KROGER CO (KR) Stock Fundamental Analysis
USA - NYSE:KR - US5010441013 - Common Stock
67.38 USD
+1.28 (+1.94%)
67.43 USD
+0.05 (+0.07%)
KR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 39 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.
In the past year KR had a positive cash flow from operations.
Each year in the past 5 years KR has been profitable.
In the past 5 years KR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KR (5.05%) is better than 64.10% of its industry peers.
KR has a Return On Equity of 29.16%. This is amongst the best in the industry. KR outperforms 84.62% of its industry peers.
With a decent Return On Invested Capital value of 8.53%, KR is doing good in the industry, outperforming 66.67% 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 8.72%.
| 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
With a Profit Margin value of 1.84%, KR perfoms like the industry average, outperforming 56.41% of the companies in the same industry.
KR's Profit Margin has improved in the last couple of years.
KR has a Operating Margin (2.74%) which is comparable to the rest of the industry.
KR's Operating Margin has improved in the last couple of years.
KR has a Gross Margin of 23.12%. This is comparable to the rest of the industry: KR outperforms 43.59% of 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 | 2.74% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KR is still creating some value.
The number of shares outstanding for KR has been reduced compared to 1 year ago.
KR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.35 indicates that KR is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 4.35, 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.
KR has a Debt to FCF ratio (8.12) which is in line with its industry peers.
KR has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.85, KR is not doing good in the industry: 82.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.24
WACC6.89%
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.
KR has a worse Current ratio (0.95) 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.
KR has a Quick ratio (0.54) which is in line with its industry peers.
| 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.
The Revenue has decreased by -2.13% 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)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
The Earnings Per Share is expected to grow by 6.20% on average over the next years.
KR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y9.81%
EPS Next 2Y10.05%
EPS Next 3Y8.82%
EPS Next 5Y6.2%
Revenue Next Year0.68%
Revenue Next 2Y1.76%
Revenue Next 3Y2.02%
Revenue Next 5Y2.41%
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 14.49, which indicates a correct valuation of KR.
Compared to the rest of the industry, the Price/Earnings ratio of KR indicates a somewhat cheap valuation: KR is cheaper than 79.49% of the companies listed in the same industry.
KR is valuated rather cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.42, KR is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KR indicates a somewhat cheap valuation: KR is cheaper than 79.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, KR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
74.36% of the companies in the same industry are more expensive than KR, based on the Enterprise Value to EBITDA ratio.
61.54% of the companies in the same industry are more expensive than KR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.19 | ||
| EV/EBITDA | 7.83 |
4.3 Compensation for Growth
KR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)0.95
EPS Next 2Y10.05%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, KR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.98, KR pays a better dividend. On top of this KR pays more dividend than 87.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, KR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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
32.69% 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.
DP32.69%
EPS Next 2Y10.05%
EPS Next 3Y8.82%
67.38
+1.28 (+1.94%)
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-1.5%
Ins Owners0.26%
Ins Owner Change-0.87%
Market Cap44.65B
Revenue(TTM)147.00B
Net Income(TTM)2.71B
Analysts76.97
Price Target78.5 (16.5%)
Short Float %4.43%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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)-0.2%
PT rev (3m)1.75%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 12.42 | ||
| P/S | 0.3 | ||
| P/FCF | 20.19 | ||
| P/OCF | 7.42 | ||
| P/B | 4.81 | ||
| P/tB | 7.78 | ||
| EV/EBITDA | 7.83 |
EPS(TTM)4.65
EY6.9%
EPS(NY)5.43
Fwd EY8.05%
FCF(TTM)3.34
FCFY4.95%
OCF(TTM)9.08
OCFY13.48%
SpS221.83
BVpS14.01
TBVpS8.66
PEG (NY)1.48
PEG (5Y)0.95
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 | 4.35 |
F-Score6
WACC6.89%
ROIC/WACC1.24
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 Y9.81%
EPS Next 2Y10.05%
EPS Next 3Y8.82%
EPS Next 5Y6.2%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.08%
Revenue Next Year0.68%
Revenue Next 2Y1.76%
Revenue Next 3Y2.02%
Revenue Next 5Y2.41%
EBIT growth 1Y-6.09%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year79.17%
EBIT Next 3Y24.28%
EBIT Next 5Y14.49%
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 4 / 10 to KR.
Can you provide the valuation status for KROGER CO?
ChartMill assigns a valuation rating of 5 / 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 14.49 and the Price/Book (PB) ratio is 4.81.
Can you provide the financial health for KR stock?
The financial health rating of KROGER CO (KR) is 3 / 10.