KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - NYSE:KRC - US49427F1084 - REIT
40.45 USD
-0.09 (-0.22%)
40.45 USD
0 (0%)
KRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. Both the profitability and the financial health of KRC get a neutral evaluation. Nothing too spectacular is happening here. KRC is valued correctly, but it does not seem to be growing.
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.
In the past 5 years KRC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KRC (2.01%) is better than 65.12% of its industry peers.
KRC has a better Return On Equity (4.07%) than 62.02% of its industry peers.
With a Return On Invested Capital value of 2.57%, KRC perfoms like the industry average, outperforming 48.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KRC is in line with the industry average of 3.01%.
The 3 year average ROIC (2.48%) for KRC is below the current ROIC(2.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 4.07% | ||
| ROIC | 2.57% |
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
With a decent Profit Margin value of 19.22%, KRC is doing good in the industry, outperforming 71.32% of the companies in the same industry.
KRC's Profit Margin has declined in the last couple of years.
KRC has a Operating Margin of 29.81%. This is in the better half of the industry: KRC outperforms 62.79% of its industry peers.
In the last couple of years the Operating Margin of KRC has grown nicely.
With a Gross Margin value of 68.17%, KRC perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
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 | 29.81% | ||
| PM (TTM) | 19.22% | ||
| GM | 68.17% |
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.
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 0.77, we must say that KRC is in the distress zone and has some risk of bankruptcy.
KRC has a Altman-Z score of 0.77. This is in the better half of the industry: KRC outperforms 68.22% of its industry peers.
The Debt to FCF ratio of KRC is 30.31, which is on the high side as it means it would take KRC, 30.31 years of fcf income to pay off all of its debts.
KRC's Debt to FCF ratio of 30.31 is fine compared to the rest of the industry. KRC outperforms 69.77% of its industry peers.
KRC has a Debt/Equity ratio of 0.86. This is a neutral value indicating KRC is somewhat dependend on debt financing.
KRC has a Debt to Equity ratio of 0.86. This is in the better half of the industry: KRC outperforms 68.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 30.31 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.45
WACC5.71%
2.3 Liquidity
KRC has a Current Ratio of 1.38. 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 1.38 is fine compared to the rest of the industry. KRC outperforms 61.24% of its industry peers.
KRC has a Quick Ratio of 1.38. 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 (1.38) is better than 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.52% 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 2.26%.
The Revenue has been growing slightly by 6.28% on average over the past years.
EPS 1Y (TTM)9.52%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%39.02%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%3.26%
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-27.53%
EPS Next 2Y-39.1%
EPS Next 3Y-32.56%
EPS Next 5Y-18.5%
Revenue Next Year-3%
Revenue Next 2Y1.27%
Revenue Next 3Y0.21%
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
A Price/Earnings ratio of 21.98 indicates a rather expensive valuation of KRC.
80.62% of the companies in the same industry are more expensive than KRC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KRC to the average of the S&P500 Index (27.29), we can say KRC is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 61.61, the valuation of KRC can be described as expensive.
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 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 61.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than 60.47% 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 70.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.55 | ||
| EV/EBITDA | 13.23 |
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 -32.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-39.1%
EPS Next 3Y-32.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.34%, KRC is a good candidate for dividend investing.
KRC's Dividend Yield is comparable with the industry average which is at 6.99.
Compared to an average S&P500 Dividend Yield of 2.38, KRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
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
KRC pays out 117.72% 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.
DP117.72%
EPS Next 2Y-39.1%
EPS Next 3Y-32.56%
40.45
-0.09 (-0.22%)
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 Change-0.01%
Ins Owners0.63%
Ins Owner Change0.83%
Market Cap4.78B
Analysts54.78
Price Target40.33 (-0.3%)
Short Float %11.7%
Short Ratio8.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
Yearly Dividend2.18
Dividend Growth(5Y)2.81%
DP117.72%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.46%
Min EPS beat(2)3.18%
Max EPS beat(2)77.75%
EPS beat(4)4
Avg EPS beat(4)39.21%
Min EPS beat(4)3.18%
Max EPS beat(4)77.75%
EPS beat(8)7
Avg EPS beat(8)23.07%
EPS beat(12)10
Avg EPS beat(12)24.09%
EPS beat(16)13
Avg EPS beat(16)23.15%
Revenue beat(2)1
Avg Revenue beat(2)1.83%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)6.03%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)6.03%
Revenue beat(8)6
Avg Revenue beat(8)0.22%
Revenue beat(12)9
Avg Revenue beat(12)0.69%
Revenue beat(16)13
Avg Revenue beat(16)1.21%
PT rev (1m)6.2%
PT rev (3m)7.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.61%
EPS NY rev (1m)0%
EPS NY rev (3m)8.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 61.61 | ||
| P/S | 4.21 | ||
| P/FCF | 31.55 | ||
| P/OCF | 8.46 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 13.23 |
EPS(TTM)1.84
EY4.55%
EPS(NY)0.66
Fwd EY1.62%
FCF(TTM)1.28
FCFY3.17%
OCF(TTM)4.78
OCFY11.81%
SpS9.61
BVpS45.37
TBVpS45.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 4.07% | ||
| ROCE | 3.26% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 2.62% | ||
| OM | 29.81% | ||
| PM (TTM) | 19.22% | ||
| GM | 68.17% | ||
| FCFM | 13.34% |
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-Score8
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 30.31 | ||
| Debt/EBITDA | 6.62 | ||
| Cap/Depr | 116.26% | ||
| Cap/Sales | 36.37% | ||
| Interest Coverage | 2.7 | ||
| Cash Conversion | 81.37% | ||
| Profit Quality | 69.42% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 0.77 |
F-Score8
WACC5.71%
ROIC/WACC0.45
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)9.52%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%39.02%
EPS Next Y-27.53%
EPS Next 2Y-39.1%
EPS Next 3Y-32.56%
EPS Next 5Y-18.5%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%3.26%
Revenue Next Year-3%
Revenue Next 2Y1.27%
Revenue Next 3Y0.21%
Revenue Next 5Y0.26%
EBIT growth 1Y6.28%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year99.95%
EBIT Next 3Y27.58%
EBIT Next 5Y16.26%
FCF growth 1Y138.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.3%
OCF growth 3Y1.57%
OCF growth 5Y3.37%