KILROY REALTY CORP (KRC)

US49427F1084 - REIT

32.56  +0.48 (+1.5%)

Fundamental Rating

4

Overall KRC gets a fundamental rating of 4 out of 10. We evaluated KRC against 127 industry peers in the Diversified REITs industry. KRC has an average financial health and profitability rating. KRC has a valuation in line with the averages, but on the other hand it scores bad on growth.



6

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.
KRC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

KRC's Return On Assets of 1.76% is fine compared to the rest of the industry. KRC outperforms 62.40% of its industry peers.
Looking at the Return On Equity, with a value of 3.77%, KRC is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
KRC's Return On Invested Capital of 2.31% is in line compared to the rest of the industry. KRC outperforms 44.00% of 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 3.00%.
Industry RankSector Rank
ROA 1.76%
ROE 3.77%
ROIC 2.31%
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

KRC has a better Profit Margin (18.28%) than 72.80% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
KRC's Operating Margin of 28.85% is fine compared to the rest of the industry. KRC outperforms 67.20% of its industry peers.
In the last couple of years the Operating Margin of KRC has grown nicely.
KRC has a Gross Margin of 68.67%. This is comparable to the rest of the industry: KRC outperforms 53.60% of its industry peers.
KRC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.85%
PM (TTM) 18.28%
GM 68.67%
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%

4

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.
KRC has more shares outstanding than it did 1 year ago.
KRC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KRC has a worse debt to assets ratio.

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.
KRC's Altman-Z score of 0.65 is in line compared to the rest of the industry. KRC outperforms 59.20% of its industry peers.
The Debt to FCF ratio of KRC is 79.55, which is on the high side as it means it would take KRC, 79.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KRC (79.55) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.95 indicates that KRC is somewhat dependend on debt financing.
The Debt to Equity ratio of KRC (0.95) is better than 61.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF 79.55
Altman-Z 0.65
ROIC/WACC0.38
WACC6.05%

2.3 Liquidity

KRC has a Current Ratio of 2.23. This indicates that KRC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.23, KRC is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
KRC has a Quick Ratio of 2.23. This indicates that KRC is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.23, KRC is doing good in the industry, outperforming 76.80% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.23
Quick Ratio 2.23

3

3. Growth

3.1 Past

KRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.43%.
Measured over the past years, KRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.25% on average per year.
KRC shows a decrease in Revenue. In the last year, the revenue decreased by -0.78%.
Measured over the past years, KRC shows a quite strong growth in Revenue. The Revenue has been growing by 8.62% on average per year.
EPS 1Y (TTM)-13.43%
EPS 3Y6.5%
EPS 5Y12.25%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y7.94%
Revenue growth 5Y8.62%
Sales Q2Q%-4.86%

3.2 Future

Based on estimates for the next years, KRC will show a decrease in Earnings Per Share. The EPS will decrease by -5.40% on average per year.
KRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.00% yearly.
EPS Next Y-17.52%
EPS Next 2Y-11.47%
EPS Next 3Y-5.27%
EPS Next 5Y-5.4%
Revenue Next Year-3.48%
Revenue Next 2Y-0.92%
Revenue Next 3Y1.79%
Revenue Next 5Y2%

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

4. Valuation

4.1 Price/Earnings Ratio

KRC is valuated rather expensively with a Price/Earnings ratio of 18.71.
84.80% 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 27.82, KRC is valued a bit cheaper.
KRC is valuated rather expensively with a Price/Forward Earnings ratio of 23.08.
Based on the Price/Forward Earnings ratio, KRC is valued a bit cheaper than the industry average as 79.20% of the companies are valued more expensively.
KRC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 19.80, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.71
Fwd PE 23.08

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than 72.00% 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 RankSector Rank
P/FCF 59.38
EV/EBITDA 11.96

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 -5.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y-11.47%
EPS Next 3Y-5.27%

5

5. Dividend

5.1 Amount

KRC has a Yearly Dividend Yield of 6.65%, which is a nice return.
Compared to an average industry Dividend Yield of 5.85, KRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, KRC pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.65%

5.2 History

The dividend of KRC has a limited annual growth rate of 3.98%.
KRC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.98%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

KRC pays out 125.37% 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.
DP125.37%
EPS Next 2Y-11.47%
EPS Next 3Y-5.27%

KILROY REALTY CORP

NYSE:KRC (5/30/2024, 10:55:19 AM)

32.56

+0.48 (+1.5%)

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 Cap3.82B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 6.65%
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 RankSector Rank
PE 18.71
Fwd PE 23.08
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)1.53
Profitability
Industry RankSector Rank
ROA 1.76%
ROE 3.77%
ROCE
ROIC
ROICexc
ROICexgc
OM 28.85%
PM (TTM) 18.28%
GM 68.67%
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 RankSector Rank
Debt/Equity 0.95
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.23
Quick Ratio 2.23
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-13.43%
EPS 3Y6.5%
EPS 5Y
EPS Q2Q%
EPS Next Y-17.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y7.94%
Revenue growth 5Y
Sales 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