Keystone Reit (KSTN) AI Stock Analysis

• Market Cap: 1.55B
• Dividend Yield: 5.24%
• Average Volume (3M): 143.67K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.65
• Revenue Growth: -5.68%
• EPS Growth: -62.91%
• Country: IL
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Specialty
• EPS (TTM): 1.08
• Shares Outstanding: 187,204,000
• 10 Day Avg. Volume: 123,141
• 30 Day Avg. Volume: 143,671
• PEG Ratio: -0.21
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ―

Keystone Reit's overall stock score reflects its strong financial performance and attractive valuation. The company maintains a solid balance sheet and effective cost control, despite a revenue decline. Positive technical indicators suggest upward momentum, although caution is advised due to potential overbought conditions. The low P/E ratio and high dividend yield further enhance the stock's attractiveness. However, past financial volatility and current revenue challenges require ongoing strategic focus.

Keystone Reit Business Overview & Revenue Model

Company Description

Keystone REIT (KSTN) is a real estate investment trust focused on acquiring, managing, and developing a diverse portfolio of commercial properties. Specializing in office, retail, and industrial sectors, Keystone REIT aims to deliver sustainable income and capital appreciation for its investors through strategic asset management and value-enhancing property development.

How the Company Makes Money

Keystone REIT generates revenue primarily through leasing its properties to tenants, which provides a steady stream of rental income. The company also earns money from property management fees and gains from the sale of properties when market conditions are favorable. Additionally, Keystone REIT may engage in joint ventures or partnerships with other real estate firms to co-develop or manage properties, further enhancing its earnings potential. The trust's ability to maintain high occupancy rates and negotiate favorable lease terms is crucial to its financial performance.

Keystone Reit Financial Statement Overview

Summary

Keystone Reit exhibits a solid financial foundation with notable strengths in cash flow and balance sheet stability. Despite a concerning decline in revenue, the company effectively controls costs, sustaining profitability. The balance sheet showcases a strong equity position and manageable debt levels, supporting long-term stability. While cash flow management is commendable, past volatility in financial metrics and the current revenue downturn highlight areas for strategic improvement to bolster future growth.

Income Statement

Keystone Reit shows a mixed performance in its income statement. The TTM data reflects a significant revenue drop, turning negative compared to the previous year, which is concerning. However, the company maintains a high EBIT margin due to controlled expenses, suggesting effective cost management. Net income remains positive, but the negative gross profit margin indicates ongoing challenges in core operations. Stability in EBIT and EBITDA margins shows resilience, yet the drastic revenue decline poses a risk.

Balance Sheet

The balance sheet reveals a stable equity base with a healthy Equity Ratio of approximately 61.5% in the TTM, indicating strong asset backing by equity. The Debt-to-Equity Ratio is relatively conservative at around 0.53, signifying manageable leverage levels. Return on Equity is robust, driven by substantial net income. The company's financial position is solid, with adequate cash reserves, but the negative trajectory in net debt over recent years warrants cautious monitoring.

Cash Flow

Cash flow analysis presents a positive outlook with strong Free Cash Flow in the TTM, suggesting efficient cash management. Operating cash flow consistently exceeds net income, enhancing liquidity. The absence of capital expenditure reflects a focus on maintaining cash reserves. However, the stability in cash flow is tempered by prior years' volatility, which could impact future strategic investments.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	-71.08M	863.00K	873.00K	826.00K	572.00K	0.00
Gross Profit	-97.07M	-30.20M	-14.90M	-4.45M	153.00K	0.00
EBITDA	209.82M	601.07M	192.69M	91.33M	-2.32M	-1.11M
Net Income	193.36M	443.88M	94.74M	62.50M	8.02M	-1.32M
Balance Sheet
Total Assets	3.49B	3.13B	2.72B	1.51B	509.90M	5.13M
Cash, Cash Equivalents and Short-Term Investments	378.89M	80.90M	140.12M	536.75M	19.46M	0.00
Total Debt	1.13B	1.05B	1.17B	458.90M	130.00M	6.14M
Total Liabilities	1.35B	1.27B	1.25B	494.48M	135.75M	6.23M
Stockholders Equity	2.15B	1.86B	1.47B	1.01B	374.15M	-1.10M
Cash Flow
Free Cash Flow	167.64M	210.05M	127.83M	37.70M	-5.10M	-1.27M
Operating Cash Flow	167.64M	210.05M	127.83M	37.73M	-5.10M	-1.27M
Investing Cash Flow	-21.32M	-80.88M	-1.57B	-367.11M	-461.80M	-6.00M
Financing Cash Flow	151.66M	-188.39M	1.04B	846.66M	486.36M	7.27M

Keystone Reit Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 742.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:KSTN, the sentiment is Positive. The current price of 742 is above the 20-day moving average (MA) of 722.41, above the 50-day MA of 708.72, and above the 200-day MA of 632.92, indicating a bullish trend. The MACD of 19.82 indicates Negative momentum. The RSI at 77.26 is Negative, neither overbought nor oversold. The STOCH value of 97.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:KSTN.

Keystone Reit Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSTN	77 Outperform	1.55B	7.96		5.24%	-5.68%	-62.91%
Sector *	66 Neutral	$1.95B	17.40	2.40%	5.26%	-0.31%	5.93%
ELCO	63 Neutral	5.40B	―		6.54%	11.27%	79.98%
AZRM	56 Neutral	5.07B	31.46		0.79%	37.48%	-5.87%
ALHE	51 Neutral	8.00B	209.46		9.07%	12.06%	―

Keystone Reit Corporate Events

Keystone Infra Ltd. Announces Lawsuit Dismissal

Keystone Infra Ltd. announced the dismissal of a lawsuit and a request for its approval as a derivative lawsuit, following a delay due to regulatory compliance. This development could have implications for the company’s legal and operational aspects, potentially affecting its market positioning and stakeholder relations.

Keystone Reit Extends Bond Series B, Enhancing Capital Structure

Keystone Reit Ltd announced an extension of its bond series, specifically Series B, increasing the total amount from 300 million to 450 million. This change signifies a strategic move in the company’s capital structure, potentially impacting its market positioning and providing more flexibility in its financial operations.