KILROY REALTY CORP (KRC)
US49427F1084 - REIT
Overall KRC gets a fundamental rating of 4 out of 10. We evaluated KRC against 130 industry peers in the Diversified REITs industry. Both the profitability and the financial health of KRC get a neutral evaluation. Nothing too spectacular is happening here. KRC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year KRC was profitable.
KRC had a positive operating cash flow in the past year.
KRC had positive earnings in each of the past 5 years.
KRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.73%, KRC is doing good in the industry, outperforming 64.57% of the companies in the same industry.
With a decent Return On Equity value of 3.66%, KRC is doing good in the industry, outperforming 63.78% of the companies in the same industry.
KRC has a worse Return On Invested Capital (2.35%) than 60.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KRC is in line with the industry average of 3.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | 3.66% | ||
| ROIC | 2.35% |
ROA(3y)3.3%
ROA(5y)2.79%
ROE(3y)6.55%
ROE(5y)5.57%
ROIC(3y)2.38%
ROIC(5y)2.28%
1.3 Margins
Looking at the Profit Margin, with a value of 17.59%, KRC is in the better half of the industry, outperforming 74.02% 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 (28.77%) than 62.99% of its industry peers.
KRC's Operating Margin has improved in the last couple of years.
The Gross Margin of KRC (67.97%) is comparable to the rest of the industry.
KRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.77% | ||
| PM (TTM) | 17.59% | ||
| GM | 67.97% |
OM growth 3Y1.19%
OM growth 5Y3.24%
PM growth 3Y-3.18%
PM growth 5Y-11.45%
GM growth 3Y-0.93%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KRC is destroying value.
KRC has more shares outstanding than it did 1 year ago.
KRC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KRC is higher compared to a year ago.
2.2 Solvency
KRC has an Altman-Z score of 0.71. 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 0.71 is in line compared to the rest of the industry. KRC outperforms 58.27% of its industry peers.
KRC has a debt to FCF ratio of 298.52. This is a negative value and a sign of low solvency as KRC would need 298.52 years to pay back of all of its debts.
KRC has a Debt to FCF ratio (298.52) which is in line with its industry peers.
KRC has a Debt/Equity ratio of 0.93. This is a neutral value indicating KRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.93, KRC is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 298.52 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.42
WACC5.54%
2.3 Liquidity
KRC has a Current Ratio of 2.02. This indicates that KRC is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.02, KRC is doing good in the industry, outperforming 75.59% of the companies in the same industry.
A Quick Ratio of 2.02 indicates that KRC has no problem at all paying its short term obligations.
The Quick ratio of KRC (2.02) is better than 77.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The earnings per share for KRC have decreased by -9.73% in the last year.
Measured over the past years, KRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.25% on average per year.
The Revenue has decreased by -2.33% in the past year.
KRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.62% yearly.
EPS 1Y (TTM)-9.73%
EPS 3Y6.5%
EPS 5Y12.25%
EPS Q2Q%-2.22%
Revenue 1Y (TTM)-2.33%
Revenue growth 3Y7.94%
Revenue growth 5Y8.62%
Sales Q2Q%0.83%
3.2 Future
Based on estimates for the next years, KRC will show a decrease in Earnings Per Share. The EPS will decrease by -4.99% on average per year.
The Revenue is expected to grow by 2.09% on average over the next years.
EPS Next Y-13.78%
EPS Next 2Y-16.92%
EPS Next 3Y-12.76%
EPS Next 5Y-4.99%
Revenue Next Year-1.74%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.58%
Revenue Next 5Y2.09%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KRC is valuated rather expensively with a Price/Earnings ratio of 22.26.
Based on the Price/Earnings ratio, KRC is valued a bit cheaper than 78.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, KRC is valued at the same level.
KRC is valuated quite expensively with a Price/Forward Earnings ratio of 29.92.
74.80% of the companies in the same industry are more expensive than KRC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KRC to the average of the S&P500 Index (23.53), we can say KRC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 29.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than 61.42% of the companies in the same industry.
KRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 261.92 | ||
| EV/EBITDA | 12.99 |
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 -12.76% in the coming years.
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2Y-16.92%
EPS Next 3Y-12.76%
5. Dividend
5.1 Amount
KRC has a Yearly Dividend Yield of 5.83%, which is a nice return.
Compared to an average industry Dividend Yield of 15.23, KRC pays a bit more dividend than its industry peers.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
5.2 History
The dividend of KRC has a limited annual growth rate of 3.98%.
KRC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)3.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
130.06% of the earnings are spent on dividend by KRC. 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.
DP130.06%
EPS Next 2Y-16.92%
EPS Next 3Y-12.76%
KILROY REALTY CORP
NYSE:KRC (1/14/2025, 8:04:00 PM)
After market: 37.17 0 (0%)37.17
+1.08 (+2.99%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners109.24%
Inst Owner Change-0.18%
Ins Owners0.62%
Ins Owner Change-0.4%
Market Cap4.39B
Analysts70
Price Target44.01 (18.4%)
Short Float %6.07%
Short Ratio6.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
Dividend Growth(5Y)3.98%
DP130.06%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.79%
Min EPS beat(2)2%
Max EPS beat(2)23.59%
EPS beat(4)3
Avg EPS beat(4)6.44%
Min EPS beat(4)-4.04%
Max EPS beat(4)23.59%
EPS beat(8)6
Avg EPS beat(8)9.83%
EPS beat(12)9
Avg EPS beat(12)17.7%
EPS beat(16)12
Avg EPS beat(16)16.68%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)0.24%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-7.42%
Max Revenue beat(4)2.73%
Revenue beat(8)6
Avg Revenue beat(8)0.04%
Revenue beat(12)10
Avg Revenue beat(12)1.14%
Revenue beat(16)12
Avg Revenue beat(16)0.83%
PT rev (1m)3.07%
PT rev (3m)9.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.91%
EPS NY rev (1m)1.5%
EPS NY rev (3m)2.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 29.92 | ||
| P/S | 3.92 | ||
| P/FCF | 261.92 | ||
| P/OCF | 8.08 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 12.99 |
EPS(TTM)1.67
EY4.49%
EPS(NY)1.24
Fwd EY3.34%
FCF(TTM)0.14
FCFY0.38%
OCF(TTM)4.6
OCFY12.38%
SpS9.47
BVpS45.58
TBVpS45.58
PEG (NY)N/A
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | 3.66% | ||
| ROCE | 2.97% | ||
| ROIC | 2.35% | ||
| ROICexc | 2.49% | ||
| ROICexgc | 2.49% | ||
| OM | 28.77% | ||
| PM (TTM) | 17.59% | ||
| GM | 67.97% | ||
| FCFM | 1.5% |
ROA(3y)3.3%
ROA(5y)2.79%
ROE(3y)6.55%
ROE(5y)5.57%
ROIC(3y)2.38%
ROIC(5y)2.28%
ROICexc(3y)2.48%
ROICexc(5y)2.38%
ROICexgc(3y)2.5%
ROICexgc(5y)2.38%
ROCE(3y)3.02%
ROCE(5y)2.88%
ROICexcg growth 3Y3.21%
ROICexcg growth 5Y4.71%
ROICexc growth 3Y3.01%
ROICexc growth 5Y4.59%
OM growth 3Y1.19%
OM growth 5Y3.24%
PM growth 3Y-3.18%
PM growth 5Y-11.45%
GM growth 3Y-0.93%
GM growth 5Y-0.65%
F-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 298.52 | ||
| Debt/EBITDA | 7.41 | ||
| Cap/Depr | 149.09% | ||
| Cap/Sales | 47.07% | ||
| Interest Coverage | 2.44 | ||
| Cash Conversion | 80.49% | ||
| Profit Quality | 8.52% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 0.71 |
F-Score5
WACC5.54%
ROIC/WACC0.42
Cap/Depr(3y)299.01%
Cap/Depr(5y)319.64%
Cap/Sales(3y)96.62%
Cap/Sales(5y)103.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.73%
EPS 3Y6.5%
EPS 5Y12.25%
EPS Q2Q%-2.22%
EPS Next Y-13.78%
EPS Next 2Y-16.92%
EPS Next 3Y-12.76%
EPS Next 5Y-4.99%
Revenue 1Y (TTM)-2.33%
Revenue growth 3Y7.94%
Revenue growth 5Y8.62%
Sales Q2Q%0.83%
Revenue Next Year-1.74%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.58%
Revenue Next 5Y2.09%
EBIT growth 1Y-4.55%
EBIT growth 3Y9.22%
EBIT growth 5Y12.13%
EBIT Next Year101.01%
EBIT Next 3Y27.19%
EBIT Next 5Y18.04%
FCF growth 1Y161.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.41%
OCF growth 3Y9.77%
OCF growth 5Y6.64%