KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - NYSE:KRC - US49427F1084 - REIT
42.25 USD
+0.01 (+0.02%)
42.25 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KRC. KRC was compared to 128 industry peers in the Diversified REITs industry. While KRC has a great profitability rating, there are some minor concerns on its financial health. KRC is valued expensive and 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.
In the past 5 years KRC has always been profitable.
KRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.93%, KRC is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
KRC has a better Return On Equity (5.89%) than 71.88% of its industry peers.
KRC has a Return On Invested Capital (2.53%) 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 3.04%.
The last Return On Invested Capital (2.53%) for KRC is above the 3 year average (2.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 5.89% | ||
| ROIC | 2.53% |
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
With an excellent Profit Margin value of 28.57%, KRC belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
KRC's Profit Margin has declined in the last couple of years.
KRC has a Operating Margin of 29.75%. This is in the better half of the industry: KRC outperforms 61.72% of its industry peers.
In the last couple of years the Operating Margin of KRC has grown nicely.
KRC has a Gross Margin of 68.11%. This is comparable to the rest of the industry: KRC outperforms 53.13% of 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 | 29.75% | ||
| PM (TTM) | 28.57% | ||
| GM | 68.11% |
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.
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 0.81. This is a bad value and indicates that KRC is not financially healthy and even has some risk of bankruptcy.
KRC has a Altman-Z score of 0.81. This is in the better half of the industry: KRC outperforms 67.19% of its industry peers.
The Debt to FCF ratio of KRC is 89.55, which is on the high side as it means it would take KRC, 89.55 years of fcf income to pay off all of its debts.
KRC has a Debt to FCF ratio of 89.55. This is in the better half of the industry: KRC outperforms 63.28% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that KRC is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.84, KRC is doing good in the industry, outperforming 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 89.55 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.44
WACC5.75%
2.3 Liquidity
A Current Ratio of 1.60 indicates that KRC should not have too much problems paying its short term obligations.
KRC has a better Current ratio (1.60) than 68.75% of its industry peers.
KRC has a Quick Ratio of 1.60. This is a normal value and indicates that KRC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.60, KRC is doing good in the industry, outperforming 69.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.59% over the past year.
The Earnings Per Share has been decreasing by -0.11% on average over the past years.
The Revenue has been growing slightly by 0.77% in the past 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)6.59%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%-13.64%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%-2.17%
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-20.83%
EPS Next 2Y-40.52%
EPS Next 3Y-32.46%
EPS Next 5Y-18.5%
Revenue Next Year-2.47%
Revenue Next 2Y1.14%
Revenue Next 3Y0.03%
Revenue Next 5Y0.26%
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
A Price/Earnings ratio of 23.74 indicates a rather expensive valuation of KRC.
Based on the Price/Earnings ratio, KRC is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.34, KRC is valued at the same level.
The Price/Forward Earnings ratio is 67.47, which means the current valuation is very expensive for KRC.
KRC's Price/Forward Earnings ratio is in line with the industry average.
KRC is valuated expensively when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.74 | ||
| Fwd PE | 67.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRC indicates a somewhat cheap valuation: KRC is cheaper than 60.94% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KRC is valued a bit cheaper than the industry average as 60.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.52 | ||
| EV/EBITDA | 13.42 |
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 -32.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-40.52%
EPS Next 3Y-32.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.06%, KRC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.28, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
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
80.05% 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.
DP80.05%
EPS Next 2Y-40.52%
EPS Next 3Y-32.46%
42.25
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners126.21%
Inst Owner Change0.18%
Ins Owners0.63%
Ins Owner Change0.72%
Market Cap5.00B
Revenue(TTM)1.13B
Net Income(TTM)321.97M
Analysts55.65
Price Target41.89 (-0.85%)
Short Float %11.04%
Short Ratio9.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
Yearly Dividend2.18
Dividend Growth(5Y)2.81%
DP80.05%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)30.06%
Min EPS beat(2)-17.63%
Max EPS beat(2)77.75%
EPS beat(4)3
Avg EPS beat(4)28.91%
Min EPS beat(4)-17.63%
Max EPS beat(4)77.75%
EPS beat(8)6
Avg EPS beat(8)17.67%
EPS beat(12)9
Avg EPS beat(12)16.19%
EPS beat(16)12
Avg EPS beat(16)20.5%
Revenue beat(2)2
Avg Revenue beat(2)3.88%
Min Revenue beat(2)1.74%
Max Revenue beat(2)6.03%
Revenue beat(4)3
Avg Revenue beat(4)1.7%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)6.03%
Revenue beat(8)6
Avg Revenue beat(8)0.33%
Revenue beat(12)9
Avg Revenue beat(12)0.59%
Revenue beat(16)13
Avg Revenue beat(16)1.28%
PT rev (1m)3.88%
PT rev (3m)11.24%
EPS NQ rev (1m)10.44%
EPS NQ rev (3m)16.31%
EPS NY rev (1m)9.25%
EPS NY rev (3m)18.19%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.74 | ||
| Fwd PE | 67.47 | ||
| P/S | 4.44 | ||
| P/FCF | 97.52 | ||
| P/OCF | 8.84 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 13.42 |
EPS(TTM)1.78
EY4.21%
EPS(NY)0.63
Fwd EY1.48%
FCF(TTM)0.43
FCFY1.03%
OCF(TTM)4.78
OCFY11.31%
SpS9.53
BVpS46.2
TBVpS46.2
PEG (NY)N/A
PEG (5Y)N/A
Graham Number43.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 5.89% | ||
| ROCE | 3.2% | ||
| ROIC | 2.53% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 2.62% | ||
| OM | 29.75% | ||
| PM (TTM) | 28.57% | ||
| GM | 68.11% | ||
| FCFM | 4.55% |
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%
ROICexgc growth 3Y3.65%
ROICexgc 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 | 0.84 | ||
| Debt/FCF | 89.55 | ||
| Debt/EBITDA | 6.68 | ||
| Cap/Depr | 146.35% | ||
| Cap/Sales | 45.63% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 82.36% | ||
| Profit Quality | 15.92% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 0.81 |
F-Score8
WACC5.75%
ROIC/WACC0.44
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)6.59%
EPS 3Y4.08%
EPS 5Y-0.11%
EPS Q2Q%-13.64%
EPS Next Y-20.83%
EPS Next 2Y-40.52%
EPS Next 3Y-32.46%
EPS Next 5Y-18.5%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y5.94%
Revenue growth 5Y6.28%
Sales Q2Q%-2.17%
Revenue Next Year-2.47%
Revenue Next 2Y1.14%
Revenue Next 3Y0.03%
Revenue Next 5Y0.26%
EBIT growth 1Y4.22%
EBIT growth 3Y5.78%
EBIT growth 5Y8.52%
EBIT Next Year99.95%
EBIT Next 3Y27.58%
EBIT Next 5Y16.27%
FCF growth 1Y10.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.82%
OCF growth 3Y1.57%
OCF growth 5Y3.37%
KILROY REALTY CORP / KRC FAQ
What is the fundamental rating for KRC stock?
ChartMill assigns a fundamental rating of 4 / 10 to KRC.
Can you provide the valuation status for KILROY REALTY CORP?
ChartMill assigns a valuation rating of 3 / 10 to KILROY REALTY CORP (KRC). This can be considered as Overvalued.
What is the profitability of KRC stock?
KILROY REALTY CORP (KRC) has a profitability rating of 7 / 10.
What is the financial health of KILROY REALTY CORP (KRC) stock?
The financial health rating of KILROY REALTY CORP (KRC) is 4 / 10.
Is the dividend of KILROY REALTY CORP sustainable?
The dividend rating of KILROY REALTY CORP (KRC) is 6 / 10 and the dividend payout ratio is 80.05%.