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 130 industry peers in the Diversified REITs industry. KRC has an average financial health and profitability rating. KRC is valued correctly, 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.
KRC had positive earnings in each of the past 5 years.
In the past 5 years KRC always reported a positive cash flow from operatings.
1.2 Ratios
KRC has a Return On Assets of 1.92%. This is in the better half of the industry: KRC outperforms 67.69% of its industry peers.
KRC has a Return On Equity of 3.88%. This is in the better half of the industry: KRC outperforms 65.38% of its industry peers.
KRC has a Return On Invested Capital (2.54%) which is in line with its industry peers.
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 3 year average ROIC (2.48%) for KRC is below the current ROIC(2.54%), indicating increased profibility in the last year.
| 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 73.85% of its industry peers.
KRC's Profit Margin has declined in the last couple of years.
The Operating Margin of KRC (29.46%) is better than 63.08% of its industry peers.
KRC's Operating Margin has improved in the last couple of years.
KRC has a Gross Margin (67.94%) which 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 | 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
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
KRC has a better debt/assets ratio than last year.
2.2 Solvency
KRC has an Altman-Z score of 0.66. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
KRC has a better Altman-Z score (0.66) than 62.31% of its industry peers.
KRC has a debt to FCF ratio of 114.46. This is a negative value and a sign of low solvency as KRC would need 114.46 years to pay back of all of its debts.
KRC has a Debt to FCF ratio of 114.46. This is comparable to the rest of the industry: KRC outperforms 52.31% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that KRC is somewhat dependend on debt financing.
KRC has a better Debt to Equity ratio (0.85) than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 114.46 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.43
WACC5.93%
2.3 Liquidity
KRC has a Current 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.
KRC has a Current ratio (1.31) which is comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 1.31, KRC is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
KRC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.67%.
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 0.52% in the last year.
KRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.28% yearly.
EPS 1Y (TTM)-1.67%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%25%
Revenue 1Y (TTM)0.52%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%7.81%
3.2 Future
KRC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.14% yearly.
The Revenue is expected to grow by 2.69% on average over the next years.
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
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 18.29.
Based on the Price/Earnings ratio, KRC is valued cheaper than 83.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of KRC to the average of the S&P500 Index (28.78), we can say KRC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 27.22, the valuation of KRC can be described as expensive.
Based on the Price/Forward Earnings ratio, KRC is valued a bit cheaper than 78.46% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KRC to the average of the S&P500 Index (21.32), we can say KRC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 27.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than the industry average as 66.15% of the companies are valued more expensively.
KRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.3 | ||
| 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 -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 6.63%, which is a nice return.
KRC's Dividend Yield is comparable with the industry average which is at 16.32.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.63% |
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.
KRC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP122.63%
EPS Next 2Y-27.94%
EPS Next 3Y-14.81%
32.37
-0.22 (-0.68%)
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-46.18%
Ins Owners0.63%
Ins Owner Change3.3%
Market Cap3.83B
Analysts66
Price Target38.37 (18.54%)
Short Float %7.87%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.63% |
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)-10.93%
PT rev (3m)-12.81%
EPS NQ rev (1m)-8.21%
EPS NQ rev (3m)-5.47%
EPS NY rev (1m)-6.92%
EPS NY rev (3m)-4.27%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 27.22 | ||
| P/S | 3.37 | ||
| P/FCF | 95.3 | ||
| P/OCF | 7.07 | ||
| P/B | 0.71 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 11.96 |
EPS(TTM)1.77
EY5.47%
EPS(NY)1.19
Fwd EY3.67%
FCF(TTM)0.34
FCFY1.05%
OCF(TTM)4.58
OCFY14.14%
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 | 0.66 |
F-Score7
WACC5.93%
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)-1.67%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%25%
EPS Next Y-32.81%
EPS Next 2Y-27.94%
EPS Next 3Y-14.81%
EPS Next 5Y-0.14%
Revenue 1Y (TTM)0.52%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%7.81%
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%