KROGER CO (KR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KR - US5010441013 - Common Stock
66.15 USD
+1.86 (+2.89%)
66.15 USD
0 (0%)
Taking everything into account, KR scores 4 out of 10 in our fundamental rating. KR was compared to 39 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KR had positive earnings in the past year.
KR had a positive operating cash flow in the past year.
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's Return On Assets of 5.05% is fine compared to the rest 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.
With a decent Return On Invested Capital value of 8.53%, KR is doing good in the industry, outperforming 64.10% 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 8.76%.
| 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 of 1.84%. This is comparable to the rest of the industry: KR outperforms 53.85% of its industry peers.
KR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 2.74%, KR is in line with its industry, outperforming 56.41% of the companies in the same industry.
In the last couple of years the Operating Margin of KR has grown nicely.
KR has a Gross Margin (23.12%) which is in line with 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 | 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
Compared to 5 years ago, KR has less shares outstanding
The debt/assets ratio for KR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.32 indicates that KR is not in any danger for bankruptcy at the moment.
KR has a Altman-Z score of 4.32. This is comparable to the rest of the industry: KR outperforms 58.97% of its industry peers.
The Debt to FCF ratio of KR is 8.12, which is on the high side as it means it would take KR, 8.12 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KR (8.12) 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.
The Debt to Equity ratio of KR (1.85) is worse than 82.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.26
WACC6.77%
2.3 Liquidity
A Current Ratio of 0.95 indicates that KR may have some problems paying its short term obligations.
KR has a Current ratio of 0.95. This is in the lower half of the industry: KR underperforms 74.36% of its industry peers.
A Quick Ratio of 0.54 indicates that KR may have some problems paying its short term obligations.
KR has a Quick ratio of 0.54. This is comparable to the rest of the industry: KR outperforms 48.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for KR have decreased by 0.00% 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.
KR shows a decrease in Revenue. In the last year, the revenue decreased by -2.13%.
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%
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
KR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.36% yearly.
KR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.39% yearly.
EPS Next Y9.81%
EPS Next 2Y10.05%
EPS Next 3Y8.88%
EPS Next 5Y6.36%
Revenue Next Year0.68%
Revenue Next 2Y1.76%
Revenue Next 3Y2%
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.
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 14.23 indicates a correct valuation of KR.
79.49% of the companies in the same industry are more expensive than KR, based on the Price/Earnings ratio.
KR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.65.
With a Price/Forward Earnings ratio of 12.19, KR is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KR indicates a somewhat cheap valuation: KR is cheaper than 79.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, KR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KR is valued a bit cheaper than the industry average as 74.36% of the companies are valued more expensively.
KR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.82 | ||
| EV/EBITDA | 7.55 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)0.93
EPS Next 2Y10.05%
EPS Next 3Y8.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, KR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.04, KR pays a better dividend. On top of this KR pays more dividend than 87.18% of the companies listed in the same industry.
KR's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
On average, the dividend of KR grows each year by 15.86%, 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)15.86%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
32.69% of the earnings are spent on dividend by KR. This is a low number and sustainable payout ratio.
KR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.69%
EPS Next 2Y10.05%
EPS Next 3Y8.88%
66.15
+1.86 (+2.89%)
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-1.27%
Ins Owners0.26%
Ins Owner Change-0.49%
Market Cap43.84B
Revenue(TTM)147.00B
Net Income(TTM)2.71B
Analysts76.97
Price Target78.4 (18.52%)
Short Float %4.43%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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)-0.34%
PT rev (3m)1.61%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.19 | ||
| P/S | 0.3 | ||
| P/FCF | 19.82 | ||
| P/OCF | 7.28 | ||
| P/B | 4.72 | ||
| P/tB | 7.63 | ||
| EV/EBITDA | 7.55 |
EPS(TTM)4.65
EY7.03%
EPS(NY)5.43
Fwd EY8.2%
FCF(TTM)3.34
FCFY5.05%
OCF(TTM)9.08
OCFY13.73%
SpS221.83
BVpS14.01
TBVpS8.66
PEG (NY)1.45
PEG (5Y)0.93
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
WACC6.77%
ROIC/WACC1.26
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 Y9.81%
EPS Next 2Y10.05%
EPS Next 3Y8.88%
EPS Next 5Y6.36%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.08%
Revenue Next Year0.68%
Revenue Next 2Y1.76%
Revenue Next 3Y2%
Revenue Next 5Y2.39%
EBIT growth 1Y-6.09%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year79.17%
EBIT Next 3Y24.19%
EBIT Next 5Y14.31%
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 14.23 and the Price/Book (PB) ratio is 4.72.
Can you provide the financial health for KR stock?
The financial health rating of KROGER CO (KR) is 3 / 10.