KROGER CO (KR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KR - US5010441013 - Common Stock
63.19 USD
+0.7 (+1.12%)
63.19 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KR. KR was compared to 38 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year KR was profitable.
- KR had a positive operating cash flow in the past year.
- 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's Return On Assets of 1.50% is on the low side compared to the rest of the industry. KR is outperformed by 63.16% of its industry peers.
- KR has a Return On Equity (10.98%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.89%, KR is in line with its industry, outperforming 44.74% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for KR is significantly below the industry average of 28.30%.
- The 3 year average ROIC (8.58%) for KR is well above the current ROIC(3.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 10.98% | ||
| ROIC | 3.89% |
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 worse Profit Margin (0.53%) than 60.53% of its industry peers.
- KR's Profit Margin has improved in the last couple of years.
- KR has a Operating Margin (1.12%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of KR has grown nicely.
- KR has a Gross Margin of 23.23%. This is comparable to the rest of the industry: KR outperforms 47.37% of its industry peers.
- KR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.12% | ||
| PM (TTM) | 0.53% | ||
| GM | 23.23% |
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.
- KR has less shares outstanding than it did 1 year ago.
- 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
- KR has a debt to FCF ratio of 7.94. This is a slightly negative value and a sign of low solvency as KR would need 7.94 years to pay back of all of its debts.
- KR's Debt to FCF ratio of 7.94 is in line compared to the rest of the industry. KR outperforms 47.37% of its industry peers.
- A Debt/Equity ratio of 2.28 is on the high side and indicates that KR has dependencies on debt financing.
- The Debt to Equity ratio of KR (2.28) is worse than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC7.28%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that KR may have some problems paying its short term obligations.
- The Current ratio of KR (0.88) is worse than 81.58% of its industry peers.
- A Quick Ratio of 0.45 indicates that KR may have some problems paying its short term obligations.
- KR's Quick ratio of 0.45 is on the low side compared to the rest of the industry. KR is outperformed by 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
- KR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.85%.
- 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 -1.77%.
- 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)0.85%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%7.14%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.67%
3.2 Future
- The Earnings Per Share is expected to grow by 7.12% 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 2.24% yearly.
EPS Next Y10.34%
EPS Next 2Y10.48%
EPS Next 3Y8.99%
EPS Next 5Y7.12%
Revenue Next Year0.4%
Revenue Next 2Y1.25%
Revenue Next 3Y1.52%
Revenue Next 5Y2.24%
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 13.39, which indicates a correct valuation of KR.
- 81.58% of the companies in the same industry are more expensive than KR, based on the Price/Earnings ratio.
- KR is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.55, 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 84.21% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of KR to the average of the S&P500 Index (24.29), we can say KR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 11.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KR is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
- 65.79% of the companies in the same industry are more expensive than KR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.46 | ||
| EV/EBITDA | 11.13 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.3
PEG (5Y)0.88
EPS Next 2Y10.48%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.24%, KR has a reasonable but not impressive dividend return.
- KR's Dividend Yield is rather good when compared to the industry average which is at 0.72. KR pays more dividend than 89.47% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, KR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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.
- 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
- 115.27% of the earnings are spent on dividend by KR. This is not a sustainable payout ratio.
- The dividend of KR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP115.27%
EPS Next 2Y10.48%
EPS Next 3Y8.99%
63.19
+0.7 (+1.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)12-04 2025-12-04/bmo
Earnings (Next)06-18 2026-06-18
Inst Owners81.75%
Inst Owner Change0.04%
Ins Owners0.29%
Ins Owner Change0.95%
Market Cap41.87B
Revenue(TTM)147.22B
Net Income(TTM)773.00M
Analysts77.5
Price Target75.27 (19.12%)
Short Float %5.17%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend1.28
Dividend Growth(5Y)15.86%
DP115.27%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.13%
Min EPS beat(2)-1.33%
Max EPS beat(2)1.58%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-1.33%
Max EPS beat(4)1.58%
EPS beat(8)3
Avg EPS beat(8)1.6%
EPS beat(12)7
Avg EPS beat(12)2.02%
EPS beat(16)11
Avg EPS beat(16)3.91%
Revenue beat(2)0
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-3.75%
Max Revenue beat(2)-3.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.42%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)-3.06%
Revenue beat(8)0
Avg Revenue beat(8)-3.39%
Revenue beat(12)0
Avg Revenue beat(12)-3.31%
Revenue beat(16)0
Avg Revenue beat(16)-3.06%
PT rev (1m)-2.67%
PT rev (3m)-4.31%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 11.55 | ||
| P/S | 0.28 | ||
| P/FCF | 18.46 | ||
| P/OCF | 6.91 | ||
| P/B | 5.95 | ||
| P/tB | 11.95 | ||
| EV/EBITDA | 11.13 |
EPS(TTM)4.72
EY7.47%
EPS(NY)5.47
Fwd EY8.65%
FCF(TTM)3.42
FCFY5.42%
OCF(TTM)9.15
OCFY14.48%
SpS222.17
BVpS10.62
TBVpS5.29
PEG (NY)1.3
PEG (5Y)0.88
Graham Number33.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 10.98% | ||
| ROCE | 4.98% | ||
| ROIC | 3.89% | ||
| ROICexc | 4.42% | ||
| ROICexgc | 5.03% | ||
| OM | 1.12% | ||
| PM (TTM) | 0.53% | ||
| GM | 23.23% | ||
| FCFM | 1.54% |
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-Score7
Asset Turnover2.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.94 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 112.55% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 120.66% | ||
| Profit Quality | 293.53% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | N/A |
F-Score7
WACC7.28%
ROIC/WACC0.53
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)0.85%
EPS 3Y6.78%
EPS 5Y15.28%
EPS Q2Q%7.14%
EPS Next Y10.34%
EPS Next 2Y10.48%
EPS Next 3Y8.99%
EPS Next 5Y7.12%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.67%
Revenue Next Year0.4%
Revenue Next 2Y1.25%
Revenue Next 3Y1.52%
Revenue Next 5Y2.24%
EBIT growth 1Y-60.62%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year80.42%
EBIT Next 3Y23.6%
EBIT Next 5Y14.37%
FCF growth 1Y-1.52%
FCF growth 3Y-20.79%
FCF growth 5Y2.96%
OCF growth 1Y0.56%
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.
What is the valuation status for KR stock?
ChartMill assigns a valuation rating of 6 / 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 5 / 10.
Can you provide the expected EPS growth for KR stock?
The Earnings per Share (EPS) of KROGER CO (KR) is expected to grow by 10.34% in the next year.
Is the dividend of KROGER CO sustainable?
The dividend rating of KROGER CO (KR) is 5 / 10 and the dividend payout ratio is 115.27%.