KROGER CO (KR) Stock Fundamental Analysis
USA - NYSE:KR - US5010441013 - Common Stock
66.71 USD
+0.74 (+1.12%)
66.8 USD
+0.09 (+0.13%)
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. There are concerns on the financial health of KR while its profitability can be described as average. 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
In the past year KR was profitable.
KR had a positive operating cash flow in the past year.
KR had positive earnings in each of the past 5 years.
Each year in the past 5 years KR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KR (5.05%) is better than 64.10% 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.
KR has a better Return On Invested Capital (8.53%) than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KR is in line with the industry average of 8.72%.
| 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 in line with 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 58.97% of the companies in the same industry.
KR's Operating Margin has improved in the last couple of years.
KR's Gross Margin of 23.12% is in line compared to the rest of the industry. KR outperforms 43.59% of its industry peers.
KR's Gross Margin has been stable in the last couple of years.
| 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
KR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, KR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.35 indicates that KR is not in any danger for bankruptcy at the moment.
KR has a Altman-Z score (4.35) which 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 in line with its industry peers.
KR has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external 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 | 4.35 |
ROIC/WACC1.24
WACC6.88%
2.3 Liquidity
A Current Ratio of 0.95 indicates that KR may have some problems paying its short term obligations.
The Current ratio of KR (0.95) is worse than 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 (0.54) which is comparable to the rest of the industry.
| 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.
KR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.28% yearly.
Looking at the last year, KR shows a decrease in Revenue. The Revenue has decreased by -2.13% in the last year.
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
The Earnings Per Share is expected to grow by 6.20% 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 2.41% yearly.
EPS Next Y9.81%
EPS Next 2Y10.05%
EPS Next 3Y8.82%
EPS Next 5Y6.2%
Revenue Next Year0.68%
Revenue Next 2Y1.76%
Revenue Next 3Y2.02%
Revenue Next 5Y2.41%
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 14.35, KR is valued correctly.
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.
Compared to an average S&P500 Price/Earnings ratio of 25.89, KR is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.29 indicates a correct valuation of KR.
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.
KR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
KR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KR is cheaper than 76.92% 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 61.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.99 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
KR's 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)1.46
PEG (5Y)0.94
EPS Next 2Y10.05%
EPS Next 3Y8.82%
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 2.00, 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 2.42.
| 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 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)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.
The dividend of KR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.69%
EPS Next 2Y10.05%
EPS Next 3Y8.82%
66.71
+0.74 (+1.12%)
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-0.19%
Ins Owners0.26%
Ins Owner Change-0.49%
Market Cap44.21B
Revenue(TTM)147.00B
Net Income(TTM)2.71B
Analysts76.97
Price Target78.5 (17.67%)
Short Float %4.24%
Short Ratio3.63
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)-0.2%
PT rev (3m)1.75%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 12.29 | ||
| P/S | 0.3 | ||
| P/FCF | 19.99 | ||
| P/OCF | 7.35 | ||
| P/B | 4.76 | ||
| P/tB | 7.7 | ||
| EV/EBITDA | 7.77 |
EPS(TTM)4.65
EY6.97%
EPS(NY)5.43
Fwd EY8.13%
FCF(TTM)3.34
FCFY5%
OCF(TTM)9.08
OCFY13.61%
SpS221.83
BVpS14.01
TBVpS8.66
PEG (NY)1.46
PEG (5Y)0.94
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 | 4.35 |
F-Score6
WACC6.88%
ROIC/WACC1.24
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 3Y8.82%
EPS Next 5Y6.2%
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 3Y2.02%
Revenue Next 5Y2.41%
EBIT growth 1Y-6.09%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year79.17%
EBIT Next 3Y24.28%
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 14.35 and the Price/Book (PB) ratio is 4.76.
Can you provide the financial health for KR stock?
The financial health rating of KROGER CO (KR) is 3 / 10.