KILROY REALTY CORP (KRC)
US49427F1084 - REIT
KRC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. KRC has only an average score on both its financial health and profitability. KRC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
KRC had positive earnings in the past year.
In the past year KRC had a positive cash flow from operations.
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 1.76%, KRC is doing good in the industry, outperforming 63.20% of the companies in the same industry.
KRC has a Return On Equity of 3.77%. This is in the better half of the industry: KRC outperforms 64.00% of its industry peers.
KRC's Return On Invested Capital of 2.31% is in line compared to the rest of the industry. KRC outperforms 43.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KRC is in line with the industry average of 3.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 3.77% | ||
| ROIC | 2.31% |
ROA(3y)3.3%
ROA(5y)2.79%
ROE(3y)6.55%
ROE(5y)5.57%
ROIC(3y)2.38%
ROIC(5y)2.28%
1.3 Margins
KRC has a Profit Margin of 18.28%. This is in the better half of the industry: KRC outperforms 72.00% of its industry peers.
In the last couple of years the Profit Margin of KRC has declined.
The Operating Margin of KRC (28.85%) is better than 65.60% of its industry peers.
In the last couple of years the Operating Margin of KRC has grown nicely.
KRC's Gross Margin of 68.67% is in line compared to the rest of the industry. KRC outperforms 53.60% of its industry peers.
KRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.85% | ||
| PM (TTM) | 18.28% | ||
| GM | 68.67% |
OM growth 3Y1.19%
OM growth 5Y3.24%
PM growth 3Y-3.18%
PM growth 5Y-11.45%
GM growth 3Y-0.93%
GM growth 5Y-0.65%
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
KRC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KRC has a worse debt to assets ratio.
2.2 Solvency
KRC has an Altman-Z score of 0.68. 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 0.68, KRC is in line with its industry, outperforming 56.80% of the companies in the same industry.
The Debt to FCF ratio of KRC is 79.55, which is on the high side as it means it would take KRC, 79.55 years of fcf income to pay off all of its debts.
KRC has a Debt to FCF ratio (79.55) which is in line with its industry peers.
A Debt/Equity ratio of 0.95 indicates that KRC is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.95, KRC is doing good in the industry, outperforming 61.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 79.55 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.39
WACC5.86%
2.3 Liquidity
A Current Ratio of 2.23 indicates that KRC has no problem at all paying its short term obligations.
KRC has a better Current ratio (2.23) than 74.40% of its industry peers.
A Quick Ratio of 2.23 indicates that KRC has no problem at all paying its short term obligations.
KRC has a Quick ratio of 2.23. This is in the better half of the industry: KRC outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
KRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.43%.
Measured over the past years, KRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.25% on average per year.
KRC shows a decrease in Revenue. In the last year, the revenue decreased by -0.78%.
The Revenue has been growing by 8.62% on average over the past years. This is quite good.
EPS 1Y (TTM)-13.43%
EPS 3Y6.5%
EPS 5Y12.25%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y7.94%
Revenue growth 5Y8.62%
Sales Q2Q%-4.86%
3.2 Future
KRC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.40% yearly.
Based on estimates for the next years, KRC will show a small growth in Revenue. The Revenue will grow by 2.00% on average per year.
EPS Next Y-18.64%
EPS Next 2Y-13.94%
EPS Next 3Y-5.86%
EPS Next 5Y-5.4%
Revenue Next Year-3.39%
Revenue Next 2Y-0.74%
Revenue Next 3Y2.07%
Revenue Next 5Y2%
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.
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 20.21 indicates a rather expensive valuation of KRC.
KRC's Price/Earnings ratio is rather cheap when compared to the industry. KRC is cheaper than 82.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of KRC to the average of the S&P500 Index (24.29), we can say KRC is valued inline with the index average.
KRC is valuated quite expensively with a Price/Forward Earnings ratio of 26.38.
Based on the Price/Forward Earnings ratio, KRC is valued a bit cheaper than 80.00% of the companies in the same industry.
KRC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 26.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRC is valued a bit cheaper than 68.80% of the companies in the same industry.
KRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.13 | ||
| EV/EBITDA | 12.39 |
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 -5.86% in the coming years.
PEG (NY)N/A
PEG (5Y)1.65
EPS Next 2Y-13.94%
EPS Next 3Y-5.86%
5. Dividend
5.1 Amount
KRC has a Yearly Dividend Yield of 6.16%, which is a nice return.
Compared to an average industry Dividend Yield of 5.52, KRC pays a bit more dividend than its industry peers.
KRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
5.2 History
The dividend of KRC has a limited annual growth rate of 3.98%.
KRC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)3.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
KRC pays out 125.37% 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.
DP125.37%
EPS Next 2Y-13.94%
EPS Next 3Y-5.86%
KILROY REALTY CORP
NYSE:KRC (7/25/2024, 7:04:00 PM)
After market: 36.4 +1.23 (+3.5%)35.17
+0.64 (+1.85%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 26.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 3.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.85% | ||
| PM (TTM) | 18.28% | ||
| GM | 68.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-13.43%
EPS 3Y6.5%
EPS 5Y
EPS Q2Q%
EPS Next Y-18.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y7.94%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y