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 only an average score on both its financial health and profitability. 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.
In the past year KRC had a positive cash flow from operations.
Each year in the past 5 years KRC has been profitable.
KRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KRC has a Return On Assets of 1.83%. This is in the better half of the industry: KRC outperforms 66.15% of its industry peers.
The Return On Equity of KRC (3.71%) is better than 66.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.49%, KRC is in line with its industry, outperforming 43.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KRC is in line with the industry average of 3.16%.
The 3 year average ROIC (2.48%) for KRC is below the current ROIC(2.49%), indicating increased profibility in the last year.
| 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 Profit Margin of 17.61%. This is in the better half of the industry: KRC outperforms 71.54% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
The Operating Margin of KRC (28.99%) is better than 63.08% of its industry peers.
In the last couple of years the Operating Margin of KRC has grown nicely.
With a Gross Margin value of 67.65%, KRC perfoms like the industry average, outperforming 53.85% 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 | 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.
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
KRC has an Altman-Z score of 0.68. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.68, KRC is doing good in the industry, outperforming 61.54% of the companies in the same industry.
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 of 135.08. This is comparable to the rest of the industry: KRC outperforms 56.92% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that KRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, KRC is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 135.08 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.34
WACC7.22%
2.3 Liquidity
A Current Ratio of 1.25 indicates that KRC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.25, KRC is in the better half of the industry, outperforming 62.31% of the companies in the same industry.
KRC has a Quick 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.
KRC's Quick ratio of 1.25 is fine compared to the rest of the industry. KRC outperforms 63.08% 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%.
Measured over the past years, KRC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.11% on average per year.
Looking at the last year, KRC shows a small growth in Revenue. The Revenue has grown by 1.11% in the last 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
Based on estimates for the next years, KRC will show a decrease in Earnings Per Share. The EPS will decrease by -0.14% on average per year.
Based on estimates for the next years, KRC will show a small growth in Revenue. The Revenue will grow by 2.69% on average per year.
EPS Next Y-33.35%
EPS Next 2Y-27.94%
EPS Next 3Y-19.4%
EPS Next 5Y-0.14%
Revenue Next Year-2.38%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.34%
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
With a Price/Earnings ratio of 20.42, KRC is valued on the expensive side.
Based on the Price/Earnings ratio, KRC is valued cheaper than 83.08% of the companies in the same industry.
KRC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 37.33, which means the current valuation is very expensive for KRC.
63.85% of the companies in the same industry are more expensive than KRC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, KRC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 37.33 |
4.2 Price Multiples
65.38% of the companies in the same industry are more expensive than KRC, based on the Enterprise Value to EBITDA ratio.
KRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 119.23 | ||
| EV/EBITDA | 12.56 |
4.3 Compensation for Growth
KRC has a very decent profitability rating, which may justify a higher PE ratio.
KRC's earnings are expected to decrease with -19.40% 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-19.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.24%, KRC is a good candidate for dividend investing.
KRC's Dividend Yield is comparable with the industry average which is at 6.64.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
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-19.4%
34.31
-0.48 (-1.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners124.72%
Inst Owner Change3.35%
Ins Owners0.63%
Ins Owner Change4.69%
Market Cap4.06B
Analysts66.32
Price Target37.5 (9.3%)
Short Float %9.37%
Short Ratio7.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
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)-2.25%
PT rev (3m)-8.08%
EPS NQ rev (1m)1.9%
EPS NQ rev (3m)-6.72%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-7.67%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 37.33 | ||
| P/S | 3.6 | ||
| P/FCF | 119.23 | ||
| P/OCF | 7.95 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 12.56 |
EPS(TTM)1.68
EY4.9%
EPS(NY)0.92
Fwd EY2.68%
FCF(TTM)0.29
FCFY0.84%
OCF(TTM)4.31
OCFY12.57%
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 | 0.68 |
F-Score7
WACC7.22%
ROIC/WACC0.34
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-33.35%
EPS Next 2Y-27.94%
EPS Next 3Y-19.4%
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-2.38%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.34%
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 5Y19.7%
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%