KROGER CO (KR) Stock Fundamental Analysis
USA - NYSE:KR - US5010441013 - Common Stock
67.2 USD
-1.09 (-1.6%)
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. While KR is still in line with the averages on profitability rating, 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
In the past year KR was profitable.
In the past year KR had a positive cash flow from operations.
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 (4.82%) is comparable to the rest of the industry.
KR has a Return On Equity of 28.81%. This is amongst the best in the industry. KR outperforms 82.50% of its industry peers.
KR has a Return On Invested Capital of 8.49%. This is in the better half of the industry: KR outperforms 67.50% of its industry peers.
KR had an Average Return On Invested Capital over the past 3 years of 8.58%. This is in line with the industry average of 8.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 28.81% | ||
| ROIC | 8.49% |
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
With a Profit Margin value of 1.75%, KR perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
KR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 2.70%, KR is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of KR has grown nicely.
Looking at the Gross Margin, with a value of 23.01%, KR is in line with its industry, outperforming 45.00% of the companies in the same industry.
KR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.7% | ||
| PM (TTM) | 1.75% | ||
| GM | 23.01% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KR is still creating some value.
The number of shares outstanding for KR has been reduced compared to 1 year ago.
Compared to 5 years ago, KR has less shares outstanding
KR has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of KR is 9.73, which is on the high side as it means it would take KR, 9.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.73, KR is in line with its industry, outperforming 45.00% of the companies in the same industry.
A Debt/Equity ratio of 1.92 is on the high side and indicates that KR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.92, KR is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | N/A |
ROIC/WACC1.24
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.95 indicates that KR may have some problems paying its short term obligations.
KR's Current ratio of 0.95 is on the low side compared to the rest of the industry. KR is outperformed by 77.50% of its industry peers.
A Quick Ratio of 0.53 indicates that KR may have some problems paying its short term obligations.
The Quick ratio of KR (0.53) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.53 |
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.
The Revenue has decreased by -1.94% in the past 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)-1.94%
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 6.14% yearly.
Based on estimates for the next years, KR will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y9.82%
EPS Next 2Y10.09%
EPS Next 3Y8.85%
EPS Next 5Y6.14%
Revenue Next Year0.72%
Revenue Next 2Y1.73%
Revenue Next 3Y1.96%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.45, the valuation of KR can be described as correct.
KR's Price/Earnings ratio is a bit cheaper when compared to the industry. KR is cheaper than 75.00% 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 27.30.
Based on the Price/Forward Earnings ratio of 12.38, the valuation of KR can be described as correct.
Based on the Price/Forward Earnings ratio, KR is valued cheaper than 82.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. KR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 12.38 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as KR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.09 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
KR's 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)1.47
PEG (5Y)0.95
EPS Next 2Y10.09%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
KR has a Yearly Dividend Yield of 2.05%.
KR's Dividend Yield is rather good when compared to the industry average which is at 2.01. KR pays more dividend than 82.50% of the companies in the same industry.
KR's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of KR is nicely growing with an annual growth rate of 15.86%!
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
KR pays out 34.45% 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.
DP34.45%
EPS Next 2Y10.09%
EPS Next 3Y8.85%
NYSE:KR (9/15/2025, 3:13:07 PM)
67.2
-1.09 (-1.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners81.7%
Inst Owner Change-2.71%
Ins Owners0.26%
Ins Owner Change-1.64%
Market Cap44.43B
Analysts76.36
Price Target78.06 (16.16%)
Short Float %5.74%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend1.28
Dividend Growth(5Y)15.86%
DP34.45%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.81%
Min EPS beat(2)-0.91%
Max EPS beat(2)-0.72%
EPS beat(4)0
Avg EPS beat(4)-1.31%
Min EPS beat(4)-2.62%
Max EPS beat(4)-0.72%
EPS beat(8)4
Avg EPS beat(8)2.04%
EPS beat(12)8
Avg EPS beat(12)2.82%
EPS beat(16)12
Avg EPS beat(16)6.09%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-3.48%
Max Revenue beat(2)-3.06%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-4.53%
Max Revenue beat(4)-3.06%
Revenue beat(8)0
Avg Revenue beat(8)-3.3%
Revenue beat(12)0
Avg Revenue beat(12)-3.12%
Revenue beat(16)1
Avg Revenue beat(16)-2.66%
PT rev (1m)1.18%
PT rev (3m)9%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 12.38 | ||
| P/S | 0.3 | ||
| P/FCF | 24.09 | ||
| P/OCF | 7.93 | ||
| P/B | 4.99 | ||
| P/tB | 8.23 | ||
| EV/EBITDA | 8 |
EPS(TTM)4.65
EY6.92%
EPS(NY)5.43
Fwd EY8.08%
FCF(TTM)2.79
FCFY4.15%
OCF(TTM)8.47
OCFY12.61%
SpS222.29
BVpS13.47
TBVpS8.16
PEG (NY)1.47
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 28.81% | ||
| ROCE | 10.85% | ||
| ROIC | 8.49% | ||
| ROICexc | 9.75% | ||
| ROICexgc | 10.96% | ||
| OM | 2.7% | ||
| PM (TTM) | 1.75% | ||
| GM | 23.01% | ||
| FCFM | 1.25% |
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%
ROICexcg growth 3Y1.16%
ROICexcg 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 Turnover2.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 9.73 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 113.2% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 8.81 | ||
| Cash Conversion | 76.79% | ||
| Profit Quality | 71.86% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | N/A |
F-Score7
WACC6.85%
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 Y9.82%
EPS Next 2Y10.09%
EPS Next 3Y8.85%
EPS Next 5Y6.14%
Revenue 1Y (TTM)-1.94%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.08%
Revenue Next Year0.72%
Revenue Next 2Y1.73%
Revenue Next 3Y1.96%
Revenue Next 5Y2.41%
EBIT growth 1Y32.94%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year79.84%
EBIT Next 3Y24.3%
EBIT Next 5Y14.42%
FCF growth 1Y-36.3%
FCF growth 3Y-20.79%
FCF growth 5Y2.96%
OCF growth 1Y-10.47%
OCF growth 3Y-2.18%
OCF growth 5Y4.43%