KIM

Read This to Understand Kimco Realty Stock

It's been a great morning session for Kimco Realty investors, who saw their shares rise 1.5% to a price of $19.66 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.

Trading Near Its Fair Price but Has an Elevated P/E Ratio:

Kimco Realty (NYSE:KIM) is a real estate investment trust (REIT) headquartered in Jericho, N. The company belongs to the Real Estate sector, which has an average price to earnings (P/E) ratio of 27.5 and an average price to book (P/B) ratio of 2.1. In contrast, Kimco Realty has a trailing 12 month P/E ratio of 37.1 and a P/B ratio of 1.25.

When we divide Kimco Realty's P/E ratio by its expected EPS growth rate of the next five years, we obtain its PEG ratio of -4.17. Since it's negative, the company has negative growth expectations, and most investors will probably avoid the stock unless it has an exceptionally low P/E and P/B ratio.

Generally Positive Cash Flows but a Highly Leveraged Balance Sheet:

2018 2019 2020 2021 2022 2023
Revenue (M) $1,165 $1,159 $1,058 $1,365 $1,728 $1,783
Operating Margins 50% 41% 31% 31% 33% 36%
Net Margins 43% 35% 95% 62% 7% 37%
Net Income (M) $498 $411 $1,001 $844 $126 $654
Net Interest Expense (M) $183 $177 $187 $204 $227 $250
Depreciation & Amort. (M) $310 $278 $289 $395 $505 $507
Diluted Shares (M) 421 422 432 511 618 618
Earnings Per Share $1.02 $0.8 $2.25 $1.6 $0.16 $1.02
EPS Growth n/a -21.57% 181.25% -28.89% -90.0% 537.5%
Avg. Price $12.31 $15.77 $11.83 $19.23 $22.18 $19.66
P/E Ratio 12.07 19.71 5.26 12.02 138.62 19.27
Free Cash Flow (M) $347 $465 $568 $619 $861 $1,072
EV / EBITDA 10.61 15.03 15.86 18.32 18.98 16.27
Total Debt (M) $4,382 $4,832 $5,044 $7,027 $6,781 $7,263
Net Debt / EBITDA 4.75 6.23 7.64 8.18 6.2 5.66
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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