KROGER CO (KR)
US5010441013 - Common Stock
KR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. KR has an average financial health and profitability rating. KR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KR had positive earnings in the past year.
In the past year KR had a positive cash flow from operations.
In the past 5 years KR has always been profitable.
In the past 5 years KR always reported a positive cash flow from operatings.
1.2 Ratios
KR has a better Return On Assets (4.25%) than 62.50% of its industry peers.
KR has a Return On Equity of 18.47%. This is in the better half of the industry: KR outperforms 77.50% of its industry peers.
KR has a Return On Invested Capital (6.92%) which is in line with its industry peers.
KR had an Average Return On Invested Capital over the past 3 years of 8.46%. This is in line with the industry average of 10.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 18.47% | ||
| ROIC | 6.92% |
ROA(3y)4.02%
ROA(5y)4.19%
ROE(3y)19.32%
ROE(5y)20.74%
ROIC(3y)8.46%
ROIC(5y)7.59%
1.3 Margins
KR has a Profit Margin (1.43%) which is comparable to the rest of the industry.
KR's Profit Margin has declined in the last couple of years.
KR has a Operating Margin (2.06%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KR has remained more or less at the same level.
With a Gross Margin value of 22.24%, KR perfoms like the industry average, outperforming 47.50% of the companies in the same industry.
KR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.06% | ||
| PM (TTM) | 1.43% | ||
| GM | 22.24% |
OM growth 3Y-0.65%
OM growth 5Y-0.87%
PM growth 3Y-9.49%
PM growth 5Y-10.84%
GM growth 3Y-1.45%
GM growth 5Y1.16%
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.
Compared to 1 year ago, KR has more shares outstanding
The number of shares outstanding for KR has been reduced compared to 5 years ago.
The debt/assets ratio for KR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.46 indicates that KR is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.46, KR is doing good in the industry, outperforming 65.00% of the companies in the same industry.
The Debt to FCF ratio of KR is 4.24, which is a neutral value as it means it would take KR, 4.24 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.24, KR is doing good in the industry, outperforming 65.00% of the companies in the same industry.
A Debt/Equity ratio of 1.04 is on the high side and indicates that KR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.04, KR is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 4.46 |
ROIC/WACC0.9
WACC7.73%
2.3 Liquidity
KR has a Current Ratio of 0.81. This is a bad value and indicates that KR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of KR (0.81) is worse than 82.50% of its industry peers.
KR has a Quick Ratio of 0.81. This is a bad value and indicates that KR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of KR (0.36) is worse than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.80% over the past year.
KR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
Looking at the last year, KR shows a small growth in Revenue. The Revenue has grown by 1.20% in the last year.
Measured over the past years, KR shows a small growth in Revenue. The Revenue has been growing by 4.37% on average per year.
EPS 1Y (TTM)12.8%
EPS 3Y11.11%
EPS 5Y17.78%
EPS growth Q2Q35.35%
Revenue 1Y (TTM)1.2%
Revenue growth 3Y4.23%
Revenue growth 5Y4.37%
Revenue growth Q2Q6.44%
3.2 Future
KR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.92% yearly.
KR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.09% yearly.
EPS Next Y-4.06%
EPS Next 2Y-0.53%
EPS Next 3Y0.39%
EPS Next 5Y3.92%
Revenue Next Year-0.57%
Revenue Next 2Y0.6%
Revenue Next 3Y1.22%
Revenue Next 5Y2.09%
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
The Price/Earnings ratio is 11.57, which indicates a very decent valuation of KR.
Compared to the rest of the industry, the Price/Earnings ratio of KR indicates a rather cheap valuation: KR is cheaper than 85.00% of the companies listed in the same industry.
KR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.55.
KR is valuated correctly with a Price/Forward Earnings ratio of 12.06.
90.00% of the companies in the same industry are more expensive than KR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.92. KR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 12.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KR is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KR is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.79 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y-0.53%
EPS Next 3Y0.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, KR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.53, KR pays a bit more dividend than its industry peers.
KR's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
The dividend of KR is nicely growing with an annual growth rate of 16.17%!
KR has been paying a dividend for at least 10 years, so it has a reliable track record.
KR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.17%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
37.11% 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.
DP37.11%
EPS Next 2Y-0.53%
EPS Next 3Y0.39%
KROGER CO
NYSE:KR (5/2/2024, 4:32:59 PM)
After market: 55.09 0 (0%)55.09
+0.32 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap39.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 11.57 | ||
| Fwd PE | 12.06 | ||
| 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)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 18.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.06% | ||
| PM (TTM) | 1.43% | ||
| GM | 22.24% | ||
| 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 Turnover2.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.36 | ||
| 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)
Growth
EPS 1Y (TTM)12.8%
EPS 3Y11.11%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.2%
Revenue growth 3Y4.23%
Revenue growth 5Y
Revenue growth 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