A Business at a Glance
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KROGER CO
KR
$37.3B
Mkt Cap
$56.87
+1.99%
KROGER CO (KR) has a current P/E ratio of 15.5, compared to its historical median P/E of 13.4. The stock is currently considered Fair based on its historical valuation range.
KROGER CO (KR) has a 5-year average return on invested capital (ROIC) of 13.3%. This indicates solid capital allocation.
KROGER CO (KR) has a market capitalization of $37.6B. It is classified as a large-cap stock.
Yes, KROGER CO (KR) pays a dividend with a trailing twelve-month yield of 2.41%. The company also returns capital through share buybacks, with a buyback yield of 7.18%.
Based on historical P/E analysis, KROGER CO (KR) appears fair. The current P/E of 15.5 is 16% above its historical median of 13.4. The estimated fair value CAGR (P/E method) is -0.1%.
KROGER CO (KR) operates in the Retail-Grocery Stores industry, within the Consumer Defensive sector.
KROGER CO (KR) reported annual revenue of $147.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Kroger is a diversified grocery retailer operating 2,731 supermarkets across 35 states and the District of Columbia under multiple local banners, complemented by 2,273 pharmacies and 1,702 fuel centers that drive customer loyalty and incremental revenue. The company earns income by selling products at price levels exceeding procurement, distribution, facility, and operational costs, with a business model anchored in high-volume, relatively low-margin retail transactions supplemented by higher-margin alternative profit businesses. Kroger's strategic differentiation rests on four pillars: Fresh (perishables and specialty departments), Our Brands (over $32 billion in private label sales across three quality tiers produced partly in-house through 33 food production plants), Data & Personalization (leveraging 63 million households and 95% loyalty-card-tethered transactions to drive personalized marketing and media revenue through Kroger Precision Marketing), and Seamless (omnichannel fulfillment via Pickup, Delivery, and Ship across 2,412 stores and digital platforms). The company operates a hybrid fulfillment model combining store-based fulfillment with third-party delivery partners (Instacart, DoorDash, Uber Eats) and automated centers, positioning e-commerce for profitability while maintaining asset-light economics. Kroger's customer base spans approximately 63 million households annually, with geographic diversification across 35 states and the District of Columbia, and its competitive moat is reinforced by scale, proprietary customer data, loyalty ecosystem integration, and a portfolio of owned and leased facilities that enable rapid fulfillment and local market responsiveness.
【Strategic modernization underway】 Management is executing a comprehensive transformation focused on balancing near-term profitability with long-term growth investments, including a 30% increase in new store openings in 2026 to expand into high-potential markets like Jacksonville and Kansas City. The company expects e-commerce to achieve profitability in 2026 through store-based fulfillment optimization and third-party partnerships, with media revenue expected to deliver double-digit growth as merchandising and media teams collaborate more closely. Cost-saving initiatives are expected to ramp throughout 2026 and accelerate beyond, providing funding for increased price investments and customer experience improvements while maintaining margin discipline; management is also launching a Global Capability Center with modest 2026 benefits and more significant contributions in 2027 and 2028. The company remains focused on delivering value to customers amid a competitive environment and uncertain consumer spending, with management committed to transparency on progress and prepared to share a detailed long-term framework at an upcoming investor update.
| Metric | Target | Period |
|---|---|---|
| Identical Sales Without Fuel Growth | 1%-2% | FY2026 |
| Adjusted FIFO Operating Profit | $5 billion-$5.2 billion | FY2026 |
| Capital Expenditures | $3.8 billion-$4 billion | FY2026 |
| Adjusted Free Cash Flow | $2.7 billion-$2.9 billion | FY2026 |
| E-commerce Profitability Improvements | approximately $400 million | FY2026 |
| New Store Openings Increase | 30% | FY2026 |
| Media Business Growth | double-digit growth | FY2026 |
| Convenience Offerings Sales (with Instacart) | over $1.5 billion | FY2026 |
Identical Sales Without Fuel Growth (FY2026): “We expect identical sales without fuel growth in a range of 1%-2%.”
Adjusted FIFO Operating Profit (FY2026): “We expect adjusted FIFO operating profit in a range of $5 billion-$5.2 billion.”
Capital Expenditures (FY2026): “We expect capital expenditures of $3.8 billion-$4 billion, with increased investments in new store growth.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 147.6B | 147.1B | 150.0B | 148.3B | 137.9B |
| Net Income | 3.9B | 1.0B | 2.6B | 2.1B | 2.2B | 1.6B |
| EPS | $5.50 | $1.54 | $3.67 | $2.96 | $3.06 | $2.17 |
| Free Cash Flow | 0 | 3.5B | 1.8B | 2.9B | 1.4B | 3.6B |
| ROIC | 0.0% | 8.4% | 15.3% | 12.1% | 16.3% | 14.5% |
| Gross Margin | - | 23.3% | 22.7% | 22.2% | 21.4% | 22.0% |
| Debt/Equity | 0.03 | 2.68 | 1.92 | 0.88 | 1.12 | 1.24 |
| Dividends/Share | $0.00 | $1.37 | $1.25 | $1.13 | $0.99 | $0.81 |
| Operating Income | 0 | 1.9B | 3.8B | 3.1B | 4.1B | 3.5B |
| Operating Margin | 0.0% | 1.3% | 2.6% | 2.1% | 2.8% | 2.5% |
| ROE | 47.4% | 14.2% | 26.6% | 19.8% | 22.8% | 17.2% |
| Shares Outstanding | 661M | 655M | 721M | 725M | 727M | 755M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 108.5B | 109.8B | 115.3B | 123.3B | 121.9B | 122.3B | 132.5B | 137.9B | 148.3B | 150.0B | 147.1B | 147.6B | 0 |
| Gross Margin | 21.2% | 22.2% | 22.4% | 22.4% | 22.1% | 22.1% | 23.3% | 22.0% | 21.4% | 22.2% | 22.7% | 23.3% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 17.2B | 17.9B | 22.4B | 25.0B | 24.3B | 24.7B | 28.1B | 26.9B | 27.7B | 30.3B | 29.6B | 32.5B | 32.5B |
| EBIT | 3.1B | 3.6B | 3.5B | 2.6B | 2.6B | 2.3B | 2.8B | 3.5B | 4.1B | 3.1B | 3.8B | 1.9B | 0 |
| Op. Margin | 2.9% | 3.3% | 3.0% | 2.1% | 2.1% | 1.8% | 2.1% | 2.5% | 2.8% | 2.1% | 2.6% | 1.3% | 0.0% |
| Net Income | 1.7B | 2.0B | 2.0B | 1.9B | 3.1B | 1.6B | 2.6B | 1.6B | 2.2B | 2.1B | 2.6B | 1.0B | 3.9B |
| Net Margin | 1.6% | 1.9% | 1.7% | 1.5% | 2.5% | 1.3% | 1.9% | 1.2% | 1.5% | 1.4% | 1.8% | 0.7% | 0.0% |
| Non-Recurring | 46M | 26M | 0 | 141M | -2.0M | 358M | 129M | 44M | 200M | 56M | 312M | 5.4B | 5.4B |
| Returns on Capital | |||||||||||||
| ROIC | 11.3% | 11.4% | 13.1% | 13.4% | 10.2% | 8.6% | 10.7% | 14.5% | 16.3% | 12.1% | 15.3% | 8.4% | 0.0% |
| ROE | 31.9% | 29.9% | 29.0% | 27.7% | 41.5% | 19.9% | 28.1% | 17.2% | 22.8% | 19.8% | 26.6% | 14.2% | 47.4% |
| ROA | 5.7% | 6.0% | 5.6% | 5.1% | 8.2% | 3.9% | 5.4% | 3.4% | 4.5% | 4.3% | 5.1% | 2.0% | 7.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 4.2B | 4.9B | 4.3B | 3.4B | 4.2B | 4.7B | 6.8B | 6.2B | 4.5B | 6.8B | 5.8B | 7.3B | 0 |
| Free Cash Flow | 1.3B | 1.6B | 573M | 604M | 1.2B | 1.5B | 4.0B | 3.6B | 1.4B | 2.9B | 1.8B | 3.5B | 0 |
| Owner Earnings | 2.1B | 2.7B | 1.8B | 826M | 1.5B | 1.9B | 3.9B | 3.2B | 1.3B | 3.5B | 2.4B | 3.8B | -3.5B |
| CapEx | 2.8B | 3.3B | 3.7B | 2.8B | 3.0B | 3.1B | 2.9B | 2.6B | 3.1B | 3.9B | 4.0B | 3.9B | 0 |
| Maint. CapEx | 1.9B | 2.1B | 2.3B | 2.4B | 2.5B | 2.6B | 2.7B | 2.8B | 3.0B | 3.1B | 3.2B | 3.3B | 3.3B |
| Growth CapEx | 883M | 1.3B | 1.4B | 373M | 502M | 479M | 118M | 0 | 113M | 779M | 771M | 523M | 0 |
| D&A | 1.9B | 2.1B | 2.3B | 2.4B | 2.5B | 2.6B | 2.7B | 2.8B | 3.0B | 3.1B | 3.2B | 3.3B | 3.3B |
| CapEx/OCF | 68.0% | 68.1% | 86.6% | 82.3% | 71.3% | 67.1% | 42.0% | 42.2% | 68.4% | 57.5% | 69.3% | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 338M | 385M | 429M | 443M | 437M | 486M | 534M | 589M | 682M | 796M | 883M | 885M | 0 |
| Dividend Yield | 0.8% | 1.3% | 1.6% | 2.3% | 2.3% | 2.7% | 2.4% | 2.2% | 2.1% | 2.5% | 2.3% | N/A | N/A |
| Share Buybacks | 1.3B | 703M | 1.8B | 1.6B | 2.0B | 465M | 1.3B | 1.6B | 993M | 62M | 4.2B | 2.7B | 2.7B |
| Buyback Yield | 4.6% | 2.3% | 6.7% | 6.9% | 10.1% | 2.3% | 5.3% | 5.4% | 3.2% | 0.2% | 9.7% | 0.0% | 7.2% |
| Stock-Based Comp | 155M | 165M | 141M | 151M | 154M | 155M | 185M | 203M | 190M | 172M | 175M | 157M | 157M |
| Debt Repayment | 375M | 1.2B | 1.4B | 788M | 1.4B | 2.3B | 747M | 1.4B | 552M | 1.3B | 4.9B | 540M | 540M |
| Balance Sheet | |||||||||||||
| Net Debt | 12.9B | 13.9B | 13.0B | 14.4B | 13.9B | 12.9B | 10.7B | 9.9B | 10.3B | 8.3B | 11.9B | 12.5B | -3.7B |
| Cash & Equiv. | 268M | 277M | 322M | 347M | 429M | 399M | 1.7B | 1.8B | 1.0B | 1.9B | 4.0B | 3.3B | 4.0B |
| Long-Term Debt | 9.7B | 9.7B | 11.1B | 11.3B | 11.2B | 11.3B | 11.6B | 11.3B | 10.1B | 10.2B | 15.8B | 14.5B | 14.5B |
| Debt/Equity | 2.49 | 2.12 | 1.99 | 2.13 | 1.82 | 1.54 | 1.30 | 1.24 | 1.12 | 0.88 | 1.92 | 2.68 | 0.03 |
| Interest Coverage | 6.4 | 7.4 | 6.6 | 4.3 | 4.2 | 3.7 | 5.1 | 6.1 | 7.7 | 7.0 | 962.3 | N/A | N/A |
| Equity | 5.4B | 6.8B | 6.7B | 6.9B | 7.9B | 8.6B | 9.6B | 9.5B | 10.0B | 11.6B | 8.3B | 5.9B | 8.3B |
| Total Assets | 30.5B | 33.9B | 36.5B | 37.2B | 38.1B | 45.3B | 48.7B | 49.1B | 49.6B | 50.5B | 52.6B | 50.0B | 52.6B |
| Total Liabilities | 25.1B | 27.1B | 29.8B | 30.3B | 30.3B | 36.7B | 39.1B | 39.7B | 39.6B | 38.9B | 44.3B | 44.0B | 44.3B |
| Intangibles | 757M | 1.1B | 1.2B | 1.1B | 1.3B | 1.1B | 997M | 942M | 899M | 899M | 834M | 808M | 808M |
| Retained Earnings | 12.4B | 14.0B | 15.5B | 17.0B | 19.7B | 21.0B | 23.0B | 24.1B | 25.6B | 26.9B | 28.7B | 28.9B | 28.9B |
| Working Capital | -2.5B | -3.1B | -2.5B | -3.1B | -3.5B | -3.4B | -2.9B | -4.1B | -4.6B | -3.1B | -667M | -3.6B | -3.6B |
| Current Assets | 8.9B | 9.9B | 10.3B | 11.1B | 10.8B | 10.9B | 12.5B | 12.2B | 12.7B | 12.9B | 15.3B | 14.5B | 14.5B |
| Current Liabilities | 11.4B | 13.0B | 12.9B | 14.2B | 14.3B | 14.2B | 15.4B | 16.3B | 17.2B | 16.1B | 15.9B | 18.1B | 18.1B |
| Per Share Data | |||||||||||||
| EPS | 0.86 | 2.06 | 2.05 | 2.09 | 3.76 | 2.04 | 3.27 | 2.17 | 3.06 | 2.96 | 3.67 | 1.54 | 5.50 |
| Owner EPS | 1.03 | 2.69 | 1.87 | 0.91 | 1.89 | 2.31 | 4.97 | 4.19 | 1.85 | 4.82 | 3.29 | 5.83 | -5.28 |
| Book Value | 2.69 | 6.89 | 7.01 | 7.66 | 9.64 | 10.70 | 12.25 | 12.51 | 13.82 | 16.02 | 11.50 | 9.05 | 12.54 |
| Cash Flow/Share | 2.07 | 4.97 | 4.47 | 3.77 | 5.09 | 5.80 | 8.72 | 8.20 | 6.19 | 9.36 | 8.04 | 11.16 | 10.99 |
| Dividends/Share | 0.18 | 0.41 | 0.47 | 0.50 | 0.55 | 0.62 | 0.70 | 0.81 | 0.99 | 1.13 | 1.25 | 1.37 | 0.00 |
| Shares Out. | 2.0B | 989.8M | 955.6M | 904.3M | 818.1M | 803.9M | 781.7M | 755.3M | 726.8M | 725.0M | 720.7M | 655.2M | 660.9M |
| Valuation | |||||||||||||
| P/E Ratio | 16.1 | 14.9 | 13.4 | 12.4 | 6.4 | 12.2 | 9.7 | 18.3 | 13.7 | 14.9 | 16.0 | N/A | 10.3 |
| P/FCF | 41.8 | 19.4 | 45.9 | 38.8 | 16.5 | 13.0 | 6.3 | 8.4 | 21.5 | 11.1 | 23.9 | N/A | N/A |
| EV/EBIT | 13.0 | 12.4 | 12.3 | 16.1 | 14.3 | 9.9 | 8.3 | 8.1 | 7.3 | 9.3 | 9.1 | N/A | N/A |
| Price/Book | 5.1 | 4.5 | 4.0 | 3.4 | 2.5 | 2.3 | 2.6 | 3.2 | 3.1 | 2.8 | 5.2 | N/A | 4.5 |
| Price/Sales | 0.2 | 0.3 | 0.2 | 0.2 | 0.2 | 0.1 | 0.2 | 0.2 | 0.2 | 0.2 | 0.3 | N/A | N/A |
| FCF Yield | 4.8% | 5.1% | 2.2% | 2.6% | 6.0% | 7.6% | 15.8% | 11.8% | 4.6% | 8.9% | 4.2% | N/A | N/A |
| Market Cap | 27.8B | 30.4B | 26.5B | 23.7B | 20.0B | 20.2B | 25.0B | 30.3B | 30.7B | 32.3B | 42.8B | 0 | 37.6B |
| Avg. Price | 20.33 | 30.29 | 28.42 | 21.76 | 23.56 | 21.99 | 28.87 | 36.23 | 45.12 | 43.65 | 52.99 | 0.00 | 56.87 |
| Year-End Price | 27.71 | 30.76 | 27.50 | 25.93 | 24.14 | 24.81 | 31.64 | 39.67 | 41.92 | 44.12 | 58.87 | 0.00 | 56.87 |
KROGER CO passes 3 of 9 quality checks, indicating weak fundamentals.
KROGER CO trades at 15.5x trailing earnings, compared to its 15-year median P/E of 13.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 23.2x vs a median of 16.5x. The company's 5-year average ROIC is 13.3% with a gross margin of 22.3%. Total shareholder yield (dividends + buybacks) is 9.6%. At current prices, the estimated annualized return to fair value is +5.5%.
KROGER CO (KR) has a net profit margin of 0.7%. This is a modest margin.
KROGER CO (KR) generated $3.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
KROGER CO (KR) has a debt-to-equity ratio of 2.68. This indicates higher leverage, which may increase financial risk.
KROGER CO (KR) reported earnings per share (EPS) of $1.54 in its most recent fiscal year.
KROGER CO (KR) has a return on equity (ROE) of 14.2%. This indicates moderate shareholder returns.
KROGER CO (KR) has a 5-year average gross margin of 22.3%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for KROGER CO (KR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
KROGER CO (KR) has a book value per share of $9.05, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is executing a comprehensive transformation focused on balancing near-term profitability with long-term growth investments, including a 30% increase in new store openings in 2026 to expand into high-potential markets like Jacksonville and Kansas City. The company expects e-commerce to achieve profitability in 2026 through store-based fulfillment optimization and third-party partnerships, with media revenue expected to deliver double-digit growth as merchandising and media teams collaborate more closely. Cost-saving initiatives are expected to ramp throughout 2026 and accelerate beyond, providing funding for increased price investments and customer experience improvements while maintaining margin discipline; management is also launching a Global Capability Center with modest 2026 benefits and more significant contributions in 2027 and 2028. The company remains focused on delivering value to customers amid a competitive environment and uncertain consumer spending, with management committed to transparency on progress and prepared to share a detailed long-term framework at an upcoming investor update.
Based on recent SEC filings and earnings calls, KROGER CO (KR) has provided the following forward guidance: Identical Sales Without Fuel Growth: 1%-2% (FY2026); Adjusted FIFO Operating Profit: $5 billion-$5.2 billion (FY2026); Capital Expenditures: $3.8 billion-$4 billion (FY2026); Adjusted Free Cash Flow: $2.7 billion-$2.9 billion (FY2026); E-commerce Profitability Improvements: approximately $400 million (FY2026), plus 3 additional metrics.
Adjusted Free Cash Flow (FY2026): “We expect adjusted free cash flow of $2.7 billion-$2.9 billion”
E-commerce Profitability Improvements (FY2026): “We expect these decisions to contribute approximately $400 million in e-commerce profitability improvements in 2026, making our e-commerce business profitable in 2026.”
New Store Openings Increase (FY2026): “In 2026, we expect to increase new store openings by 30%”
Media Business Growth (FY2026): “we expect media to deliver double-digit growth in 2026.”
Convenience Offerings Sales (with Instacart) (FY2026): “Together with Instacart, we expect our convenience offerings to deliver over $1.5 billion in sales in 2026”