KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRC - US49427F1084 - REIT
35.15 USD
-0.44 (-1.24%)
35.15 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KRC. KRC was compared to 124 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year KRC was profitable.
- KRC had a positive operating cash flow in the past year.
- Each year in the past 5 years KRC has been profitable.
- In the past 5 years KRC always reported a positive cash flow from operatings.
1.2 Ratios
- KRC's Return On Assets of 2.93% is fine compared to the rest of the industry. KRC outperforms 70.16% of its industry peers.
- The Return On Equity of KRC (5.89%) is better than 70.97% 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 47.58% 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 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
- KRC has a Profit Margin of 28.57%. This is amongst the best in the industry. KRC outperforms 83.87% of its industry peers.
- In the last couple of years the Profit Margin of KRC has declined.
- KRC has a better Operating Margin (29.75%) than 62.10% of its industry peers.
- KRC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 68.11%, KRC is in line with its industry, outperforming 52.42% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRC is destroying value.
- The number of shares outstanding for KRC has been increased compared to 1 year ago.
- Compared to 5 years ago, KRC has more shares outstanding
- Compared to 1 year ago, KRC has an improved debt to assets ratio.
2.2 Solvency
- KRC has an Altman-Z score of 0.72. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
- KRC has a Altman-Z score of 0.72. This is in the better half of the industry: KRC outperforms 62.90% of its industry peers.
- KRC has a debt to FCF ratio of 89.55. This is a negative value and a sign of low solvency as KRC would need 89.55 years to pay back of all of its debts.
- KRC's Debt to FCF ratio of 89.55 is fine compared to the rest of the industry. KRC outperforms 65.32% 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.
- The Debt to Equity ratio of KRC (0.84) is better than 71.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 89.55 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.44
WACC5.72%
2.3 Liquidity
- A Current Ratio of 1.60 indicates that KRC should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.60, KRC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.60, KRC is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
| 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%.
- 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.
- 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 Y21.73%
EPS Next 2Y-46.59%
EPS Next 3Y-36.91%
EPS Next 5Y-18.5%
Revenue Next Year-1.77%
Revenue Next 2Y0.88%
Revenue Next 3Y-0.24%
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 19.75, KRC is valued on the expensive side.
- Based on the Price/Earnings ratio, KRC is valued cheaply inside the industry as 82.26% of the companies are valued more expensively.
- KRC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 69.60, which means the current valuation is very expensive for KRC.
- KRC's Price/Forward Earnings ratio is in line with the industry average.
- KRC is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 69.6 |
4.2 Price Multiples
- 73.39% of the companies in the same industry are more expensive than KRC, based on the Enterprise Value to EBITDA ratio.
- KRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KRC is cheaper than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.14 | ||
| EV/EBITDA | 12.27 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of KRC may justify a higher PE ratio.
- KRC's earnings are expected to decrease with -36.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y-46.59%
EPS Next 3Y-36.91%
5. Dividend
5.1 Amount
- KRC has a Yearly Dividend Yield of 6.07%, which is a nice return.
- KRC's Dividend Yield is comparable with the industry average which is at 6.82.
- KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
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
- 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-46.59%
EPS Next 3Y-36.91%
KILROY REALTY CORP / KRC FAQ
Can you provide the ChartMill fundamental rating for KILROY REALTY CORP?
ChartMill assigns a fundamental rating of 5 / 10 to KRC.
What is the valuation status for KRC stock?
ChartMill assigns a valuation rating of 5 / 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 are the PE and PB ratios of KILROY REALTY CORP (KRC) stock?
The Price/Earnings (PE) ratio for KILROY REALTY CORP (KRC) is 19.75 and the Price/Book (PB) ratio is 0.76.
How financially healthy is KILROY REALTY CORP?
The financial health rating of KILROY REALTY CORP (KRC) is 4 / 10.