Kimco Realty Corp Valuation – March 2019 #KIM

Company Profile (excerpt from Reuters): Kimco Realty Corporation, incorporated on March 25, 1994, is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.

KIM Chart

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Downloadable PDF version of this valuation:

ModernGraham Valuation of KIM – March 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $7,773,219,770 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.12 Fail
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 163.74% Pass
6. Moderate PEmg Ratio PEmg < 20 21.56 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.43 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.12 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 130.35 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg $0.85
MG Growth Estimate -2.95%
MG Value $2.22
Opinion Overvalued
MG Grade D+
MG Value based on 3% Growth $12.39
MG Value based on 0% Growth $7.26
Market Implied Growth Rate 6.53%
Current Price $18.43
% of Intrinsic Value 830.10%

Kimco Realty Corp does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, high PEmg ratio. The Enterprising Investor has concerns regarding the level of debt relative to the current assets, and the lack of earnings growth over the last five years. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $1.06 in 2015 to an estimated $0.85 for 2019. This level of demonstrated earnings growth does not support the market’s implied estimate of 6.53% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Kimco Realty Corp revealed the company was trading above its Graham Number of $12.05. The company pays a dividend of $1.12 per share, for a yield of 6.1%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 21.56, which was below the industry average of 61.92, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-12.51.

Kimco Realty Corp scores quite poorly in the ModernGraham grading system, with an overall grade of D+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$12.51
Graham Number $12.05
PEmg 21.56
Current Ratio 1.12
PB Ratio 1.43
Current Dividend $1.12
Dividend Yield 6.08%
Number of Consecutive Years of Dividend Growth 8

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $342,557,000
Total Current Liabilities $305,165,000
Long-Term Debt $4,873,872,000
Total Assets $10,999,100,000
Intangible Assets $0
Total Liabilities $5,588,047,000
Shares Outstanding (Diluted Average) 419,246,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $0.51
Dec2018 $1.02
Dec2017 $0.87
Dec2016 $0.79
Dec2015 $2.00
Dec2014 $0.89
Dec2013 $0.43
Dec2012 $0.42
Dec2011 $0.27
Dec2010 $0.22
Dec2009 -$0.15
Dec2008 $0.78
Dec2007 $1.65
Dec2006 $1.70
Dec2005 $1.52
Dec2004 $1.15
Dec2003 $0.97
Dec2002 $0.98
Dec2001 $0.95
Dec2000 $0.84
Dec1999 $0.74

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $0.85
Dec2018 $1.06
Dec2017 $1.05
Dec2016 $1.06
Dec2015 $1.06
Dec2014 $0.55
Dec2013 $0.33
Dec2012 $0.29
Dec2011 $0.33
Dec2010 $0.52
Dec2009 $0.82
Dec2008 $1.32
Dec2007 $1.53
Dec2006 $1.40
Dec2005 $1.20
Dec2004 $1.02
Dec2003 $0.94

Recommended Reading:

Other ModernGraham posts about the company

Kimco Realty Corp Valuation – June 2018 $KIM
Kimco Realty Corp Valuation – March 2017 $KIM
5 Companies for Enterprising Investors Near 52 Week Lows – March 2017
10 Best Dividend Paying Stocks for the Enterprising Investor – February 2017
5 Companies for Enterprising Investors Near 52 Week Lows – February 2017

Other ModernGraham posts about related companies

Essex Property Trust Inc Valuation – March 2019 #ESS
Federal Realty Investment Trust Valuation – March 2019 #FRT
UDR Inc Valuation – March 2019 #UDR
Mid-America Apartment Communities Inc Valuation – March 2019 #MAA
Extra Space Storage Inc Valuation – March 2019 #EXR
Digital Realty Trust Inc Valuation – March 2019 #DLR
Equity Residential Valuation – March 2019 #EQR
Prologis Inc Valuation – March 2019 #PLD
Duke Realty Corp Valuation – March 2019 $DRE
Realty Income Corp Valuation – February 2019 $O

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Kimberly-Clark Corp Valuation – January 2019 $KMB

Company Profile (excerpt from Reuters): Kimberly-Clark Corporation, incorporated on June 29, 1928, is engaged in the manufacturing and marketing of a range of products made from natural or synthetic fibers. The Company’s segments include Personal Care, Consumer Tissue, K-C Professional and Corporate & Other. The Company sells its products to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets. It sells its products for away-from-home use through distributors and directly to manufacturing, lodging, office building, food service and public facilities. As of December 31, 2016, the Company and its equity companies had manufacturing facilities in 38 countries, and it sold products in more than 175 countries. The Company’s business outside North America includes Developing and Emerging Markets (D&E) and Developed Markets. D&E markets consist of Eastern Europe, the Middle East and Africa, Latin America and Asia-Pacific, excluding Australia and South Korea. Its Developed Markets consist of Western and Central Europe, Australia and South Korea.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of KMB – January 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $40,257,491,250 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 0.75 Fail
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 29.94% Fail
6. Moderate PEmg Ratio PEmg < 20 23.13 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 362.04 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 0.75 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 -3.38 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $5.03
MG Growth Estimate 1.63%
MG Value $59.11
Opinion Overvalued
MG Grade C-
MG Value based on 3% Growth $72.89
MG Value based on 0% Growth $42.73
Market Implied Growth Rate 7.31%
Current Price $116.25
% of Intrinsic Value 196.66%

Kimberly Clark Corp does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings growth over the last ten years, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $4.53 in 2014 to an estimated $5.03 for 2018. This level of demonstrated earnings growth does not support the market’s implied estimate of 7.31% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Kimberly Clark Corp revealed the company was trading above its Graham Number of $13.39. The company pays a dividend of $3.88 per share, for a yield of 3.3%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 23.13, which was above the industry average of 20. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-26.84.

Kimberly Clark Corp receives an average overall rating in the ModernGraham grading system, scoring a C-.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$26.84
Graham Number $13.39
PEmg 23.13
Current Ratio 0.75
PB Ratio 362.04
Current Dividend $3.88
Dividend Yield 3.34%
Number of Consecutive Years of Dividend Growth 20

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 9/1/2018
Total Current Assets $5,108,000,000
Total Current Liabilities $6,805,000,000
Long-Term Debt $5,739,000,000
Total Assets $14,583,000,000
Intangible Assets $1,480,000,000
Total Liabilities $14,471,000,000
Shares Outstanding (Diluted Average) 348,800,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $4.45
Dec2017 $6.40
Dec2016 $5.99
Dec2015 $2.77
Dec2014 $4.04
Dec2013 $5.53
Dec2012 $4.42
Dec2011 $3.99
Dec2010 $4.45
Dec2009 $4.52
Dec2008 $4.04
Dec2007 $4.09
Dec2006 $3.25
Dec2005 $3.28
Dec2004 $3.61
Dec2003 $3.33
Dec2002 $3.22
Dec2001 $3.02
Dec2000 $3.31
Dec1999 $3.09
Dec1998 $1.99

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $5.03
Dec2017 $5.19
Dec2016 $4.58
Dec2015 $3.96
Dec2014 $4.53
Dec2013 $4.71
Dec2012 $4.30
Dec2011 $4.23
Dec2010 $4.26
Dec2009 $4.05
Dec2008 $3.77
Dec2007 $3.59
Dec2006 $3.34
Dec2005 $3.35
Dec2004 $3.36
Dec2003 $3.22
Dec2002 $3.09

Recommended Reading:

Other ModernGraham posts about the company

Kimberly-Clark Corp Valuation – March 2018 $KMB
Kimberly-Clark Corporation Valuation – June 2016 $KMB
34 Companies in the Spotlight This Week – 2/7/15
Kimberly Clark Corporation Annual Valuation – 2015 $KMB
15 Companies in the Spotlight This Week – 2/1/14

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Newell Brands Inc Valuation – March 2018 $NWL
La-Z-Boy Inc Valuation – Initial Coverage $LZB
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Leggett & Platt Inc Valuation – March 2017 $LEG
Newell Brands Inc Valuation – February 2017 $NWL

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Kimco Realty Corp Valuation – June 2018 $KIM

Company Profile (excerpt from Reuters): Kimco Realty Corporation, incorporated on March 25, 1994, is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.

KIM Chart

KIM data by YCharts

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of KIM – June 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $7,605,660,094 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 3.30 Pass
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 494.12% Pass
6. Moderate PEmg Ratio PEmg < 20 21.41 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.38 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 3.30 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 16.79 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $0.84
MG Growth Estimate 7.97%
MG Value $20.43
Opinion Fairly Valued
MG Grade B-
MG Value based on 3% Growth $12.12
MG Value based on 0% Growth $7.11
Market Implied Growth Rate 6.46%
Current Price $17.90
% of Intrinsic Value 87.63%

Kimco Realty Corp is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability over the last ten years, and the high PEmg ratio. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Fairly Valued after growing its EPSmg (normalized earnings) from $0.55 in 2014 to an estimated $0.84 for 2018. This level of demonstrated earnings growth supports the market’s implied estimate of 6.46% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value within a margin of safety relative to the price.

At the time of valuation, further research into Kimco Realty Corp revealed the company was trading above its Graham Number of $10.13. The company pays a dividend of $1.09 per share, for a yield of 6.1%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 21.41, which was below the industry average of 49.08, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-12.8.

Kimco Realty Corp performs fairly well in the ModernGraham grading system, scoring a B-.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$12.80
Graham Number $10.13
PEmg 21.41
Current Ratio 3.30
PB Ratio 1.38
Current Dividend $1.09
Dividend Yield 6.09%
Number of Consecutive Years of Dividend Growth 7

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 3/1/2018
Total Current Assets $435,849,000
Total Current Liabilities $132,209,000
Long-Term Debt $5,097,322,000
Total Assets $11,372,502,000
Intangible Assets $0
Total Liabilities $5,870,100,000
Shares Outstanding (Diluted Average) 424,521,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $0.36
Dec2017 $0.87
Dec2016 $0.79
Dec2015 $2.00
Dec2014 $0.89
Dec2013 $0.43
Dec2012 $0.42
Dec2011 $0.27
Dec2010 $0.22
Dec2009 -$0.15
Dec2008 $0.78
Dec2007 $1.65
Dec2006 $1.70
Dec2005 $1.52
Dec2004 $1.15
Dec2003 $0.97
Dec2002 $0.98
Dec2001 $0.95
Dec2000 $0.84
Dec1999 $0.74
Dec1998 $0.66

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $0.84
Dec2017 $1.05
Dec2016 $1.06
Dec2015 $1.06
Dec2014 $0.55
Dec2013 $0.33
Dec2012 $0.29
Dec2011 $0.33
Dec2010 $0.52
Dec2009 $0.82
Dec2008 $1.32
Dec2007 $1.53
Dec2006 $1.40
Dec2005 $1.20
Dec2004 $1.02
Dec2003 $0.94
Dec2002 $0.89

Recommended Reading:

Other ModernGraham posts about the company

Kimco Realty Corp Valuation – March 2017 $KIM
5 Companies for Enterprising Investors Near 52 Week Lows – March 2017
10 Best Dividend Paying Stocks for the Enterprising Investor – February 2017
5 Companies for Enterprising Investors Near 52 Week Lows – February 2017
10 Best Dividend Paying Stocks for the Enterprising Investor – January 2017

Other ModernGraham posts about related companies

Essex Property Trust Inc Valuation – June 2018 $ESS
Federal Realty Investment Trust Valuation – June 2018 $FRT
UDR Inc Valuation – June 2018 $UDR
Mid-America Apartment Communities Inc Valuation – June 2018 $MAA
Extra Space Storage Inc Valuation – June 2018 $EXR
Digital Realty Trust Inc Valuation – June 2018 $DLR
Equity Residential Valuation – June 2018 $EQR
Prologis Inc Valuation – May 2018 $PLD
Duke Realty Corp Valuation – Initial Coverage $DRE
Realty Income Corp Valuation – April 2018 $O

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Kimberly-Clark Corp Valuation – March 2018 $KMB

Company Profile (obtained from Marketwatch): Kimberly-Clark Corp. engages in the manufacture of paper-based products and provision of cleaning solutions. It operates through the following segments: Personal Care, Consumer Tissue, and K-C Professional. The Personal Care segment manufactures and markets disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, and related products, which are primarily for household use. The Consumer Tissue segment produces and sells facial and bathroom tissue, paper towels, napkins and related products for household use. The K-C Professional segment manufacture and sell facial and bathroom tissue, paper towels, napkins, wipers and a range of safety products for the away-from-home marketplace. The company was founded by John A. Kimberly, Havilah Babcock, Charles B. Clark, and Frank C. Shattuck in 1872 and is headquartered in Irving, TX.

KMB Chart

KMB data by YCharts

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of KMB – March 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $39,286,121,685 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 0.89 Fail
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 46.06% Pass
6. Moderate PEmg Ratio PEmg < 20 19.57 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 62.96 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 0.89 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 -10.00 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $5.72
MG Growth Estimate 3.93%
MG Value $93.69
Opinion Overvalued
MG Grade C
MG Value based on 3% Growth $82.99
MG Value based on 0% Growth $48.65
Market Implied Growth Rate 5.54%
Current Price $112.02
% of Intrinsic Value 119.57%

Kimberly Clark Corp does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, high PB ratio. The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $4.53 in 2014 to an estimated $5.72 for 2018. This level of demonstrated earnings growth does not support the market’s implied estimate of 5.54% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Kimberly Clark Corp revealed the company was trading above its Graham Number of $16.24. The company pays a dividend of $3.88 per share, for a yield of 3.5%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 19.57, which was below the industry average of 30.22, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-26.34.

Kimberly Clark Corp receives an average overall rating in the ModernGraham grading system, scoring a C.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$26.34
Graham Number $16.24
PEmg 19.57
Current Ratio 0.89
PB Ratio 62.96
Current Dividend $3.88
Dividend Yield 3.46%
Number of Consecutive Years of Dividend Growth 20

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2017
Total Current Assets $5,211,000,000
Total Current Liabilities $5,858,000,000
Long-Term Debt $6,472,000,000
Total Assets $15,151,000,000
Intangible Assets $1,576,000,000
Total Liabilities $14,522,000,000
Shares Outstanding (Diluted Average) 353,500,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $6.54
Dec2017 $6.40
Dec2016 $5.99
Dec2015 $2.77
Dec2014 $4.04
Dec2013 $5.53
Dec2012 $4.42
Dec2011 $3.99
Dec2010 $4.45
Dec2009 $4.52
Dec2008 $4.04
Dec2007 $4.09
Dec2006 $3.25
Dec2005 $3.28
Dec2004 $3.61
Dec2003 $3.33
Dec2002 $3.22
Dec2001 $3.02
Dec2000 $3.31
Dec1999 $3.09
Dec1998 $1.99

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $5.72
Dec2017 $5.19
Dec2016 $4.58
Dec2015 $3.96
Dec2014 $4.53
Dec2013 $4.71
Dec2012 $4.30
Dec2011 $4.23
Dec2010 $4.26
Dec2009 $4.05
Dec2008 $3.77
Dec2007 $3.59
Dec2006 $3.34
Dec2005 $3.35
Dec2004 $3.36
Dec2003 $3.22
Dec2002 $3.09

Recommended Reading:

Other ModernGraham posts about the company

34 Companies in the Spotlight This Week – 2/7/15
Kimberly Clark Corporation Annual Valuation – 2015 $KMB
15 Companies in the Spotlight This Week – 2/1/14
Kimberly Clark Corp (KMB) Annual Valuation

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Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Kimco Realty Corp Valuation – March 2017 $KIM

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – March 2017.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Kimco Realty Corp (KIM) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of December 31, 2016, the Company had interests in 525 shopping center properties, aggregating 85.4 million square feet of gross leasable area (GLA), located in 34 states, Puerto Rico and Canada. As of December 31, 2016, the Company had 384 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 6.3 million square feet of GLA. The Company’s open-air shopping center properties had an average size of 162,618 square feet as of December 31, 2016. The Company’s open-air shopping center properties had various national and regional companies as competitors, such as TJX Companies, The Home Depot, Ahold Delhaize, Albertsons and Ross Stores.

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ModernGraham Valuation of KIM – March 2017

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $9,649,290,382 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.86 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 289.41% Pass
6. Moderate PEmg Ratio PEmg < 20 24.24 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.80 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.86 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 21.74 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

EPSmg $0.93
MG Growth Estimate 15.00%
MG Value $35.86
Opinion Undervalued
MG Grade B
MG Value based on 3% Growth $13.50
MG Value based on 0% Growth $7.92
Market Implied Growth Rate 7.87%
Current Price $22.58
% of Intrinsic Value 62.97%

Kimco Realty Corp is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability over the last ten years, and the high PEmg ratio. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $0.33 in 2013 to an estimated $0.93 for 2017. This level of demonstrated earnings growth outpaces the market’s implied estimate of 7.87% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Kimco Realty Corp revealed the company was trading above its Graham Number of $12.03. The company pays a dividend of $1.04 per share, for a yield of 4.6%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 24.24, which was below the industry average of 31.91, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-13.04.

Kimco Realty Corp performs fairly well in the ModernGraham grading system, scoring a B.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$13.04
Graham Number $12.03
PEmg 24.24
Current Ratio 1.86
PB Ratio 1.80
Current Dividend $1.04
Dividend Yield 4.58%
Number of Consecutive Years of Dividend Growth 7

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ModernGraham tagged articles Morningstar
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Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2016
Total Current Assets $503,301,000
Total Current Liabilities $270,268,000
Long-Term Debt $5,066,368,000
Total Assets $11,230,600,000
Intangible Assets $0
Total Liabilities $5,974,461,000
Shares Outstanding (Diluted Average) 419,709,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $0.52
Dec2016 $0.79
Dec2015 $2.00
Dec2014 $0.89
Dec2013 $0.43
Dec2012 $0.42
Dec2011 $0.27
Dec2010 $0.22
Dec2009 -$0.15
Dec2008 $0.78
Dec2007 $1.65
Dec2006 $1.70
Dec2005 $1.52
Dec2004 $1.15
Dec2003 $0.97
Dec2002 $0.98
Dec2001 $0.95
Dec2000 $0.84
Dec1999 $0.74
Dec1998 $0.66
Dec1997 $0.59

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $0.93
Dec2016 $1.06
Dec2015 $1.06
Dec2014 $0.55
Dec2013 $0.33
Dec2012 $0.29
Dec2011 $0.33
Dec2010 $0.52
Dec2009 $0.82
Dec2008 $1.32
Dec2007 $1.53
Dec2006 $1.40
Dec2005 $1.20
Dec2004 $1.02
Dec2003 $0.94
Dec2002 $0.89
Dec2001 $0.81

Recommended Reading:

Other ModernGraham posts about the company

10 Best Dividend Paying Stocks for the Enterprising Investor – August 2016
Dividend Investors Should Research These 10 Stocks – July 2016
10 Companies for Enterprising Dividend Investors – June 2016
Kimco Realty Corp Stock Valuation – February 2016 $KIM
10 Undervalued Companies for Enterprising Dividend Investors – November 2015

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Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Kimco Realty Corp Valuation – August 2016 $KIM

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – August 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Kimco Realty Corp (KIM) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Kimco Realty Corporation is a real estate investment trust. The Company is engaged principally in the ownership, management, development and operation of open-air shopping centers. The Company holds interests in approximately 610 shopping center properties, aggregating over 100 million square feet of gross leasable area (GLA), located in approximately 40 states of the United States, Puerto Rico and Canada. The Company holds approximately 450 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling over 7.3 million square feet of GLA. The Company’s shopping centers are anchored generally by discount department stores, supermarkets or drugstores. The Company’s shopping center properties have various national and regional companies as tenants, such as TJX Companies, The Home Depot, Bed Bath & Beyond, Royal Ahold, Albertsons, Wal-Mart, Kohl’s, Petsmart and Ross Stores.

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ModernGraham Valuation of KIM – August 2016

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $12,563,676,930 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 4.63 Pass
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 85.53% Pass
6. Moderate PEmg Ratio PEmg < 20 24.07 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.36 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 4.63 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 12.22 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

KIM value chart August 2016

EPSmg $1.24
MG Growth Estimate 15.00%
MG Value $47.87
Opinion Undervalued
MG Grade B
MG Value based on 3% Growth $18.03
MG Value based on 0% Growth $10.57
Market Implied Growth Rate 7.79%
Current Price $29.93
% of Intrinsic Value 62.53%

Kimco Realty Corp is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability over the last ten years, and the high PEmg ratio. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $0.29 in 2012 to an estimated $1.24 for 2016. This level of demonstrated earnings growth outpaces the market’s implied estimate of 7.79% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Kimco Realty Corp revealed the company was trading above its Graham Number of $19.53. The company pays a dividend of $1.01 per share, for a yield of 3.4%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 24.09, which was below the industry average of 34.03, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-13.21.

Kimco Realty Corp performs fairly well in the ModernGraham grading system, scoring a B.

Stage 3: Information for Further Research

KIM charts August 2016

Net Current Asset Value (NCAV) -$13.21
Graham Number $19.53
PEmg 24.09
Current Ratio 4.63
PB Ratio 2.36
Current Dividend $1.01
Dividend Yield 3.36%
Number of Consecutive Years of Dividend Growth 6

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Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2016
Total Current Assets $541,338,000
Total Current Liabilities $116,857,000
Long-Term Debt $5,188,817,000
Total Assets $11,392,432,000
Intangible Assets $0
Total Liabilities $6,078,305,000
Shares Outstanding (Diluted Average) 419,302,000

Earnings Per Share History

Next Fiscal Year Estimate $1.34
Dec2015 $2.00
Dec2014 $0.89
Dec2013 $0.43
Dec2012 $0.42
Dec2011 $0.27
Dec2010 $0.22
Dec2009 -$0.15
Dec2008 $0.78
Dec2007 $1.65
Dec2006 $1.70
Dec2005 $1.52
Dec2004 $1.15
Dec2003 $0.97
Dec2002 $0.98
Dec2001 $0.95
Dec2000 $0.84
Dec1999 $0.74
Dec1998 $0.66
Dec1997 $0.59
Dec1996 $0.54

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $1.24
Dec2015 $1.06
Dec2014 $0.55
Dec2013 $0.33
Dec2012 $0.29
Dec2011 $0.33
Dec2010 $0.52
Dec2009 $0.82
Dec2008 $1.32
Dec2007 $1.53
Dec2006 $1.40
Dec2005 $1.20
Dec2004 $1.02
Dec2003 $0.94
Dec2002 $0.89
Dec2001 $0.81
Dec2000 $0.72

Recommended Reading:

Other ModernGraham posts about the company

10 Undervalued Companies for Enterprising Dividend Investors – November 2015
10 Undervalued Companies for the Enterprising Dividend Stock Investor – October 2015
10 Undervalued Companies for the Enterprising Dividend Stock Investor – August 2015
The 20 Best Stocks For Value Investors This Week – 8/15/15
Kimco Realty Corporation Analysis – August 2015 Update $KIM

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Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Kimberly-Clark Corporation Valuation – June 2016 $KMB

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – June 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Kimberly-Clark Corporation (KMB) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Kimberly-Clark Corporation is engaged in the manufacturing and marketing of a range of products made from natural or synthetic fibers. The Company operates through three segments: Personal Care, Consumer Tissue and K-C Professional. The Company’s Personal Care segment offers various solutions and products, such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products. The Company’s Consumer Tissue segment offers products, such as facial and bathroom tissue, paper towels, napkins and related products. The Company’s K-C Professional segment offers solutions and supporting products, such as wipers, tissue, towels, apparel, soaps and sanitizers. The Company sells its products under various brands, such as Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise, Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve, WypAll, Kimtech and Jackson Safety.

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ModernGraham Valuation of KMB – June 2016

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $48,076,064,888 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 0.96 Fail
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 0.87% Fail
6. Moderate PEmg Ratio PEmg < 20 29.09 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 442.41 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 0.96 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 -28.77 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

KMB value Chart June 2016

EPSmg $4.56
MG Growth Estimate 0.92%
MG Value $47.14
Opinion Overvalued
MG Grade C-
MG Value based on 3% Growth $66.15
MG Value based on 0% Growth $38.78
Market Implied Growth Rate 10.29%
Current Price $132.70
% of Intrinsic Value 281.51%

Kimberly Clark Corp does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings growth over the last ten years, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $4.3 in 2012 to an estimated $4.56 for 2016. This level of demonstrated earnings growth does not support the market’s implied estimate of 10.29% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

Kimberly Clark Corp receives an average overall rating in the ModernGraham grading system, scoring a C-.

Stage 3: Information for Further Research

KMB Charts June 2016

Net Current Asset Value (NCAV) -$26.31
Graham Number $6.37
PEmg 29.09
Current Ratio 0.96
PB Ratio 442.41
Current Dividend $3.56
Dividend Yield 2.68%
Number of Consecutive Years of Dividend Growth 20

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Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 3/1/2016
Total Current Assets $5,151,000,000
Total Current Liabilities $5,391,000,000
Long-Term Debt $6,904,000,000
Total Assets $14,820,000,000
Intangible Assets $1,498,000,000
Total Liabilities $14,711,000,000
Shares Outstanding (Diluted Average) 363,400,000

Earnings Per Share History

Next Fiscal Year Estimate $5.95
Dec2015 $2.77
Dec2014 $4.04
Dec2013 $5.53
Dec2012 $4.42
Dec2011 $3.99
Dec2010 $4.45
Dec2009 $4.52
Dec2008 $4.04
Dec2007 $4.09
Dec2006 $3.25
Dec2005 $3.28
Dec2004 $3.61
Dec2003 $3.33
Dec2002 $3.22
Dec2001 $3.02
Dec2000 $3.31
Dec1999 $3.09
Dec1998 $2.11
Dec1997 $1.61
Dec1996 $2.49

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $4.56
Dec2015 $3.96
Dec2014 $4.53
Dec2013 $4.71
Dec2012 $4.30
Dec2011 $4.23
Dec2010 $4.26
Dec2009 $4.05
Dec2008 $3.77
Dec2007 $3.59
Dec2006 $3.34
Dec2005 $3.35
Dec2004 $3.36
Dec2003 $3.22
Dec2002 $3.09
Dec2001 $2.90
Dec2000 $2.73

Recommended Reading:

Other ModernGraham posts about the company

34 Companies in the Spotlight This Week – 2/7/15
Kimberly Clark Corporation Annual Valuation – 2015 $KMB
15 Companies in the Spotlight This Week – 2/1/14
Kimberly Clark Corp (KMB) Annual Valuation

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International Flavors & Fragrances Inc. Analysis – August 2015 Update $IFF
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International Flavors & Fragrances Inc. Quarterly Valuation – May 2015 $IFF
Estee Lauder Companies Quarterly Valuation – April 2015 $EL
International Flavors & Fragrances Inc. Quarterly Valuation – February 2015 $IFF

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Kimco Realty Corp Stock Valuation – February 2016 $KIM

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – February 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Kimco Realty Corp (KIM) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Kimco Realty Corporation (Kimco) is a self-administered real estate investment trust (REIT), which owns and operates neighborhood and community shopping centers. The Company had interests in approximately 754 shopping center properties, aggregating 109.5 million square feet of gross leasable area (GLA), and 533 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling approximately 11.7 million square feet of GLA, for a total of 1,287 properties aggregating 121.2 million square feet of GLA, located in 41 states in the United States and also in Puerto Rico, Canada, Mexico and Chile. The Company’s investment strategy is to be the owner and operator of neighborhood and community shopping centers through investments primarily in the United States. The Company’s tenants include TJX Companies, The Home Depot, Wal-Mart, Kohl’s and Bed Bath.

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To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

[/level-free]
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Downloadable PDF version of this valuation:

ModernGraham Valuation of KIM

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $10,968,351,297 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 3.44 Pass
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 92.54% Pass
6. Moderate PEmg Ratio PEmg < 20 20.45 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.17 Pass
Score
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 3.44 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 13.39 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

KIM value chart February 2016

EPSmg $1.30
MG Growth Estimate 15.00%
MG Value $49.92
Opinion Undervalued
MG Grade B
MG Value based on 3% Growth $18.80
MG Value based on 0% Growth $11.02
Market Implied Growth Rate 5.98%
Current Price $26.52
% of Intrinsic Value 53.12%

Kimco Realty Corp is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability over the last ten years, and the high PEmg ratio. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $0.29 in 2012 to an estimated $1.30 for 2016. This level of demonstrated earnings growth outpaces the market’s implied estimate of 5.98% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price. Kimco Realty Corp performs fairly well in the ModernGraham grading system, scoring a B.

Stage 3: Information for Further Research

KIM charts February 2016

Net Current Asset Value (NCAV) -$14.29
Graham Number $20.30
PEmg 20.45
Current Ratio 3.44
PB Ratio 2.17
Dividend Yield 3.68%
Number of Consecutive Years of Dividend Growth 6

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Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information Dec2015
Total Current Assets $396,175,000
Total Current Liabilities $115,182,000
Long-Term Debt $3,761,328,000
Total Assets $11,344,171,000
Intangible Assets $0
Total Liabilities $6,297,871,000
Shares Outstanding (Diluted Average) 412,851,000

Earnings Per Share History

Next Fiscal Year Estimate $1.50
Dec2015 $2.00
Dec2014 $0.89
Dec2013 $0.43
Dec2012 $0.42
Dec2011 $0.27
Dec2010 $0.22
Dec2009 -$0.15
Dec2008 $0.78
Dec2007 $1.65
Dec2006 $1.70
Dec2005 $1.52
Dec2004 $1.15
Dec2003 $0.97
Dec2002 $0.98
Dec2001 $0.95
Dec2000 $0.84
Dec1999 $0.74
Dec1998 $0.66
Dec1997 $0.59
Dec1996 $0.54

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $1.30
Dec2015 $1.06
Dec2014 $0.55
Dec2013 $0.33
Dec2012 $0.29
Dec2011 $0.33
Dec2010 $0.52
Dec2009 $0.82
Dec2008 $1.32
Dec2007 $1.53
Dec2006 $1.40
Dec2005 $1.20
Dec2004 $1.02
Dec2003 $0.94
Dec2002 $0.89
Dec2001 $0.81
Dec2000 $0.72

Recommended Reading:

Other ModernGraham posts about the company

10 Undervalued Companies for Enterprising Dividend Investors – November 2015
10 Undervalued Companies for the Enterprising Dividend Stock Investor – October 2015
10 Undervalued Companies for the Enterprising Dividend Stock Investor – August 2015
The 20 Best Stocks For Value Investors This Week – 8/15/15
Kimco Realty Corporation Analysis – August 2015 Update $KIM

Other ModernGraham posts about related companies

HCP Inc Valuation – January 2016 Update $HCP
Macerich Co Valuation – January 2016 Update $MAC
American Tower Corp Valuation – November 2015 Update $AMT
Weyerhaeuser Co Valuation – November 2015 Update $WY
Boston Properties Inc. Valuation – November 2015 Update $BXP
Welltower Inc. Valuation – November 2015 Update $HCN
Kimco Realty Corporation Valuation – November 2015 Update $KIM
Prologis Inc. Valuation – October 2015 Update $PLD
HCP Inc. Valuation – October 2015 Update $HCP
Essex Property Trust Inc. Analysis – October 2015 Update $ESS

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Kimco Realty Corporation Valuation – November 2015 Update $KIM

REITs often attract a great deal of investors because of their strong cash flows and dividends, and those investors often overlook other parts of the business, choosing to analyze the company under a different set of criteria than companies in other sectors.  This can create a problem in that it becomes difficult to compare a REIT to an industrial, which is fine if you use the typical top-down approach to stock selection; however, a top-down approach invites speculation in the fact that you are theorizing which sector will perform well going forward.  Benjamin Graham taught that we should avoid speculation as much as possible, which is why it is critical to develop a system for analyzing companies that will allow them to be compared across industries.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another investment opportunity.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Kimco Realty Corporation (KIM) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Kimco Realty Corporation (Kimco) is a self-administered real estate investment trust (REIT), which owns and operates neighborhood and community shopping centers. The Company had interests in approximately 754 shopping center properties, aggregating 109.5 million square feet of gross leasable area (GLA), and 533 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling approximately 11.7 million square feet of GLA, for a total of 1,287 properties aggregating 121.2 million square feet of GLA, located in 41 states in the United States and also in Puerto Rico, Canada, Mexico and Chile. The Company’s investment strategy is to be the owner and operator of neighborhood and community shopping centers through investments primarily in the United States. The Company’s tenants include TJX Companies, The Home Depot, Wal-Mart, Kohl’s and Bed Bath.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of KIM – November 2015

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $10,837,764,818 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 3.33 Pass
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -27.12% Fail
6. Moderate PEmg Ratio PEmg < 20 26.59 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.12 Pass
Score
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 3.33 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 21.35 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

KIM value Chart November 2015

EPSmg $0.96
MG Growth Estimate 15.00%
MG Value $36.99
Opinion Undervalued
MG Value based on 3% Growth $13.93
MG Value based on 0% Growth $8.17
Market Implied Growth Rate 9.04%
Current Price $25.54
% of Intrinsic Value 69.05%

Kimco Realty Corporation qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the insufficient earnings stability or growth over the last ten years, and the high PEmg ratio.  The Enterprising Investor is only initially concerned by the level of debt relative to the net current assets.  As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.

As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $0.33 in 2011 to an estimated $0.96 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 9.04% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Kimco Realty Corporation (KIM)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Stage 3: Information for Further Research

KIM Charts November 2015

Net Current Asset Value (NCAV) -$14.82
Graham Number $21.40
PEmg 26.59
Current Ratio 3.33
PB Ratio 2.12
Dividend Yield 3.70%
Number of Consecutive Years of Dividend Growth 5

 

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Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Total Current Assets $370,841,000
Total Current Liabilities $111,455,000
Long-Term Debt $5,537,772,000
Total Assets $11,467,300,000
Intangible Assets $0
Total Liabilities $6,493,718,000
Shares Outstanding (Diluted Average) 413,086,000

Earnings Per Share History

Next Fiscal Year Estimate $1.69
Dec14 $0.89
Dec13 $0.43
Dec12 $0.42
Dec11 $0.27
Dec10 $0.22
Dec09 -$0.15
Dec08 $0.78
Dec07 $1.65
Dec06 $1.70
Dec05 $1.52
Dec04 $1.15
Dec03 $0.97
Dec02 $0.98
Dec01 $0.95
Dec00 $0.84
Dec99 $0.74
Dec98 $0.66
Dec97 $0.59
Dec96 $0.54
Dec95 $0.44

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $0.96
Dec14 $0.55
Dec13 $0.33
Dec12 $0.29
Dec11 $0.33
Dec10 $0.52
Dec09 $0.82
Dec08 $1.32
Dec07 $1.53
Dec06 $1.40
Dec05 $1.20
Dec04 $1.02
Dec03 $0.94
Dec02 $0.89
Dec01 $0.81
Dec00 $0.72
Dec99 $0.64

Recommended Reading:

Other ModernGraham posts about the company

10 Undervalued Companies for the Enterprising Dividend Stock Investor – October 2015
10 Undervalued Companies for the Enterprising Dividend Stock Investor – August 2015
The 20 Best Stocks For Value Investors This Week – 8/15/15
Kimco Realty Corporation Analysis – August 2015 Update $KIM
21 Companies in the Spotlight This Week – 5/9/15

Other ModernGraham posts about related companies

Prologis Inc. Valuation – October 2015 Update $PLD
HCP Inc. Valuation – October 2015 Update $HCP
Essex Property Trust Inc. Analysis – October 2015 Update $ESS
Macerich Company Analysis – September 2015 Update $MAC
Alexandria Real Estate Equities Inc. Analysis – Initial Coverage $ARE
Weyerhaeuser Company Analysis – August 2015 Update $WY
Boston Properties Inc. Analysis – August 2015 Update $BXP
Health Care REIT Inc. Analysis – August 2015 Update $HCN
Kimco Realty Corporation Analysis – August 2015 Update $KIM
American Campus Communities Inc. Analysis – Initial Coverage $ACC

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Kimco Realty Corporation Analysis – August 2015 Update $KIM

Kimco_LogoREITs often attract a great deal of investors because of their strong cash flows and dividends, and those investors often overlook other parts of the business, choosing to analyze the company under a different set of criteria than companies in other sectors.  This can create a problem in that it becomes difficult to compare a REIT to an industrial, which is fine if you use the typical top-down approach to stock selection; however, a top-down approach invites speculation in the fact that you are theorizing which sector will perform well going forward.  Benjamin Graham taught that we should avoid speculation as much as possible, which is why it is critical to develop a system for analyzing companies that will allow them to be compared across industries.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another investment opportunity.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Kimco Realty Corporation (KIM) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Kimco Realty Corporation (Kimco) is a self-administered real estate investment trust (REIT), which owns and operates neighborhood and community shopping centers. The Company had interests in approximately 754 shopping center properties, aggregating 109.5 million square feet of gross leasable area (GLA), and 533 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling approximately 11.7 million square feet of GLA, for a total of 1,287 properties aggregating 121.2 million square feet of GLA, located in 41 states in the United States and also in Puerto Rico, Canada, Mexico and Chile. The Company’s investment strategy is to be the owner and operator of neighborhood and community shopping centers through investments primarily in the United States. The Company’s tenants include TJX Companies, The Home Depot, Wal-Mart, Kohl’s and Bed Bath.

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Defensive Investor – must pass at least 6 of the following 7 tests: Score = 4/7

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – current ratio greater than 2 – PASS
  3. Earnings Stability – positive earnings per share for at least 10 straight years – FAIL
  4. Dividend Record – has paid a dividend for at least 10 straight years – PASS
  5. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – FAIL
  6. Moderate PEmg ratio – PEmg is less than 20 – FAIL
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – PASS

Enterprising Investor – must pass at least 4 of the following 5 tests or be suitable for a defensive investor: Score = 4/5

  1. Sufficiently Strong Financial Condition, Part 1 – current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt to Net Current Assets ratio less than 1.1 – FAIL
  3. Earnings Stability – positive earnings per share for at least 5 years – PASS
  4. Dividend Record – currently pays a dividend – PASS
  5. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $24.91
MG Value $36.86
MG Opinion Undervalued
Value Based on 3% Growth $13.88
Value Based on 0% Growth $8.14
Market Implied Growth Rate 8.76%
Net Current Asset Value (NCAV) -$14.82
PEmg 26.02
Current Ratio 3.34
PB Ratio 2.07

Balance Sheet – June 2015

Current Assets $371,000,000
Current Liabilities $111,000,000
Total Debt $5,538,000,000
Total Assets $11,467,000,000
Intangible Assets $0
Total Liabilities $6,494,000,000
Outstanding Shares 413,100,000

Earnings Per Share

2015 (estimate) $1.68
2014 $0.89
2013 $0.43
2012 $0.42
2011 $0.27
2010 $0.22
2009 -$0.15
2008 $0.78
2007 $1.65
2006 $1.70
2005 $1.52

Earnings Per Share – ModernGraham

2015 (estimate) $0.96
2014 $0.55
2013 $0.33
2012 $0.29
2011 $0.33
2010 $0.52

Dividend History

Free Cash Flow

Conclusion:

Kimco Realty Corporation is suitable for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the insufficient earnings stability or growth over the last ten years, and the high PEmg ratio.  The Enterprising Investor is only concerned with the high level of debt relative to the net current assets.  As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the valuation.  From a valuation side of things, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $0.33 in 2011 to an estimated $0.96 for 2015.  This level of growth outpaces the market’s implied estimate of 8.76% annual earnings growth over the next 7-10 years, leading the ModernGraham valuation model to return an estimate of intrinsic value above the current price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Kimco Realty Corporation (KIM)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author did not hold a position in any company mentioned in the article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from the web; this article is not affiliated with the company in any manner.

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