NYSE:KR

Stock Analysis Report

Executive Summary

The Kroger Co. operates as a retailer in the United States.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Kroger's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.08%

KR

0.8%

US Consumer Retailing

2.3%

US Market


1 Year Return

-10.2%

KR

14.8%

US Consumer Retailing

5.6%

US Market

Return vs Industry: KR underperformed the US Consumer Retailing industry which returned 14.8% over the past year.

Return vs Market: KR underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

KRIndustryMarket
7 Day-0.08%0.8%2.3%
30 Day-5.7%2.0%-1.0%
90 Day13.2%4.6%-0.7%
1 Year-8.2%-10.2%17.0%14.8%7.9%5.6%
3 Year-16.2%-21.0%56.9%46.8%45.6%36.3%
5 Year-1.6%-9.4%69.5%51.1%65.8%47.6%

Price Volatility Vs. Market

How volatile is Kroger's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kroger undervalued compared to its fair value and its price relative to the market?

30.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: KR ($24.51) is trading below our estimate of fair value ($35.18)

Significantly Undervalued: KR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KR is good value based on its PE Ratio (12x) compared to the Consumer Retailing industry average (20x).

PE vs Market: KR is good value based on its PE Ratio (12x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: KR is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: KR is overvalued based on its PB Ratio (2.3x) compared to the US Consumer Retailing industry average (2x).


Next Steps

Future Growth

How is Kroger forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KR's forecast earnings growth (2.1% per year) is below the savings rate (2.7%).

Earnings vs Market: KR's earnings (2.1% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: KR's earnings are forecast to grow, but not significantly.

Revenue vs Market: KR's revenue (2.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: KR's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: KR's Return on Equity is forecast to be low in 3 years time (18.4%).


Next Steps

Past Performance

How has Kroger performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KR's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: KR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KR had negative earnings growth (-56.6%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-14.2%).


Return on Equity

High ROE: KR's Return on Equity (18.6%) is considered low.


Return on Assets

ROA vs Industry: KR's Return on Assets is below or equal to the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: KR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Kroger's financial position?


Financial Position Analysis

Short Term Liabilities: KR's short term assets ($10.1B) do not cover its short term liabilities ($13.4B)

Long Term Liabilities: KR's short term assets (10.1B) do not cover its long term liabilities (22.5B)


Debt to Equity History and Analysis

Debt Level: KR's debt to equity ratio (145.7%) is considered high

Reducing Debt: KR's debt to equity ratio has reduced from 212.1% to 145.7% over the past 5 years.

Debt Coverage: KR's debt is well covered by operating cash flow (33.2%).

Interest Coverage: KR's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: KR has a high level of physical assets or inventory.

Debt Coverage by Assets: KR's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Kroger's current dividend yield, its reliability and sustainability?

2.61%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Kroger before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KR's dividend (2.61%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: KR's dividend (2.61%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: KR's dividends per share have been stable in the past 10 years.

Growing Dividend: KR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.5%), KR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KR's dividends in 3 years are forecast to be well covered by earnings (26.6% payout ratio).


Next Steps

Management

What is the CEO of Kroger's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

William McMullen (58yo)

5.8yrs

Tenure

US$12,037,872

Compensation

Mr. William Rodney McMullen has been Independent Director of Cincinnati Financial Corporation since 2001 and The Cincinnati Life Insurance Company. Mr. McMullen has worked with The Kroger Co’s Board on bus ...


CEO Compensation Analysis

Compensation vs. Market: William's total compensation ($USD12.04M) is about average for companies of similar size in the US market ($USD11.23M).

Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.2yrs

Average Tenure

53yo

Average Age

Experienced Management: KR's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

11.8yrs

Average Tenure

64yo

Average Age

Experienced Board: KR's board of directors are seasoned and experienced ( 11.8 years average tenure).


Insider Trading

Insider Buying: KR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$341,64017 Sep 19
Michael Donnelly
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares13,000
Max PriceUS$26.28
SellUS$35,15217 Sep 19
Carin Fike
EntityIndividual
Shares1,352
Max PriceUS$26.00
SellUS$473,29816 Sep 19
John Schlotman
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares18,187
Max PriceUS$26.02
SellUS$330,15016 Jul 19
John Schlotman
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares15,000
Max PriceUS$22.01
BuyUS$107,43702 Jul 19
Ronald Sargent
EntityIndividual
Role
Lead Director
Lead Director
Shares5,000
Max PriceUS$21.49
SellUS$1,961,56020 Mar 19
Robert Beyer
EntityIndividual
Shares80,000
Max PriceUS$24.52
SellUS$1,369,26802 Jan 19
Robert Beyer
EntityIndividual
Shares50,000
Max PriceUS$27.46
SellUS$524,43326 Dec 18
Christopher Hjelm
EntityIndividual
Shares18,564
Max PriceUS$28.25
SellUS$592,99919 Dec 18
John Schlotman
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares20,546
Max PriceUS$28.86
SellUS$811,04017 Dec 18
Michael Donnelly
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares27,400
Max PriceUS$29.60

Ownership Breakdown


Management Team

  • Mike Schlotman (61yo)

    Executive Vice President

    • Tenure: 0.5yrs
    • Compensation: US$5.77m
  • William McMullen (58yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$12.04m
  • Mike Donnelly (60yo)

    Executive VP & COO

    • Tenure: 1.8yrs
    • Compensation: US$5.69m
  • Yael Cosset (45yo)

    Senior VP & Chief Information Officer

    • Tenure: 0.4yrs
  • Gary Millerchip

    Senior VP & CFO

    • Tenure: 0.5yrs
  • Robert Clark (53yo)

    Senior Vice President of Supply Chain

    • Tenure: 3.6yrs
    • Compensation: US$4.77m
  • Todd Foley (49yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 2.5yrs
  • Christine Wheatley (48yo)

    Group VP

    • Tenure: 5.4yrs
  • Kristal Howard

    Head of Corporate Communications & Media Relations

    • Tenure: 2.5yrs
  • Rebekah Manis

    Director of Investor Relations

    • Tenure: 1.6yrs

Board Members

  • Ron Sargent (63yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$316.06k
  • Jorge Montoya (72yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$278.27k
  • Susan Kropf (70yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$263.31k
  • Bobby Shackouls (68yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$273.28k
  • Clyde Moore (65yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$293.57k
  • William McMullen (58yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$12.04m
  • James Runde (72yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$278.27k
  • Mark Sutton (57yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$273.28k
  • Anne Gates (59yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$288.02k
  • Nora Aufreiter (59yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$263.31k

Company Information

The Kroger Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Kroger Co.
  • Ticker: KR
  • Exchange: NYSE
  • Founded: 1883
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: US$19.633b
  • Shares outstanding: 801.00m
  • Website: https://www.thekrogerco.com

Number of Employees


Location

  • The Kroger Co.
  • 1014 Vine Street
  • Cincinnati
  • Ohio
  • 45202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
KOGDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
KR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
0JS2LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

The Kroger Co. operates as a retailer in the United States. The company operates supermarkets, multi-department stores, marketplace stores, and price impact warehouse stores. Its combination food and drug  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:37
End of Day Share Price2019/10/16 00:00
Earnings2019/08/17
Annual Earnings2019/02/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.