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Kowloon Development Co (HKSE:00034) Owner Earnings per Share (TTM) : 0.91 (As of Dec. 2023)


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What is Kowloon Development Co Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Kowloon Development Co's Owner Earnings per Share (TTM) ended in Dec. 2023 was HK$0.91. It's Price-to-Owner-Earnings ratio for today is 3.85.


The historical rank and industry rank for Kowloon Development Co's Owner Earnings per Share (TTM) or its related term are showing as below:

HKSE:00034' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 1.61   Med: 4.32   Max: 11
Current: 3.85


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Kowloon Development Co was 11.00. The lowest was 1.61. And the median was 4.32.


HKSE:00034's Price-to-Owner-Earnings is ranked better than
79.35% of 770 companies
in the Real Estate industry
Industry Median: 10.515 vs HKSE:00034: 3.85

Kowloon Development Co's Earnings per Share (Diluted) for the six months ended in Jun. 2024 was HK$0.10. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was HK$0.20. It's PE Ratio (TTM) ratio for today is 17.41.

Kowloon Development Co's EPS without NRI for the six months ended in Jun. 2024 was HK$0.10. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was HK$0.20. It's PE Ratio without NRI ratio for today is 17.41.


Kowloon Development Co Owner Earnings per Share (TTM) Historical Data

The historical data trend for Kowloon Development Co's Owner Earnings per Share (TTM) 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.

* Premium members only.

Kowloon Development Co Owner Earnings per Share (TTM) Chart

Kowloon Development Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.76 -0.11 -0.11 -4.54 0.91

Kowloon Development Co Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -4.54 - 0.91 -

Competitive Comparison of Kowloon Development Co's Owner Earnings per Share (TTM)

For the Real Estate - Development subindustry, Kowloon Development Co's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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.


Kowloon Development Co's Price-to-Owner-Earnings Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Kowloon Development Co's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Kowloon Development Co's Price-to-Owner-Earnings falls into.



Kowloon Development Co Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Kowloon Development Co's Owner Earnings per Share (TTM) Calculation:

Last Year Average of Last 5 Years
Net Income 337
Depreciation, Depletion and Amortization 20
Change In Deferred Tax 0
5Y Average of Maintenance Capital Expenditure 14
Change In Working Capital 844
Shares Outstanding (Diluted Average) 1,306

1. Start with "Net Income" from income statement. Kowloon Development Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$337 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Kowloon Development Co's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2023 was HK$20 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Kowloon Development Co's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2023 was HK$0 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = HK$14 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Kowloon Development Co's 5-Year Average Maintenance Capital Expenditure = HK$14 Mil

5. "Change In Working Capital" is from cashflow statement. Kowloon Development Co's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2023 was HK$844 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Kowloon Development Co's Shares Outstanding (Diluted Average) for the months ended in Dec. 2023 was 1306.206 Mil.

Kowloon Development Co's Onwer Earnings Per Share for Dec. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 337.195 +20.461+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-14.409+843.613)/1306.206
=0.91

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=3.50/0.91
=3.85

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Kowloon Development Co Owner Earnings per Share (TTM) Related Terms

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Kowloon Development Co Business Description

Traded in Other Exchanges
Address
750 Nathan Road, 23rd Floor, Pioneer Centre, Kowloon, Hong Kong, HKG
Kowloon Development Co Ltd is an investment holding company. It operates in three segments: Property development, which includes the development and sale of properties and interests in property development; Property investment segment includes leasing of properties to generate rental income and to gain from the appreciation in the properties' values in the long term; and Other businesses segment, which includes the financial investments, the provision of financial services, the provision of property management services and treasury operations. The company generates the majority of its revenue from the sale of properties. Its geographical segments are Hong Kong, which accounts for the majority of revenue; Mainland China; and Others.
Executives
New Explorer Developments Limited 2201 Interest of corporation controlled by you
Or Wai Sheun 2201 Interest of corporation controlled by you

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