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Warning Sign:
Piotroski F-Score of 3 is low, which usually implies poor business operation.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
KKR Real Estate Finance Trust has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
The historical rank and industry rank for KKR Real Estate Finance Trust's Piotroski F-Score or its related term are showing as below:
During the past 9 years, the highest Piotroski F-Score of KKR Real Estate Finance Trust was 7. The lowest was 3. And the median was 5.
The historical data trend for KKR Real Estate Finance Trust's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KKR Real Estate Finance Trust Annual Data | |||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||||||
Piotroski F-Score | Get a 7-Day Free Trial | 7.00 | 5.00 | 5.00 | 4.00 | 3.00 |
KKR Real Estate Finance Trust Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Piotroski F-Score | Get a 7-Day Free Trial | 4.00 | 4.00 | 3.00 | 5.00 | 3.00 |
For the REIT - Mortgage subindustry, KKR Real Estate Finance Trust's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the REITs industry and Real Estate sector, KKR Real Estate Finance Trust's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where KKR Real Estate Finance Trust's Piotroski F-Score falls into.
How is the Piotroski F-Score calculated?
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Net Income was -25.077 + -20.028 + 27.141 + -12.887 = $-30.9 Mil. Cash Flow from Operations was 41.635 + 35.473 + 41.766 + 36.841 = $155.7 Mil. Revenue was 44.988 + 43.814 + 42.65 + 43.769 = $175.2 Mil. Average Total Assets from the begining of this year (Dec22) to the end of this year (Dec23) was (7802.321 + 7876.031 + 7609.245 + 7625.442 + 7547.618) / 5 = $7692.1314 Mil. Total Assets at the begining of this year (Dec22) was $7,802.3 Mil. Long-Term Debt & Capital Lease Obligation was $6,059.9 Mil. Total Assets was $7,547.6 Mil. Total Liabilities was $6,143.4 Mil. |
Net Income was 35.468 + 25.061 + -42.754 + 20.328 = $38.1 Mil. Revenue was 39.308 + 42.434 + 43.659 + 49.331 = $174.7 Mil. Average Total Assets from the begining of last year (Dec21) to the end of last year (Dec22) was (6703.239 + 7149.763 + 7713.609 + 7541.05 + 7802.321) / 5 = $7381.9964 Mil. Total Assets at the begining of last year (Dec21) was $6,703.2 Mil. Long-Term Debt & Capital Lease Obligation was $6,164.3 Mil. Total Assets was $7,802.3 Mil. Total Liabilities was $6,230.9 Mil. |
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
KKR Real Estate Finance Trust's current Net Income (TTM) was -30.9.
==> Negative ==> Score 0.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
KKR Real Estate Finance Trust's current Cash Flow from Operations (TTM) was 155.7.
==> Positive ==> Score 1.
Question 3. Change in Return on Assets
Compare this year's return on assets (1) to last year's return on assets.
Score 1 if it's higher, 0 if it's lower.
ROA (This Year) | = | Net Income | / | Total Assets (Dec22) |
= | -30.851 | / | 7802.321 | |
= | -0.00395408 |
ROA (Last Year) | = | Net Income | / | Total Assets (Dec21) |
= | 38.103 | / | 6703.239 | |
= | 0.00568427 |
KKR Real Estate Finance Trust's return on assets of this year was -0.00395408. KKR Real Estate Finance Trust's return on assets of last year was 0.00568427.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Score 1 if CFROA > ROA, 0 if CFROA <= ROA.
KKR Real Estate Finance Trust's current Net Income (TTM) was -30.9. KKR Real Estate Finance Trust's current Cash Flow from Operations (TTM) was 155.7.
==> 155.7 > -30.9 ==> CFROA > ROA ==> Score 1.
Funding
Question 5. Change in Gearing or Leverage
Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.
Score 0 if this year's gearing is higher, 1 otherwise.
Gearing (This Year: Dec23) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Dec22 to Dec23 |
= | 6059.921 | / | 7692.1314 | |
= | 0.78780778 |
Gearing (Last Year: Dec22) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Dec21 to Dec22 |
= | 6164.348 | / | 7381.9964 | |
= | 0.83505161 |
KKR Real Estate Finance Trust's gearing of this year was 0.78780778. KKR Real Estate Finance Trust's gearing of last year was 0.83505161.
==> This year is lower or equal to last year. ==> Score 1.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.
Current Ratio (This Year: Dec23) | = | Total Assets | / | Total Liabilities |
= | 7547.618 | / | 6143.436 | |
= | 1.22856623 |
Current Ratio (Last Year: Dec22) | = | Total Assets | / | Total Liabilities |
= | 7802.321 | / | 6230.885 | |
= | 1.25220109 |
KKR Real Estate Finance Trust's current ratio of this year was 1.22856623. KKR Real Estate Finance Trust's current ratio of last year was 1.25220109.
==> Last year's current ratio is higher ==> Score 0.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
KKR Real Estate Finance Trust's number of shares in issue this year was 69.387. KKR Real Estate Finance Trust's number of shares in issue last year was 69.127.
==> There is larger number of shares in issue this year. ==> Score 0.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.
Net Margin (This Year: TTM) | = | Net Income | / | Revenue |
= | -30.851 | / | 175.221 | |
= | -0.17606908 |
Net Margin (Last Year: TTM) | = | Net Income | / | Revenue |
= | 38.103 | / | 174.732 | |
= | 0.21806538 |
KKR Real Estate Finance Trust's net margin of this year was -0.17606908. KKR Real Estate Finance Trust's net margin of last year was 0.21806538.
==> Last year's net margin is higher ==> Score 0.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
Asset Turnover (This Year) | = | Revenue | / | Total Assets at the Beginning of This Year (Dec22) |
= | 175.221 | / | 7802.321 | |
= | 0.02245755 |
Asset Turnover (Last Year) | = | Revenue | / | Total Assets at the Beginning of Last Year (Dec21) |
= | 174.732 | / | 6703.239 | |
= | 0.0260668 |
KKR Real Estate Finance Trust's asset turnover of this year was 0.02245755. KKR Real Estate Finance Trust's asset turnover of last year was 0.0260668.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score | = | Que. 1 | + | Que. 2 | + | Que. 3 | + | Que. 4 | + | Que. 5 | + | Que. 6 | + | Que. 7 | + | Que. 8 | + | Que. 9 |
= | 0 | + | 1 | + | 0 | + | 1 | + | 1 | + | 0 | + | 0 | + | 0 | + | 0 | |
= | 3 |
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
KKR Real Estate Finance Trust has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
KKR Real Estate Finance Trust (NYSE:KREF) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
Thank you for viewing the detailed overview of KKR Real Estate Finance Trust's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Lee Christen E.j. | officer: Co-CEO and Co-President | C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001 |
W Patrick Mattson | officer: Chief Operating Off. and Secr | C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001 |
Matthew A Salem | officer: Co-CEO and Co-President | C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001 |
Kkr Group Co. Inc. | 10 percent owner | 30 HUDSON YARDS, NEW YORK NY 10001 |
Kkr Group Partnership L.p. | 10 percent owner | C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001 |
Kkr Reft Holdings L.p. | 10 percent owner | C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001 |
Kendra Decious | officer: CFO and Treasurer | C/O KKR REAL ESTATE FINANCE TRUST INC., 30 HUDSON YARDS, SUITE 7500, NEW YORK NY 10001 |
Vincent J. Napolitano | officer: General Counsel and Secretary | C/O KKR REAL ESTATE FINANCE TRUST INC., 30 HUDSON YARDS, SUITE 7500, NEW YORK NY 10001 |
Tactical Value Spn-kref Holdings L.p. | 10 percent owner | C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019 |
Makena U.s. Real Estate Master Fund B, L.p. | 10 percent owner | 2755 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025 |
Kkr Management Holdings L.p. | 10 percent owner | 9 WEST 57TH STREET 41ST FLOOR, NEW YORK NY 10019 |
Kkr Group Holdings Corp. | 10 percent owner | C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001 |
Irene M Esteves | director | C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 17TH FLOOR, NEW YORK NY 10023 |
Paula Madoff | director | C/O KKR REAL ESTATE FINANCE TRUST INC., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019 |
Mostafa Nagaty | officer: CFO and Treasurer | C/O KKR REAL ESTATE FINANCE TRUST INC., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019 |
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