KILROY REALTY CORP (KRC) Stock Fundamental Analysis
NYSE:KRC - New York Stock Exchange, Inc. - US49427F1084 - REIT - Currency: USD
KRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 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.
In the past year KRC had a positive cash flow from operations.
Each year in the past 5 years KRC has been profitable.
In the past 5 years KRC always reported a positive cash flow from operatings.
1.2 Ratios
KRC has a Return On Assets of 1.83%. This is in the better half of the industry: KRC outperforms 66.15% of its industry peers.
KRC's Return On Equity of 3.71% is fine compared to the rest of the industry. KRC outperforms 66.15% of its industry peers.
With a Return On Invested Capital value of 2.49%, KRC perfoms like the industry average, 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 3.17%.
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 better Profit Margin (17.61%) than 71.54% of its industry peers.
KRC's Profit Margin has declined in the last couple of years.
KRC has a better Operating Margin (28.99%) than 63.08% of its industry peers.
In the last couple of years the Operating Margin of KRC has grown nicely.
KRC has a Gross Margin (67.65%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRC is destroying value.
Compared to 1 year ago, KRC has more shares outstanding
The number of shares outstanding for KRC has been increased compared to 5 years ago.
The debt/assets ratio for KRC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that KRC is in the distress zone and has some risk of bankruptcy.
KRC's Altman-Z score of 0.71 is fine compared to the rest of the industry. KRC outperforms 63.08% of its industry peers.
KRC has a debt to FCF ratio of 135.08. This is a negative value and a sign of low solvency as KRC would need 135.08 years to pay back of 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.
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 | 0.71 |
ROIC/WACC0.41
WACC6.01%
2.3 Liquidity
A Current Ratio of 1.25 indicates that KRC should not have too much problems paying its short term obligations.
KRC has a Current ratio of 1.25. This is in the better half of the industry: KRC outperforms 63.85% of its industry peers.
A Quick Ratio of 1.25 indicates that KRC should not have too much problems paying its short term obligations.
KRC has a Quick ratio of 1.25. This is in the better half of the industry: KRC outperforms 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.52% over the past year.
KRC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.11% yearly.
KRC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.53%.
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)9.52%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%39.02%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%3.26%
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.
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-33.01%
EPS Next 2Y-30.97%
EPS Next 3Y-22.29%
EPS Next 5Y-0.14%
Revenue Next Year-3%
Revenue Next 2Y-0.93%
Revenue Next 3Y1.13%
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
A Price/Earnings ratio of 20.03 indicates a rather expensive valuation of KRC.
Based on the Price/Earnings ratio, KRC is valued cheaper than 83.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. KRC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 43.71, the valuation of KRC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of KRC to the average of the S&P500 Index (36.80), we can say KRC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 43.71 |
4.2 Price Multiples
61.54% of the companies in the same industry are more expensive than KRC, based on the Enterprise Value to EBITDA ratio.
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 | 128.09 | ||
| EV/EBITDA | 12.95 |
4.3 Compensation for Growth
The decent profitability rating of KRC may justify a higher PE ratio.
A cheap valuation may be justified as KRC's earnings are expected to decrease with -22.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-30.97%
EPS Next 3Y-22.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.64%, KRC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.47, KRC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, KRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
KRC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP129.23%
EPS Next 2Y-30.97%
EPS Next 3Y-22.29%
36.86
-0.23 (-0.62%)
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 Change0%
Ins Owners0.63%
Ins Owner Change5.38%
Market Cap4.36B
Analysts66
Price Target36.8 (-0.16%)
Short Float %9.32%
Short Ratio7.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
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)-1.88%
PT rev (3m)-4.09%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)3.53%
EPS NY rev (1m)0.51%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 43.71 | ||
| P/S | 3.87 | ||
| P/FCF | 128.09 | ||
| P/OCF | 8.55 | ||
| P/B | 0.81 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 12.95 |
EPS(TTM)1.84
EY4.99%
EPS(NY)0.84
Fwd EY2.29%
FCF(TTM)0.29
FCFY0.78%
OCF(TTM)4.31
OCFY11.7%
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 | 0.71 |
F-Score7
WACC6.01%
ROIC/WACC0.41
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)9.52%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%39.02%
EPS Next Y-33.01%
EPS Next 2Y-30.97%
EPS Next 3Y-22.29%
EPS Next 5Y-0.14%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%3.26%
Revenue Next Year-3%
Revenue Next 2Y-0.93%
Revenue Next 3Y1.13%
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%