KROGER CO (KR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KR - US5010441013 - Common Stock
59.51 USD
-0.28 (-0.47%)
59.5 USD
-0.01 (-0.02%)
Taking everything into account, KR scores 4 out of 10 in our fundamental rating. KR was compared to 38 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 is valued correctly, 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.
KR had positive earnings in each of the past 5 years.
In the past 5 years KR always reported a positive cash flow from operatings.
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.
The Return On Invested Capital of KR (3.89%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KR is significantly below the industry average of 28.32%.
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
Looking at the Profit Margin, with a value of 0.53%, KR is doing worse than 60.53% 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 1.12%, KR is in line with its industry, outperforming 42.11% of the companies in the same industry.
KR's Operating Margin has improved in the last couple of years.
The Gross Margin of KR (23.23%) is comparable to the rest of the industry.
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 | 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.
Compared to 1 year ago, KR has less shares outstanding
The number of shares outstanding for KR has been reduced compared to 5 years ago.
Compared to 1 year ago, KR has a worse debt to assets ratio.
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.
The Debt to FCF ratio of KR (7.94) is comparable to the rest of the industry.
KR has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.28, KR is doing worse than 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.58
WACC6.75%
2.3 Liquidity
A Current Ratio of 0.88 indicates that KR may have some problems paying its short term obligations.
KR's Current ratio of 0.88 is on the low side compared to the rest of the industry. KR is outperformed by 78.95% of its industry peers.
KR has a Quick Ratio of 0.88. This is a bad value and indicates that KR is not financially healthy enough and could expect problems in meeting 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%.
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 -1.77% in the last year.
The Revenue has been growing slightly by 3.77% on average over the past years.
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 6.36% on average over the next years.
The Revenue is expected to grow by 2.39% on average over the next years.
EPS Next Y10.41%
EPS Next 2Y10.6%
EPS Next 3Y8.98%
EPS Next 5Y6.36%
Revenue Next Year0.4%
Revenue Next 2Y1.24%
Revenue Next 3Y1.52%
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
Based on the Price/Earnings ratio of 12.61, the valuation of KR can be described as correct.
Based on the Price/Earnings ratio, KR is valued cheaper than 84.21% of the companies in the same industry.
KR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 10.86 indicates a reasonable valuation of KR.
KR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KR is cheaper than 86.84% of the companies 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 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KR is valued a bit cheaper than 63.16% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KR indicates a somewhat cheap valuation: KR is cheaper than 60.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.38 | ||
| EV/EBITDA | 10.68 |
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)1.21
PEG (5Y)0.82
EPS Next 2Y10.6%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.24%, KR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.77, KR pays a better dividend. On top of this KR pays more dividend than 86.84% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, KR has a dividend comparable with the average S&P500 company.
| 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 2Y10.6%
EPS Next 3Y8.98%
59.51
-0.28 (-0.47%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners81.75%
Inst Owner Change0.01%
Ins Owners0.29%
Ins Owner Change0.75%
Market Cap39.44B
Revenue(TTM)147.22B
Net Income(TTM)773.00M
Analysts77.5
Price Target75.6 (27.04%)
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)-3.57%
PT rev (3m)-3.16%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)0%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 10.86 | ||
| P/S | 0.27 | ||
| P/FCF | 17.38 | ||
| P/OCF | 6.51 | ||
| P/B | 5.6 | ||
| P/tB | 11.25 | ||
| EV/EBITDA | 10.68 |
EPS(TTM)4.72
EY7.93%
EPS(NY)5.48
Fwd EY9.21%
FCF(TTM)3.42
FCFY5.75%
OCF(TTM)9.15
OCFY15.37%
SpS222.17
BVpS10.62
TBVpS5.29
PEG (NY)1.21
PEG (5Y)0.82
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
WACC6.75%
ROIC/WACC0.58
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 Y10.41%
EPS Next 2Y10.6%
EPS Next 3Y8.98%
EPS Next 5Y6.36%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y2.18%
Revenue growth 5Y3.77%
Sales Q2Q%0.67%
Revenue Next Year0.4%
Revenue Next 2Y1.24%
Revenue Next 3Y1.52%
Revenue Next 5Y2.39%
EBIT growth 1Y-60.62%
EBIT growth 3Y3.68%
EBIT growth 5Y10.25%
EBIT Next Year80.42%
EBIT Next 3Y23.6%
EBIT Next 5Y14.31%
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 10.41% 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%.