KILROY REALTY CORP (KRC) Stock Fundamental Analysis
NYSE:KRC - New York Stock Exchange, Inc. - US49427F1084 - REIT - Currency: USD
Overall KRC gets a fundamental rating of 4 out of 10. We evaluated KRC against 129 industry peers in the Diversified REITs industry. While KRC is still in line with the averages on profitability rating, there are concerns on its financial health. KRC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
KRC had positive earnings in the past year.
KRC had a positive operating cash flow in the past year.
KRC had positive earnings in each of the past 5 years.
In the past 5 years KRC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 1.92%, KRC is doing good in the industry, outperforming 69.84% of the companies in the same industry.
With a decent Return On Equity value of 3.88%, KRC is doing good in the industry, outperforming 65.08% of the companies in the same industry.
KRC has a Return On Invested Capital of 2.54%. This is comparable to the rest of the industry: KRC outperforms 43.65% of its industry peers.
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 3.14%.
The 3 year average ROIC (2.48%) for KRC is below the current ROIC(2.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 3.88% | ||
| ROIC | 2.54% |
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 has a Profit Margin of 18.40%. This is in the better half of the industry: KRC outperforms 75.40% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
KRC has a better Operating Margin (29.46%) than 62.70% of its industry peers.
KRC's Operating Margin has improved in the last couple of years.
KRC has a Gross Margin (67.94%) 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 | 29.46% | ||
| PM (TTM) | 18.4% | ||
| GM | 67.94% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRC is destroying value.
Compared to 1 year ago, KRC has more shares outstanding
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 0.70. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.70, KRC perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
The Debt to FCF ratio of KRC is 114.46, which is on the high side as it means it would take KRC, 114.46 years of fcf income to pay off all of its debts.
KRC has a Debt to FCF ratio of 114.46. This is comparable to the rest of the industry: KRC outperforms 47.62% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that KRC is somewhat dependend on debt financing.
The Debt to Equity ratio of KRC (0.85) is better than 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 114.46 | ||
| Altman-Z | 0.7 |
ROIC/WACC0.43
WACC5.9%
2.3 Liquidity
KRC has a Current Ratio of 1.31. 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 Current ratio of 1.31. This is comparable to the rest of the industry: KRC outperforms 58.73% of its industry peers.
A Quick Ratio of 1.31 indicates that KRC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.31, KRC is doing good in the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for KRC have decreased by -1.67% in the last year.
KRC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.11% yearly.
KRC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.52%.
Measured over the past years, KRC shows a small growth in Revenue. The Revenue has been growing by 6.28% on average per year.
EPS 1Y (TTM)-1.67%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%25%
Revenue 1Y (TTM)0.52%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%7.81%
3.2 Future
KRC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.93% yearly.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y-27.34%
EPS Next 2Y-16.56%
EPS Next 3Y-7.43%
EPS Next 5Y-1.93%
Revenue Next Year-0.26%
Revenue Next 2Y1.23%
Revenue Next 3Y2.72%
Revenue Next 5Y3.46%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 19.58, KRC is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of KRC indicates a rather cheap valuation: KRC is cheaper than 82.54% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.98. KRC is valued slightly cheaper when compared to this.
KRC is valuated quite expensively with a Price/Forward Earnings ratio of 26.95.
Based on the Price/Forward Earnings ratio, KRC is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.66. KRC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 26.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than the industry average as 65.87% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as KRC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.86 | ||
| EV/EBITDA | 12.52 |
4.3 Compensation for Growth
The decent profitability rating of KRC may justify a higher PE ratio.
A cheap valuation may be justified as KRC's earnings are expected to decrease with -7.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.56%
EPS Next 3Y-7.43%
5. Dividend
5.1 Amount
KRC has a Yearly Dividend Yield of 6.08%, which is a nice return.
KRC's Dividend Yield is a higher than the industry average which is at 19.15.
Compared to an average S&P500 Dividend Yield of 2.30, KRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
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.
Dividend Growth(5Y)2.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
KRC pays out 122.63% 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.
DP122.63%
EPS Next 2Y-16.56%
EPS Next 3Y-7.43%
NYSE:KRC (3/3/2025, 3:51:03 PM)
34.66
-1.04 (-2.91%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners117.47%
Inst Owner Change4.33%
Ins Owners0.63%
Ins Owner Change3.3%
Market Cap4.09B
Analysts67.37
Price Target43.39 (25.19%)
Short Float %6.68%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
Yearly Dividend2.18
Dividend Growth(5Y)2.81%
DP122.63%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.95%
Min EPS beat(2)23.59%
Max EPS beat(2)52.32%
EPS beat(4)3
Avg EPS beat(4)18.47%
Min EPS beat(4)-4.04%
Max EPS beat(4)52.32%
EPS beat(8)7
Avg EPS beat(8)17.39%
EPS beat(12)9
Avg EPS beat(12)16.6%
EPS beat(16)12
Avg EPS beat(16)19.3%
Revenue beat(2)2
Avg Revenue beat(2)2.06%
Min Revenue beat(2)1.38%
Max Revenue beat(2)2.73%
Revenue beat(4)4
Avg Revenue beat(4)1.16%
Min Revenue beat(4)0.24%
Max Revenue beat(4)2.73%
Revenue beat(8)6
Avg Revenue beat(8)0.05%
Revenue beat(12)10
Avg Revenue beat(12)0.87%
Revenue beat(16)13
Avg Revenue beat(16)1.04%
PT rev (1m)-0.9%
PT rev (3m)3.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.45%
EPS NY rev (1m)-1.29%
EPS NY rev (3m)-1.14%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 26.95 | ||
| P/S | 3.6 | ||
| P/FCF | 101.86 | ||
| P/OCF | 7.56 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 12.52 |
EPS(TTM)1.77
EY5.11%
EPS(NY)1.29
Fwd EY3.71%
FCF(TTM)0.34
FCFY0.98%
OCF(TTM)4.58
OCFY13.23%
SpS9.62
BVpS45.59
TBVpS45.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 3.88% | ||
| ROCE | 3.21% | ||
| ROIC | 2.54% | ||
| ROICexc | 2.58% | ||
| ROICexgc | 2.58% | ||
| OM | 29.46% | ||
| PM (TTM) | 18.4% | ||
| GM | 67.94% | ||
| FCFM | 3.54% |
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-Score7
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 114.46 | ||
| Debt/EBITDA | 6.66 | ||
| Cap/Depr | 140.65% | ||
| Cap/Sales | 44.11% | ||
| Interest Coverage | 2.64 | ||
| Cash Conversion | 78.35% | ||
| Profit Quality | 19.22% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 0.7 |
F-Score7
WACC5.9%
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)-1.67%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%25%
EPS Next Y-27.34%
EPS Next 2Y-16.56%
EPS Next 3Y-7.43%
EPS Next 5Y-1.93%
Revenue 1Y (TTM)0.52%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%7.81%
Revenue Next Year-0.26%
Revenue Next 2Y1.23%
Revenue Next 3Y2.72%
Revenue Next 5Y3.46%
EBIT growth 1Y1.41%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year106.33%
EBIT Next 3Y32.34%
EBIT Next 5Y20.63%
FCF growth 1Y-31.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.2%
OCF growth 3Y1.57%
OCF growth 5Y3.37%