KKR Real Estate Finance Trust Inc.
KKR Real Estate Finance Trust Inc. Fundamental Analysis
KKR Real Estate Finance Trust Inc. (KREF) shows weak financial fundamentals with a PE ratio of -9.24, profit margin of -13.05%, and ROE of -3.89%. The company generates $0.4B in annual revenue with weak year-over-year growth of -11.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -23.5/100 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's fundamental strength across five key dimensions:
Efficiency Score
WeakKREF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKREF trades at attractive valuation levels.
Growth Score
WeakKREF faces weak or negative growth trends.
Financial Health Score
WeakKREF carries high financial risk with limited liquidity.
Profitability Score
WeakKREF struggles to sustain strong margins.
Key Financial Metrics
Is KREF Expensive or Cheap?
P/E Ratio
KREF trades at -9.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KREF's PEG of 0.05 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 -20.24 times EBITDA. This is generally considered low.
How Well Does KREF Make Money?
Net Profit Margin
For every $100 in sales, KKR Real Estate Finance Trust Inc. keeps $-13.05 as profit after all expenses.
Operating Margin
Core operations generate 50.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.89 in profit for every $100 of shareholder equity.
ROA
KKR Real Estate Finance Trust Inc. generates $-0.75 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 $72.33M, showing steady but balanced cash generation.
Free Cash Flow
KKR Real Estate Finance Trust Inc. generates strong free cash flow of $70.74M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.08 in free cash annually.
FCF Yield
KREF converts 15.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-9.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.003
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
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 Stacks Against Its Sector Peers
| Metric | KREF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -9.24 | 24.23 | Better (Cheaper) |
| ROE | -3.89% | 659.00% | Weak |
| Net Margin | -13.05% | 4497.00% | Weak |
| Debt/Equity | 4.00 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.00 | 13.87 | Weak Liquidity |
| ROA | -0.75% | -1390.00% (disorted) | Weak |
KREF 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
28.70%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-67.26%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
19.61%
Industry Style: Income, Inflation Hedge, REIT
High Growth