Kroger Co

Consumer Staples
Food Chains
www.thekrogerco.com

Earnings Score
Moat Score
Safety Score

Market Cap $41.71B
PE 15
Debt $10.20B
Cash $2.80B
EV $49.11B
FCF $1.76B

Earnings

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Sales & Net Margins

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Earnings	$2.77B
EBIT	$4.15B
ROE	22%
ROA	8%
FCF	$1.76B
Equity	$12.52B
Growth Stability	66%
PE	15.04
PEG	2.63
PB	3.33
P/FCF	23.71
P/S	0.28
Price/Cash	0.07
Debt/Equity	0.81
Debt/FCF	5.8
Net Margins	2%
Gross Margins	22%
Op. Margins	3%
Earnings CAGR	-0%
Sales Growth YoY	0%
Sales Growth QoQ	-25%
Sales CAGR	4%
FCF CAGR	15%
Equity CAGR	8%
Earnings Stability	0
Earnings Growth YoY	-359%
Earnings Growth QoQ	-51%
Earnings CAGR 5Y	6%

Sales CAGR 5Y	5%
FCF CAGR 5Y	-3%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	4%
Sales CAGR 3Y	4%
FCF CAGR 3Y	-11%
Equity CAGR 3Y	12%
Market Cap	$41.71B
Revenue	$150.20B
Dividend Yield	2%
Payout Ratio	31%
Assets	$51.44B
Total Debt	$10.20B
Cash	$2.80B
Shares Outstanding	722M
EV	49.11B
Earnings Score	6%
Moat Score	80%
Safety Score	77%
Final Score	54%
Working Capital	-2.07B
Current Ratio	0.87
Gross Profit	$33.70B
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	18%

Assets & ROA

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Stockholders Equity & ROE

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Kroger is the leading American grocer, with 2,726 supermarkets operating under several banners throughout the country as of the end of fiscal 2021. Around 83% of stores have pharmacies, while nearly 60% also sell fuel. The company also operates roughly 120 fine jewelry stores. Kroger features a leading private-label offering and manufactures around 30% of its own-brand units (and more than 40% of its grocery own-label assortment) itself, in 33 food production plants nationwide. Kroger is a top-two grocer in most of its major markets (as of early 2021, according to company data). Virtually all of Kroger's sales come from the United States.

SEC Filings

Direct access to Kroger Co (KR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Aug 17
- 10-Q May 25
- 10-K Feb 03
2023
- 10-Q Nov 04
- 10-Q Aug 12
- 10-Q May 20
- 10-K Jan 28
2022
- 10-Q Nov 05
- 10-Q Aug 13
- 10-Q May 21
- 10-K Jan 29

Sector Comparison

How does Kroger Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Kroger Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -0%

Stability 0%

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Kroger Co Discounted Cash Flow

Fully customizable DCF calculator online for Kroger Co.

Years

Calculation mode

= $49B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.8B	$2B	$2.3B	$2.7B	$3B	$3.5B	$4B	$4.6B	$5.3B	$6B	$6.9B	$69B
DCF		$1.8B	$1.9B	$2B	$2.1B	$2.2B	$2.3B	$2.4B	$2.4B	$2.6B	$2.7B	$27B
Value	$49B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	01/2015	01/2016	01/2017	02/2018	02/2019	01/2020	01/2021	01/2022	01/2023	02/2024	TTM
Net Margins	2%	2%	2%	2%	3%	1%	2%	1%	2%	1%	2%
ROA	-	11%	9%	6%	12%	6%	8%	7%	8%	6%	8%
ROE	-	30%	29%	27%	39%	18%	27%	17%	22%	18%	22%

Bad Net Margins (1.77%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	01/2015	01/2016	01/2017	02/2018	02/2019	01/2020	01/2021	01/2022	01/2023	02/2024	TTM
Debt over FCF	-	8.78	27.17	30.38	14.63	9.88	3.36	3.41	8.76	3.54	5.8
Debt over Equity	2.38	2.02	2.32	2.65	2.22	1.76	1.38	1.29	1.24	0.88	0.81
Growth Stability	-	-	-	99%	100%	66%	100%	69%	100%	100%	66%

Bad Debt/FCF ratio (5.8)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.81)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (66%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	01/2015	01/2016	01/2017	02/2018	02/2019	01/2020	01/2021	01/2022	01/2023	02/2024	CAGR 5Y
Revenue YoY growth	-	1%	5%	6%	-1%	1%	8%	4%	8%	1%	5%
Earnings YoY growth	-	17%	-3%	-3%	63%	-51%	69%	-36%	36%	-4%	6%
Equity YoY growth	-	25%	-2%	3%	14%	9%	11%	-1%	6%	16%	6%
FCF YoY growth	-	18%	-63%	5%	98%	28%	157%	-9%	-60%	103%	-3%