KR

KrogerNYSE:KR Stock Report

Market Cap

US$30.5b

7D

-4.1%

1Y

23.3%

Updated

18 Sep, 2021

Data

Company Financials +
KR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends5/6

KR Overview

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

Kroger Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kroger
Historical stock prices
Current Share PriceUS$40.94
52 Week HighUS$30.35
52 Week LowUS$47.99
Beta0.39
1 Month Change-10.86%
3 Month Change5.65%
1 Year Change23.28%
3 Year Change36.69%
5 Year Change34.45%
Change since IPO2,030.21%

Recent News & Updates

Sep 14

Kroger: Bull Thesis Revisited In 4 Charts

I first wrote about Kroger in June 2021 with a bull thesis considering its large upside potential (~50%) in the short term and double-digit total return potential in the. Since my last writing, there have been some changes both in its price and in the fundamentals. This article, therefore, provides an updated assessment of the analysis, and the conclusion is that our bull thesis is maintained.

Sep 07

Kroger Is Still Undervalued

While first quarter results were not really great, Kroger reported strong growth in the recent past. Management is using share buybacks and was also increasing its dividend in the double-digits in the last few years. Even without using overly optimistic growth assumptions, the stock seems to be still undervalued.

Shareholder Returns

KRUS Consumer RetailingUS Market
7D-4.1%-0.9%-0.6%
1Y23.3%17.8%33.8%

Return vs Industry: KR exceeded the US Consumer Retailing industry which returned 17.8% over the past year.

Return vs Market: KR underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is KR's price volatile compared to industry and market?
KR volatility
KR Beta0.39
Industry Beta0.60
Market Beta1

Stable Share Price: KR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1883500,000William McMullenhttps://www.thekrogerco.com

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

Kroger Fundamentals Summary

How do Kroger's earnings and revenue compare to its market cap?
KR fundamental statistics
Market CapUS$30.46b
Earnings (TTM)US$1.13b
Revenue (TTM)US$133.44b

26.9x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KR income statement (TTM)
RevenueUS$133.44b
Cost of RevenueUS$102.57b
Gross ProfitUS$30.88b
ExpensesUS$29.74b
EarningsUS$1.13b

Last Reported Earnings

Aug 14, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.49
Gross Margin23.14%
Net Profit Margin0.85%
Debt/Equity Ratio152.9%

How did KR perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

50%

Payout Ratio

Does KR pay a reliable dividends?

See KR dividend history and benchmarks
When do you need to buy KR by to receive an upcoming dividend?
Kroger dividend dates
Ex Dividend DateNov 12 2021
Dividend Pay DateDec 01 2021
Days until Ex dividend54 days
Days until Dividend pay date73 days

Does KR pay a reliable dividends?

See KR dividend history and benchmarks

Valuation

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

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KR ($40.94) is trading below our estimate of fair value ($73.05)

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


Price To Earnings Ratio

PE vs Industry: KR is poor value based on its PE Ratio (26.9x) compared to the US Consumer Retailing industry average (20.8x).

PE vs Market: KR is poor value based on its PE Ratio (26.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: KR is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: KR is overvalued based on its PB Ratio (3.3x) compared to the US Consumer Retailing industry average (2.3x).


Future Growth

How is Kroger forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KR's forecast earnings growth (10.9% per year) is above the savings rate (2%).

Earnings vs Market: KR's earnings (10.9% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: KR's revenue (1.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: KR's revenue (1.8% 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 high in 3 years time (21.3%)


Past Performance

How has Kroger performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KR has a large one-off loss of $657.0M impacting its August 14 2021 financial results.

Growing Profit Margin: KR's current net profit margins (0.8%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: KR's earnings have declined by 0.8% 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 (-56.2%) over the past year, making it difficult to compare to the Consumer Retailing industry average (25%).


Return on Equity

High ROE: KR's Return on Equity (12.6%) is considered low.


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 ($15.6B).

Long Term Liabilities: KR's short term assets ($12.3B) do not cover its long term liabilities ($23.6B).


Debt to Equity History and Analysis

Debt Level: KR's debt to equity ratio (152.9%) is considered high.

Reducing Debt: KR's debt to equity ratio has reduced from 177.2% to 152.9% over the past 5 years.

Debt Coverage: KR's debt is well covered by operating cash flow (32%).

Interest Coverage: KR's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

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

2.05%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 19 2021Ex Dividend DateNov 12 2021Dividend Pay DateDec 01 202119 days from Ex DividendBuy in the next 54 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: KR's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: KR's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 reasonable payout ratio (50.3%), KR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KR's dividends in 3 years are forecast to be well covered by earnings (29.8% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

William McMullen (60 yo)

7.67yrs

Tenure

US$22,373,574

Compensation

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


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD22.37M) is above average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: KR's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: KR's board of directors are considered experienced (3.3 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 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$30.459b
  • Shares outstanding: 744.00m
  • Website: https://www.thekrogerco.com

Number of Employees


Location

  • The Kroger Co.
  • 1014 Vine Street
  • Cincinnati
  • Ohio
  • 45202-1100
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/08/14
Annual Earnings2021/01/30


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.