KROGER CO (KR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KR - US5010441013 - Common Stock
62.93 USD
+0.63 (+1.01%)
62.5 USD
-0.43 (-0.68%)
Overall KR gets a fundamental rating of 4 out of 10. We evaluated KR 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
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.
Each year in the past 5 years KR had a positive operating cash flow.
1.2 Ratios
KR has a worse Return On Assets (1.50%) than 60.53% of its industry peers.
KR has a Return On Equity of 10.98%. This is comparable to the rest of the industry: KR outperforms 52.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.89%, KR is in line with its industry, outperforming 47.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KR is in line with the industry average of 8.25%.
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's Profit Margin of 0.53% 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 Profit Margin of KR has grown nicely.
KR has a Operating Margin of 1.12%. This is comparable to the rest of the industry: KR outperforms 44.74% of its industry peers.
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 44.74% of its industry peers.
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.
The number of shares outstanding for KR has been reduced compared to 1 year ago.
The number of shares outstanding for KR has been reduced compared to 5 years ago.
KR has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of KR is 7.94, which is on the high side as it means it would take KR, 7.94 years of fcf income to pay off all of its debts.
KR's Debt to FCF ratio of 7.94 is in line compared to the rest of the industry. KR outperforms 44.74% of its industry peers.
KR has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
KR's Debt to Equity ratio of 2.28 is on the low side compared to the rest of the industry. KR is outperformed by 86.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.57
WACC6.8%
2.3 Liquidity
KR has a Current 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 Current ratio of KR (0.88) is worse than 76.32% 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 63.16% 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%.
KR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.77% yearly.
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 6.36% on average over the next years.
KR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.39% yearly.
EPS Next Y10.41%
EPS Next 2Y10.6%
EPS Next 3Y8.98%
EPS Next 5Y6.36%
Revenue Next Year0.4%
Revenue Next 2Y1.24%
Revenue Next 3Y1.52%
Revenue Next 5Y2.39%
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
Based on the Price/Earnings ratio of 13.33, 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 78.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KR to the average of the S&P500 Index (26.59), we can say KR is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.48, which indicates a very decent valuation of KR.
84.21% of the companies in the same industry are more expensive than KR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KR to the average of the S&P500 Index (24.03), we can say KR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.48 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as KR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.38 | ||
| EV/EBITDA | 11.1 |
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)1.28
PEG (5Y)0.87
EPS Next 2Y10.6%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, KR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.77, KR pays a better dividend. On top of this KR pays more dividend than 86.84% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, KR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
The dividend of KR is nicely growing with an annual growth rate of 15.86%!
KR has paid a dividend for at least 10 years, which is 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.
The dividend of KR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP115.27%
EPS Next 2Y10.6%
EPS Next 3Y8.98%
62.93
+0.63 (+1.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners78.14%
Inst Owner Change-1.21%
Ins Owners0.26%
Ins Owner Change-0.49%
Market Cap41.70B
Revenue(TTM)147.22B
Net Income(TTM)773.00M
Analysts77.5
Price Target75.6 (20.13%)
Short Float %5.01%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend1.28
Dividend Growth(5Y)15.86%
DP115.27%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)-3.7%
PT rev (3m)-3.16%
EPS NQ rev (1m)-1.15%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)0.54%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.48 | ||
| P/S | 0.28 | ||
| P/FCF | 18.38 | ||
| P/OCF | 6.88 | ||
| P/B | 5.92 | ||
| P/tB | 11.9 | ||
| EV/EBITDA | 11.1 |
EPS(TTM)4.72
EY7.5%
EPS(NY)5.48
Fwd EY8.71%
FCF(TTM)3.42
FCFY5.44%
OCF(TTM)9.15
OCFY14.54%
SpS222.17
BVpS10.62
TBVpS5.29
PEG (NY)1.28
PEG (5Y)0.87
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
WACC6.8%
ROIC/WACC0.57
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 5Y6.36%
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 5Y2.39%
EBIT growth 1Y-60.62%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year78.85%
EBIT Next 3Y23.95%
EBIT Next 5Y14.31%
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.
Can you provide the valuation status for KROGER CO?
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 6 / 10.
What are the PE and PB ratios of KROGER CO (KR) stock?
The Price/Earnings (PE) ratio for KROGER CO (KR) is 13.33 and the Price/Book (PB) ratio is 5.92.
Can you provide the financial health for KR stock?
The financial health rating of KROGER CO (KR) is 2 / 10.