KROGER CO (KR)
US5010441013 - Common Stock
Overall KR gets a fundamental rating of 4 out of 10. We evaluated KR against 41 industry peers in the Consumer Staples Distribution & Retail industry. While KR is still in line with the averages on profitability rating, there are concerns on its financial health. 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
In the past year KR was profitable.
In the past year KR had a positive cash flow from operations.
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
KR has a Return On Assets of 5.39%. This is in the better half of the industry: KR outperforms 73.17% of its industry peers.
KR has a Return On Equity of 22.16%. This is amongst the best in the industry. KR outperforms 82.93% of its industry peers.
KR has a Return On Invested Capital of 9.34%. This is in the better half of the industry: KR outperforms 73.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KR is in line with the industry average of 9.07%.
The 3 year average ROIC (8.46%) for KR is below the current ROIC(9.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 22.16% | ||
| ROIC | 9.34% |
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 Profit Margin of 1.85%. This is in the better half of the industry: KR outperforms 65.85% of its industry peers.
KR's Profit Margin has declined in the last couple of years.
KR's Operating Margin of 2.85% is in line compared to the rest of the industry. KR outperforms 51.22% of its industry peers.
KR's Operating Margin has been stable in the last couple of years.
KR has a Gross Margin of 22.43%. This is comparable to the rest of the industry: KR outperforms 46.34% of its industry peers.
KR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.85% | ||
| PM (TTM) | 1.85% | ||
| GM | 22.43% |
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.
Compared to 1 year ago, KR has more shares outstanding
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 4.57. This indicates that KR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KR (4.57) is better than 63.41% of its industry peers.
KR has a debt to FCF ratio of 6.95. This is a slightly negative value and a sign of low solvency as KR would need 6.95 years to pay back of all of its debts.
KR has a Debt to FCF ratio (6.95) which is comparable to the rest of the industry.
KR has a Debt/Equity ratio of 0.96. This is a neutral value indicating KR is somewhat dependend on debt financing.
KR has a Debt to Equity ratio of 0.96. This is in the lower half of the industry: KR underperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.95 | ||
| Altman-Z | 4.57 |
ROIC/WACC1.23
WACC7.57%
2.3 Liquidity
KR has a Current Ratio of 0.87. This is a bad value and indicates that KR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.87, KR is doing worse than 70.73% of the companies in the same industry.
KR has a Quick Ratio of 0.87. This is a bad value and indicates that KR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.46, KR is in line with its industry, outperforming 48.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.14% 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 1.46% in the last year.
KR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.37% yearly.
EPS 1Y (TTM)7.14%
EPS 3Y11.11%
EPS 5Y17.78%
EPS Q2Q%-3.12%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y4.23%
Revenue growth 5Y4.37%
Sales Q2Q%0.17%
3.2 Future
The Earnings Per Share is expected to grow by 1.14% 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 1.43% yearly.
EPS Next Y-3.69%
EPS Next 2Y-0.45%
EPS Next 3Y0.75%
EPS Next 5Y1.14%
Revenue Next Year-0.38%
Revenue Next 2Y0.78%
Revenue Next 3Y1.18%
Revenue Next 5Y1.43%
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
The Price/Earnings ratio is 12.83, which indicates a correct valuation of KR.
Based on the Price/Earnings ratio, KR is valued cheaper than 80.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.12, KR is valued rather cheaply.
KR is valuated correctly with a Price/Forward Earnings ratio of 12.65.
KR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KR is cheaper than 78.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KR to the average of the S&P500 Index (23.79), we can say KR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 12.65 |
4.2 Price Multiples
70.73% 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 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.55 | ||
| EV/EBITDA | 7.04 |
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)0.72
EPS Next 2Y-0.45%
EPS Next 3Y0.75%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 2.16%.
Compared to an average industry Dividend Yield of 2.46, KR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.21, KR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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.
KR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.17%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
KR pays out 30.28% of its income as dividend. This is a sustainable payout ratio.
The dividend of KR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.28%
EPS Next 2Y-0.45%
EPS Next 3Y0.75%
KROGER CO
NYSE:KR (11/12/2024, 7:11:44 PM)
After market: 59.68 0 (0%)59.68
+0.08 (+0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap43.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 12.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 22.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.85% | ||
| PM (TTM) | 1.85% | ||
| GM | 22.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.14%
EPS 3Y11.11%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.46%
Revenue growth 3Y4.23%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y