Market Cap
US$23.8b
Last Updated
2020/02/22 00:40 UTC
Data Sources
Company Financials +
Executive Summary
The Kroger Co. operates as a retailer in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and good 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
Stable Share Price: KR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
7.4%
KR
0.6%
US Consumer Retailing
-1.0%
US Market
1 Year Return
6.3%
KR
17.5%
US Consumer Retailing
18.0%
US Market
Return vs Industry: KR underperformed the US Consumer Retailing industry which returned 17.5% over the past year.
Return vs Market: KR underperformed the US Market which returned 18% over the past year.
Shareholder returns
| KR | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.4% | 0.6% | -1.0% |
| 30 Day | 6.6% | 1.3% | 0.6% |
| 90 Day | 12.1% | 0.4% | 7.9% |
| 1 Year | 8.9%6.3% | 19.8%17.5% | 20.4%18.0% |
| 3 Year | -3.1%-9.0% | 47.5%37.9% | 48.0%38.5% |
| 5 Year | -7.0%-14.8% | 48.6%33.1% | 72.2%53.3% |
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
3 weeks ago | Simply Wall St
Shareholders Are Loving The Kroger Co.'s (NYSE:KR) 2.3% Yield1 month ago | Simply Wall St
Boasting A 17% Return On Equity, Is The Kroger Co. (NYSE:KR) A Top Quality Stock?1 month ago | Simply Wall St
Do Institutions Own The Kroger Co. (NYSE:KR) Shares?Valuation
Is Kroger undervalued compared to its fair value and its price relative to the market?
46.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KR ($30.31) is trading below our estimate of fair value ($56.66)
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 (15.4x) compared to the Consumer Retailing industry average (22.2x).
PE vs Market: KR is good value based on its PE Ratio (15.4x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: KR is poor value based on its PEG Ratio (6.2x)
Price to Book Ratio
PB vs Industry: KR is overvalued based on its PB Ratio (2.7x) compared to the US Consumer Retailing industry average (2.1x).
Next Steps
Future Growth
How is Kroger forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
2.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KR's forecast earnings growth (2.5% per year) is above the savings rate (1.7%).
Earnings vs Market: KR's earnings (2.5% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: KR's earnings are forecast to grow, but not significantly.
Revenue vs Market: KR's revenue (2.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: KR's revenue (2.3% per year) is forecast to grow slower than 20% 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 (18.6%).
Next Steps
Past Performance
How has Kroger performed over the past 5 years?
7.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KR has high quality earnings.
Growing Profit Margin: KR's current net profit margins (1.3%) are lower than last year (2.9%).
Past Earnings Growth Analysis
Earnings Trend: KR's earnings have grown by 7.3% 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 (-57.1%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-6%).
Return on Equity
High ROE: KR's Return on Equity (16.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Kroger's financial position?
Financial Position Analysis
Short Term Liabilities: KR's short term assets ($11.0B) do not cover its short term liabilities ($14.1B).
Long Term Liabilities: KR's short term assets ($11.0B) do not cover its long term liabilities ($22.5B).
Debt to Equity History and Analysis
Debt Level: KR's debt to equity ratio (145.3%) is considered high.
Reducing Debt: KR's debt to equity ratio has reduced from 205.2% to 145.3% over the past 5 years.
Debt Coverage: KR's debt is well covered by operating cash flow (35.3%).
Interest Coverage: KR's interest payments on its debt are well covered by EBIT (4.1x 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 0.9x debt).
Next Steps
Dividend
What is Kroger's current dividend yield, its reliability and sustainability?
2.11%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: KR's dividend (2.11%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: KR's dividend (2.11%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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 reasonably low payout ratio (30.5%), 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 (27.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
William McMullen (58yo)
6.1yrs
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 ($USD10.79M).
Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6.1yrs | US$12.04m | 0.35% $83.8m | |
| Executive VP & COO | 2.2yrs | US$5.69m | 0.038% $9.0m | |
| Senior Vice President of Supply Chain | 3.9yrs | US$4.77m | 0.023% $5.4m | |
| Senior VP & CFO | 0.8yrs | no data | 0.018% $4.2m | |
| VP, Corporate Controller & Chief Accounting Officer | 2.8yrs | no data | 0.0039% $922.7k | |
| Senior VP & Chief Information Officer | 0.8yrs | no data | 0.015% $3.5m | |
| Director of Investor Relations | 1.9yrs | no data | no data | |
| Group VP | 5.8yrs | no data | 0.014% $3.4m | |
| Head of Corporate Communications & Media Relations | 2.8yrs | no data | no data | |
| Vice President of Branding | 1.5yrs | no data | no data |
2.5yrs
Average Tenure
51yo
Average Age
Experienced Management: KR's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6.1yrs | US$12.04m | 0.35% $83.8m | |
| Lead Director | 0yrs | US$316.06k | 0.013% $3.0m | |
| Independent Director | 12.9yrs | US$278.27k | 0.0086% $2.1m | |
| Independent Director | 12.2yrs | US$263.31k | 0.012% $2.9m | |
| Independent Director | 21.1yrs | US$273.28k | 0.0062% $1.5m | |
| Independent Director | 23.1yrs | US$293.57k | 0.014% $3.4m | |
| Independent Director | 13.4yrs | US$278.27k | 0.017% $4.1m | |
| Independent Director | 3.1yrs | US$273.28k | 0.0022% $526.9k | |
| Independent Director | 4.2yrs | US$288.02k | 0.0026% $627.0k | |
| Independent Director | 5.2yrs | US$263.31k | 0.0031% $734.3k |
12.2yrs
Average Tenure
64yo
Average Age
Experienced Board: KR's board of directors are seasoned and experienced ( 12.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$23.841b
- Shares outstanding: 800.59m
- Website: https://www.thekrogerco.com
Number of Employees
Location
- The Kroger Co.
- 1014 Vine Street
- Cincinnati
- Ohio
- 45202
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| KOG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| KR * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| 0JS2 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| KOG | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1968 |
| K1RC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 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 stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care departments, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and price impact warehouse stores provides grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets; and sells fuel through 1,537 fuel centers. As of September 25, 2019, the company operated 2,759 retail food stores under various banner names, as well as an online retail store. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 00:40 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/11/09 |
| Annual Earnings | 2019/02/02 |
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.