KROGER CO (KR) Stock Fundamental Analysis
NYSE:KR - New York Stock Exchange, Inc. - US5010441013 - Common Stock - Currency: USD
Overall KR gets a fundamental rating of 4 out of 10. We evaluated KR against 40 industry peers in the Consumer Staples Distribution & Retail industry. KR scores excellent on profitability, but there are concerns on its financial health. 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 has a Return On Assets of 5.04%. This is in the better half of the industry: KR outperforms 65.00% of its industry peers.
With an excellent Return On Equity value of 32.00%, KR belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
The Return On Invested Capital of KR (8.19%) is better than 65.00% of its industry peers.
KR had an Average Return On Invested Capital over the past 3 years of 8.50%. This is in line with the industry average of 8.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 32% | ||
| ROIC | 8.19% |
ROA(3y)4.6%
ROA(5y)4.48%
ROE(3y)24.27%
ROE(5y)23.37%
ROIC(3y)8.5%
ROIC(5y)8.13%
1.3 Margins
KR has a better Profit Margin (1.80%) than 65.00% of its industry peers.
KR's Profit Margin has improved in the last couple of years.
KR has a Operating Margin (2.62%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KR has grown nicely.
KR's Gross Margin of 22.70% is in line compared to the rest of the industry. KR outperforms 42.50% of its industry peers.
KR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.62% | ||
| PM (TTM) | 1.8% | ||
| GM | 22.7% |
OM growth 3Y0.62%
OM growth 5Y5.72%
PM growth 3Y15.08%
PM growth 5Y6.2%
GM growth 3Y-0.03%
GM growth 5Y-0.06%
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.
The number of shares outstanding for KR has been reduced compared to 5 years ago.
The debt/assets ratio for KR is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of KR is 10.08, which is on the high side as it means it would take KR, 10.08 years of fcf income to pay off all of its debts.
KR has a Debt to FCF ratio of 10.08. This is comparable to the rest of the industry: KR outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 2.14 is on the high side and indicates that KR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.14, KR is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 10.08 | ||
| Altman-Z | N/A |
ROIC/WACC1.14
WACC7.19%
2.3 Liquidity
KR has a Current Ratio of 0.96. 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 0.96, KR is doing worse than 65.00% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that KR may have some problems paying its short term obligations.
KR's Quick ratio of 0.52 is in line compared to the rest of the industry. KR outperforms 47.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for KR have decreased by -5.88% in the last year.
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 -1.94% in the last year.
Measured over the past years, KR shows a small growth in Revenue. The Revenue has been growing by 3.77% on average per year.
EPS 1Y (TTM)-5.88%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%-14.93%
Revenue 1Y (TTM)-1.94%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%-7.44%
3.2 Future
KR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.05% yearly.
KR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y8.98%
EPS Next 2Y8.92%
EPS Next 3Y8.11%
EPS Next 5Y6.05%
Revenue Next Year1.3%
Revenue Next 2Y1.99%
Revenue Next 3Y2.08%
Revenue Next 5Y2.25%
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
With a Price/Earnings ratio of 15.90, KR is valued correctly.
KR's Price/Earnings ratio is a bit cheaper when compared to the industry. KR is cheaper than 70.00% of the companies in the same industry.
KR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
KR is valuated correctly with a Price/Forward Earnings ratio of 14.59.
KR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KR is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. KR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
KR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KR is cheaper than 67.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.49 | ||
| EV/EBITDA | 8.6 |
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)1.77
PEG (5Y)1.04
EPS Next 2Y8.92%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
KR's Dividend Yield is a higher than the industry average which is at 2.36.
KR's Dividend Yield is slightly below the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
On average, the dividend of KR grows each year by 15.90%, which is quite nice.
KR has been paying a dividend for at least 10 years, so it has a reliable track record.
As KR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)15.9%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
KR pays out 33.32% 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.
DP33.32%
EPS Next 2Y8.92%
EPS Next 3Y8.11%
71.22
+2.21 (+3.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners76.31%
Inst Owner Change0.02%
Ins Owners0.73%
Ins Owner Change1.11%
Market Cap47.07B
Analysts77.58
Price Target68.88 (-3.29%)
Short Float %5.71%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend1.28
Dividend Growth(5Y)15.9%
DP33.32%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.67%
Min EPS beat(2)-2.62%
Max EPS beat(2)-0.72%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-2.62%
Max EPS beat(4)2.98%
EPS beat(8)5
Avg EPS beat(8)2.2%
EPS beat(12)9
Avg EPS beat(12)3.6%
EPS beat(16)13
Avg EPS beat(16)7.05%
Revenue beat(2)0
Avg Revenue beat(2)-4.01%
Min Revenue beat(2)-4.53%
Max Revenue beat(2)-3.48%
Revenue beat(4)0
Avg Revenue beat(4)-3.47%
Min Revenue beat(4)-4.53%
Max Revenue beat(4)-2.46%
Revenue beat(8)0
Avg Revenue beat(8)-3.3%
Revenue beat(12)0
Avg Revenue beat(12)-3.04%
Revenue beat(16)2
Avg Revenue beat(16)-2.42%
PT rev (1m)1.04%
PT rev (3m)4.53%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 14.59 | ||
| P/S | 0.32 | ||
| P/FCF | 26.49 | ||
| P/OCF | 8.12 | ||
| P/B | 5.68 | ||
| P/tB | 9.86 | ||
| EV/EBITDA | 8.6 |
EPS(TTM)4.48
EY6.29%
EPS(NY)4.88
Fwd EY6.86%
FCF(TTM)2.69
FCFY3.78%
OCF(TTM)8.77
OCFY12.31%
SpS222.61
BVpS12.53
TBVpS7.22
PEG (NY)1.77
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 32% | ||
| ROCE | 10.47% | ||
| ROIC | 8.19% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 10.28% | ||
| OM | 2.62% | ||
| PM (TTM) | 1.8% | ||
| GM | 22.7% | ||
| FCFM | 1.21% |
ROA(3y)4.6%
ROA(5y)4.48%
ROE(3y)24.27%
ROE(5y)23.37%
ROIC(3y)8.5%
ROIC(5y)8.13%
ROICexc(3y)9.08%
ROICexc(5y)8.65%
ROICexgc(3y)10.26%
ROICexgc(5y)9.84%
ROCE(3y)10.87%
ROCE(5y)10.4%
ROICexcg growth 3Y-0.03%
ROICexcg growth 5Y7.5%
ROICexc growth 3Y0.84%
ROICexc growth 5Y8.2%
OM growth 3Y0.62%
OM growth 5Y5.72%
PM growth 3Y15.08%
PM growth 5Y6.2%
GM growth 3Y-0.03%
GM growth 5Y-0.06%
F-Score7
Asset Turnover2.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 10.08 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 123.75% | ||
| Cap/Sales | 2.73% | ||
| Interest Coverage | 12.66 | ||
| Cash Conversion | 81.66% | ||
| Profit Quality | 67.06% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score7
WACC7.19%
ROIC/WACC1.14
Cap/Depr(3y)117.5%
Cap/Depr(5y)109.87%
Cap/Sales(3y)2.47%
Cap/Sales(5y)2.29%
Profit Quality(3y)88.31%
Profit Quality(5y)127.53%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.88%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%-14.93%
EPS Next Y8.98%
EPS Next 2Y8.92%
EPS Next 3Y8.11%
EPS Next 5Y6.05%
Revenue 1Y (TTM)-1.94%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%-7.44%
Revenue Next Year1.3%
Revenue Next 2Y1.99%
Revenue Next 3Y2.08%
Revenue Next 5Y2.25%
EBIT growth 1Y21.57%
EBIT growth 3Y2.82%
EBIT growth 5Y9.7%
EBIT Next Year78.32%
EBIT Next 3Y23.9%
EBIT Next 5Y14.21%
FCF growth 1Y-38.38%
FCF growth 3Y-20.79%
FCF growth 5Y2.96%
OCF growth 1Y-14.64%
OCF growth 3Y-2.18%
OCF growth 5Y4.43%