NYSE:KR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


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

Stable Share Price: KR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

KR

-1.3%

US Consumer Retailing

-1.1%

US Market


1 Year Return

34.6%

KR

16.2%

US Consumer Retailing

15.6%

US Market

Return vs Industry: KR exceeded the US Consumer Retailing industry which returned 16% over the past year.

Return vs Market: KR exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

KRIndustryMarket
7 Day-0.5%-1.3%-1.1%
30 Day-1.1%4.7%4.2%
90 Day-5.6%7.9%6.3%
1 Year37.6%34.6%18.1%16.2%18.2%15.6%
3 Year70.6%60.2%64.4%55.2%39.6%30.4%
5 Year-3.7%-12.2%95.1%75.4%79.5%59.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KR ($32.76) is trading below our estimate of fair value ($70.32)

Significantly Below Fair Value: KR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KR is good value based on its PE Ratio (9.9x) compared to the US Consumer Retailing industry average (14.4x).

PE vs Market: KR is good value based on its PE Ratio (9.9x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: KR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KR is overvalued based on its PB Ratio (2.6x) compared to the US Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Kroger forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

-7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KR's earnings are forecast to decline over the next 3 years (-7.5% per year).

Earnings vs Market: KR's earnings are forecast to decline over the next 3 years (-7.5% per year).

High Growth Earnings: KR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KR's revenue is expected to decline over the next 3 years (-0.06% per year).

High Growth Revenue: KR's revenue is forecast to decline over the next 3 years (-0.06% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KR has high quality earnings.

Growing Profit Margin: KR's current net profit margins (2%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: KR's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: KR's earnings growth over the past year (59.7%) exceeds its 5-year average (3.6% per year).

Earnings vs Industry: KR earnings growth over the past year (59.7%) exceeded the Consumer Retailing industry 46.1%.


Return on Equity

High ROE: Whilst KR's Return on Equity (25.47%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Kroger's financial position?


Financial Position Analysis

Short Term Liabilities: KR's short term assets ($12.3B) do not cover its short term liabilities ($14.6B).

Long Term Liabilities: KR's short term assets ($12.3B) do not cover its long term liabilities ($23.2B).


Debt to Equity History and Analysis

Debt Level: KR's debt to equity ratio (137.7%) is considered high.

Reducing Debt: KR's debt to equity ratio has reduced from 181.6% to 137.7% over the past 5 years.

Debt Coverage: KR's debt is well covered by operating cash flow (50.4%).

Interest Coverage: KR's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.17%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: KR's dividend (2.2%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: KR's dividend (2.2%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

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 low payout ratio (20%), 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 (26.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

William McMullen (59 yo)

6.75yrs

Tenure

US$21,129,648

Compensation

Mr. William Rodney McMullen served as Independent Director of Cincinnati Financial Corporation since 2001 until 2020. He served as Director at The Cincinnati Life Insurance Company. Mr. McMullen has worked ...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD21.13M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: William's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William McMullen
Chairman & CEO6.75yrsUS$21.13m0.38%
$ 98.6m
Gary Millerchip
Senior VP & CFO1.5yrsUS$4.31m0.020%
$ 5.2m
Michael Donnelly
Executive VP & COO2.83yrsUS$10.33m0.039%
$ 10.0m
Yael Cosset
Senior VP of Alternative Business1.42yrsUS$3.65m0.019%
$ 4.8m
Stuart Aitken
Chief Merchant & Marketing Officer0.17yrUS$4.61m0.020%
$ 5.1m
Rebekah Manis
Director of Investor Relations2.58yrsno datano data
Christine Wheatley
Group VP6.42yrsno data0.015%
$ 3.9m
Kristal Howard
Head of Corporate Communications & Media Relations3.5yrsno datano data
Timothy Massa
Senior VP of Human Resources & Labor Relations6.33yrsno data0.020%
$ 5.1m
Peter Engel
Head of Fred Meyer Jewelers Unitno datano datano data
Calvin Kaufman
Senior Vice President of Retail Divisions3.33yrsno data0.018%
$ 4.7m
Keith Dailey
Group VP of Corporate Affairs0.67yrno datano data

2.8yrs

Average Tenure

49yo

Average Age

Experienced Management: KR's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William McMullen
Chairman & CEO6.75yrsUS$21.13m0.38%
$ 98.6m
Ronald Sargent
Independent Lead Directorno dataUS$332.60k0.015%
$ 3.8m
Susan Kropf
Independent Director12.83yrsUS$266.25k0.013%
$ 3.4m
Bobby Shackouls
Independent Director21.75yrsUS$276.22k0.0032%
$ 824.9k
Clyde Moore
Independent Director23.75yrsUS$431.55k0.015%
$ 4.0m
Karen Hoguet
Independent Director0.83yrUS$119.04k0.0014%
$ 357.2k
Mark Sutton
Independent Director3.75yrsUS$276.22k0.0029%
$ 755.6k
Anne Gates
Independent Director4.83yrsUS$301.15k0.0034%
$ 868.6k
Ashok Vemuri
Independent Director1.75yrsUS$266.25k0.0021%
$ 534.5k
Nora Aufreiter
Independent Director5.83yrsUS$266.25k0.0038%
$ 986.8k

5.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: KR's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$25.699b
  • Shares outstanding: 775.00m
  • 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
KOGETLX (Eurotlx)YesCommon StockITEURJan 1968
K1RC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

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 Analysis2020/10/27 00:50
End of Day Share Price2020/10/26 00:00
Earnings2020/08/15
Annual Earnings2020/02/01


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.