KROGER CO (KR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KR - US5010441013 - Common Stock
63.19 USD
+0.7 (+1.12%)
63.19 USD
0 (0%)
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 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.
- In the past 5 years KR has always been profitable.
- Each year in the past 5 years KR had a positive operating cash flow.
1.2 Ratios
- KR's Return On Assets of 1.50% is on the low side compared to the rest of the industry. KR is outperformed by 63.16% of its industry peers.
- The Return On Equity of KR (10.98%) is comparable to the rest of the industry.
- The Return On Invested Capital of KR (3.89%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for KR is significantly below the industry average of 28.32%.
- The last Return On Invested Capital (3.89%) for KR is well below the 3 year average (8.58%), which needs to be investigated, but indicates that KR had better years and this may not be a problem.
| 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 Profit Margin of 0.53%. This is in the lower half of the industry: KR underperforms 60.53% of its industry peers.
- In the last couple of years the Profit Margin of KR has grown nicely.
- KR's Operating Margin of 1.12% is in line compared to the rest of the industry. KR outperforms 42.11% of its industry peers.
- In the last couple of years the Operating Margin of KR has grown nicely.
- With a Gross Margin value of 23.23%, KR perfoms like the industry average, outperforming 47.37% 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 | 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KR is creating some value.
- KR has less shares outstanding than it did 1 year ago.
- KR has less shares outstanding than it did 5 years ago.
- KR has a worse debt/assets ratio than last year.
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.
- Looking at the Debt to FCF ratio, with a value of 7.94, KR is in line with its industry, outperforming 47.37% of the companies in the same industry.
- KR has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of KR (2.28) is worse than 86.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC7.22%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that KR may have some problems paying its short term obligations.
- The Current ratio of KR (0.88) is worse than 78.95% of its industry peers.
- A Quick Ratio of 0.45 indicates that KR may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.45, KR is doing worse than 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.85% over the past year.
- The Earnings Per Share has been growing by 15.28% on average over the past years. This is quite good.
- KR shows a decrease in Revenue. In the last year, the revenue decreased by -1.77%.
- 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
- KR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.12% yearly.
- Based on estimates for the next years, KR will show a small growth in Revenue. The Revenue will grow by 2.24% on average per year.
EPS Next Y10.41%
EPS Next 2Y10.6%
EPS Next 3Y8.98%
EPS Next 5Y7.12%
Revenue Next Year0.4%
Revenue Next 2Y1.24%
Revenue Next 3Y1.52%
Revenue Next 5Y2.24%
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
- A Price/Earnings ratio of 13.39 indicates a correct valuation of KR.
- Compared to the rest of the industry, the Price/Earnings ratio of KR indicates a rather cheap valuation: KR is cheaper than 86.84% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, KR is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.53, the valuation of KR can be described as reasonable.
- 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 (24.26), we can say KR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 11.53 |
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.
- KR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KR is cheaper than 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.46 | ||
| EV/EBITDA | 11.04 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.29
PEG (5Y)0.88
EPS Next 2Y10.6%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
- KR has a Yearly Dividend Yield of 2.34%.
- Compared to an average industry Dividend Yield of 0.76, 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 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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 2Y10.6%
EPS Next 3Y8.98%
63.19
+0.7 (+1.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)12-04 2025-12-04/bmo
Earnings (Next)06-18 2026-06-18
Inst Owners81.75%
Inst Owner Change0.05%
Ins Owners0.29%
Ins Owner Change1.11%
Market Cap41.87B
Revenue(TTM)147.22B
Net Income(TTM)773.00M
Analysts77.5
Price Target75.6 (19.64%)
Short Float %5.17%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend1.28
Dividend Growth(5Y)15.86%
DP115.27%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.13%
Min EPS beat(2)-1.33%
Max EPS beat(2)1.58%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-1.33%
Max EPS beat(4)1.58%
EPS beat(8)3
Avg EPS beat(8)1.6%
EPS beat(12)7
Avg EPS beat(12)2.02%
EPS beat(16)11
Avg EPS beat(16)3.91%
Revenue beat(2)0
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-3.75%
Max Revenue beat(2)-3.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.42%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)-3.06%
Revenue beat(8)0
Avg Revenue beat(8)-3.39%
Revenue beat(12)0
Avg Revenue beat(12)-3.31%
Revenue beat(16)0
Avg Revenue beat(16)-3.06%
PT rev (1m)-2.24%
PT rev (3m)-3.9%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 11.53 | ||
| P/S | 0.28 | ||
| P/FCF | 18.46 | ||
| P/OCF | 6.91 | ||
| P/B | 5.95 | ||
| P/tB | 11.95 | ||
| EV/EBITDA | 11.04 |
EPS(TTM)4.72
EY7.47%
EPS(NY)5.48
Fwd EY8.67%
FCF(TTM)3.42
FCFY5.42%
OCF(TTM)9.15
OCFY14.48%
SpS222.17
BVpS10.62
TBVpS5.29
PEG (NY)1.29
PEG (5Y)0.88
Graham Number33.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 10.98% | ||
| ROCE | 4.98% | ||
| ROIC | 3.89% | ||
| ROICexc | 4.42% | ||
| ROICexgc | 5.03% | ||
| OM | 1.12% | ||
| PM (TTM) | 0.53% | ||
| GM | 23.23% | ||
| FCFM | 1.54% |
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-Score7
Asset Turnover2.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.94 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 112.55% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 120.66% | ||
| Profit Quality | 293.53% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | N/A |
F-Score7
WACC7.22%
ROIC/WACC0.54
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)0.85%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%7.14%
EPS Next Y10.41%
EPS Next 2Y10.6%
EPS Next 3Y8.98%
EPS Next 5Y7.12%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.67%
Revenue Next Year0.4%
Revenue Next 2Y1.24%
Revenue Next 3Y1.52%
Revenue Next 5Y2.24%
EBIT growth 1Y-60.62%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year80.42%
EBIT Next 3Y23.6%
EBIT Next 5Y14.37%
FCF growth 1Y-1.52%
FCF growth 3Y-20.79%
FCF growth 5Y2.96%
OCF growth 1Y0.56%
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.
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 10.41% 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%.