KROGER CO (KR)
US5010441013 - Common Stock
Overall KR gets a fundamental rating of 5 out of 10. We evaluated KR 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
In the past year KR was profitable.
KR had a positive operating cash flow in the past year.
Each year in the past 5 years KR has been profitable.
Each year in the past 5 years KR had a positive operating cash flow.
1.2 Ratios
KR has a Return On Assets (4.25%) which is in line with its industry peers.
KR has a better Return On Equity (18.47%) than 77.50% of its industry peers.
KR has a Return On Invested Capital of 6.92%. This is comparable to the rest of the industry: KR outperforms 60.00% of 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 10.28%.
| 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 in line with its industry peers.
In the last couple of years the Profit Margin of KR has declined.
KR has a Operating Margin of 2.06%. This is comparable to the rest of the industry: KR outperforms 45.00% of its industry peers.
In the last couple of years the Operating Margin of KR has remained more or less at the same level.
KR has a Gross Margin (22.24%) which is comparable to the rest of the 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.
KR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KR has less shares outstanding
KR has a better debt/assets ratio than last year.
2.2 Solvency
KR has an Altman-Z score of 4.45. This indicates that KR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.45, KR is doing good in the industry, outperforming 62.50% 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.
The Debt to FCF ratio of KR (4.24) is better than 67.50% of its industry peers.
KR has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
KR's Debt to Equity ratio of 1.04 is on the low side compared to the rest of the industry. KR is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 4.45 |
ROIC/WACC0.92
WACC7.52%
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.
KR's Current ratio of 0.81 is on the low side compared to the rest of the industry. KR is outperformed by 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.
With a Quick ratio value of 0.36, KR is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.20% in the past year.
The Revenue has been growing slightly by 4.37% on average over the past years.
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
Based on estimates for the next years, KR will show a small growth in Earnings Per Share. The EPS will grow by 1.14% on average per year.
The Revenue is expected to grow by 1.43% on average over the next years.
EPS Next Y-4.06%
EPS Next 2Y-0.53%
EPS Next 3Y0.05%
EPS Next 5Y1.14%
Revenue Next Year-0.57%
Revenue Next 2Y0.6%
Revenue Next 3Y1.14%
Revenue Next 5Y1.43%
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
With a Price/Earnings ratio of 11.39, the valuation of KR can be described as very reasonable.
Based on the Price/Earnings ratio, KR is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.60. KR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.87 indicates a reasonable valuation of KR.
85.00% of the companies in the same industry are more expensive than KR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KR to the average of the S&P500 Index (20.15), we can say KR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
KR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KR is cheaper than 65.00% of the companies in the same industry.
KR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KR is cheaper than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.67 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-0.53%
EPS Next 3Y0.05%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.45, KR pays a bit more dividend than its industry peers.
KR's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
On average, the dividend of KR grows each year by 16.17%, 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 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 3Y0.05%
KROGER CO
NYSE:KR (5/17/2024, 9:12:08 PM)
After market: 54.2 0 (0%)54.2
-0.24 (-0.44%)
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 Cap39.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 | 11.39 | ||
| Fwd PE | 11.87 | ||
| 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)0.64
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