KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRC - US49427F1084 - REIT
42.89 USD
-0.21 (-0.49%)
42.89 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KRC. KRC was compared to 128 industry peers in the Diversified REITs industry. KRC has an excellent profitability rating, but 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.
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
Looking at the Return On Assets, with a value of 2.93%, KRC is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
KRC's Return On Equity of 5.89% is fine compared to the rest of the industry. KRC outperforms 73.44% of its industry peers.
KRC has a Return On Invested Capital (2.53%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital 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 has a Profit Margin of 28.57%. This is amongst the best in the industry. KRC outperforms 83.59% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
KRC's Operating Margin of 29.75% is fine compared to the rest of the industry. KRC outperforms 61.72% of its industry peers.
KRC's Operating Margin has improved in the last couple of years.
KRC has a Gross Margin of 68.11%. This is comparable to the rest of the industry: KRC outperforms 53.13% of 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
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.
The number of shares outstanding for KRC has been increased compared to 5 years ago.
The debt/assets ratio for KRC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that KRC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.82, KRC is in the better half of the industry, outperforming 67.97% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 89.55, KRC is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
KRC has a Debt/Equity ratio of 0.84. This is a neutral value indicating KRC is somewhat dependend on debt financing.
KRC's Debt to Equity ratio of 0.84 is fine compared to the rest of the industry. KRC outperforms 71.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 89.55 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.44
WACC5.69%
2.3 Liquidity
A Current Ratio of 1.60 indicates that KRC should not have too much problems paying its short term obligations.
KRC has a better Current ratio (1.60) than 69.53% 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 70.31% 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.
The Revenue has been growing slightly by 0.77% in the past year.
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
KRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.26% yearly.
EPS Next Y-20.83%
EPS Next 2Y-40.52%
EPS Next 3Y-32.46%
EPS Next 5Y-18.5%
Revenue Next Year-2.47%
Revenue Next 2Y1.14%
Revenue Next 3Y0.03%
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
A Price/Earnings ratio of 24.10 indicates a rather expensive valuation of KRC.
Based on the Price/Earnings ratio, KRC is valued a bit cheaper than the industry average as 78.91% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. KRC is around the same levels.
With a Price/Forward Earnings ratio of 68.49, KRC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as KRC.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, KRC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 68.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than 61.72% of the companies in the same industry.
KRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KRC is cheaper than 60.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.01 | ||
| EV/EBITDA | 13.53 |
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 -32.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-40.52%
EPS Next 3Y-32.46%
5. Dividend
5.1 Amount
KRC has a Yearly Dividend Yield of 5.01%, which is a nice return.
Compared to an average industry Dividend Yield of 6.38, KRC has a dividend in line with its industry peers.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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 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
80.05% 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.
DP80.05%
EPS Next 2Y-40.52%
EPS Next 3Y-32.46%
42.89
-0.21 (-0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners126.21%
Inst Owner Change7.48%
Ins Owners0.63%
Ins Owner Change-0.06%
Market Cap5.07B
Revenue(TTM)1.13B
Net Income(TTM)321.97M
Analysts55.65
Price Target42.69 (-0.47%)
Short Float %11.81%
Short Ratio9.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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)1.91%
PT rev (3m)13.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.44%
EPS NY rev (1m)0.54%
EPS NY rev (3m)9.25%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 68.49 | ||
| P/S | 4.5 | ||
| P/FCF | 99.01 | ||
| P/OCF | 8.97 | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 13.53 |
EPS(TTM)1.78
EY4.15%
EPS(NY)0.63
Fwd EY1.46%
FCF(TTM)0.43
FCFY1.01%
OCF(TTM)4.78
OCFY11.14%
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 | 0.82 |
F-Score8
WACC5.69%
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-20.83%
EPS Next 2Y-40.52%
EPS Next 3Y-32.46%
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-2.47%
Revenue Next 2Y1.14%
Revenue Next 3Y0.03%
Revenue Next 5Y0.26%
EBIT growth 1Y4.22%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year99.95%
EBIT Next 3Y27.58%
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 4 / 10 to KRC.
Can you provide the valuation status for KILROY REALTY CORP?
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 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%.