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%)
KRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 valuation in line with the averages, but it does not seem to be growing.
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.
KRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KRC has a Return On Assets of 2.93%. This is in the better half of the industry: KRC outperforms 73.44% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 2.53%, KRC is in line with its industry, outperforming 46.88% 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 3.06%.
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.
The Operating Margin of KRC (29.75%) is better than 61.72% 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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
KRC has an Altman-Z score of 0.79. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KRC (0.79) is better than 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.
The Debt to FCF ratio of KRC (89.55) is better than 64.06% 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.
KRC has a Debt to Equity ratio of 0.84. This is in the better half 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 | 0.79 |
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.
KRC has a Current ratio of 1.60. This is in the better half of the industry: KRC outperforms 69.53% of its industry peers.
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 70.31% 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.
Looking at the last year, KRC shows a small growth in Revenue. The Revenue has grown by 0.77% in the last 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
KRC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.50% yearly.
The Revenue is expected to grow by 0.26% on average over the next years.
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
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
KRC is valuated rather expensively with a Price/Earnings ratio of 22.91.
Based on the Price/Earnings ratio, KRC is valued cheaper than 80.47% of the companies in the same industry.
KRC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 65.12 indicates a quite expensive valuation of KRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRC is on the same level as its industry peers.
KRC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 65.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than 63.28% 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 | 94.14 | ||
| EV/EBITDA | 13.16 |
4.3 Compensation for Growth
KRC has a very decent profitability rating, which may justify a higher PE ratio.
KRC's earnings are expected to decrease with -32.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-40.52%
EPS Next 3Y-32.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.01%, KRC is a good candidate for dividend investing.
KRC's Dividend Yield is comparable with the industry average which is at 6.34.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| 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 been paying a dividend for at least 10 years, so it has 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.
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%
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 Owners126.21%
Inst Owner Change7.48%
Ins Owners0.63%
Ins Owner Change-0.06%
Market Cap4.82B
Revenue(TTM)1.13B
Net Income(TTM)321.97M
Analysts55.65
Price Target42.69 (4.68%)
Short Float %11.41%
Short Ratio9.87
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 | 22.91 | ||
| Fwd PE | 65.12 | ||
| P/S | 4.28 | ||
| P/FCF | 94.14 | ||
| P/OCF | 8.53 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)1.78
EY4.36%
EPS(NY)0.63
Fwd EY1.54%
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-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 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%.