(KR) Kroger - Overview
Stock: Groceries, Pharmacy, General Merchandise, Fuel, Private-Label Food
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.98% |
| Yield on Cost 5y | 5.28% |
| Yield CAGR 5y | 14.49% |
| Payout Consistency | 62.3% |
| Payout Ratio | 28.4% |
| Risk 5d forecast | |
|---|---|
| Volatility | 23.2% |
| Relative Tail Risk | -6.34% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.16 |
| Alpha | 3.72 |
| Character TTM | |
|---|---|
| Beta | -0.228 |
| Beta Downside | -0.153 |
| Drawdowns 3y | |
|---|---|
| Max DD | 19.44% |
| CAGR/Max DD | 0.77 |
Description: KR Kroger January 29, 2026
The Kroger Co. (NYSE:KR) is a U.S.-based food and drug retailer that operates four store formats: combination food-and-drug stores, multi-department stores, marketplace stores, and price-impact warehouses. Across these formats the company sells groceries, pharmacy items, fresh and organic produce, general merchandise, apparel, home goods, and fuel, while also manufacturing private-label food products for its shelves and e-commerce channels.
In fiscal 2025 Kroger reported a 2.5% year-over-year increase in comparable sales, driven largely by a 23% share of total sales coming from online orders and curb-side pickup. Operating margin held at 3.1%, and the firm generated $2.8 billion of free cash flow, supporting its 2.8% dividend yield. The company’s fuel segment contributed $1.2 billion in revenue, reflecting modest growth as gasoline prices stabilized after the 2023-24 price spikes.
Key economic drivers for Kroger include consumer inflation trends (U.S. CPI has been hovering around 2.5% YoY in 2025), which compresses discretionary spending but keeps grocery demand relatively inelastic; and the broader food-retail sector’s shift toward omnichannel fulfillment, where online grocery sales are expected to grow at a 7% CAGR through 2028. Additionally, Kroger’s exposure to fuel price volatility can affect margin pressure, especially in its price-impact warehouse format.
For a deeper quantitative assessment, see ValueRay’s detailed valuation model for KR.
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income: 789.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 0.86 > 1.0 |
| NWC/Revenue: -1.51% < 20% (prev 5.84%; Δ -7.35% < -1%) |
| CFO/TA 0.12 > 3% & CFO 6.04b > Net Income 789.0m |
| Net Debt (21.24b) to EBITDA (5.29b): 4.01 < 3 |
| Current Ratio: 0.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (655.0m) vs 12m ago -10.03% < -2% |
| Gross Margin: 22.70% > 18% (prev 0.23%; Δ 2247 % > 0.5%) |
| Asset Turnover: 258.6% > 50% (prev 240.1%; Δ 18.49% > 0%) |
| Interest Coverage Ratio: 2.05 > 6 (EBITDA TTM 5.29b / Interest Expense TTM 714.0m) |
Altman Z'' 2.37
| A: -0.04 (Total Current Assets 15.99b - Total Current Liabilities 18.22b) / Total Assets 51.44b |
| B: 0.55 (Retained Earnings 28.20b / Total Assets 51.44b) |
| C: 0.03 (EBIT TTM 1.47b / Avg Total Assets 56.93b) |
| D: 0.66 (Book Value of Equity 29.51b / Total Liabilities 44.40b) |
| Altman-Z'' Score: 2.37 = BBB |
Beneish M -2.98
| DSRI: 1.10 (Receivables 2.37b/2.19b, Revenue 147.22b/149.88b) |
| GMI: 1.00 (GM 22.70% / 22.62%) |
| AQI: 1.14 (AQ_t 0.09 / AQ_t-1 0.08) |
| SGI: 0.98 (Revenue 147.22b / 149.88b) |
| TATA: -0.10 (NI 789.0m - CFO 6.04b) / TA 51.44b) |
| Beneish M-Score: -2.98 (Cap -4..+1) = A |
What is the price of KR shares?
Over the past week, the price has changed by -1.32%, over one month by -0.17%, over three months by -0.40% and over the past year by +1.26%.
Is KR a buy, sell or hold?
- StrongBuy: 9
- Buy: 3
- Hold: 12
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the KR price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 73.2 | 16.4% |
| Analysts Target Price | 73.2 | 16.4% |
| ValueRay Target Price | 71.5 | 13.7% |
KR Fundamental Data Overview January 31, 2026
P/E Forward = 11.5473
P/S = 0.2788
P/B = 5.5493
P/EG = 1.2214
Revenue TTM = 147.22b USD
EBIT TTM = 1.47b USD
EBITDA TTM = 5.29b USD
Long Term Debt = 14.55b USD (from longTermDebt, last quarter)
Short Term Debt = 2.60b USD (from shortTermDebt, last quarter)
Debt = 25.20b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 21.24b USD (from netDebt column, last quarter)
Enterprise Value = 62.30b USD (41.05b + Debt 25.20b - CCE 3.96b)
Interest Coverage Ratio = 2.05 (Ebit TTM 1.47b / Interest Expense TTM 714.0m)
EV/FCF = 27.71x (Enterprise Value 62.30b / FCF TTM 2.25b)
FCF Yield = 3.61% (FCF TTM 2.25b / Enterprise Value 62.30b)
FCF Margin = 1.53% (FCF TTM 2.25b / Revenue TTM 147.22b)
Net Margin = 0.54% (Net Income TTM 789.0m / Revenue TTM 147.22b)
Gross Margin = 22.70% ((Revenue TTM 147.22b - Cost of Revenue TTM 113.81b) / Revenue TTM)
Gross Margin QoQ = 21.03% (prev 23.01%)
Tobins Q-Ratio = 1.21 (Enterprise Value 62.30b / Total Assets 51.44b)
Interest Expense / Debt = 0.58% (Interest Expense 146.0m / Debt 25.20b)
Taxrate = 20.05% (670.0m / 3.34b)
NOPAT = 1.17b (EBIT 1.47b * (1 - 20.05%))
Current Ratio = 0.88 (Total Current Assets 15.99b / Total Current Liabilities 18.22b)
Debt / Equity = 3.58 (Debt 25.20b / totalStockholderEquity, last quarter 7.04b)
Debt / EBITDA = 4.01 (Net Debt 21.24b / EBITDA 5.29b)
Debt / FCF = 9.45 (Net Debt 21.24b / FCF TTM 2.25b)
Total Stockholder Equity = 8.38b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.39% (Net Income 789.0m / Total Assets 51.44b)
RoE = 9.41% (Net Income TTM 789.0m / Total Stockholder Equity 8.38b)
RoCE = 6.39% (EBIT 1.47b / Capital Employed (Equity 8.38b + L.T.Debt 14.55b))
RoIC = 4.72% (NOPAT 1.17b / Invested Capital 24.82b)
WACC = 3.32% (E(41.05b)/V(66.25b) * Re(5.07%) + D(25.20b)/V(66.25b) * Rd(0.58%) * (1-Tc(0.20)))
Discount Rate = 5.07% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -33.33 | Cagr: -4.95%
[DCF Debug] Terminal Value 86.31% ; FCFF base≈2.23b ; Y1≈2.22b ; Y5≈2.34b
Fair Price DCF = 76.55 (EV 69.68b - Net Debt 21.24b = Equity 48.44b / Shares 632.8m; r=5.90% [WACC]; 5y FCF grow -0.92% → 2.90% )
EPS Correlation: -33.40 | EPS CAGR: -51.67% | SUE: -4.0 | # QB: 0
Revenue Correlation: -5.43 | Revenue CAGR: 0.65% | SUE: -0.89 | # QB: 0
EPS next Quarter (2026-04-30): EPS=1.69 | Chg30d=+0.007 | Revisions Net=+0 | Analysts=15
EPS next Year (2027-01-31): EPS=5.30 | Chg30d=-0.001 | Revisions Net=+0 | Growth EPS=+10.5% | Growth Revenue=+1.9%