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Kroger Co (KR)

Fair Value
Consumer DefensiveGrocery StoresUnited States

Fundamental

39

Price

$58.62

Market Cap

$35.25B

Part 1 · What the company is worth

Overview

The Kroger Co. operates as a food and drug 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 its 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, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and its price impact warehouse stores provide 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 online; and sells fuel through its fuel centers. The company sells its products through its stores, fuel centers, and online platforms. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users

P/E: 72.6Score: 47Market cap: $5.65B

The closest like-for-like rival: a national chain of full-service supermarkets (Safeway, Vons, Jewel-Osco) selling the same weekly grocery basket, with private-label and loyalty programs, to the same US households Kroger serves.

P/E: 37.7Score: 58Market cap: $853.59B

The largest seller of groceries in the United States, competing store by store with Kroger on food prices, on pickup and delivery, and for the same weekly shopping trip.

P/E: 45.8Score: 69Market cap: $397.57B

A club-store chain that now takes a share of US grocery spending close to Kroger's own, drawing the same families with bulk food, fresh departments and fuel stations.

Publix Super Markets, Inc.Not tracked

An employee-owned supermarket chain that competes head-on with Kroger for the conventional grocery shopper in the Southeast, the region where Kroger's own banners are strongest.

Koninklijke Ahold Delhaize N.V.AD

Through its US banners (Food Lion, Stop & Shop, Giant, Hannaford) it runs the same conventional supermarket format for the same East Coast and Southeastern shoppers.

Aldi Einkauf SE & Co. oHG (Aldi Süd / Aldi Nord)Not tracked

A privately held discounter expanding fast across the US, taking price-sensitive food shoppers from Kroger with a small private-label assortment sold below supermarket prices.

Balance Sheet & Liquidity

Revenue

$147.64B

Fiscal year ended 1/31/2026

Net Income

$1.02B

Fiscal year ended 1/31/2026

Free Cash Flow

$3.46B

Total Equity

$5.93B

Total Liabilities

$44.02B

Current Ratio

0.70

Interest Coverage

-

Debt/EBITDA

4.31

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$61.89

Current Price

$58.62

Margin of Safety

+5.3%

Fair Value Range

$40.23 - $83.54

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$67.91
Discounted cash flow (DCF):$121.06
Earnings multiple (P/E):$20.09
Graham growth formula:$13.84
Earnings power value (EPV):$33.71
Justified P/B:$3.86
Dividend discount (Gordon):$18.46
P/FFO, funds from operations:$117.79
Mid-cycle earnings:$109.38
Revenue multiple:$290.95
Analyst Consensus:Buy (19B / 14H / 0S)
Last Earnings Surprise:-0.12%

Valuation Metrics

P/E Ratio

38.76

ROE

17.1%

P/B Ratio

5.93

P/FCF

14.52

Gross Margin

-

ROIC

4.7%

Profitability Radar

Value Creation (Economic Moat)

ROIC

4.7%

WACC

4.9%

ROIC − WACC

-0.2 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (9)

  • Price CAGR 5.42%
  • P/FCF 14.52
  • Positive Free Cash Flow
  • Debt/EBITDA
  • Low reliance on intangibles
  • Analyst Consensus 58% Buy
  • Earnings Quality (OCF/NI) 6.18
  • Share Dilution -9.1%
  • Piotroski F-Score 5/9

Failed (14)

  • EPS shows upward trend
  • EPS CAGR -0.64%
  • ROIC 4.7%
  • P/B Ratio 5.93
  • Debt/Equity ratio
  • Operating Margin 1.3%
  • CapEx intensity
  • Current Ratio
  • Return on Tangible Assets
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • ROE 3.5%
  • Revenue Growth 5Y 2.2%
  • Earnings Surprise avg -0.4%

Unavailable (5)

  • Gross Margin NaN%
  • Dividend Payout NaN%
  • Interest Coverage
  • PEG Ratio (need PE > 0 and growth > 0)
  • Net Margin Trend (invalid data)

Piotroski F-Score

5/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

6.18

High quality: earnings backed by cash

Share Dilution

-9.1%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Ronald L. Sargent M.B.A.Non-Executive Chairman69
Mr. David John Christopher KennerleyExecutive VP & CFO51
Ms. Mary Ellen AdcockExecutive VP and Chief Merchant & Marketing Officer49
Mr. Timothy A. MassaExecutive VP & Chief Associate Experience Officer58
Mr. Yael CossetExecutive VP & Chief Digital Officer51
Mr. Gregory S. ForanCEO & Director64
Mr. Robinson C. Quast CPAVice President of Investor Relations-
Mr. George H. Vincent Esq., J.D.EVP, Secretary & General Counsel-
Mr. Keith G. DaileyGroup VP of Corporate Affairs,44
Mr. Michael MarxSenior Vice President of Retail Divisions-

Audit Risk

4

Board Risk

7

Compensation Risk

7

Shareholder Rights Risk

7

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-03-31

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-09-18

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-11

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for KR, sourced from Markets Gazette.

  • 20d agoNEGATIVE
    Kroger Cuts Sales Forecast, Oracle Gains | Stock Movers

    Kroger has lowered its annual sales forecast, citing intense competition for consumer grocery spending. This downward revision signals potential market share challenges and weaker-than-anticipated revenue generation for the supermarket giant. Investors should monitor Kroger's ability to adapt its pricing and promotional strategies to counter competitive pressures and regain sales momentum in the coming quarters.

  • 6/19/2026NEGATIVE
    Kroger's new CEO reveals the chain's biggest problems

    Kroger's new CEO has identified significant pricing disadvantages compared to rivals like Walmart, Target, and Costco. These competitors leverage broader product assortments beyond groceries to offer lower markups on household basics, directly impacting consumer price sensitivity. This competitive pressure suggests Kroger may face ongoing challenges in maintaining market share and margins if it cannot effectively address its pricing structure. Investors should monitor Kroger's strategic responses to this fundamental competitive hurdle.

  • 6/18/2026NEGATIVE
    Kroger Falls on Downbeat Forecast; Intel Surges on Apple Deal | Stock Movers

    Kroger shares experienced their largest intraday decline since October 2022 following a subdued earnings forecast. The company's CFO indicated that adjusted Earnings Per Share (EPS) for the second quarter is anticipated to remain flat compared to the previous year. This lack of expected growth signals potential headwinds or increased competition, prompting investors to re-evaluate their positions and contributing to the significant sell-off observed in the stock.

  • 6/15/2026NEUTRAL
    Kroger Likely To Report Higher Q1 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

    Kroger is slated to report its first-quarter earnings on June 18, with analysts projecting earnings per share of $1.59 and revenue of $45.49 billion. While the consensus estimates provide a benchmark, the stock's performance on Friday, a slight 0.6% dip to $51.26, suggests market anticipation is mixed. Recent analyst ratings from March 2022 show a range of opinions, from 'Hold' to 'Outperform,' indicating no strong consensus direction ahead of the earnings call. Investors will be closely watching for any surprises relative to these expectations.

  • 6/12/2026POSITIVE
    How To Earn $500 A Month From Kroger Stock Ahead Of Q1 Earnings

    Kroger's stock offers an annual dividend yield of 2.18%, translating to $1.40 per share annually. To achieve a monthly income of $500, an investor would need to accumulate $6,000 annually from dividends. This implies a significant investment in Kroger stock, as the current yield suggests a substantial capital outlay is required to generate such income. The article highlights the potential for dividend income from Kroger ahead of its Q1 earnings report, which could influence investor sentiment and stock price.

  • 3/31/2026POSITIVE
    If You Invested $1000 In Kroger Stock 15 Years Ago, You Would Have This Much Today

    An investment of $1,000 in Kroger Co. stock 15 years ago would have grown to approximately $4,500 today, representing a significant return on investment. This performance, which outpaces many market benchmarks over the same period, highlights the company's consistent operational execution and ability to navigate the competitive grocery landscape. The growth trajectory suggests strong shareholder value creation through a combination of stock appreciation and reinvested dividends, making Kroger an attractive option for long-term income and growth-focused investors.

  • 3/5/2026POSITIVE
    Why Kroger Stock Popped Today

    Kroger stock saw a significant pop today, with investors identifying good value in the company's shares. While specific catalysts aren't detailed, the increased investor interest points to a positive outlook on Kroger's future prospects, possibly linked to attractive valuations or expectations of solid performance. This market movement indicates growing confidence in Kroger's growth potential and stability.

  • 3/5/2026POSITIVE
    Kroger extended its streak of sales misses — but that’s not hurting its profits

    Despite missing sales expectations for the quarter, Kroger Co. reported earnings per share that beat forecasts, showing increased profitability per sales dollar. The stock outperformed the market, closing higher on a day of broad selloffs. This outcome suggests that while revenue growth may be under pressure, cost management and operational efficiency are improving, benefiting margins. For investors, the ability to generate solid profits even with weaker-than-expected sales is a sign of resilience and potential value.

  • 3/4/2026POSITIVE
    How To Earn $500 A Month From Kroger Stock Ahead Of Q4 Earnings

    Kroger Co. offers an annual dividend yield of 2.04%, amounting to $1.40 per share. The article details how investors can leverage this yield to generate $500 in monthly income. While specific strategies are not elaborated, the focus on dividend income generation points to an opportunity for income-focused investors, particularly ahead of upcoming Q4 earnings. The stability of the grocery sector and Kroger's dividend policy could attract investment seeking consistent cash flows.

  • 2/25/2026NEUTRAL
    $100 Invested In Kroger 20 Years Ago Would Be Worth This Much Today

    Markets Gazette notes that a $100 investment in Kroger Co. two decades ago would have yielded a significant return. While this retrospective analysis doesn't offer an immediate trading signal, it underscores the importance of a long-term perspective and selecting robust companies in the retail sector. Kroger, with its extensive supermarket network and established position in the U.S. market, has demonstrated a remarkable ability to create shareholder value over twenty years. Investors can draw insights from such historical performance to assess the resilience and sustainable growth potential of companies with stable business models, even in mature industries. It serves as a reminder that patience and careful selection can pay off over time.

via Markets Gazette