KIM: Kimco Realty Corp
Real Estate Investment Trust (REIT) that invests primarily in shopping centers anchored by grocery store chains and discount stores located a short distance outside metropolitan areas
Recent Range: $9/share – $45/share (Current Price: 15.30, as of close of 5/5/10)
Price/Sales (P/S) = 7.89 (5.55, Industry)
Price/Book (P/B) = 1.28 (3.19)
Gross Margin = 69.9% (68.6%)
Pre-Tax Margin = -4.4% (3.8%)
Debt/Equity Ratio = 0.91 (2.51)
Current Ratio = Not Available
Return on Equity = -1.3% (-2.2%)
Return on Assets = 0.0% (0.8%)
Analysis: There are more things about this stock to like than dislike. The Price/Book is higher than I like, but it is a lot smaller than its competitors.
The price seems to be cheap relative to its historical range.
The company just released its earnings figures today, and they met expectations. They turned a modest profit, which is difficult in this industry today, especially with shopping centers. Their occupancy rate is high, but this is probably with the help of significantly discounted rents from their tenants.
They announced that they are raising their profit expectations for the year. This could be a great sign, or it could just simply be a way to try gaining investors’ confidence. Time will tell this one. Watch this closely.
For its industry, it does not have a lot of debt. This should provide it with some flexibility to withstand any near-term economic dip. They have about the same amount of cash as they did last quarter. So they seem to be stable enough to weather a couple of storms.
The dividend is respectable (4%), but it is not high enough to overlook other things, if you don’t like this company or stock.
Buy this if you do not have anything else with more upside in your sights. You might want to wait for a temporary price dip, but there seems to be more upside than downside.
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