KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRC - US49427F1084 - REIT
38 USD
+0.45 (+1.2%)
38 USD
0 (0%)
Taking everything into account, KRC scores 4 out of 10 in our fundamental rating. KRC was compared to 128 industry peers in the Diversified REITs industry. KRC scores excellent on profitability, but there are some minor concerns on its financial health. KRC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KRC was profitable.
In the past year KRC had a positive cash flow from operations.
In the past 5 years KRC has always been profitable.
KRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KRC (2.93%) is better than 69.53% of its industry peers.
KRC has a Return On Equity of 5.89%. This is in the better half of the industry: KRC outperforms 70.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.53%, KRC is in line with its industry, outperforming 46.88% of the companies in the same industry.
KRC had an Average Return On Invested Capital over the past 3 years of 2.48%. This is in line with the industry average of 3.05%.
The 3 year average ROIC (2.48%) for KRC is below the current ROIC(2.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 5.89% | ||
| ROIC | 2.53% |
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
With an excellent Profit Margin value of 28.57%, KRC belongs to the best of the industry, outperforming 83.59% of the companies in the same industry.
KRC's Profit Margin has declined in the last couple of years.
KRC has a better Operating Margin (29.75%) than 61.72% of its industry peers.
KRC's Operating Margin has improved in the last couple of years.
KRC has a Gross Margin (68.11%) 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 | 29.75% | ||
| PM (TTM) | 28.57% | ||
| GM | 68.11% |
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.
The number of shares outstanding for KRC has been increased compared to 1 year ago.
The number of shares outstanding for KRC has been increased compared to 5 years ago.
KRC has a better debt/assets ratio than last year.
2.2 Solvency
KRC has an Altman-Z score of 0.76. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
KRC's Altman-Z score of 0.76 is fine compared to the rest of the industry. KRC outperforms 64.84% of its industry peers.
The Debt to FCF ratio of KRC is 89.55, which is on the high side as it means it would take KRC, 89.55 years of fcf income to pay off all of its debts.
KRC has a Debt to FCF ratio of 89.55. This is in the better half of the industry: KRC outperforms 63.28% of its industry peers.
KRC has a Debt/Equity ratio of 0.84. This is a neutral value indicating KRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, KRC is in the better half of the industry, outperforming 71.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 89.55 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.44
WACC5.7%
2.3 Liquidity
A Current Ratio of 1.60 indicates that KRC should not have too much problems paying its short term obligations.
The Current ratio of KRC (1.60) is better than 72.66% of its industry peers.
KRC has a Quick Ratio of 1.60. This is a normal value and indicates that KRC is financially healthy and should not expect problems in meeting its short term obligations.
KRC has a better Quick ratio (1.60) than 73.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
KRC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
The Earnings Per Share has been decreasing by -0.11% on average over the past years.
Looking at the last year, KRC shows a small growth in Revenue. The Revenue has grown by 0.77% in the last year.
KRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.28% yearly.
EPS 1Y (TTM)6.59%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%-13.64%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%-2.17%
3.2 Future
Based on estimates for the next years, KRC will show a very negative growth in Earnings Per Share. The EPS will decrease by -18.50% on average per year.
KRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.26% yearly.
EPS Next Y-6.99%
EPS Next 2Y-38.94%
EPS Next 3Y-30.53%
EPS Next 5Y-18.5%
Revenue Next Year-2.03%
Revenue Next 2Y1.14%
Revenue Next 3Y-0.09%
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
With a Price/Earnings ratio of 21.35, KRC is valued on the expensive side.
Based on the Price/Earnings ratio, KRC is valued a bit cheaper than 79.69% of the companies in the same industry.
KRC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 57.59, KRC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as KRC.
KRC is valuated expensively when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 57.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
KRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KRC is cheaper than 61.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.72 | ||
| EV/EBITDA | 12.69 |
4.3 Compensation for Growth
KRC has a very decent profitability rating, which may justify a higher PE ratio.
KRC's earnings are expected to decrease with -30.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-38.94%
EPS Next 3Y-30.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.61%, KRC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.33, KRC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, KRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
5.2 History
The dividend of KRC has a limited annual growth rate of 2.81%.
KRC has been paying a dividend for at least 10 years, so it has 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
80.05% of the earnings are spent on dividend by KRC. This is not a sustainable payout ratio.
The Dividend Rate of KRC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP80.05%
EPS Next 2Y-38.94%
EPS Next 3Y-30.53%
38
+0.45 (+1.2%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners132.87%
Inst Owner Change7.48%
Ins Owners0.63%
Ins Owner Change-0.06%
Market Cap4.50B
Revenue(TTM)1.13B
Net Income(TTM)321.97M
Analysts67
Price TargetN/A
Short Float %11.22%
Short Ratio10.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend2.18
Dividend Growth(5Y)2.81%
DP80.05%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)30.06%
Min EPS beat(2)-17.63%
Max EPS beat(2)77.75%
EPS beat(4)3
Avg EPS beat(4)28.91%
Min EPS beat(4)-17.63%
Max EPS beat(4)77.75%
EPS beat(8)6
Avg EPS beat(8)17.67%
EPS beat(12)9
Avg EPS beat(12)16.19%
EPS beat(16)12
Avg EPS beat(16)20.5%
Revenue beat(2)2
Avg Revenue beat(2)3.88%
Min Revenue beat(2)1.74%
Max Revenue beat(2)6.03%
Revenue beat(4)3
Avg Revenue beat(4)1.7%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)6.03%
Revenue beat(8)6
Avg Revenue beat(8)0.33%
Revenue beat(12)9
Avg Revenue beat(12)0.59%
Revenue beat(16)13
Avg Revenue beat(16)1.28%
PT rev (1m)2.43%
PT rev (3m)10.71%
EPS NQ rev (1m)-8.54%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)17.48%
EPS NY rev (3m)28.35%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 57.59 | ||
| P/S | 3.99 | ||
| P/FCF | 87.72 | ||
| P/OCF | 7.95 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 12.69 |
EPS(TTM)1.78
EY4.68%
EPS(NY)0.66
Fwd EY1.74%
FCF(TTM)0.43
FCFY1.14%
OCF(TTM)4.78
OCFY12.58%
SpS9.52
BVpS46.2
TBVpS46.2
PEG (NY)N/A
PEG (5Y)N/A
Graham Number43.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 5.89% | ||
| ROCE | 3.2% | ||
| ROIC | 2.53% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 2.62% | ||
| OM | 29.75% | ||
| PM (TTM) | 28.57% | ||
| GM | 68.11% | ||
| FCFM | 4.55% |
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%
ROICexgc growth 3Y3.65%
ROICexgc 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 | 0.84 | ||
| Debt/FCF | 89.55 | ||
| Debt/EBITDA | 6.68 | ||
| Cap/Depr | 146.35% | ||
| Cap/Sales | 45.63% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 82.36% | ||
| Profit Quality | 15.92% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 0.76 |
F-Score8
WACC5.7%
ROIC/WACC0.44
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)6.59%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%-13.64%
EPS Next Y-6.99%
EPS Next 2Y-38.94%
EPS Next 3Y-30.53%
EPS Next 5Y-18.5%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%-2.17%
Revenue Next Year-2.03%
Revenue Next 2Y1.14%
Revenue Next 3Y-0.09%
Revenue Next 5Y0.26%
EBIT growth 1Y4.22%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year102.44%
EBIT Next 3Y27.44%
EBIT Next 5Y16.26%
FCF growth 1Y10.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.82%
OCF growth 3Y1.57%
OCF growth 5Y3.37%
KILROY REALTY CORP / KRC FAQ
What is the fundamental rating for KRC stock?
ChartMill assigns a fundamental rating of 4 / 10 to KRC.
Can you provide the valuation status for KILROY REALTY CORP?
ChartMill assigns a valuation rating of 3 / 10 to KILROY REALTY CORP (KRC). This can be considered as Overvalued.
What is the profitability of KRC stock?
KILROY REALTY CORP (KRC) has a profitability rating of 7 / 10.
What is the financial health of KILROY REALTY CORP (KRC) stock?
The financial health rating of KILROY REALTY CORP (KRC) is 4 / 10.
Is the dividend of KILROY REALTY CORP sustainable?
The dividend rating of KILROY REALTY CORP (KRC) is 6 / 10 and the dividend payout ratio is 80.05%.