KILROY REALTY CORP (KRC) Stock Fundamental Analysis
NYSE:KRC - New York Stock Exchange, Inc. - US49427F1084 - REIT - Currency: USD
KRC gets a fundamental rating of 4 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KRC was profitable.
KRC had a positive operating cash flow in the past year.
In the past 5 years KRC has always been profitable.
In the past 5 years KRC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KRC (1.83%) is better than 65.89% of its industry peers.
The Return On Equity of KRC (3.71%) is better than 65.89% of its industry peers.
KRC has a Return On Invested Capital (2.49%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KRC is in line with the industry average of 3.15%.
The last Return On Invested Capital (2.49%) for KRC is above the 3 year average (2.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 3.71% | ||
| ROIC | 2.49% |
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 better Profit Margin (17.61%) than 71.32% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
KRC's Operating Margin of 28.99% is fine compared to the rest of the industry. KRC outperforms 63.57% of its industry peers.
KRC's Operating Margin has improved in the last couple of years.
The Gross Margin of KRC (67.65%) 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 | 28.99% | ||
| PM (TTM) | 17.61% | ||
| GM | 67.65% |
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
KRC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KRC has more shares outstanding
Compared to 5 years ago, KRC has more shares outstanding
KRC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that KRC is in the distress zone and has some risk of bankruptcy.
KRC has a Altman-Z score (0.65) which is in line with its industry peers.
The Debt to FCF ratio of KRC is 135.08, which is on the high side as it means it would take KRC, 135.08 years of fcf income to pay off all of its debts.
KRC has a Debt to FCF ratio (135.08) which is in line with its industry peers.
A Debt/Equity ratio of 0.86 indicates that KRC is somewhat dependend on debt financing.
KRC's Debt to Equity ratio of 0.86 is fine compared to the rest of the industry. KRC outperforms 70.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 135.08 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.43
WACC5.82%
2.3 Liquidity
KRC has a Current Ratio of 1.25. 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 (1.25) is better than 62.79% of its industry peers.
A Quick Ratio of 1.25 indicates that KRC should not have too much problems paying its short term obligations.
The Quick ratio of KRC (1.25) is better than 63.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
KRC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.45%.
The Earnings Per Share has been decreasing by -0.11% on average over the past years.
The Revenue has been growing slightly by 1.11% in the past 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)-3.45%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%-2.78%
3.2 Future
The Earnings Per Share is expected to decrease by -0.14% on average over the next years.
KRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y-32.81%
EPS Next 2Y-27.94%
EPS Next 3Y-14.81%
EPS Next 5Y-0.14%
Revenue Next Year-1.68%
Revenue Next 2Y0.13%
Revenue Next 3Y1.93%
Revenue Next 5Y2.69%
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
The Price/Earnings ratio is 19.20, which indicates a rather expensive current valuation of KRC.
83.72% of the companies in the same industry are more expensive than KRC, based on the Price/Earnings ratio.
KRC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 35.10 indicates a quite expensive valuation of KRC.
KRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KRC is cheaper than 69.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KRC to the average of the S&P500 Index (22.17), we can say KRC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 35.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than 67.44% of the companies in the same industry.
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 | 112.1 | ||
| EV/EBITDA | 12.11 |
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 -14.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-27.94%
EPS Next 3Y-14.81%
5. Dividend
5.1 Amount
KRC has a Yearly Dividend Yield of 6.57%, which is a nice return.
KRC's Dividend Yield is a higher than the industry average which is at 6.68.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.57% |
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
KRC pays out 129.23% of its income as dividend. 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.
DP129.23%
EPS Next 2Y-27.94%
EPS Next 3Y-14.81%
32.26
+0.06 (+0.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners117.47%
Inst Owner Change3.37%
Ins Owners0.63%
Ins Owner Change4.45%
Market Cap3.82B
Analysts66.32
Price Target38.37 (18.94%)
Short Float %9.13%
Short Ratio6.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.57% |
Yearly Dividend2.18
Dividend Growth(5Y)2.81%
DP129.23%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.75%
Min EPS beat(2)3.18%
Max EPS beat(2)52.32%
EPS beat(4)4
Avg EPS beat(4)20.27%
Min EPS beat(4)2%
Max EPS beat(4)52.32%
EPS beat(8)7
Avg EPS beat(8)17%
EPS beat(12)9
Avg EPS beat(12)16.61%
EPS beat(16)13
Avg EPS beat(16)20.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)1.38%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)2.73%
Revenue beat(8)5
Avg Revenue beat(8)-0.56%
Revenue beat(12)9
Avg Revenue beat(12)0.48%
Revenue beat(16)13
Avg Revenue beat(16)0.96%
PT rev (1m)0%
PT rev (3m)-11.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.53%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 35.1 | ||
| P/S | 3.38 | ||
| P/FCF | 112.1 | ||
| P/OCF | 7.48 | ||
| P/B | 0.71 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 12.11 |
EPS(TTM)1.68
EY5.21%
EPS(NY)0.92
Fwd EY2.85%
FCF(TTM)0.29
FCFY0.89%
OCF(TTM)4.31
OCFY13.37%
SpS9.54
BVpS45.29
TBVpS45.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 3.71% | ||
| ROCE | 3.15% | ||
| ROIC | 2.49% | ||
| ROICexc | 2.52% | ||
| ROICexgc | 2.52% | ||
| OM | 28.99% | ||
| PM (TTM) | 17.61% | ||
| GM | 67.65% | ||
| FCFM | 3.02% |
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-Score7
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 135.08 | ||
| Debt/EBITDA | 6.74 | ||
| Cap/Depr | 134.03% | ||
| Cap/Sales | 42.22% | ||
| Interest Coverage | 2.43 | ||
| Cash Conversion | 74.78% | ||
| Profit Quality | 17.13% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 0.65 |
F-Score7
WACC5.82%
ROIC/WACC0.43
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)-3.45%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%-21.43%
EPS Next Y-32.81%
EPS Next 2Y-27.94%
EPS Next 3Y-14.81%
EPS Next 5Y-0.14%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%-2.78%
Revenue Next Year-1.68%
Revenue Next 2Y0.13%
Revenue Next 3Y1.93%
Revenue Next 5Y2.69%
EBIT growth 1Y1.59%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year101.74%
EBIT Next 3Y31.44%
EBIT Next 5Y19.72%
FCF growth 1Y-40.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.34%
OCF growth 3Y1.57%
OCF growth 5Y3.37%