Kimco Realty Corporation (KIM)
- 15.85 (USD)
(+1.7 %)
9/3/2010 4:00:00 PM
KIM Stock Report
NYSE:
KIM
15.85
(USD)
(1.7 %
)
09/03 4:00 PM
Open
15.76
Day's Range
15.61
-
15.88
52Wk Range
11.19 - 16.72
Mkt Cap
6.1 Billion
Vol/Avg
2472800/3.4 Million
Div/Yield
3.61%
Key Fundamentals
| Price (9/3/2010) | 15.85 |
|---|---|
| Volume (9/3/2010) | 2472800 |
| Last Close Price | 15.85 |
| 10 Day Average Volume | 3.4 Million |
| 13 Week Price Range | 13.03 - 15.62 |
| 52 Week Price Range | 11.19 - 16.72 |
| LTM Revenue | 892.0 Million |
| Shares Outstanding (12/31/2009) | 405.8 Million |
| Market Capitalization | 6.1 Billion |
| Shares Held By Institutions | 36.7 Million |
| Institutional Holders | 509 |
| % Shares Held By Institutions | 94.48% |
| Earnings Per Share (EPS) | -0.15 |
| P/E Ratio | 37.3134 |
| Book Value Per Share | 11.8491 |
| Gross Margin | 71.64% |
| Annual Dividend | 0.54 |
| Dividend Yield | 3.61% |
| Beta | 1.915897 |
| Fiscal Year Ends | December |
About Kimco Realty Corporation
Kimco Realty Corporationis considered to operate in the Financial Services sector. They specifically operate in the REIT - Retail business segment contained within the REITs industry.
Kimco Realty Corporation is a Maryland corporation. The Company began operations through its predecessor, The Kimco Corporation, which was organized in 1966 upon the contribution of several shopping center properties owned by its principal stockholders. In 1973, these principals formed the Company as a Delaware corporation, and, in 1985, the operations of The Kimco Corporation were merged into the Company. The Company completed its initial public stock offering in November 1991, and, commencing with its taxable year which began January 1, 1992, elected to qualify as a real estate investment trust. In 1994, the Company reorganized as a Maryland corporation. It operates as a self-administered real estate investment trust and its management has owned and operated neighborhood and community shopping centers for over 50 years. The Company's ownership interests in real estate consist of its consolidated portfolio and in portfolios where the Company owns an economic interest, such as properties in the Company's investment management programs, where the Company partners with institutional investors and also retains management. In addition, it continues to capitalize on its established expertise in retail real estate by establishing other ventures in which the Company owns a smaller equity interest and provides management, leasing and operational support for those properties. It also provides preferred equity capital for real estate entrepreneurs and provides real estate capital and advisory services to both healthy and distressed retailers. The Company also makes selective investments in secondary market opportunities where a security or other investment is, in management's judgment, priced below the value of the underlying assets, however, these investments are subject to volatility within the equity and debt markets. The Company competes with numerous regional and local commercial developers, real estate companies, financial institutions and other investors. It might be subject to environmental regulations.
Ockham's Rating/Recommendation Summary
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KIM Revenue
As a value investing shop, we are interested in seeing how KIM's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 14.80x and the low end of the range at 7.83x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for KIM of 7.48x is well below its normal historic Price to Sales levels. At a price of 14.68, KIM is 34% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
KIM Cash Earnings
KIM is not forecasted to produce positive Cash Earnings this year, based on recent performance. This is not a positive situation, as we would always prefer that a company is producing cash every year. However, it is important to recognize that not all companies or types of companies have the goal of producing positive Cash Earnings either early in their business cycle or following significant turnaround changes. When looking at KIM, we hesitate to be overly negative on the company, but it is of concern that the company is not profitable at this time. Let's face it, companies cannot remain unprofitable for very long before a change has to be made. This could mean further restructuring or corporate event such as selling assets or spinning off divisions, at any rate a company with negative cash flows is not one that often makes a great investment unless you can acquire it at an extremely depressed price.
KIM Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for KIM, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. KIM’s estimated annual dividend is 0.44 resulting in a current dividend yield of 2.91%. The highest dividend yield from KIM over recent history was 17.57% while the lowest dividend yield was 2.63%. While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as KIM that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 71.21% below the median yield.