KROGER CO (KR) Stock Fundamental Analysis
NYSE:KR - New York Stock Exchange, Inc. - US5010441013 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KR. KR was compared to 40 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
KR had positive earnings in the past year.
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
With a decent Return On Assets value of 4.82%, KR is doing good in the industry, outperforming 65.00% of the companies in the same industry.
KR's Return On Equity of 28.81% is amongst the best of the industry. KR outperforms 82.50% 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 67.50% 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 8.21%.
| 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
With a Profit Margin value of 1.75%, KR perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
KR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 2.70%, KR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
KR's Operating Margin has improved in the last couple of years.
KR has a Gross Margin (23.01%) which is in line with its industry peers.
In the last couple of years the Gross Margin of KR has remained more or less at the same level.
| 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
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.
KR has a worse debt/assets ratio than last year.
2.2 Solvency
KR has a debt to FCF ratio of 9.73. This is a negative value and a sign of low solvency as KR would need 9.73 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.73, KR perfoms like the industry average, outperforming 47.50% of the companies in the same industry.
KR has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.92, KR is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | N/A |
ROIC/WACC1.19
WACC7.13%
2.3 Liquidity
A Current Ratio of 0.95 indicates that KR may have some problems paying its short term obligations.
KR has a worse Current ratio (0.95) than 70.00% of its industry peers.
A Quick Ratio of 0.53 indicates that KR may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, KR perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The earnings per share for KR have decreased by -2.99% in the last year.
The Earnings Per Share has been growing by 15.28% on average over the past years. This is quite good.
The Revenue has decreased by -2.11% in the past year.
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
Based on estimates for the next years, KR will show a small growth in Earnings Per Share. The EPS will grow by 6.14% on average per year.
The Revenue is expected to grow by 2.37% on average over the next years.
EPS Next Y9.85%
EPS Next 2Y10.09%
EPS Next 3Y8.75%
EPS Next 5Y6.14%
Revenue Next Year0.79%
Revenue Next 2Y1.8%
Revenue Next 3Y2.04%
Revenue Next 5Y2.37%
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
The Price/Earnings ratio is 16.38, which indicates a correct valuation of KR.
Based on the Price/Earnings ratio, KR is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of KR to the average of the S&P500 Index (26.41), we can say KR is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.69, KR is valued correctly.
KR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KR is cheaper than 82.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.87, KR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
67.50% of the companies in the same industry are more expensive than KR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.66 | ||
| EV/EBITDA | 8.54 |
4.3 Compensation for Growth
KR's 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)1.66
PEG (5Y)1.07
EPS Next 2Y10.09%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 1.90%.
Compared to an average industry Dividend Yield of 2.03, KR pays a bit more dividend than its industry peers.
KR's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
On average, the dividend of KR grows each year by 15.86%, which is quite nice.
KR has paid a dividend for at least 10 years, which is a reliable track record.
KR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
KR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.45%
EPS Next 2Y10.09%
EPS Next 3Y8.75%
74.35
+0.11 (+0.15%)
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-0.62%
Ins Owners0.26%
Ins Owner Change0.14%
Market Cap49.16B
Analysts76.97
Price Target77.15 (3.77%)
Short Float %5.33%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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)7.81%
PT rev (3m)11.31%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)0%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 13.69 | ||
| P/S | 0.33 | ||
| P/FCF | 26.66 | ||
| P/OCF | 8.78 | ||
| P/B | 5.52 | ||
| P/tB | 9.11 | ||
| EV/EBITDA | 8.54 |
EPS(TTM)4.54
EY6.11%
EPS(NY)5.43
Fwd EY7.3%
FCF(TTM)2.79
FCFY3.75%
OCF(TTM)8.47
OCFY11.39%
SpS222.29
BVpS13.47
TBVpS8.16
PEG (NY)1.66
PEG (5Y)1.07
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
WACC7.13%
ROIC/WACC1.19
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 Y9.85%
EPS Next 2Y10.09%
EPS Next 3Y8.75%
EPS Next 5Y6.14%
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%-0.33%
Revenue Next Year0.79%
Revenue Next 2Y1.8%
Revenue Next 3Y2.04%
Revenue Next 5Y2.37%
EBIT growth 1Y32.94%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year79.84%
EBIT Next 3Y24.12%
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%