KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - NYSE:KRC - US49427F1084 - REIT
43.17 USD
+0.22 (+0.51%)
43.25 USD
+0.08 (+0.19%)
We assign a fundamental rating of 4 out of 10 to KRC. KRC was compared to 129 industry peers in the Diversified REITs industry. KRC has only an average score on both its financial health and profitability. KRC is valued expensive and 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.
In the past 5 years KRC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.01%, KRC is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
KRC has a Return On Equity of 4.07%. This is in the better half of the industry: KRC outperforms 62.02% of its industry peers.
KRC has a Return On Invested Capital (2.57%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KRC is in line with the industry average of 3.04%.
The 3 year average ROIC (2.48%) for KRC is below the current ROIC(2.57%), indicating increased profibility in the last year.
| 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's Profit Margin of 19.22% is fine compared to the rest of the industry. KRC outperforms 71.32% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
KRC has a better Operating Margin (29.81%) than 62.79% of its industry peers.
KRC's Operating Margin has improved in the last couple of years.
KRC has a Gross Margin (68.17%) 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 | 29.81% | ||
| 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
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 0.80. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.80, KRC is in the better half of the industry, outperforming 67.44% 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.
With a decent Debt to FCF ratio value of 30.31, KRC is doing good in 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.
KRC has a Debt to Equity ratio of 0.86. This is in the better half of the industry: KRC outperforms 68.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 30.31 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.43
WACC6.02%
2.3 Liquidity
A Current Ratio of 1.38 indicates that KRC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.38, KRC is doing good in the industry, outperforming 61.24% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that KRC should not have too much problems paying its short term obligations.
KRC's Quick ratio of 1.38 is fine compared to the rest of the industry. KRC outperforms 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.52% over the past year.
The Earnings Per Share has been decreasing by -0.11% on average over the past years.
KRC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.26%.
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)2.26%
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 very negative growth in Earnings Per Share. The EPS will decrease by -18.50% on average per year.
Based on estimates for the next years, KRC will show a small growth in Revenue. The Revenue will grow by 0.26% on average per year.
EPS Next Y-27.53%
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
EPS Next 5Y-18.5%
Revenue Next Year-3.27%
Revenue Next 2Y1.18%
Revenue Next 3Y0.15%
Revenue Next 5Y0.26%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.46, KRC is valued on the expensive side.
Based on the Price/Earnings ratio, KRC is valued cheaper than 81.40% of the companies in the same industry.
KRC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 65.76, which means the current valuation is very expensive for KRC.
The rest of the industry has a similar Price/Forward Earnings ratio as KRC.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, KRC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.46 | ||
| Fwd PE | 65.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRC is on the same level as its industry peers.
67.44% of the companies in the same industry are more expensive than KRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.67 | ||
| EV/EBITDA | 13.69 |
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 -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
With a Yearly Dividend Yield of 5.03%, KRC is a good candidate for dividend investing.
KRC's Dividend Yield is comparable with the industry average which is at 6.63.
Compared to an average S&P500 Dividend Yield of 2.41, KRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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.
The Dividend Rate of KRC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP117.72%
EPS Next 2Y-39.1%
EPS Next 3Y-22.29%
43.17
+0.22 (+0.51%)
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 Change5.57%
Ins Owners0.64%
Ins Owner Change0.72%
Market Cap5.11B
Analysts54.78
Price Target38.76 (-10.22%)
Short Float %11.69%
Short Ratio8.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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)2.92%
PT rev (3m)3.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)8.18%
EPS NY rev (3m)7.86%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.46 | ||
| Fwd PE | 65.76 | ||
| P/S | 4.49 | ||
| P/FCF | 33.67 | ||
| P/OCF | 9.03 | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 13.69 |
EPS(TTM)1.84
EY4.26%
EPS(NY)0.66
Fwd EY1.52%
FCF(TTM)1.28
FCFY2.97%
OCF(TTM)4.78
OCFY11.07%
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 | 0.8 |
F-Score8
WACC6.02%
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-18.5%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%3.26%
Revenue Next Year-3.27%
Revenue Next 2Y1.18%
Revenue Next 3Y0.15%
Revenue Next 5Y0.26%
EBIT growth 1Y6.28%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year99.57%
EBIT Next 3Y29.45%
EBIT Next 5Y16.26%
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%