The Kroger Co. (KR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ingles Markets, Inc.

Sprouts Farmers Market, Inc.

Weis Markets, Inc.

Natural Grocers by Vitamin Cottage, Inc.

Village Super Market, Inc.

The Kroger Co.

ARKO Corp.

Albertsons Cos., Inc.

Grocery Outlet Holding Corp.

Why is The Kroger Co. ?

With a fall in Operating Profit of -0.78%, the company declared Very Negative results in Aug 25

INTEREST(HY) At USD 409 MM has Grown at 92.92%
ROCE(HY) Lowest at 0%
INVENTORY TURNOVER RATIO(HY) Lowest at 0 times

With ROCE of 23.54%, it has a very expensive valuation with a 6.78 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 1.43%, its profits have fallen by -13.2%

Underperformed the market in the last 1 year

The stock has generated a return of 1.43% in the last 1 year, much lower than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Kroger Co. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The Kroger Co. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

The Kroger Co.

-0.54%

0.80

25.52%

S&P 500

22.93%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.42%

EBIT Growth (5y)

4.92%

EBIT to Interest (avg)

8.03

Debt to EBITDA (avg)

1.22

Net Debt to Equity (avg)

1.22

Sales to Capital Employed (avg)

6.03

Tax Ratio

20.64%

Dividend Payout Ratio

34.03%

Pledged Shares

Institutional Holding

91.94%

ROCE (avg)

21.47%

ROE (avg)

27.33%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

18.85

EV to EBIT

30.74

EV to EBITDA

16.70

EV to Capital Employed

7.57

EV to Sales

0.98

PEG Ratio

2.13

Dividend Yield

0.74%

ROCE (Latest)

24.63%

ROE (Latest)

55.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 7,243 MM

DIVIDEND PER SHARE(HY)

Highest at USD 67.31

RAW MATERIAL COST(Y)

Fallen by -2.21% (YoY

EPS(Q)

Highest at USD 1.36

-10What is not working for the Company

INTEREST(HY)

At USD 363 MM has Grown at 46.96%

ROCE(HY)

Lowest at 14.09%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 25.74%

DEBT-EQUITY RATIO (HY)

Highest at 339.36 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 67.31 times

Here's what is working for The Kroger Co.

Dividend per share

Highest at USD 67.31 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 7,243 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

EPS

Highest at USD 1.36

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -2.21% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for The Kroger Co.

Interest

At USD 363 MM has Grown at 46.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 339.36 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 67.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 25.74%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)