Kilroy Realty Corporation Fundamental Analysis (NYSE: KRC)
Kilroy Realty Corporation (NYSE: KRC) shows weak financial fundamentals with a PE ratio of 25.35, profit margin of 15.47%, and ROE of 3.17%. The company generates $1.1B in annual revenue with weak year-over-year growth of -2.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KRC's fundamental strength across five key dimensions:
Efficiency Score
WeakKRC struggles to generate sufficient returns from assets.
Valuation Score
ModerateKRC shows balanced valuation metrics.
Growth Score
ModerateKRC shows steady but slowing expansion.
Financial Health Score
ExcellentKRC maintains a strong and stable balance sheet.
Profitability Score
WeakKRC struggles to sustain strong margins.
Key Financial Metrics
Is KRC Expensive or Cheap?
P/E Ratio
KRC trades at 25.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KRC's PEG of -1.14 indicates potential undervaluation.
Price to Book
The market values Kilroy Realty Corporation at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.22 times EBITDA. This is generally considered low.
How Well Does KRC Make Money?
Net Profit Margin
For every $100 in sales, Kilroy Realty Corporation keeps $15.47 as profit after all expenses.
Operating Margin
Core operations generate 25.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.17 in profit for every $100 of shareholder equity.
ROA
Kilroy Realty Corporation generates $1.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kilroy Realty Corporation generates strong operating cash flow of $511.68M, reflecting robust business health.
Free Cash Flow
Kilroy Realty Corporation generates weak or negative free cash flow of $-239.03M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.06 in free cash annually.
FCF Yield
KRC converts -5.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How KRC Stacks Against Its Sector Peers
| Metric | KRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.35 | 23.75 | Neutral |
| ROE | 3.17% | 762.00% | Weak |
| Net Margin | 15.47% | 2564.00% | Weak |
| Debt/Equity | 0.89 | -36.86 (disorted) | Distorted |
| Current Ratio | 1.10 | 38.40 | Neutral |
| ROA | 1.59% | 255.00% | Weak |
KRC outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kilroy Realty Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.35%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
41.01%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
18.78%
Industry Style: Income, Inflation Hedge, REIT
High Growth