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.
作为投资者,有人认为波动性而非负债是衡量风险的最佳方式。但沃伦•巴菲特曾经著名地说过,‘波动性远非冒险的同义词。’考虑公司的资产负债表来评估其风险是再自然不过的事情了,因为一旦一个企业垮了,往往会涉及到债务问题。我们可以看到kennedy-wilson Holdings, Inc.(纽交所: KW)确实在其业务中使用了债务。但问题是,这种债务是否使得公司变得具有风险性。
When Is Debt Dangerous?
债务何时有危险?
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.
一般来说,只有当公司无法通过融资或自有现金流轻松偿还债务时,债务才会成为真正的问题。最坏的情况是,如果公司无法偿还债务,则可能破产。不过,更常见的情况是,公司必须以低价发行股票,永久性地稀释股东权益,以巩固其资产负债表。尽管如此,最常见的情况是公司合理管理债务,以其自身利益为依据。考虑公司的债务水平时的第一步是结合公司的现金和债务进行考虑。
What Is Kennedy-Wilson Holdings's Net Debt?
kennedy-wilson holdings的净负债是多少?
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月拥有5.32亿美元的债务,比去年同期的5.59亿美元少。然而,它确实有5.691亿美元的现金抵消这些债务,导致净债务约为4.75亿美元。
![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的资产负债表有多健康?
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.
仔细观察最新的资产负债表数据,我们可以看到kennedy-wilson holdings在12个月内需要偿还6.498亿美元的负债,而在12个月后则需要偿还52.5亿美元的负债。资产负债表中有现金值569.1亿美元,以及在12个月内到期的应收账款价值335.7亿美元来抵冲这些负债。因此,它的负债总额比其现金和短期应收账款的组合多了49.9亿美元。
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.
这种赤字像一个巨人一样笼罩在这家价值13.4亿美元的公司之上,所以我们一定认为股东需要密切关注这个问题。毕竟,如果kennedy-wilson holdings今天必须偿还其债权人,那么它可能需要进行一次重大的资本重组。
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.
为了衡量公司债务相对于其收益的大小,我们计算其净债务除以利息、税、折旧和摊销前收益(EBITDA)以及其税前收益与利息支出(其利息覆盖率)的比率。这样,我们既考虑了债务的绝对量,也考虑了所支付的利率。
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的股东面临着高净债务对EBITDA比率(25.2)和相当薄弱的利息覆盖率的双重打击,因为EBIT仅为利息费用的0.13倍。债务负担相当沉重。更糟糕的是,过去12个月中,kennedy-wilson holdings的EBIT下降了31%。如果收益在长期内继续下滑,它几乎不可能偿还那些债务。在分析债务水平时,资产负债表是开始的显而易见的地方。但最终业务的未来盈利能力将决定kennedy-wilson holdings能否随着时间的推移加强其资产负债表。因此,如果您想了解专业人士的意见,您可能会发现分析师利润预测方面的免费报告很有趣。
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.
但我们最终的考虑也很重要,因为公司无法用虚构的利润来偿还债务;它需要真金白银。因此,逻辑上看,我们需要查看EBIT中与实际自由现金流相匹配的比例。在最近三年中,kennedy-wilson holdings记录的自由现金流价值相当于其EBIT的59%,这大约是正常范围内的事情,因为自由现金流不包括利息和税收。这种自由现金流使公司在适当时支付债务处于良好的位置。
Our View
我们的观点
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.
从表面上看,kennedy-wilson holdings的EBIT增长率不足让人信服,其总负债水平也不比全年最繁忙的那个夜里仅仅开放的那家餐厅更具吸引力。但至少它相当善于将EBIT转化为自由现金流;这是令人鼓舞的。考虑到所有上述因素,kennedy-wilson holdings的债务过多。这种风险对于一些人来说是可以接受的,但对我们来说肯定不行。在分析债务水平时,资产负债表是开始的显而易见的地方。但并非所有的投资风险都在资产负债表中——远非如此。这些风险很难发现。每家公司都有这些风险,我们已经发现kennedy-wilson holdings的3个警告迹象,您应该知道。
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.
如果您在所有这些工作之后,更感兴趣于拥有坚实资产负债表的快速发展公司,请立即查看我们的净现金成长股列表。
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