KILROY REALTY CORP (KRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRC - US49427F1084 - REIT
35.6 USD
-0.96 (-2.63%)
35.6 USD
0 (0%)
KRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Diversified REITs industry. While KRC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
- Each year in the past 5 years KRC had a positive operating cash flow.
1.2 Ratios
- KRC's Return On Assets of 2.93% is fine compared to the rest of the industry. KRC outperforms 69.60% of its industry peers.
- KRC has a Return On Equity of 5.89%. This is in the better half of the industry: KRC outperforms 70.40% 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 3.07%.
- 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
- KRC's Profit Margin of 28.57% is amongst the best of the industry. KRC outperforms 84.00% of its industry peers.
- In the last couple of years the Profit Margin of KRC has declined.
- With a decent Operating Margin value of 29.75%, KRC is doing good in the industry, outperforming 61.60% of the companies in the same industry.
- In the last couple of years the Operating Margin of KRC has grown nicely.
- KRC's Gross Margin of 68.11% is in line compared to the rest of the industry. KRC outperforms 52.80% 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.
- 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.
- Compared to 1 year ago, KRC has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.72, we must say that KRC is in the distress zone and has some risk of bankruptcy.
- KRC's Altman-Z score of 0.72 is fine compared to the rest of the industry. KRC outperforms 63.20% of its industry peers.
- KRC has a debt to FCF ratio of 89.55. This is a negative value and a sign of low solvency as KRC would need 89.55 years to pay back of all of its debts.
- The Debt to FCF ratio of KRC (89.55) is better than 64.80% of its industry peers.
- KRC has a Debt/Equity ratio of 0.84. This is a neutral value indicating KRC is somewhat dependend on debt financing.
- KRC has a better Debt to Equity ratio (0.84) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 89.55 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.44
WACC5.75%
2.3 Liquidity
- KRC has a Current 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.
- KRC has a Current ratio of 1.60. This is in the better half of the industry: KRC outperforms 75.20% 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.
- KRC has a better Quick ratio (1.60) than 76.00% of its industry peers.
| 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.
- 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 0.77%.
- 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)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
- KRC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.50% yearly.
- 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-4.52%
EPS Next 2Y-46.59%
EPS Next 3Y-36.91%
EPS Next 5Y-18.5%
Revenue Next Year-1.68%
Revenue Next 2Y1.05%
Revenue Next 3Y-0.3%
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.
- 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
- Based on the Price/Earnings ratio of 20.00, the valuation of KRC can be described as rather expensive.
- Based on the Price/Earnings ratio, KRC is valued cheaper than 81.60% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.32. KRC is valued slightly cheaper when compared to this.
- KRC is valuated quite expensively with a Price/Forward Earnings ratio of 70.50.
- KRC's Price/Forward Earnings is on the same level as the industry average.
- KRC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 70.5 |
4.2 Price Multiples
- KRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KRC is cheaper than 72.80% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, KRC is valued a bit cheaper than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.18 | ||
| EV/EBITDA | 12.28 |
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 -36.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-46.59%
EPS Next 3Y-36.91%
5. Dividend
5.1 Amount
- KRC has a Yearly Dividend Yield of 5.65%, which is a nice return.
- Compared to an average industry Dividend Yield of 6.59, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
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
- 80.05% 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.
DP80.05%
EPS Next 2Y-46.59%
EPS Next 3Y-36.91%
KILROY REALTY CORP / KRC FAQ
Can you provide the ChartMill fundamental rating for KILROY REALTY CORP?
ChartMill assigns a fundamental rating of 5 / 10 to KRC.
What is the valuation status for KRC stock?
ChartMill assigns a valuation rating of 4 / 10 to KILROY REALTY CORP (KRC). This can be considered as Fairly Valued.
What is the profitability of KRC stock?
KILROY REALTY CORP (KRC) has a profitability rating of 7 / 10.
What are the PE and PB ratios of KILROY REALTY CORP (KRC) stock?
The Price/Earnings (PE) ratio for KILROY REALTY CORP (KRC) is 20 and the Price/Book (PB) ratio is 0.77.
How financially healthy is KILROY REALTY CORP?
The financial health rating of KILROY REALTY CORP (KRC) is 4 / 10.