KROGER CO (KR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:KR • US5010441013
62.85 USD
+1.1 (+1.78%)
At close: Jan 30, 2026
62.8 USD
-0.05 (-0.08%)
After Hours: 1/30/2026, 8:04:00 PM
KR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 38 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
- 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.
- KR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.50%, KR is doing worse than 63.16% of the companies in the same industry.
- KR has a Return On Equity (10.98%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 3.89%, KR is in line with its industry, outperforming 44.74% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KR is significantly below the industry average of 28.24%.
- 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 has a worse Profit Margin (0.53%) than 60.53% of its industry peers.
- KR's Profit Margin has improved in the last couple of years.
- KR has a Operating Margin (1.12%) 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 23.23%. This is comparable to the rest of the industry: KR outperforms 47.37% of its industry peers.
- KR's Gross Margin has been stable in the last couple of years.
| 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
- KR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, KR has less shares outstanding
- Compared to 5 years ago, KR has less shares outstanding
- Compared to 1 year ago, KR has a worse debt to assets ratio.
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.
- KR has a Debt to FCF ratio (7.94) which is comparable to the rest of the industry.
- KR has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.28, KR is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.57
WACC6.88%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that KR may have some problems paying its short term obligations.
- KR has a Current ratio of 0.88. This is amonst the worse of the industry: KR underperforms 81.58% of its industry peers.
- KR has a Quick Ratio of 0.88. 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 Quick ratio of KR (0.45) is worse than 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
- KR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.85%.
- 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 -1.77% in the past year.
- The Revenue has been growing slightly by 3.77% on average over the past years.
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.
- The Revenue is expected to grow by 2.24% on average over the next years.
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
- 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.
- 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
- KR is valuated correctly with a Price/Earnings ratio of 13.32.
- Based on the Price/Earnings ratio, KR is valued cheaply inside the industry as 81.58% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.32. KR is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 11.49, which indicates a very decent valuation of KR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KR indicates a rather cheap valuation: KR is cheaper than 84.21% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of KR to the average of the S&P500 Index (25.57), we can say KR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KR is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, KR is valued a bit cheaper than 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.36 | ||
| EV/EBITDA | 11.09 |
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)1.29
PEG (5Y)0.87
EPS Next 2Y10.48%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- KR has a Yearly Dividend Yield of 2.27%.
- Compared to an average industry Dividend Yield of 0.74, KR pays a better dividend. On top of this KR pays more dividend than 86.84% of the companies listed in the same industry.
- KR's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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.
- 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
- 115.27% of the earnings are spent on dividend by KR. This is not a sustainable payout ratio.
- KR's earnings are growing slower than its dividend. 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%.