYSE:KW) Is Weighed Down By Its Debt Load
Here's Why Kennedy-Wilson Holdings (NYSE:KW) Is Weighed Down By Its Debt Load
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We can see that Kennedy-Wilson Holdings, Inc. (NYSE:KW) does use debt in its business. But the real question is whether this debt is making the company risky.
作爲投資者,有人認爲波動性而非負債是衡量風險的最佳方式。但禾倫•巴菲特曾經著名地說過,『波動性遠非冒險的同義詞。』考慮公司的資產負債表來評估其風險是再自然不過的事情了,因爲一旦一個企業垮了,往往會涉及到債務問題。我們可以看到kennedy-wilson Holdings, Inc.(紐交所: KW)確實在其業務中使用了債務。但問題是,這種債務是否使得公司變得具有風險性。
When Is Debt Dangerous?
債務何時有危險?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. The first step when considering a company's debt levels is to consider its cash and debt together.
一般來說,只有當公司無法通過融資或自有現金流輕鬆償還債務時,債務才會成爲真正的問題。最壞的情況是,如果公司無法償還債務,則可能破產。不過,更常見的情況是,公司必須以低價發行股票,永久性地稀釋股東權益,以鞏固其資產負債表。儘管如此,最常見的情況是公司合理管理債務,以其自身利益爲依據。考慮公司的債務水平時的第一步是結合公司的現金和債務進行考慮。
What Is Kennedy-Wilson Holdings's Net Debt?
kennedy-wilson holdings的淨負債是多少?
As you can see below, Kennedy-Wilson Holdings had US$5.32b of debt at March 2024, down from US$5.59b a year prior. However, it does have US$569.1m in cash offsetting this, leading to net debt of about US$4.75b.
正如下文所示,kennedy-wilson holdings在2024年3月擁有5.32億美元的債務,比去年同期的5.59億美元少。然而,它確實有5.691億美元的現金抵消這些債務,導致淨債務約爲4.75億美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240611/0-fc12d6a6eb090d82ff4519d50abc3554-0-0a8e6f4b014743fc4cce953b99f98b1c.png/big)
How Strong Is Kennedy-Wilson Holdings' Balance Sheet?
kennedy-wilson holdings的資產負債表有多健康?
Zooming in on the latest balance sheet data, we can see that Kennedy-Wilson Holdings had liabilities of US$649.8m due within 12 months and liabilities of US$5.25b due beyond that. Offsetting these obligations, it had cash of US$569.1m as well as receivables valued at US$335.7m due within 12 months. So its liabilities total US$4.99b more than the combination of its cash and short-term receivables.
仔細觀察最新的資產負債表數據,我們可以看到kennedy-wilson holdings在12個月內需要償還6.498億美元的負債,而在12個月後則需要償還52.5億美元的負債。資產負債表中有現金值569.1億美元,以及在12個月內到期的應收賬款價值335.7億美元來抵衝這些負債。因此,它的負債總額比其現金和短期應收賬款的組合多了49.9億美元。
This deficit casts a shadow over the US$1.34b company, like a colossus towering over mere mortals. So we definitely think shareholders need to watch this one closely. After all, Kennedy-Wilson Holdings would likely require a major re-capitalisation if it had to pay its creditors today.
這種赤字像一個巨人一樣籠罩在這家價值13.4億美元的公司之上,所以我們一定認爲股東需要密切關注這個問題。畢竟,如果kennedy-wilson holdings今天必須償還其債權人,那麼它可能需要進行一次重大的資本重組。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
爲了比較一個公司的債務與其收益的關係,我們計算其淨債務除以利息、稅、折舊和攤銷前的收益和利息前的收益(其利息覆蓋率)。因此,我們考慮了債務的絕對數量以及支付的利率。
Kennedy-Wilson Holdings shareholders face the double whammy of a high net debt to EBITDA ratio (25.2), and fairly weak interest coverage, since EBIT is just 0.13 times the interest expense. The debt burden here is substantial. Even worse, Kennedy-Wilson Holdings saw its EBIT tank 31% over the last 12 months. If earnings keep going like that over the long term, it has a snowball's chance in hell of paying off that debt. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Kennedy-Wilson Holdings can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
kennedy-wilson holdings的股東面臨着高淨債務對EBITDA比率(25.2)和相當薄弱的利息覆蓋率的雙重打擊,因爲EBIT僅爲利息費用的0.13倍。債務負擔相當沉重。更糟糕的是,過去12個月中,kennedy-wilson holdings的EBIT下降了31%。如果收益在長期內繼續下滑,它幾乎不可能償還那些債務。在分析債務水平時,資產負債表是開始的顯而易見的地方。但最終業務的未來盈利能力將決定kennedy-wilson holdings能否隨着時間的推移加強其資產負債表。因此,如果您想了解專業人士的意見,您可能會發現分析師利潤預測方面的免費報告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. Over the most recent three years, Kennedy-Wilson Holdings recorded free cash flow worth 59% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This free cash flow puts the company in a good position to pay down debt, when appropriate.
但我們最終的考慮也很重要,因爲公司無法用虛構的利潤來償還債務;它需要真金白銀。因此,邏輯上看,我們需要查看EBIT中與實際自由現金流相匹配的比例。在最近三年中,kennedy-wilson holdings記錄的自由現金流價值相當於其EBIT的59%,這大約是正常範圍內的事情,因爲自由現金流不包括利息和稅收。這種自由現金流使公司在適當時支付債務處於良好的位置。
Our View
我們的觀點
On the face of it, Kennedy-Wilson Holdings's EBIT growth rate left us tentative about the stock, and its level of total liabilities was no more enticing than the one empty restaurant on the busiest night of the year. But at least it's pretty decent at converting EBIT to free cash flow; that's encouraging. Taking into account all the aforementioned factors, it looks like Kennedy-Wilson Holdings has too much debt. That sort of riskiness is ok for some, but it certainly doesn't float our boat. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. These risks can be hard to spot. Every company has them, and we've spotted 3 warning signs for Kennedy-Wilson Holdings you should know about.
在這個表面上,Kennedy-wilson的EBIT增長率讓我們對股票感到猶豫,其總負債水平也不比全年最繁忙的空餐廳更具吸引力。但至少它在將EBIT轉化爲自由現金流方面表現還不錯,這是令人鼓舞的。考慮到所有上述因素,Kennedy-wilson Holdings的債務過高。這種風險對某些人來說沒問題,但對我們來說肯定不理想。在分析債務水平時,資產負債表是最明顯的起點。然而,並非所有的投資風險都存在於資產負債表上——遠非如此。這些風險很難發現。每個公司都有它們,我們已經發現了Kennedy-Wilson Holdings的3個警示信號,你需要知道。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果在所有這些之後,您更感興趣的是具有堅實資產負債表的快速增長公司,那麼不要拖延,查看我們的淨現金增長股票列表。
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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。