KROGER CO (KR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:KR • US5010441013
62.16 USD
+0.41 (+0.66%)
Last: Jan 30, 2026, 01:13 PM
We assign a fundamental rating of 4 out of 10 to KR. KR was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of KR while its profitability can be described as average. 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.
- In the past 5 years KR has always been profitable.
- Each year in the past 5 years KR had a positive operating cash flow.
1.2 Ratios
- KR's Return On Assets of 1.50% is on the low side compared to the rest of the industry. KR is outperformed by 63.16% of its industry peers.
- KR has a Return On Equity of 10.98%. This is comparable to the rest of the industry: KR outperforms 50.00% of its industry peers.
- The Return On Invested Capital of KR (3.89%) is comparable to the rest of the industry.
- KR had an Average Return On Invested Capital over the past 3 years of 8.58%. This is significantly below the industry average of 28.30%.
- The 3 year average ROIC (8.58%) for KR is well above the current ROIC(3.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 10.98% | ||
| ROIC | 3.89% |
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 0.53% is on the low side compared to the rest of the industry. KR is outperformed by 60.53% of its industry peers.
- In the last couple of years the Profit Margin of KR has grown nicely.
- With a Operating Margin value of 1.12%, KR perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
- KR's Operating Margin has improved in the last couple of years.
- KR has a Gross Margin (23.23%) which is comparable to the rest of the industry.
- 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 | 1.12% | ||
| PM (TTM) | 0.53% | ||
| GM | 23.23% |
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.
- KR has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, KR has less shares outstanding
- The debt/assets ratio for KR is higher compared to a year ago.
2.2 Solvency
- KR has a debt to FCF ratio of 7.94. This is a slightly negative value and a sign of low solvency as KR would need 7.94 years to pay back of all of its debts.
- The Debt to FCF ratio of KR (7.94) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.28 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 2.28, KR is doing worse than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.57
WACC6.86%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that KR may have some problems paying its short term obligations.
- KR's Current ratio of 0.88 is on the low side compared to the rest of the industry. KR is outperformed by 81.58% of its industry peers.
- A Quick Ratio of 0.45 indicates that KR may have some problems paying its short term obligations.
- KR has a worse Quick ratio (0.45) than 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.85% over the past year.
- 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.
- Looking at the last year, KR shows a decrease in Revenue. The Revenue has decreased by -1.77% in the last year.
- KR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.77% yearly.
EPS 1Y (TTM)0.85%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%7.14%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.67%
3.2 Future
- The Earnings Per Share is expected to grow by 7.12% on average over the next years.
- Based on estimates for the next years, KR will show a small growth in Revenue. The Revenue will grow by 2.24% on average per year.
EPS Next Y10.34%
EPS Next 2Y10.48%
EPS Next 3Y8.99%
EPS Next 5Y7.12%
Revenue Next Year0.4%
Revenue Next 2Y1.25%
Revenue Next 3Y1.52%
Revenue Next 5Y2.24%
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
- A Price/Earnings ratio of 13.17 indicates a correct valuation of KR.
- Based on the Price/Earnings ratio, KR is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.39. KR is valued rather cheaply when compared to this.
- KR is valuated reasonably with a Price/Forward Earnings ratio of 11.37.
- Based on the Price/Forward Earnings ratio, KR is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. KR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
- KR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KR is cheaper than 63.16% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, KR is valued a bit cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
- KR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.27
PEG (5Y)0.86
EPS Next 2Y10.48%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- KR has a Yearly Dividend Yield of 2.23%. 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 0.73. KR pays more dividend than 86.84% of the companies in the same industry.
- KR's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
- On average, the dividend of KR grows each year by 15.86%, which is quite nice.
- KR has been paying a dividend for at least 10 years, so it has 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 115.27% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of KR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP115.27%
EPS Next 2Y10.48%
EPS Next 3Y8.99%
KROGER CO / KR FAQ
What is the fundamental rating for KR stock?
ChartMill assigns a fundamental rating of 4 / 10 to KR.
What is the valuation status for KR stock?
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 5 / 10.
Can you provide the expected EPS growth for KR stock?
The Earnings per Share (EPS) of KROGER CO (KR) is expected to grow by 10.34% in the next year.
Is the dividend of KROGER CO sustainable?
The dividend rating of KROGER CO (KR) is 5 / 10 and the dividend payout ratio is 115.27%.