KROGER CO (KR) Stock Fundamental Analysis
NYSE:KR - New York Stock Exchange, Inc. - US5010441013 - Common Stock - Currency: USD
Overall KR gets a fundamental rating of 4 out of 10. We evaluated KR against 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KR had positive earnings in the past year.
In the past year KR had a positive cash flow from operations.
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
The Return On Assets of KR (4.82%) is better than 65.00% of its industry peers.
KR has a Return On Equity of 28.81%. This is amongst the best in the industry. KR outperforms 85.00% of its industry peers.
The Return On Invested Capital of KR (8.49%) is better than 65.00% of its industry peers.
KR had an Average Return On Invested Capital over the past 3 years of 8.58%. This is in line with the industry average of 8.23%.
| 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
KR has a Profit Margin (1.75%) which is in line with its industry peers.
In the last couple of years the Profit Margin of KR has grown nicely.
KR has a Operating Margin of 2.70%. This is comparable to the rest of the industry: KR outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of KR has grown nicely.
KR's Gross Margin of 23.01% is in line compared to the rest of the industry. KR outperforms 45.00% of its industry peers.
KR's Gross Margin has been stable in the last couple of years.
| 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
KR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for KR has been reduced compared to 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 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.
KR's Debt to FCF ratio of 9.73 is in line compared to the rest of the industry. KR outperforms 47.50% of its industry peers.
A Debt/Equity ratio of 1.92 is on the high side and indicates that KR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.92, KR is not doing good in the industry: 85.00% 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/WACC1.18
WACC7.2%
2.3 Liquidity
A Current Ratio of 0.95 indicates that KR may have some problems paying its short term obligations.
The Current ratio of KR (0.95) is worse than 70.00% 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.
The Quick ratio of KR (0.53) is comparable to the rest of the 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.
KR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.28% yearly.
KR shows a decrease in Revenue. In the last year, the revenue decreased by -2.11%.
The Revenue has been growing slightly by 3.77% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.14% on average over the next years.
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 Year0.82%
Revenue Next 2Y1.82%
Revenue Next 3Y2.05%
Revenue Next 5Y2.37%
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
The Price/Earnings ratio is 15.83, 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 72.50% of the companies listed in the same industry.
KR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.18.
KR is valuated correctly with a Price/Forward Earnings ratio of 13.24.
85.00% of the companies in the same industry are more expensive than KR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, KR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KR indicates a somewhat cheap valuation: KR is cheaper than 65.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.77 | ||
| EV/EBITDA | 8.33 |
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)1.61
PEG (5Y)1.04
EPS Next 2Y10.09%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 1.98%.
Compared to an average industry Dividend Yield of 2.03, KR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, KR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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
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%
71.88
-0.39 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners81.01%
Inst Owner Change-0.02%
Ins Owners0.28%
Ins Owner Change0.33%
Market Cap47.52B
Analysts77.5
Price Target71.57 (-0.43%)
Short Float %5.17%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)-0.07%
PT rev (3m)3.9%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.69%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 13.24 | ||
| P/S | 0.32 | ||
| P/FCF | 25.77 | ||
| P/OCF | 8.48 | ||
| P/B | 5.34 | ||
| P/tB | 8.8 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)4.54
EY6.32%
EPS(NY)5.43
Fwd EY7.55%
FCF(TTM)2.79
FCFY3.88%
OCF(TTM)8.47
OCFY11.79%
SpS222.29
BVpS13.47
TBVpS8.16
PEG (NY)1.61
PEG (5Y)1.04
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
WACC7.2%
ROIC/WACC1.18
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 Year0.82%
Revenue Next 2Y1.82%
Revenue Next 3Y2.05%
Revenue Next 5Y2.37%
EBIT growth 1Y32.94%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year78.42%
EBIT Next 3Y24.37%
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%