KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRC - US49427F1084 - REIT
39.85 USD
+0.03 (+0.08%)
39.85 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KRC. KRC was compared to 126 industry peers in the Diversified REITs industry. While KRC belongs to the best of the industry regarding profitability, 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.
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
KRC has a Return On Assets of 2.93%. This is in the better half of the industry: KRC outperforms 69.29% of its industry peers.
KRC has a better Return On Equity (5.89%) than 70.87% of its industry peers.
KRC has a Return On Invested Capital (2.53%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for KRC is in line with the industry average of 3.06%.
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's Profit Margin of 28.57% is amongst the best of the industry. KRC outperforms 83.46% 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 61.42% 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 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 | 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
The debt/assets ratio for KRC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that KRC is in the distress zone and has some risk of bankruptcy.
KRC has a Altman-Z score of 0.78. This is in the better half of the industry: KRC outperforms 66.14% 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's Debt to FCF ratio of 89.55 is fine compared to the rest of the industry. KRC outperforms 63.78% of its industry peers.
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 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 89.55 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.44
WACC5.72%
2.3 Liquidity
KRC has a Current 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's Current ratio of 1.60 is fine compared to the rest of the industry. KRC outperforms 74.02% 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.
The Quick ratio of KRC (1.60) is better than 74.80% 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%.
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.
Looking at the last year, KRC shows a small growth in Revenue. The Revenue has grown by 0.77% in the last year.
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)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
Based on estimates for the next years, KRC will show a small growth in Revenue. The Revenue will grow by 0.26% on average per year.
EPS Next Y-4.52%
EPS Next 2Y-46.59%
EPS Next 3Y-36.91%
EPS Next 5Y-18.5%
Revenue Next Year-2.03%
Revenue Next 2Y1.05%
Revenue Next 3Y-0.24%
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.
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
KRC is valuated rather expensively with a Price/Earnings ratio of 22.39.
Based on the Price/Earnings ratio, KRC is valued a bit cheaper than 78.74% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. KRC is around the same levels.
A Price/Forward Earnings ratio of 78.91 indicates a quite expensive valuation of KRC.
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 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 78.91 |
4.2 Price Multiples
KRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KRC is cheaper than 66.93% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KRC is valued a bit cheaper than the industry average as 62.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.99 | ||
| EV/EBITDA | 13.01 |
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 -36.91% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-46.59%
EPS Next 3Y-36.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.42%, KRC is a good candidate for dividend investing.
KRC's Dividend Yield is comparable with the industry average which is at 6.86.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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%
39.85
+0.03 (+0.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners133%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner Change-0.06%
Market Cap4.71B
Revenue(TTM)1.13B
Net Income(TTM)321.97M
Analysts66
Price Target42.55 (6.78%)
Short Float %11.55%
Short Ratio10.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend2.18
Dividend Growth(5Y)2.81%
DP80.05%
Div Incr Years0
Div Non Decr Years14
Ex-DateN/A
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)-0.85%
PT rev (3m)5.5%
EPS NQ rev (1m)-6.25%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)2.66%
EPS NY rev (3m)31.76%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 78.91 | ||
| P/S | 4.18 | ||
| P/FCF | 91.99 | ||
| P/OCF | 8.34 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 13.01 |
EPS(TTM)1.78
EY4.47%
EPS(NY)0.51
Fwd EY1.27%
FCF(TTM)0.43
FCFY1.09%
OCF(TTM)4.78
OCFY11.99%
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 | 0.78 |
F-Score8
WACC5.72%
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-4.52%
EPS Next 2Y-46.59%
EPS Next 3Y-36.91%
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 2Y1.05%
Revenue Next 3Y-0.24%
Revenue Next 5Y0.26%
EBIT growth 1Y4.22%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year102.24%
EBIT Next 3Y26.66%
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
Can you provide the ChartMill fundamental rating for KILROY REALTY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to KRC.
What is the valuation status for KRC stock?
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 are the PE and PB ratios of KILROY REALTY CORP (KRC) stock?
The Price/Earnings (PE) ratio for KILROY REALTY CORP (KRC) is 22.39 and the Price/Book (PB) ratio is 0.86.
How financially healthy is KILROY REALTY CORP?
The financial health rating of KILROY REALTY CORP (KRC) is 4 / 10.