KILROY REALTY CORP (KRC)
US49427F1084 - REIT
KRC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 126 industry peers in the Diversified REITs industry. There are concerns on the financial health of KRC while its profitability can be described as average. KRC has a valuation in line with the averages, but it does not seem to be growing.
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
With a decent Return On Assets value of 1.85%, KRC is doing good in the industry, outperforming 65.04% of the companies in the same industry.
With a decent Return On Equity value of 3.89%, KRC is doing good in the industry, outperforming 65.85% of the companies in the same industry.
KRC's Return On Invested Capital of 2.40% is in line compared to the rest of the industry. KRC outperforms 43.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KRC is in line with the industry average of 2.95%.
The last Return On Invested Capital (2.40%) for KRC is above the 3 year average (2.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.89% | ||
| ROIC | 2.4% |
ROA(3y)3.3%
ROA(5y)2.79%
ROE(3y)6.55%
ROE(5y)5.57%
ROIC(3y)2.38%
ROIC(5y)2.28%
1.3 Margins
The Profit Margin of KRC (18.68%) is better than 71.54% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
KRC has a better Operating Margin (29.20%) than 66.67% of its industry peers.
KRC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 69.50%, KRC perfoms like the industry average, outperforming 56.91% 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 | 29.2% | ||
| PM (TTM) | 18.68% | ||
| GM | 69.5% |
OM growth 3Y1.19%
OM growth 5Y3.24%
PM growth 3Y-3.18%
PM growth 5Y-11.45%
GM growth 3Y-0.93%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
KRC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 is higher compared to a year ago.
2.2 Solvency
KRC has an Altman-Z score of 0.65. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.65, KRC is in the better half of the industry, outperforming 60.16% of the companies in the same industry.
The Debt to FCF ratio of KRC is 83.86, which is on the high side as it means it would take KRC, 83.86 years of fcf income to pay off all of its debts.
KRC has a Debt to FCF ratio (83.86) which is comparable to the rest of the industry.
KRC has a Debt/Equity ratio of 0.91. This is a neutral value indicating KRC is somewhat dependend on debt financing.
The Debt to Equity ratio of KRC (0.91) is better than 61.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 83.86 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.39
WACC6.21%
2.3 Liquidity
KRC has a Current Ratio of 1.77. This is a normal value and indicates that KRC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of KRC (1.77) is better than 70.73% of its industry peers.
A Quick Ratio of 1.77 indicates that KRC should not have too much problems paying its short term obligations.
KRC has a Quick ratio of 1.77. This is in the better half of the industry: KRC outperforms 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
KRC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.16%.
KRC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.25% yearly.
KRC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.98%.
KRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.62% yearly.
EPS 1Y (TTM)-8.16%
EPS 3Y6.5%
EPS 5Y12.25%
EPS growth Q2Q-11.11%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y7.94%
Revenue growth 5Y8.62%
Revenue growth Q2Q-5.38%
3.2 Future
The Earnings Per Share is expected to decrease by -2.38% on average over the next years.
Based on estimates for the next years, KRC will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-12.33%
EPS Next 2Y-6.2%
EPS Next 3Y-1.37%
EPS Next 5Y-2.38%
Revenue Next Year-4%
Revenue Next 2Y-1.01%
Revenue Next 3Y1.85%
Revenue Next 5Y3.59%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.38, the valuation of KRC can be described as rather expensive.
84.55% of the companies in the same industry are more expensive than KRC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.76, KRC is valued a bit cheaper.
The Price/Forward Earnings ratio is 20.97, which indicates a rather expensive current valuation of KRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRC indicates a rather cheap valuation: KRC is cheaper than 91.06% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.26. KRC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 20.97 |
4.2 Price Multiples
67.48% of the companies in the same industry are more expensive than KRC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KRC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.06 | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
KRC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.5
EPS Next 2Y-6.2%
EPS Next 3Y-1.37%
5. Dividend
5.1 Amount
KRC has a Yearly Dividend Yield of 6.35%, which is a nice return.
Compared to an average industry Dividend Yield of 5.97, KRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, KRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
5.2 History
The dividend of KRC has a limited annual growth rate of 3.98%.
KRC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)3.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
121.05% 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.
DP121.05%
EPS Next 2Y-6.2%
EPS Next 3Y-1.37%
KILROY REALTY CORP
NYSE:KRC (4/19/2024, 7:04:00 PM)
After market: 33.09 0 (0%)33.09
+0.42 (+1.29%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 20.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.2% | ||
| PM (TTM) | 18.68% | ||
| GM | 69.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.16%
EPS 3Y6.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.98%
Revenue growth 3Y7.94%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y