KKR Real Estate Finance Trust Inc.
KKR Real Estate Finance Trust Inc. Fundamental Analysis
KKR Real Estate Finance Trust Inc. (KREF-PA) shows weak financial fundamentals with a PE ratio of -4.22, profit margin of -22.26%, and ROE of -8.30%. The company generates $0.4B in annual revenue with weak year-over-year growth of -22.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -45.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KREF-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakKREF-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKREF-PA trades at attractive valuation levels.
Growth Score
WeakKREF-PA faces weak or negative growth trends.
Financial Health Score
WeakKREF-PA carries high financial risk with limited liquidity.
Profitability Score
WeakKREF-PA struggles to sustain strong margins.
Key Financial Metrics
Is KREF-PA Expensive or Cheap?
P/E Ratio
KREF-PA trades at -4.22 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KREF-PA's PEG of -0.11 indicates potential undervaluation.
Price to Book
The market values KKR Real Estate Finance Trust Inc. at 0.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -18.71 times EBITDA. This is generally considered low.
How Well Does KREF-PA Make Money?
Net Profit Margin
For every $100 in sales, KKR Real Estate Finance Trust Inc. keeps $-22.26 as profit after all expenses.
Operating Margin
Core operations generate 47.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-8.30 in profit for every $100 of shareholder equity.
ROA
KKR Real Estate Finance Trust Inc. generates $-1.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KKR Real Estate Finance Trust Inc. produces operating cash flow of $69.11M, showing steady but balanced cash generation.
Free Cash Flow
KKR Real Estate Finance Trust Inc. generates strong free cash flow of $61.91M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.96 in free cash annually.
FCF Yield
KREF-PA converts 15.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-4.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.08
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How KREF-PA Stacks Against Its Sector Peers
| Metric | KREF-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -4.22 | 23.41 | Better (Cheaper) |
| ROE | -8.30% | 666.00% | Weak |
| Net Margin | -22.26% | -37342.00% (disorted) | Weak |
| Debt/Equity | 4.11 | -20.97 (disorted) | Distorted |
| Current Ratio | 0.21 | 21.32 | Weak Liquidity |
| ROA | -1.41% | -928.00% (disorted) | Weak |
KREF-PA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KKR Real Estate Finance Trust Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.17%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-172.48%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-47.36%
Industry Style: Income, Inflation Hedge, REIT
Declining