KROGER CO (KR) Stock Fundamental Analysis
NYSE:KR - New York Stock Exchange, Inc. - US5010441013 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to KR. KR was compared to 40 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 is valued correctly, but it does not seem to be growing.
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.
In the past 5 years KR has always been profitable.
In the past 5 years KR always reported a positive cash flow from operatings.
1.2 Ratios
KR's Return On Assets of 4.40% is fine compared to the rest of the industry. KR outperforms 64.10% of its industry peers.
KR's Return On Equity of 21.29% is fine compared to the rest of the industry. KR outperforms 79.49% of its industry peers.
KR has a better Return On Invested Capital (7.01%) than 64.10% of its industry peers.
KR had an Average Return On Invested Capital over the past 3 years of 8.46%. This is in line with the industry average of 8.35%.
| 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 61.54% of its industry peers.
KR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.80%, KR is in line with its industry, outperforming 56.41% of the companies in the same industry.
KR's Operating Margin has been stable in the last couple of years.
KR has a Gross Margin (22.62%) which is comparable to the rest of the 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.
Compared to 1 year ago, KR has more shares outstanding
KR has less shares outstanding than it did 5 years ago.
KR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.99 indicates that KR is not in any danger for bankruptcy at the moment.
KR's Altman-Z score of 3.99 is in line compared to the rest of the industry. KR outperforms 56.41% 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.
KR has a Debt to FCF ratio of 10.37. This is comparable to the rest of the industry: KR outperforms 43.59% of its industry peers.
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 amonst the worse of the industry: KR underperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 10.37 | ||
| Altman-Z | 3.99 |
ROIC/WACC0.9
WACC7.75%
2.3 Liquidity
A Current Ratio of 1.54 indicates that KR should not have too much problems paying its short term obligations.
KR has a better Current ratio (1.54) than 74.36% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.07, KR belongs to the top of the industry, outperforming 82.05% 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 been growing slightly by 6.12% 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 1.41% in the last year.
The Revenue has been growing slightly by 4.37% on average over the past years.
EPS 1Y (TTM)6.12%
EPS 3Y11.11%
EPS 5Y17.78%
EPS Q2Q%3.16%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y4.23%
Revenue growth 5Y4.37%
Sales Q2Q%-0.95%
3.2 Future
KR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.31% yearly.
Based on estimates for the next years, KR will show a small growth in Revenue. The Revenue will grow by 1.38% on average per year.
EPS Next Y-3.78%
EPS Next 2Y1.6%
EPS Next 3Y3.37%
EPS Next 5Y2.31%
Revenue Next Year-1.3%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.62%
Revenue Next 5Y1.38%
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 13.90 indicates a correct valuation of KR.
71.79% of the companies in the same industry are more expensive than KR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, KR is valued rather cheaply.
KR is valuated correctly with a Price/Forward Earnings ratio of 13.24.
79.49% of the companies in the same industry are more expensive than KR, based on the Price/Forward Earnings ratio.
KR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KR is valued a bit cheaper than 74.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KR is valued a bit cheaper than the industry average as 71.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.6 | ||
| EV/EBITDA | 7.53 |
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)0.78
EPS Next 2Y1.6%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 1.95%.
Compared to an average industry Dividend Yield of 2.53, KR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, KR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
The dividend of KR is nicely growing with an annual growth rate of 16.17%!
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)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 2Y1.6%
EPS Next 3Y3.37%
65.06
+0.67 (+1.04%)
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 Change1.05%
Ins Owners0.77%
Ins Owner Change-0.4%
Market Cap47.08B
Analysts77.5
Price Target67.03 (3.03%)
Short Float %6.49%
Short Ratio6.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend1.11
Dividend Growth(5Y)16.17%
DP31.35%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.81%
Min EPS beat(2)-2.62%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)3.54%
Min EPS beat(4)-2.62%
Max EPS beat(4)14.77%
EPS beat(8)6
Avg EPS beat(8)3.21%
EPS beat(12)10
Avg EPS beat(12)5.32%
EPS beat(16)14
Avg EPS beat(16)8.01%
Revenue beat(2)0
Avg Revenue beat(2)-3.98%
Min Revenue beat(2)-4.53%
Max Revenue beat(2)-3.42%
Revenue beat(4)0
Avg Revenue beat(4)-3.36%
Min Revenue beat(4)-4.53%
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)1.72%
PT rev (3m)10.85%
EPS NQ rev (1m)-1.15%
EPS NQ rev (3m)-1.31%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)-1.81%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 13.24 | ||
| P/S | 0.31 | ||
| P/FCF | 21.6 | ||
| P/OCF | 7.46 | ||
| P/B | 3.65 | ||
| P/tB | 5.03 | ||
| EV/EBITDA | 7.53 |
EPS(TTM)4.68
EY7.19%
EPS(NY)4.91
Fwd EY7.55%
FCF(TTM)3.01
FCFY4.63%
OCF(TTM)8.72
OCFY13.4%
SpS207.13
BVpS17.83
TBVpS12.94
PEG (NY)N/A
PEG (5Y)0.78
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 | 3.99 |
F-Score7
WACC7.75%
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)6.12%
EPS 3Y11.11%
EPS 5Y17.78%
EPS Q2Q%3.16%
EPS Next Y-3.78%
EPS Next 2Y1.6%
EPS Next 3Y3.37%
EPS Next 5Y2.31%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y4.23%
Revenue growth 5Y4.37%
Sales Q2Q%-0.95%
Revenue Next Year-1.3%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.62%
Revenue Next 5Y1.38%
EBIT growth 1Y53.9%
EBIT growth 3Y3.56%
EBIT growth 5Y3.46%
EBIT Next Year67.62%
EBIT Next 3Y20.83%
EBIT Next 5Y12.43%
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%