KROGER CO (KR) Stock Fundamental Analysis
NYSE:KR - New York Stock Exchange, Inc. - US5010441013 - Common Stock
We assign a fundamental rating of 5 out of 10 to KR. KR was compared to 41 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
KR had positive earnings in the past year.
KR had a positive operating cash flow in the past year.
KR had positive earnings in each of the past 5 years.
In the past 5 years KR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.40%, KR is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
KR has a better Return On Equity (21.29%) than 80.00% of its industry peers.
KR's Return On Invested Capital of 7.01% is fine compared to the rest of the industry. KR outperforms 62.50% 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 8.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 21.29% | ||
| ROIC | 7.01% |
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 better Profit Margin (1.83%) than 62.50% of its industry peers.
KR's Profit Margin has declined in the last couple of years.
KR has a Operating Margin (2.80%) which is comparable to the rest of the industry.
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 of 22.62%. This is comparable to the rest of the industry: KR outperforms 42.50% of its industry peers.
KR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.8% | ||
| PM (TTM) | 1.83% | ||
| GM | 22.62% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KR is creating some value.
KR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KR has less shares outstanding
Compared to 1 year ago, KR has an improved debt to assets ratio.
2.2 Solvency
KR has an Altman-Z score of 3.94. This indicates that KR is financially healthy and has little risk of bankruptcy at the moment.
KR has a Altman-Z score (3.94) which is comparable to the rest of the industry.
The Debt to FCF ratio of KR is 10.37, which is on the high side as it means it would take KR, 10.37 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KR (10.37) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.74 is on the high side and indicates that KR has dependencies on debt financing.
KR's Debt to Equity ratio of 1.74 is on the low side compared to the rest of the industry. KR is outperformed by 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 10.37 | ||
| Altman-Z | 3.94 |
ROIC/WACC0.9
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.54 indicates that KR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.54, KR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
KR has a Quick Ratio of 1.07. This is a normal value and indicates that KR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, KR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.07 |
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.
Looking at the last year, KR shows a small growth in Revenue. The Revenue has grown by 1.41% in the last year.
Measured over the past years, KR shows a small growth in Revenue. The Revenue has been growing by 4.37% on average per year.
EPS 1Y (TTM)12.8%
EPS 3Y11.11%
EPS 5Y17.78%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y4.23%
Revenue growth 5Y4.37%
Sales Q2Q%-0.95%
3.2 Future
KR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.31% yearly.
KR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.38% yearly.
EPS Next Y-4.07%
EPS Next 2Y0.61%
EPS Next 3Y2.36%
EPS Next 5Y2.31%
Revenue Next Year-1.34%
Revenue Next 2Y-0.29%
Revenue Next 3Y0.56%
Revenue Next 5Y1.38%
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
Based on the Price/Earnings ratio of 12.40, the valuation of KR can be described as correct.
Based on the Price/Earnings ratio, KR is valued a bit cheaper than the industry average as 77.50% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. KR is valued rather cheaply when compared to this.
KR is valuated correctly with a Price/Forward Earnings ratio of 12.25.
Based on the Price/Forward Earnings ratio, KR is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
KR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
77.50% of the companies in the same industry are more expensive than KR, based on the Enterprise Value to EBITDA ratio.
75.00% 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 | 19.6 | ||
| EV/EBITDA | 7.01 |
4.3 Compensation for Growth
KR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y0.61%
EPS Next 3Y2.36%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 2.18%.
Compared to an average industry Dividend Yield of 2.47, KR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, KR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of KR is nicely growing with an annual growth rate of 16.17%!
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)16.17%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
31.35% 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.
DP31.35%
EPS Next 2Y0.61%
EPS Next 3Y2.36%
KROGER CO
NYSE:KR (1/21/2025, 8:10:56 PM)
After market: 59.04 0 (0%)59.04
+0.68 (+1.17%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners75.36%
Inst Owner Change0.08%
Ins Owners0.77%
Ins Owner Change-0.4%
Market Cap42.72B
Analysts78.06
Price Target65.9 (11.62%)
Short Float %7.28%
Short Ratio8.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend1.11
Dividend Growth(5Y)16.17%
DP31.35%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.01%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-3.42%
Revenue beat(4)0
Avg Revenue beat(4)-3.38%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)-2.46%
Revenue beat(8)0
Avg Revenue beat(8)-3.26%
Revenue beat(12)0
Avg Revenue beat(12)-2.95%
Revenue beat(16)2
Avg Revenue beat(16)-2.41%
PT rev (1m)7.59%
PT rev (3m)9.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 12.25 | ||
| P/S | 0.29 | ||
| P/FCF | 19.6 | ||
| P/OCF | 6.77 | ||
| P/B | 3.31 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 7.01 |
EPS(TTM)4.76
EY8.06%
EPS(NY)4.82
Fwd EY8.16%
FCF(TTM)3.01
FCFY5.1%
OCF(TTM)8.72
OCFY14.77%
SpS207.13
BVpS17.83
TBVpS12.94
PEG (NY)N/A
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 21.29% | ||
| ROCE | 9.1% | ||
| ROIC | 7.01% | ||
| ROICexc | 9.86% | ||
| ROICexgc | 11.06% | ||
| OM | 2.8% | ||
| PM (TTM) | 1.83% | ||
| GM | 22.62% | ||
| FCFM | 1.45% |
ROA(3y)4.02%
ROA(5y)4.19%
ROE(3y)19.32%
ROE(5y)20.74%
ROIC(3y)8.46%
ROIC(5y)7.59%
ROICexc(3y)8.86%
ROICexc(5y)7.92%
ROICexgc(3y)10.11%
ROICexgc(5y)9.07%
ROCE(3y)10.98%
ROCE(5y)9.86%
ROICexcg growth 3Y2.08%
ROICexcg growth 5Y-4.69%
ROICexc growth 3Y2.53%
ROICexc growth 5Y-3.14%
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%
F-Score7
Asset Turnover2.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 10.37 | ||
| Debt/EBITDA | 3.02 | ||
| Cap/Depr | 128.46% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 16.28 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | 79.39% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 3.94 |
F-Score7
WACC7.79%
ROIC/WACC0.9
Cap/Depr(3y)107.1%
Cap/Depr(5y)108.74%
Cap/Sales(3y)2.19%
Cap/Sales(5y)2.26%
Profit Quality(3y)138.81%
Profit Quality(5y)132.92%
High Growth Momentum
Growth
EPS 1Y (TTM)12.8%
EPS 3Y11.11%
EPS 5Y17.78%
EPS Q2Q%-4.76%
EPS Next Y-4.07%
EPS Next 2Y0.61%
EPS Next 3Y2.36%
EPS Next 5Y2.31%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y4.23%
Revenue growth 5Y4.37%
Sales Q2Q%-0.95%
Revenue Next Year-1.34%
Revenue Next 2Y-0.29%
Revenue Next 3Y0.56%
Revenue Next 5Y1.38%
EBIT growth 1Y53.9%
EBIT growth 3Y3.56%
EBIT growth 5Y3.46%
EBIT Next Year67.25%
EBIT Next 3Y20.89%
EBIT Next 5Y12.43%
FCF growth 1Y16.58%
FCF growth 3Y-9.95%
FCF growth 5Y19.23%
OCF growth 1Y33.21%
OCF growth 3Y-0.13%
OCF growth 5Y10.27%