KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRC - US49427F1084 - REIT
40.78 USD
+0.04 (+0.1%)
40.86 USD
+0.08 (+0.2%)
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. While KRC has a great profitability rating, 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
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.
Each year in the past 5 years KRC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.93%, KRC is in the better half of the industry, outperforming 69.53% of the companies in the same industry.
KRC has a better Return On Equity (5.89%) than 70.31% of its industry peers.
KRC's Return On Invested Capital of 2.53% is in line compared to the rest of the industry. KRC outperforms 46.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KRC is in line with the industry average of 3.05%.
The last Return On Invested Capital (2.53%) for KRC is above the 3 year average (2.48%), which is a sign of increasing profitability.
| 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
KRC's Profit Margin of 28.57% is amongst the best of the industry. KRC outperforms 83.59% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
Looking at the Operating Margin, with a value of 29.75%, KRC is in the better half of the industry, outperforming 61.72% of the companies in the same industry.
In the last couple of years the Operating Margin of KRC has grown nicely.
KRC has a Gross Margin (68.11%) which is in line with its industry peers.
In the last couple of years the Gross Margin of KRC has remained more or less at the same level.
| 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
KRC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, KRC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that KRC is in the distress zone and has some risk of bankruptcy.
KRC has a Altman-Z score of 0.79. This is in the better half of the industry: KRC outperforms 67.97% 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.
With a decent Debt to FCF ratio value of 89.55, KRC is doing good in the industry, outperforming 63.28% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that KRC is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.84, KRC is doing good in 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 | 0.79 |
ROIC/WACC0.44
WACC5.75%
2.3 Liquidity
A Current Ratio of 1.60 indicates that KRC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.60, KRC is doing good in the industry, outperforming 72.66% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that KRC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.60, KRC is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.59% over the past year.
The Earnings Per Share has been decreasing by -0.11% on average over the past years.
KRC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
The Revenue has been growing slightly by 6.28% on average over the past years.
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
The Earnings Per Share is expected to decrease by -18.50% on average over the next years. This is quite bad
The Revenue is expected to grow by 0.26% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 22.91, which indicates a rather expensive current valuation of KRC.
Compared to the rest of the industry, the Price/Earnings ratio of KRC indicates a somewhat cheap valuation: KRC is cheaper than 76.56% of the companies listed in the same industry.
KRC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.49.
The Price/Forward Earnings ratio is 61.80, which means the current valuation is very expensive for KRC.
The rest of the industry has a similar Price/Forward Earnings ratio as KRC.
The average S&P500 Price/Forward Earnings ratio is at 23.69. KRC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 61.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRC indicates a somewhat cheap valuation: KRC is cheaper than 63.28% of the companies listed in the same industry.
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 | 94.14 | ||
| EV/EBITDA | 13.17 |
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 -30.53% in the coming years.
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 5.30%, KRC is a good candidate for dividend investing.
KRC's Dividend Yield is comparable with the industry average which is at 6.59.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.81%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
KRC pays out 80.05% of its income as dividend. 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%
40.78
+0.04 (+0.1%)
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 Cap4.82B
Revenue(TTM)1.13B
Net Income(TTM)321.97M
Analysts67
Price Target42.91 (5.22%)
Short Float %11.41%
Short Ratio9.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
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)13%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)7.75%
EPS NY rev (1m)17.48%
EPS NY rev (3m)28.35%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 61.8 | ||
| P/S | 4.28 | ||
| P/FCF | 94.14 | ||
| P/OCF | 8.53 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 13.17 |
EPS(TTM)1.78
EY4.36%
EPS(NY)0.66
Fwd EY1.62%
FCF(TTM)0.43
FCFY1.06%
OCF(TTM)4.78
OCFY11.72%
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 | 0.79 |
F-Score8
WACC5.75%
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 5 / 10 to KRC.
Can you provide the valuation status for KILROY REALTY CORP?
ChartMill assigns a valuation rating of 4 / 10 to KILROY REALTY CORP (KRC). This can be considered as Fairly Valued.
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%.