KROGER CO (KR)
US5010441013 - Common Stock
We assign a fundamental rating of 5 out of 10 to KR. KR was compared to 43 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of KR get a neutral evaluation. Nothing too spectacular is happening here. KR has a correct valuation and a medium growth rate.
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.
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 65.12% of the companies in the same industry.
The Return On Equity of KR (21.29%) is better than 81.40% of its industry peers.
KR has a Return On Invested Capital (7.01%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KR is in line with the industry average of 8.45%.
| 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
The Profit Margin of KR (1.83%) is better than 65.12% of its industry peers.
In the last couple of years the Profit Margin of KR has declined.
KR has a Operating Margin (2.80%) which is comparable to the rest of the industry.
KR's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 22.62%, KR perfoms like the industry average, outperforming 44.19% of the companies in the same 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 | 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
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 increased compared to 1 year ago.
Compared to 5 years ago, KR has less shares outstanding
KR has a better debt/assets ratio than last year.
2.2 Solvency
KR has an Altman-Z score of 3.97. This indicates that KR is financially healthy and has little risk of bankruptcy at the moment.
KR's Altman-Z score of 3.97 is in line compared to the rest of the industry. KR outperforms 58.14% of its industry peers.
KR has a debt to FCF ratio of 10.37. This is a negative value and a sign of low solvency as KR would need 10.37 years to pay back of 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 has a Debt to Equity ratio of 1.74. This is in the lower half of the industry: KR underperforms 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 10.37 | ||
| Altman-Z | 3.97 |
ROIC/WACC0.9
WACC7.81%
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 76.74% 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.
With an excellent Quick ratio value of 1.07, KR belongs to the best of the industry, outperforming 81.40% 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.
KR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
KR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.41%.
The Revenue has been growing slightly by 4.37% on average over the past years.
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
The Earnings Per Share is expected to grow by 1.89% on average over the next years.
The Revenue is expected to grow by 1.30% on average over the next years.
EPS Next Y-4.07%
EPS Next 2Y0.61%
EPS Next 3Y2.36%
EPS Next 5Y1.89%
Revenue Next Year-1.32%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.61%
Revenue Next 5Y1.3%
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.
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
KR is valuated correctly with a Price/Earnings ratio of 12.99.
Based on the Price/Earnings ratio, KR is valued a bit cheaper than 74.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of KR to the average of the S&P500 Index (27.73), we can say KR is valued rather cheaply.
KR is valuated correctly with a Price/Forward Earnings ratio of 12.84.
79.07% of the companies in the same industry are more expensive than KR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.83. KR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
79.07% of the companies in the same industry are more expensive than KR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KR is valued a bit cheaper than the industry average as 69.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.53 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
The decent profitability rating of KR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y0.61%
EPS Next 3Y2.36%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.43, 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 | 2.1% |
5.2 History
On average, the dividend of KR grows each year by 16.17%, 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)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.
The dividend of KR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.35%
EPS Next 2Y0.61%
EPS Next 3Y2.36%
KROGER CO
NYSE:KR (12/20/2024, 8:21:28 PM)
After market: 61.85 0 (0%)61.85
+0.89 (+1.46%)
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 Change-0.01%
Ins Owners0.77%
Ins Owner Change-0.57%
Market Cap44.76B
Analysts78
Price Target61.25 (-0.97%)
Short Float %1.55%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Dividend Growth(5Y)16.17%
DP31.35%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)1.29%
PT rev (3m)3.13%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 12.84 | ||
| P/S | 0.3 | ||
| P/FCF | 20.53 | ||
| P/OCF | 7.09 | ||
| P/B | 3.47 | ||
| P/tB | 4.78 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)4.76
EY7.7%
EPS(NY)4.82
Fwd EY7.79%
FCF(TTM)3.01
FCFY4.87%
OCF(TTM)8.72
OCFY14.1%
SpS207.13
BVpS17.83
TBVpS12.94
PEG (NY)N/A
PEG (5Y)0.73
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 | 3.97 |
F-Score7
WACC7.81%
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 5Y1.89%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y4.23%
Revenue growth 5Y4.37%
Sales Q2Q%-0.95%
Revenue Next Year-1.32%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.61%
Revenue Next 5Y1.3%
EBIT growth 1Y53.9%
EBIT growth 3Y3.56%
EBIT growth 5Y3.46%
EBIT Next Year66.56%
EBIT Next 3Y19.67%
EBIT Next 5Y12.21%
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%