KILROY REALTY CORP (KRC) Stock Fundamental Analysis
NYSE:KRC - New York Stock Exchange, Inc. - US49427F1084 - REIT - Currency: USD
Overall KRC gets a fundamental rating of 4 out of 10. We evaluated KRC against 129 industry peers in the Diversified REITs industry. KRC has only an average score on both its financial health and profitability. 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
KRC had positive earnings in the past year.
In the past year KRC had a positive cash flow from operations.
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
KRC has a better Return On Assets (1.92%) than 67.44% of its industry peers.
The Return On Equity of KRC (3.88%) is better than 65.12% of its industry peers.
The Return On Invested Capital of KRC (2.54%) is comparable to the rest of the industry.
KRC had an Average Return On Invested Capital over the past 3 years of 2.48%. This is in line with the industry average of 3.17%.
The last Return On Invested Capital (2.54%) for KRC is above the 3 year average (2.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 3.88% | ||
| ROIC | 2.54% |
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's Profit Margin of 18.40% is fine compared to the rest of the industry. KRC outperforms 73.64% of its industry peers.
KRC's Profit Margin has declined in the last couple of years.
KRC has a Operating Margin of 29.46%. This is in the better half of the industry: KRC outperforms 63.57% of its industry peers.
KRC's Operating Margin has improved in the last couple of years.
KRC's Gross Margin of 67.94% is in line compared to the rest of the industry. KRC outperforms 53.49% of its industry peers.
KRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.46% | ||
| PM (TTM) | 18.4% | ||
| GM | 67.94% |
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.
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
KRC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that KRC is in the distress zone and has some risk of bankruptcy.
KRC has a better Altman-Z score (0.64) than 61.24% of its industry peers.
The Debt to FCF ratio of KRC is 114.46, which is on the high side as it means it would take KRC, 114.46 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 114.46, KRC perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that KRC is somewhat dependend on debt financing.
KRC has a Debt to Equity ratio of 0.85. This is in the better half of the industry: KRC outperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 114.46 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.43
WACC5.9%
2.3 Liquidity
A Current Ratio of 1.31 indicates that KRC should not have too much problems paying its short term obligations.
KRC's Current ratio of 1.31 is fine compared to the rest of the industry. KRC outperforms 61.24% of its industry peers.
KRC has a Quick Ratio of 1.31. 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 (1.31) is better than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.21% 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 0.53%.
The Revenue has been growing slightly by 6.28% on average over the past years.
EPS 1Y (TTM)36.21%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%142.86%
Revenue 1Y (TTM)0.53%
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-1.41%
Revenue Next 2Y0.22%
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 13.35, which indicates a correct valuation of KRC.
Compared to the rest of the industry, the Price/Earnings ratio of KRC indicates a rather cheap valuation: KRC is cheaper than 86.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.12, KRC is valued a bit cheaper.
A Price/Forward Earnings ratio of 34.41 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 67.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.42. KRC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 34.41 |
4.2 Price Multiples
KRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KRC is cheaper than 68.99% 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 | 93.13 | ||
| EV/EBITDA | 11.75 |
4.3 Compensation for Growth
The decent profitability rating of KRC may justify a higher PE ratio.
KRC's earnings are expected to decrease with -14.81% in the coming years. This may justify a cheaper valuation.
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 7.01%, which is a nice return.
Compared to an average industry Dividend Yield of 6.70, KRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, KRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
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.
Dividend Growth(5Y)2.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
KRC pays out 122.63% 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.
DP122.63%
EPS Next 2Y-27.94%
EPS Next 3Y-14.81%
31.63
+0.5 (+1.61%)
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 Change-0.66%
Ins Owners0.63%
Ins Owner Change3.3%
Market Cap3.74B
Analysts66.32
Price Target38.37 (21.31%)
Short Float %9.25%
Short Ratio6.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
Yearly Dividend2.18
Dividend Growth(5Y)2.81%
DP122.63%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.95%
Min EPS beat(2)23.59%
Max EPS beat(2)52.32%
EPS beat(4)3
Avg EPS beat(4)18.47%
Min EPS beat(4)-4.04%
Max EPS beat(4)52.32%
EPS beat(8)7
Avg EPS beat(8)17.39%
EPS beat(12)9
Avg EPS beat(12)16.6%
EPS beat(16)12
Avg EPS beat(16)19.3%
Revenue beat(2)2
Avg Revenue beat(2)2.06%
Min Revenue beat(2)1.38%
Max Revenue beat(2)2.73%
Revenue beat(4)4
Avg Revenue beat(4)1.16%
Min Revenue beat(4)0.24%
Max Revenue beat(4)2.73%
Revenue beat(8)6
Avg Revenue beat(8)0.05%
Revenue beat(12)10
Avg Revenue beat(12)0.87%
Revenue beat(16)13
Avg Revenue beat(16)1.04%
PT rev (1m)-5.96%
PT rev (3m)-12.37%
EPS NQ rev (1m)-8.21%
EPS NQ rev (3m)-14.41%
EPS NY rev (1m)-6.92%
EPS NY rev (3m)-8.72%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 34.41 | ||
| P/S | 3.29 | ||
| P/FCF | 93.13 | ||
| P/OCF | 6.91 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 11.75 |
EPS(TTM)2.37
EY7.49%
EPS(NY)0.92
Fwd EY2.91%
FCF(TTM)0.34
FCFY1.07%
OCF(TTM)4.58
OCFY14.47%
SpS9.6
BVpS45.51
TBVpS45.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 3.88% | ||
| ROCE | 3.21% | ||
| ROIC | 2.54% | ||
| ROICexc | 2.58% | ||
| ROICexgc | 2.58% | ||
| OM | 29.46% | ||
| PM (TTM) | 18.4% | ||
| GM | 67.94% | ||
| FCFM | 3.54% |
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 | 0.85 | ||
| Debt/FCF | 114.46 | ||
| Debt/EBITDA | 6.66 | ||
| Cap/Depr | 140.65% | ||
| Cap/Sales | 44.11% | ||
| Interest Coverage | 2.64 | ||
| Cash Conversion | 78.35% | ||
| Profit Quality | 19.22% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 0.64 |
F-Score7
WACC5.9%
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)36.21%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%142.86%
EPS Next Y-32.81%
EPS Next 2Y-27.94%
EPS Next 3Y-14.81%
EPS Next 5Y-0.14%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%-2.78%
Revenue Next Year-1.41%
Revenue Next 2Y0.22%
Revenue Next 3Y1.93%
Revenue Next 5Y2.69%
EBIT growth 1Y1.41%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year102.04%
EBIT Next 3Y31.3%
EBIT Next 5Y19.72%
FCF growth 1Y-31.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.2%
OCF growth 3Y1.57%
OCF growth 5Y3.37%