KROGER CO (KR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KR - US5010441013 - Common Stock
62.71 USD
-0.43 (-0.68%)
62.8 USD
+0.09 (+0.14%)
Taking everything into account, KR scores 5 out of 10 in our fundamental rating. KR was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. KR has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year KR had a positive cash flow from operations.
KR had positive earnings in each of the past 5 years.
Each year in the past 5 years KR had a positive operating cash flow.
1.2 Ratios
KR has a Return On Assets of 5.05%. This is in the better half of the industry: KR outperforms 61.54% of its industry peers.
With an excellent Return On Equity value of 29.16%, KR belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
KR has a Return On Invested Capital of 8.53%. This is in the better half of the industry: KR outperforms 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KR is in line with the industry average of 8.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 29.16% | ||
| ROIC | 8.53% |
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 has a Profit Margin (1.84%) which is comparable to the rest of the industry.
KR's Profit Margin has improved in the last couple of years.
KR's Operating Margin of 2.74% is in line compared to the rest of the industry. KR outperforms 56.41% of its industry peers.
In the last couple of years the Operating Margin of KR has grown nicely.
Looking at the Gross Margin, with a value of 23.12%, KR is in line with its industry, outperforming 46.15% 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 | 2.74% | ||
| PM (TTM) | 1.84% | ||
| GM | 23.12% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KR is creating some value.
The number of shares outstanding for KR has been reduced compared to 1 year ago.
The number of shares outstanding for KR has been reduced compared to 5 years ago.
Compared to 1 year ago, KR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.31 indicates that KR is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 4.31, KR perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
KR has a debt to FCF ratio of 8.12. This is a slightly negative value and a sign of low solvency as KR would need 8.12 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.12, KR perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
A Debt/Equity ratio of 1.85 is on the high side and indicates that KR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.85, KR is doing worse than 82.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.26
WACC6.79%
2.3 Liquidity
KR has a Current 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.
The Current ratio of KR (0.95) is worse than 74.36% of its industry peers.
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 0.54, KR perfoms like the industry average, outperforming 48.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
KR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been growing by 15.28% on average over the past years. This is quite good.
Looking at the last year, KR shows a decrease in Revenue. The Revenue has decreased by -2.13% in the last year.
The Revenue has been growing slightly by 3.77% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%11.83%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.08%
3.2 Future
KR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.36% yearly.
KR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.39% yearly.
EPS Next Y10.41%
EPS Next 2Y10.34%
EPS Next 3Y8.76%
EPS Next 5Y6.36%
Revenue Next Year0.73%
Revenue Next 2Y1.77%
Revenue Next 3Y1.96%
Revenue Next 5Y2.39%
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
Based on the Price/Earnings ratio of 13.49, the valuation of KR can be described as correct.
Based on the Price/Earnings ratio, KR is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.46, KR is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.50, which indicates a very decent valuation of KR.
Based on the Price/Forward Earnings ratio, KR is valued cheaper than 82.05% of the companies in the same industry.
KR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KR indicates a somewhat cheap valuation: KR is cheaper than 76.92% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.79 | ||
| EV/EBITDA | 7.45 |
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)1.3
PEG (5Y)0.88
EPS Next 2Y10.34%
EPS Next 3Y8.76%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 2.11%. Purely for dividend investing, there may be better candidates out there.
KR's Dividend Yield is rather good when compared to the industry average which is at 1.99. KR pays more dividend than 82.05% of the companies in the same industry.
KR's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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
KR pays out 32.69% of its income as dividend. This is a sustainable payout ratio.
KR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.69%
EPS Next 2Y10.34%
EPS Next 3Y8.76%
62.71
-0.43 (-0.68%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners78.68%
Inst Owner Change-1.27%
Ins Owners0.26%
Ins Owner Change-0.49%
Market Cap41.56B
Revenue(TTM)147.00B
Net Income(TTM)2.71B
Analysts77.5
Price Target78.4 (25.02%)
Short Float %4.75%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend1.28
Dividend Growth(5Y)15.86%
DP32.69%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.34%
Min EPS beat(2)-0.91%
Max EPS beat(2)1.58%
EPS beat(4)1
Avg EPS beat(4)-0.67%
Min EPS beat(4)-2.62%
Max EPS beat(4)1.58%
EPS beat(8)4
Avg EPS beat(8)1.93%
EPS beat(12)8
Avg EPS beat(12)2.47%
EPS beat(16)12
Avg EPS beat(16)4.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.22%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-3.06%
Revenue beat(4)0
Avg Revenue beat(4)-3.61%
Min Revenue beat(4)-4.53%
Max Revenue beat(4)-3.06%
Revenue beat(8)0
Avg Revenue beat(8)-3.26%
Revenue beat(12)0
Avg Revenue beat(12)-3.18%
Revenue beat(16)0
Avg Revenue beat(16)-2.89%
PT rev (1m)-0.34%
PT rev (3m)1.05%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 11.5 | ||
| P/S | 0.28 | ||
| P/FCF | 18.79 | ||
| P/OCF | 6.91 | ||
| P/B | 4.48 | ||
| P/tB | 7.24 | ||
| EV/EBITDA | 7.45 |
EPS(TTM)4.65
EY7.42%
EPS(NY)5.45
Fwd EY8.7%
FCF(TTM)3.34
FCFY5.32%
OCF(TTM)9.08
OCFY14.48%
SpS221.83
BVpS14.01
TBVpS8.66
PEG (NY)1.3
PEG (5Y)0.88
Graham Number38.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 29.16% | ||
| ROCE | 10.91% | ||
| ROIC | 8.53% | ||
| ROICexc | 9.83% | ||
| ROICexgc | 11.05% | ||
| OM | 2.74% | ||
| PM (TTM) | 1.84% | ||
| GM | 23.12% | ||
| FCFM | 1.5% |
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%
ROICexgc growth 3Y1.16%
ROICexgc 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-Score6
Asset Turnover2.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 8.12 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 113.71% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 9.36 | ||
| Cash Conversion | 81.66% | ||
| Profit Quality | 81.71% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 4.31 |
F-Score6
WACC6.79%
ROIC/WACC1.26
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)0%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%11.83%
EPS Next Y10.41%
EPS Next 2Y10.34%
EPS Next 3Y8.76%
EPS Next 5Y6.36%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.08%
Revenue Next Year0.73%
Revenue Next 2Y1.77%
Revenue Next 3Y1.96%
Revenue Next 5Y2.39%
EBIT growth 1Y-6.09%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year79.17%
EBIT Next 3Y24.19%
EBIT Next 5Y14.31%
FCF growth 1Y-21.92%
FCF growth 3Y-20.79%
FCF growth 5Y2.96%
OCF growth 1Y-6.48%
OCF growth 3Y-2.18%
OCF growth 5Y4.43%
KROGER CO / KR FAQ
What is the fundamental rating for KR stock?
ChartMill assigns a fundamental rating of 5 / 10 to KR.
Can you provide the valuation status for KROGER CO?
ChartMill assigns a valuation rating of 6 / 10 to KROGER CO (KR). This can be considered as Fairly Valued.
What is the profitability of KR stock?
KROGER CO (KR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of KROGER CO (KR) stock?
The Price/Earnings (PE) ratio for KROGER CO (KR) is 13.49 and the Price/Book (PB) ratio is 4.48.
Can you provide the financial health for KR stock?
The financial health rating of KROGER CO (KR) is 3 / 10.