KROGER CO (KR) Stock Fundamental Analysis
NYSE:KR - US5010441013 - Common Stock
68.43 USD
+0.59 (+0.87%)
We assign a fundamental rating of 4 out of 10 to KR. KR was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. KR has an excellent profitability rating, but there are concerns on its financial health. KR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KR was profitable.
KR had a positive operating cash flow in the past year.
KR had positive earnings in each of the past 5 years.
KR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KR has a better Return On Assets (4.82%) than 60.98% of its industry peers.
The Return On Equity of KR (28.81%) is better than 82.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.49%, KR is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KR is in line with the industry average of 8.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 28.81% | ||
| ROIC | 8.49% |
ROA(3y)4.59%
ROA(5y)4.47%
ROE(3y)24.18%
ROE(5y)23.32%
ROIC(3y)8.58%
ROIC(5y)8.18%
1.3 Margins
KR's Profit Margin of 1.75% is in line compared to the rest of the industry. KR outperforms 53.66% of its industry peers.
In the last couple of years the Profit Margin of KR has grown nicely.
KR has a better Operating Margin (2.70%) than 60.98% of its industry peers.
KR's Operating Margin has improved in the last couple of years.
KR has a Gross Margin of 23.01%. This is comparable to the rest of the industry: KR outperforms 46.34% of its industry peers.
KR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.7% | ||
| PM (TTM) | 1.75% | ||
| GM | 23.01% |
OM growth 3Y1.47%
OM growth 5Y6.25%
PM growth 3Y14.79%
PM growth 5Y6.04%
GM growth 3Y1.13%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KR is still creating some value.
KR has less shares outstanding than it did 1 year ago.
KR has less shares outstanding than it did 5 years ago.
KR has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of KR is 9.73, which is on the high side as it means it would take KR, 9.73 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KR (9.73) is comparable to the rest of the industry.
KR has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
KR has a worse Debt to Equity ratio (1.92) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | N/A |
ROIC/WACC1.22
WACC6.97%
2.3 Liquidity
A Current Ratio of 0.95 indicates that KR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.95, KR is doing worse than 73.17% of the companies in the same industry.
KR has a Quick Ratio of 0.95. This is a bad value and indicates that KR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.53, KR perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
KR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.99%.
Measured over the past years, KR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.28% on average per year.
KR shows a decrease in Revenue. In the last year, the revenue decreased by -2.11%.
Measured over the past years, KR shows a small growth in Revenue. The Revenue has been growing by 3.77% on average per year.
EPS 1Y (TTM)-2.99%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%4.2%
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%-0.33%
3.2 Future
KR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.14% yearly.
KR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y9.82%
EPS Next 2Y10.09%
EPS Next 3Y8.85%
EPS Next 5Y6.14%
Revenue Next Year0.86%
Revenue Next 2Y1.81%
Revenue Next 3Y2.03%
Revenue Next 5Y2.41%
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
The Price/Earnings ratio is 15.07, which indicates a correct valuation of KR.
Based on the Price/Earnings ratio, KR is valued a bit cheaper than 73.17% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.13, KR is valued a bit cheaper.
KR is valuated correctly with a Price/Forward Earnings ratio of 12.60.
Based on the Price/Forward Earnings ratio, KR is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
KR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.07 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
65.85% of the companies in the same industry are more expensive than KR, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as KR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.54 | ||
| EV/EBITDA | 7.96 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of KR may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)0.99
EPS Next 2Y10.09%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.94, KR pays a better dividend. On top of this KR pays more dividend than 82.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, KR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
The dividend of KR is nicely growing with an annual growth rate of 15.86%!
KR has paid a dividend for at least 10 years, which is a reliable track record.
As KR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)15.86%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
34.45% of the earnings are spent on dividend by KR. This is a low number and sustainable payout ratio.
The dividend of KR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.45%
EPS Next 2Y10.09%
EPS Next 3Y8.85%
NYSE:KR (9/2/2025, 2:39:08 PM)
68.43
+0.59 (+0.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners81.7%
Inst Owner Change-2.71%
Ins Owners0.26%
Ins Owner Change0.14%
Market Cap45.24B
Analysts76.97
Price Target77.58 (13.37%)
Short Float %5.74%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend1.28
Dividend Growth(5Y)15.86%
DP34.45%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.81%
Min EPS beat(2)-0.91%
Max EPS beat(2)-0.72%
EPS beat(4)0
Avg EPS beat(4)-1.31%
Min EPS beat(4)-2.62%
Max EPS beat(4)-0.72%
EPS beat(8)4
Avg EPS beat(8)2.04%
EPS beat(12)8
Avg EPS beat(12)2.82%
EPS beat(16)12
Avg EPS beat(16)6.09%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-3.48%
Max Revenue beat(2)-3.06%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-4.53%
Max Revenue beat(4)-3.06%
Revenue beat(8)0
Avg Revenue beat(8)-3.3%
Revenue beat(12)0
Avg Revenue beat(12)-3.12%
Revenue beat(16)1
Avg Revenue beat(16)-2.66%
PT rev (1m)0.58%
PT rev (3m)11.93%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.55%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.07 | ||
| Fwd PE | 12.6 | ||
| P/S | 0.31 | ||
| P/FCF | 24.54 | ||
| P/OCF | 8.08 | ||
| P/B | 5.08 | ||
| P/tB | 8.38 | ||
| EV/EBITDA | 7.96 |
EPS(TTM)4.54
EY6.63%
EPS(NY)5.43
Fwd EY7.93%
FCF(TTM)2.79
FCFY4.08%
OCF(TTM)8.47
OCFY12.38%
SpS222.29
BVpS13.47
TBVpS8.16
PEG (NY)1.53
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 28.81% | ||
| ROCE | 10.85% | ||
| ROIC | 8.49% | ||
| ROICexc | 9.75% | ||
| ROICexgc | 10.96% | ||
| OM | 2.7% | ||
| PM (TTM) | 1.75% | ||
| GM | 23.01% | ||
| FCFM | 1.25% |
ROA(3y)4.59%
ROA(5y)4.47%
ROE(3y)24.18%
ROE(5y)23.32%
ROIC(3y)8.58%
ROIC(5y)8.18%
ROICexc(3y)9.19%
ROICexc(5y)8.71%
ROICexgc(3y)10.39%
ROICexgc(5y)9.91%
ROCE(3y)10.97%
ROCE(5y)10.45%
ROICexcg growth 3Y1.16%
ROICexcg growth 5Y8.26%
ROICexc growth 3Y2%
ROICexc growth 5Y8.94%
OM growth 3Y1.47%
OM growth 5Y6.25%
PM growth 3Y14.79%
PM growth 5Y6.04%
GM growth 3Y1.13%
GM growth 5Y0.63%
F-Score7
Asset Turnover2.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 9.73 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 113.2% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 8.81 | ||
| Cash Conversion | 76.79% | ||
| Profit Quality | 71.86% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | N/A |
F-Score7
WACC6.97%
ROIC/WACC1.22
Cap/Depr(3y)117.5%
Cap/Depr(5y)109.87%
Cap/Sales(3y)2.47%
Cap/Sales(5y)2.29%
Profit Quality(3y)88.47%
Profit Quality(5y)127.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.99%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%4.2%
EPS Next Y9.82%
EPS Next 2Y10.09%
EPS Next 3Y8.85%
EPS Next 5Y6.14%
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%-0.33%
Revenue Next Year0.86%
Revenue Next 2Y1.81%
Revenue Next 3Y2.03%
Revenue Next 5Y2.41%
EBIT growth 1Y32.94%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year79.84%
EBIT Next 3Y24.3%
EBIT Next 5Y14.42%
FCF growth 1Y-36.3%
FCF growth 3Y-20.79%
FCF growth 5Y2.96%
OCF growth 1Y-10.47%
OCF growth 3Y-2.18%
OCF growth 5Y4.43%