KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - NYSE:KRC - US49427F1084 - REIT
43.6 USD
+0.43 (+1%)
43.6 USD
0 (0%)
KRC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. KRC has an average financial health and profitability rating. KRC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
KRC had positive earnings in the past year.
In the past year KRC had a positive cash flow from operations.
KRC had positive earnings in each of the past 5 years.
Each year in the past 5 years KRC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KRC (2.01%) is better than 65.38% of its industry peers.
KRC's Return On Equity of 4.07% is fine compared to the rest of the industry. KRC outperforms 62.31% of its industry peers.
KRC has a Return On Invested Capital (2.57%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KRC is in line with the industry average of 3.05%.
The 3 year average ROIC (2.48%) for KRC is below the current ROIC(2.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 4.07% | ||
| ROIC | 2.57% |
ROA(3y)1.97%
ROA(5y)2.74%
ROE(3y)4.01%
ROE(5y)5.44%
ROIC(3y)2.48%
ROIC(5y)2.36%
1.3 Margins
KRC's Profit Margin of 19.22% is fine compared to the rest of the industry. KRC outperforms 71.54% of its industry peers.
KRC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 29.81%, KRC is in the better half of the industry, outperforming 62.31% of the companies in the same industry.
KRC's Operating Margin has improved in the last couple of years.
KRC has a Gross Margin (68.17%) which is in line with its industry peers.
KRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.81% | ||
| PM (TTM) | 19.22% | ||
| GM | 68.17% |
OM growth 3Y-0.15%
OM growth 5Y2.1%
PM growth 3Y-34.54%
PM growth 5Y-4.43%
GM growth 3Y-1.97%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KRC is destroying value.
Compared to 1 year ago, KRC has more shares outstanding
Compared to 5 years ago, KRC has more shares outstanding
The debt/assets ratio for KRC has been reduced compared to a year ago.
2.2 Solvency
KRC has an Altman-Z score of 0.80. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.80, KRC is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
KRC has a debt to FCF ratio of 30.31. This is a negative value and a sign of low solvency as KRC would need 30.31 years to pay back of all of its debts.
The Debt to FCF ratio of KRC (30.31) is better than 70.00% of its industry peers.
KRC has a Debt/Equity ratio of 0.86. This is a neutral value indicating KRC is somewhat dependend on debt financing.
The Debt to Equity ratio of KRC (0.86) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 30.31 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.43
WACC6.01%
2.3 Liquidity
A Current Ratio of 1.38 indicates that KRC should not have too much problems paying its short term obligations.
KRC's Current ratio of 1.38 is fine compared to the rest of the industry. KRC outperforms 61.54% of its industry peers.
A Quick Ratio of 1.38 indicates that KRC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.38, KRC is in the better half of the industry, outperforming 62.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.52% over the past year.
Measured over the past years, KRC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.11% on average per year.
The Revenue has been growing slightly by 2.26% in the past year.
The Revenue has been growing slightly by 6.28% on average over the past years.
EPS 1Y (TTM)9.52%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%39.02%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%3.26%
3.2 Future
KRC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.50% yearly.
The Revenue is expected to grow by 0.26% on average over the next years.
EPS Next Y-27.53%
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
EPS Next 5Y-18.5%
Revenue Next Year-3.27%
Revenue Next 2Y1.18%
Revenue Next 3Y0.15%
Revenue Next 5Y0.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.70 indicates a rather expensive valuation of KRC.
KRC's Price/Earnings ratio is rather cheap when compared to the industry. KRC is cheaper than 81.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, KRC is valued at the same level.
The Price/Forward Earnings ratio is 66.41, which means the current valuation is very expensive for KRC.
KRC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, KRC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.7 | ||
| Fwd PE | 66.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRC is on the same level as its industry peers.
67.69% of the companies in the same industry are more expensive than KRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34 | ||
| EV/EBITDA | 13.69 |
4.3 Compensation for Growth
KRC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as KRC's earnings are expected to decrease with -22.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.03%, KRC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, KRC has a dividend in line with its industry peers.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
5.2 History
The dividend of KRC has a limited annual growth rate of 2.81%.
KRC has paid a dividend for at least 10 years, which is a reliable track record.
KRC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.81%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
KRC pays out 117.72% of its income as dividend. This is not a sustainable payout ratio.
KRC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP117.72%
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
43.6
+0.43 (+1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners123.78%
Inst Owner Change5.57%
Ins Owners0.64%
Ins Owner Change0.72%
Market Cap5.16B
Analysts54.78
Price Target38.76 (-11.1%)
Short Float %11.69%
Short Ratio8.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend2.18
Dividend Growth(5Y)2.81%
DP117.72%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.46%
Min EPS beat(2)3.18%
Max EPS beat(2)77.75%
EPS beat(4)4
Avg EPS beat(4)39.21%
Min EPS beat(4)3.18%
Max EPS beat(4)77.75%
EPS beat(8)7
Avg EPS beat(8)23.07%
EPS beat(12)10
Avg EPS beat(12)24.09%
EPS beat(16)13
Avg EPS beat(16)23.15%
Revenue beat(2)1
Avg Revenue beat(2)1.83%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)6.03%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)6.03%
Revenue beat(8)6
Avg Revenue beat(8)0.22%
Revenue beat(12)9
Avg Revenue beat(12)0.69%
Revenue beat(16)13
Avg Revenue beat(16)1.21%
PT rev (1m)2.92%
PT rev (3m)3.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)8.18%
EPS NY rev (3m)7.86%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.7 | ||
| Fwd PE | 66.41 | ||
| P/S | 4.54 | ||
| P/FCF | 34 | ||
| P/OCF | 9.12 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 13.69 |
EPS(TTM)1.84
EY4.22%
EPS(NY)0.66
Fwd EY1.51%
FCF(TTM)1.28
FCFY2.94%
OCF(TTM)4.78
OCFY10.96%
SpS9.61
BVpS45.37
TBVpS45.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 4.07% | ||
| ROCE | 3.26% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 2.62% | ||
| OM | 29.81% | ||
| PM (TTM) | 19.22% | ||
| GM | 68.17% | ||
| FCFM | 13.34% |
ROA(3y)1.97%
ROA(5y)2.74%
ROE(3y)4.01%
ROE(5y)5.44%
ROIC(3y)2.48%
ROIC(5y)2.36%
ROICexc(3y)2.57%
ROICexc(5y)2.47%
ROICexgc(3y)2.58%
ROICexgc(5y)2.48%
ROCE(3y)3.14%
ROCE(5y)2.99%
ROICexcg growth 3Y3.65%
ROICexcg growth 5Y4.08%
ROICexc growth 3Y3.45%
ROICexc growth 5Y3.95%
OM growth 3Y-0.15%
OM growth 5Y2.1%
PM growth 3Y-34.54%
PM growth 5Y-4.43%
GM growth 3Y-1.97%
GM growth 5Y-0.76%
F-Score8
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 30.31 | ||
| Debt/EBITDA | 6.62 | ||
| Cap/Depr | 116.26% | ||
| Cap/Sales | 36.37% | ||
| Interest Coverage | 2.7 | ||
| Cash Conversion | 81.37% | ||
| Profit Quality | 69.42% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 0.8 |
F-Score8
WACC6.01%
ROIC/WACC0.43
Cap/Depr(3y)152.59%
Cap/Depr(5y)248.71%
Cap/Sales(3y)48.58%
Cap/Sales(5y)80.51%
Profit Quality(3y)16.5%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.52%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%39.02%
EPS Next Y-27.53%
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
EPS Next 5Y-18.5%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%3.26%
Revenue Next Year-3.27%
Revenue Next 2Y1.18%
Revenue Next 3Y0.15%
Revenue Next 5Y0.26%
EBIT growth 1Y6.28%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year99.57%
EBIT Next 3Y29.45%
EBIT Next 5Y16.26%
FCF growth 1Y138.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.3%
OCF growth 3Y1.57%
OCF growth 5Y3.37%