KROGER CO (KR) Stock Fundamental Analysis
USA - NYSE:KR - US5010441013 - Common Stock
63.76 USD
+0.32 (+0.5%)
63.7 USD
-0.06 (-0.09%)
We assign a fundamental rating of 4 out of 10 to KR. KR was compared to 39 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
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.
KR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KR has a Return On Assets of 5.05%. This is in the better half of the industry: KR outperforms 61.54% of its industry peers.
With an excellent Return On Equity value of 29.16%, KR belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.53%, KR is in the better half of the industry, outperforming 66.67% 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 8.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 29.16% | ||
| ROIC | 8.53% |
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 (1.84%) which is comparable to the rest of the industry.
KR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 2.74%, KR perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
KR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 23.12%, KR perfoms like the industry average, outperforming 43.59% 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 | 2.74% | ||
| PM (TTM) | 1.84% | ||
| GM | 23.12% |
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.
Compared to 1 year ago, KR has less shares outstanding
KR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KR is higher compared to a year ago.
2.2 Solvency
KR has an Altman-Z score of 4.32. This indicates that KR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KR (4.32) is comparable to the rest of the industry.
KR has a debt to FCF ratio of 8.12. This is a slightly negative value and a sign of low solvency as KR would need 8.12 years to pay back of all of its debts.
KR has a Debt to FCF ratio (8.12) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.85 is on the high side and indicates that KR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.85, KR is not doing good in the industry: 82.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.25
WACC6.81%
2.3 Liquidity
A Current Ratio of 0.95 indicates that KR may have some problems paying its short term obligations.
KR's Current ratio of 0.95 is on the low side compared to the rest of the industry. KR is outperformed by 76.92% of its industry peers.
KR has a Quick Ratio of 0.95. This is a bad value and indicates that KR is not financially healthy enough and could expect problems in meeting its short term obligations.
KR has a Quick ratio (0.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
KR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
Measured over the past years, KR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.28% on average per year.
Looking at the last year, KR shows a decrease in Revenue. The Revenue has decreased by -2.13% in the last year.
The Revenue has been growing slightly by 3.77% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%11.83%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.08%
3.2 Future
The Earnings Per Share is expected to grow by 6.20% on average over the next years.
The Revenue is expected to grow by 2.45% on average over the next years.
EPS Next Y9.74%
EPS Next 2Y10.01%
EPS Next 3Y8.57%
EPS Next 5Y6.2%
Revenue Next Year0.67%
Revenue Next 2Y1.77%
Revenue Next 3Y2%
Revenue Next 5Y2.45%
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
A Price/Earnings ratio of 13.71 indicates a correct valuation of KR.
Based on the Price/Earnings ratio, KR is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KR to the average of the S&P500 Index (26.03), we can say KR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.76, the valuation of KR can be described as reasonable.
KR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KR is cheaper than 82.05% of the companies in the same industry.
KR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
KR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KR is cheaper than 74.36% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.1 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
The 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)1.41
PEG (5Y)0.9
EPS Next 2Y10.01%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 2.14%.
KR's Dividend Yield is rather good when compared to the industry average which is at 2.00. KR pays more dividend than 87.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, KR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
The dividend of KR is nicely growing with an annual growth rate of 15.86%!
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
KR pays out 32.69% of its income as dividend. This is a sustainable payout ratio.
KR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.69%
EPS Next 2Y10.01%
EPS Next 3Y8.57%
63.76
+0.32 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners78.68%
Inst Owner Change-0.44%
Ins Owners0.26%
Ins Owner Change-0.49%
Market Cap42.25B
Revenue(TTM)147.00B
Net Income(TTM)2.71B
Analysts76.97
Price Target78.5 (23.12%)
Short Float %4.24%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.28
Dividend Growth(5Y)15.86%
DP32.69%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.34%
Min EPS beat(2)-0.91%
Max EPS beat(2)1.58%
EPS beat(4)1
Avg EPS beat(4)-0.67%
Min EPS beat(4)-2.62%
Max EPS beat(4)1.58%
EPS beat(8)4
Avg EPS beat(8)1.93%
EPS beat(12)8
Avg EPS beat(12)2.47%
EPS beat(16)12
Avg EPS beat(16)4.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.22%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-3.06%
Revenue beat(4)0
Avg Revenue beat(4)-3.61%
Min Revenue beat(4)-4.53%
Max Revenue beat(4)-3.06%
Revenue beat(8)0
Avg Revenue beat(8)-3.26%
Revenue beat(12)0
Avg Revenue beat(12)-3.18%
Revenue beat(16)0
Avg Revenue beat(16)-2.89%
PT rev (1m)0.56%
PT rev (3m)1.78%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 11.76 | ||
| P/S | 0.29 | ||
| P/FCF | 19.1 | ||
| P/OCF | 7.02 | ||
| P/B | 4.55 | ||
| P/tB | 7.36 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)4.65
EY7.29%
EPS(NY)5.42
Fwd EY8.5%
FCF(TTM)3.34
FCFY5.24%
OCF(TTM)9.08
OCFY14.24%
SpS221.83
BVpS14.01
TBVpS8.66
PEG (NY)1.41
PEG (5Y)0.9
Graham Number38.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 29.16% | ||
| ROCE | 10.91% | ||
| ROIC | 8.53% | ||
| ROICexc | 9.83% | ||
| ROICexgc | 11.05% | ||
| OM | 2.74% | ||
| PM (TTM) | 1.84% | ||
| GM | 23.12% | ||
| FCFM | 1.5% |
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-Score6
Asset Turnover2.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 8.12 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 113.71% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 9.36 | ||
| Cash Conversion | 81.66% | ||
| Profit Quality | 81.71% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 4.32 |
F-Score6
WACC6.81%
ROIC/WACC1.25
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%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%11.83%
EPS Next Y9.74%
EPS Next 2Y10.01%
EPS Next 3Y8.57%
EPS Next 5Y6.2%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.08%
Revenue Next Year0.67%
Revenue Next 2Y1.77%
Revenue Next 3Y2%
Revenue Next 5Y2.45%
EBIT growth 1Y-6.09%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year79.17%
EBIT Next 3Y24.36%
EBIT Next 5Y14.49%
FCF growth 1Y-21.92%
FCF growth 3Y-20.79%
FCF growth 5Y2.96%
OCF growth 1Y-6.48%
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 5 / 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 13.71 and the Price/Book (PB) ratio is 4.55.
Can you provide the financial health for KR stock?
The financial health rating of KROGER CO (KR) is 3 / 10.