KILROY REALTY CORP (KRC) Stock Fundamental Analysis
NYSE:KRC - US49427F1084 - REIT
40.16 USD
+1.3 (+3.35%)
40.16 USD
0 (0%)
KRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KRC had positive earnings in the past year.
KRC had a positive operating cash flow in the past year.
KRC had positive earnings in each of the past 5 years.
Each year in the past 5 years KRC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.01%, KRC is doing good in the industry, outperforming 65.12% of the companies in the same industry.
The Return On Equity of KRC (4.07%) is better than 62.02% of its industry peers.
With a Return On Invested Capital value of 2.57%, KRC perfoms like the industry average, outperforming 48.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KRC is in line with the industry average of 3.07%.
The last Return On Invested Capital (2.57%) for KRC is above the 3 year average (2.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 4.07% | ||
| ROIC | 2.57% |
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 (19.22%) than 71.32% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
With a decent Operating Margin value of 29.81%, KRC is doing good in the industry, outperforming 62.79% of the companies in the same industry.
In the last couple of years the Operating Margin of KRC has grown nicely.
The Gross Margin of KRC (68.17%) is comparable to the rest of the 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 | 29.81% | ||
| PM (TTM) | 19.22% | ||
| GM | 68.17% |
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.
Compared to 1 year ago, KRC has more shares outstanding
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 0.76. 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 0.76, KRC is doing good in the industry, outperforming 65.89% of the companies in the same industry.
The Debt to FCF ratio of KRC is 30.31, which is on the high side as it means it would take KRC, 30.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 30.31, KRC is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
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 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 30.31 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.43
WACC6.03%
2.3 Liquidity
A Current Ratio of 1.38 indicates that KRC should not have too much problems paying its short term obligations.
The Current ratio of KRC (1.38) is better than 60.47% of its industry peers.
KRC has a Quick Ratio of 1.38. 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 1.38, KRC is in the better half of the industry, outperforming 61.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
KRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.52%, which is quite good.
KRC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.11% yearly.
Looking at the last year, KRC shows a small growth in Revenue. The Revenue has grown by 2.26% 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)9.52%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%39.02%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%3.26%
3.2 Future
The Earnings Per Share is expected to decrease by -0.14% on average over the next years.
The Revenue is expected to grow by 2.69% on average over the next years.
EPS Next Y-27.53%
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
EPS Next 5Y-0.14%
Revenue Next Year-3.09%
Revenue Next 2Y-1.2%
Revenue Next 3Y0.32%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.83, KRC is valued on the expensive side.
82.95% of the companies in the same industry are more expensive than KRC, based on the Price/Earnings ratio.
KRC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 61.17, which means the current valuation is very expensive for KRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRC is on the same level as its industry peers.
KRC is valuated expensively when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 61.17 |
4.2 Price Multiples
KRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KRC is cheaper than 66.67% of the companies in the same industry.
KRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KRC is cheaper than 68.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.32 | ||
| EV/EBITDA | 13.18 |
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 -22.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
5. Dividend
5.1 Amount
KRC has a Yearly Dividend Yield of 5.56%, which is a nice return.
Compared to an average industry Dividend Yield of 6.36, KRC has a dividend in line with its industry peers.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
5.2 History
The dividend of KRC has a limited annual growth rate of 2.81%.
KRC has been paying a dividend for at least 10 years, so it has 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
117.72% of the earnings are spent on dividend by KRC. 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.
DP117.72%
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
40.16
+1.3 (+3.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners123.78%
Inst Owner Change5.58%
Ins Owners0.64%
Ins Owner Change0.8%
Market Cap4.75B
Analysts65
Price Target37.74 (-6.03%)
Short Float %11.89%
Short Ratio8.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
Yearly Dividend2.18
Dividend Growth(5Y)2.81%
DP117.72%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.46%
Min EPS beat(2)3.18%
Max EPS beat(2)77.75%
EPS beat(4)4
Avg EPS beat(4)39.21%
Min EPS beat(4)3.18%
Max EPS beat(4)77.75%
EPS beat(8)7
Avg EPS beat(8)23.07%
EPS beat(12)10
Avg EPS beat(12)24.09%
EPS beat(16)13
Avg EPS beat(16)23.15%
Revenue beat(2)1
Avg Revenue beat(2)1.83%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)6.03%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)6.03%
Revenue beat(8)6
Avg Revenue beat(8)0.22%
Revenue beat(12)9
Avg Revenue beat(12)0.69%
Revenue beat(16)13
Avg Revenue beat(16)1.21%
PT rev (1m)2.56%
PT rev (3m)-1.64%
EPS NQ rev (1m)-2.61%
EPS NQ rev (3m)-15.15%
EPS NY rev (1m)8.18%
EPS NY rev (3m)7.86%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 61.17 | ||
| P/S | 4.18 | ||
| P/FCF | 31.32 | ||
| P/OCF | 8.4 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 13.18 |
EPS(TTM)1.84
EY4.58%
EPS(NY)0.66
Fwd EY1.63%
FCF(TTM)1.28
FCFY3.19%
OCF(TTM)4.78
OCFY11.9%
SpS9.61
BVpS45.37
TBVpS45.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 4.07% | ||
| ROCE | 3.26% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 2.62% | ||
| OM | 29.81% | ||
| PM (TTM) | 19.22% | ||
| GM | 68.17% | ||
| FCFM | 13.34% |
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-Score8
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 30.31 | ||
| Debt/EBITDA | 6.62 | ||
| Cap/Depr | 116.26% | ||
| Cap/Sales | 36.37% | ||
| Interest Coverage | 2.7 | ||
| Cash Conversion | 81.37% | ||
| Profit Quality | 69.42% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 0.76 |
F-Score8
WACC6.03%
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)9.52%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%39.02%
EPS Next Y-27.53%
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
EPS Next 5Y-0.14%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%3.26%
Revenue Next Year-3.09%
Revenue Next 2Y-1.2%
Revenue Next 3Y0.32%
Revenue Next 5Y2.69%
EBIT growth 1Y6.28%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year99.57%
EBIT Next 3Y29.45%
EBIT Next 5Y19.7%
FCF growth 1Y138.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.3%
OCF growth 3Y1.57%
OCF growth 5Y3.37%