Kroger Company
Exchange: NYSESector: Consumer DefensiveIndustry: Grocery Stores
At The Kroger Co., we are dedicated to our Purpose: To Feed the Human Spirit™. We are, across our family of companies more than 400,000 associates who serve over 11 million customers daily through an e-Commerce experience and retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities.
Did you know?
Pays a 2.07% dividend yield.
Current Price
$67.55
-0.32%GoodMoat Value
$351.81
420.8% undervaluedProfile
Valuation (TTM)
Market Cap$42.75B
P/E42.08
EV$69.42B
P/B7.21
Shares Out632.85M
P/Sales0.29
Revenue$147.64B
EV/EBITDA11.15
Kroger Company (KR) Stock Analysis
GoodMoat Analysis
Kroger is a major US grocery retailer with a strong local market presence and scale advantages, but its financial quality and current valuation present significant concerns for a value investor. The stock trades at a premium to the GoodMoat target price, indicating an unfavourable valuation.
Read full analysis
Kroger operates a large network of grocery stores and related retail services across the United States. Applying the GoodMoat framework, the company demonstrates a few moat characteristics, primarily its scale privilege in physical infrastructure and local market dominance, which can create cost advantages and a degree of pricing power. However, its overall moat score is likely modest given the intensely competitive and low-margin nature of the grocery industry, where network effects, high switching costs, and proprietary technology are less prevalent. The business quality indicators are weak. An operating margin of 2.6% and a profit margin of 0.5% are low, indicating thin profitability. The debt/equity ratio of 3.0 is high, suggesting a leveraged balance sheet, and revenue growth of 1.2% YoY is minimal. The ROE of 9.5% falls below the 15-20% high-quality threshold. According to the Decision Framework, a stock must first pass the Moat & Quality Gate. Kroger's weak financial metrics and likely moderate moat score suggest it would struggle to pass this initial screen. Furthermore, the current price of $70.36 is significantly above the GoodMoat target of $55.17, implying a negative margin of safety and an unfavourable valuation. For a value investor, this combination of questionable quality, limited moat strength, and high price relative to fair value makes further in-depth investigation a low priority unless seeking a deep-value turnaround situation. Analysis based on data as of 2024-05-15.
Market Cap$42.75B
Current Price$67.55
P/E Ratio42.08
Forward P/E—
PEG Ratio0.93
EPS$1.54
Book Value$9.37
P/B Ratio7.21
KR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 11.8% FCF growth (CAGR)
Cash vs Debt
Net Debt: 21.4B
Revenue
122.3B
FY20
132.5B
FY21
137.9B
FY22
148.3B
FY23
150.0B
FY24
147.1B
FY25
147.6B
FY26
Net Income
1.7B
FY20
2.6B
FY21
1.7B
FY22
2.2B
FY23
2.2B
FY24
2.7B
FY25
1.0B
FY26
KR 52-Week Range
$58.99
$75.60
50-Day MA: $70.32200-Day MA: $67.06
Did you know?
Price sits at 52% of its 52-week range.
Kroger Company (KR) Financial Summary
Kroger Company (KR) is a Consumer Defensive company in the Grocery Stores industry, listed on NYSE. The stock currently trades at $67.55 with a market capitalization of $42.75B.
Key valuation metrics include a P/E ratio of 42.08, price-to-book ratio of 7.21, and EPS of $1.54. The company reports a profit margin of 0.7% and return on equity of 17.1%.
KR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $42.75B |
| P/E Ratio | 42.08 |
| EPS | $1.54 |
| P/B Ratio | 7.21 |
| P/S Ratio | 0.29 |
| EV/EBITDA | 11.15 |
| Dividend Yield | 2.07% |
| Profit Margin | 0.7% |
| Return on Equity | 17.1% |
| Debt/Equity | 4.17 |
KR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $122.29B | $1.66B |
| FY21 | $132.50B | $2.58B |
| FY22 | $137.89B | $1.66B |
| FY23 | $148.26B | $2.24B |
| FY24 | $150.04B | $2.16B |
| FY25 | $147.12B | $2.67B |
| FY26 | $147.64B | $1.02B |
Kroger Company (KR) Valuation
Based on GoodMoat's DCF model, Kroger Company has a fair value estimate of $351.81. At the current price of $67.55, the stock appears 80.8% undervalued relative to our intrinsic value estimate.
KR Quality Indicators
Kroger Company maintains a profit margin of 0.7% and an operating margin of 1.3%. Return on equity stands at 17.1%. The current ratio is 0.80. Debt-to-equity ratio is 4.17.
About Kroger Company
At The Kroger Co., we are dedicated to our Purpose: To Feed the Human Spirit™. We are, across our family of companies more than 400,000 associates who serve over 11 million customers daily through an e-Commerce experience and retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities.
KR Free Cash Flow
Kroger Company generated $3.53B in trailing twelve-month free cash flow, representing an FCF yield of 8.26%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
KR Shares Outstanding
Kroger Company has 0.63 billion shares outstanding at a share price of $67.55, giving it a market capitalization of $42.75B.