-0.03%
-0.31%
9.51%
11.59%
30.85%
40.03%
121.56%
AI Spotlight on KR
Company Description
The Kroger Co. operates as a 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 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 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 1,613 fuel centers.As of January 29, 2022, the company operated 2,726 supermarkets under various banner names in 35 states and the District of Columbia.
The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.
Market Data
| Last Price | 61.04 |
| Change Percentage | -0.03% |
| Open | 61.41 |
| Previous Close | 61.06 |
| Market Cap ( Millions) | 44169 |
| Volume | 3699256 |
| Year High | 63.59 |
| Year Low | 44.48 |
| M A 50 | 60.13 |
| M A 200 | 55.71 |
Financial Ratios
| FCF Yield | 5.00% |
| Dividend Yield | 2.00% |
| ROE | 22.38% |
| Debt / Equity | 230.85% |
| Net Debt / EBIDTA | 211.19% |
| Price To Book | 3.42 |
| Price Earnings Ratio | 15.95 |
| Price To FCF | 19.99 |
| Price To sales | 0.29 |
| EV / EBITDA | 7.79 |
News
- Jan -30 - Kroger Kicks off a Big Game Savings Blitz
- Jan -30 - Kroger (KR) Ascends While Market Falls: Some Facts to Note
- Jan -23 - Kroger (KR) Stock Declines While Market Improves: Some Information for Investors
- Jan -22 - Sharp Sentiment Shift Could Be 2025's First Opportunity
- Jan -17 - Kroger Acquires Land in Fast-Growing Suburb for New Store
- Jan -17 - SDI Realty, Nexus Real Estate Co. Partner to Develop Kroger-Anchored Shopping Center in North Fort Worth
- Jan -17 - Albertsons Is Still Trading At A Steep Discount, Even After Strong Upside
- Jan -15 - Kroger: Potential To Be A Future Dividend Giant
- Jan -14 - Build the Perfect Bowl with Fresh Ingredients at Kroger
- Jan -13 - Kroger Health Expands Prescription Drug Safety Education Program to Reach More Than 470 Schools Across the United States
- Jan -10 - Kroger (KR) Advances While Market Declines: Some Information for Investors
- Jan -10 - The Kroger Family of Companies Pledging $1M to Support Families Impacted by Southern California Wildfires
- Jan -09 - Kroger to pay $110 million to resolve Kentucky lawsuit over opioid epidemic
- Jan -08 - Albertsons Profits Top Estimates in First Quarter Since End of Kroger Merger
- Jan -07 - Simple Truth's® Resolution Rescue Bundles Make Keeping New Year's Resolutions Easier Than Ever
- Jan -04 - Experts say high food prices are here to stay. Here's why
- Dec -31 - Kroger is a Good Buy for 2025 After Failed Albertson's Bid
- Dec -30 - 4 Strong Stock Charts For 2025 (Technical Analysis)
- Dec -30 - 3 Companies Buying Back Stock: Here's Why They're Doing It
- Dec -26 - Mega Buybacks in 2025: Why These 3 Leading Stocks Are Buys
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Non Perishable
Expected Growth : 2.0 %
What the company do ?
Non-Perishable from The Kroger Co. refers to packaged food and household products with a long shelf life, such as canned goods, snacks, and cleaning supplies.
Why we expect these perspectives ?
The 2.0% growth of Non-Perishable segment from The Kroger Co. is driven by increasing demand for convenient and shelf-stable products, private label expansion, and strategic pricing. Additionally, the company's focus on e-commerce and digital marketing, as well as its efforts to enhance the shopping experience, contribute to the segment's growth.
Segment n°2 -> Fresh
Expected Growth : 1.8 %
What the company do ?
Fresh from The Kroger Co. is a meal kit and grocery delivery service offering pre-measured ingredients and recipes for home cooking.
Why we expect these perspectives ?
Kroger's 1.8% growth in Fresh segment is driven by increasing demand for organic and natural products, successful implementation of its 'Restock Kroger' strategy, and investments in digital capabilities, including online ordering and curbside pickup. Additionally, the company's focus on private label brands and cost savings initiatives have contributed to the segment's growth.
Segment n°3 -> Supermarket Fuel
Expected Growth : 1.5 %
What the company do ?
Supermarket Fuel is a loyalty program by The Kroger Co. that rewards customers with fuel discounts and other perks for shopping at Kroger stores.
Why we expect these perspectives ?
Kroger's Supermarket Fuel growth is driven by increasing customer loyalty, strategic partnerships, and convenient location offerings. The 1.5% growth rate is also attributed to the company's focus on digital transformation, including mobile payment and loyalty app enhancements, as well as its competitive pricing strategy.
Segment n°4 -> Pharmacy
Expected Growth : 2.2 %
What the company do ?
The Kroger Co.'s Pharmacy offers health and wellness services, including immunizations, health clinics, and prescription refill services, within its retail stores.
Why we expect these perspectives ?
Kroger's pharmacy segment growth of 2.2% is driven by increasing demand for specialty medications, expansion of clinical services, and strategic partnerships with healthcare providers. Additionally, the company's focus on improving customer experience through digital transformation and loyalty programs contributes to the growth.
Segment n°5 -> Other
Expected Growth : 1.9 %
What the company do ?
The 'Other' segment from The Kroger Co. includes its subsidiaries, such as Kroger Personal Finance and Kroger Realty Company, which provide financial services and manage the company's real estate, respectively.
Why we expect these perspectives ?
Kroger's 'Other' segment, with 1.9% growth, is driven by increasing demand for alternative profit streams, such as Kroger Personal Finance, Kroger Wireless, and Kroger's media advertising business. Additionally, the company's growing presence in the digital coupon and online shopping space, as well as its investments in data analytics and loyalty programs, contribute to this growth.
The Kroger Co. Products
| Product Range | What is it ? |
|---|---|
| Grocery | Kroger offers a wide range of grocery products, including fresh produce, meat, dairy, bakery, and packaged goods. |
| Pharmacy Services | Kroger provides pharmacy services, including prescription filling, immunizations, and health clinics. |
| Fuel Centers | Kroger operates fuel centers, offering discounted fuel prices to loyalty program members. |
| Meal Solutions | Kroger offers prepared foods, including deli, bakery, and sushi, as well as meal kits and catering services. |
| Natural Foods | Kroger offers a selection of natural and organic products, including fresh produce, meat, and packaged goods. |
| Floral and Gift Shops | Kroger operates floral and gift shops, offering bouquets, arrangements, and gift items. |
| Loyalty Program | Kroger's loyalty program rewards customers with points, discounts, and exclusive offers. |
The Kroger Co.'s Porter Forces
Threat Of Substitutes
The threat of substitutes for Kroger is moderate due to the presence of alternative grocery stores and online shopping options. However, Kroger's strong brand recognition and loyalty programs help to mitigate this threat.
Bargaining Power Of Customers
The bargaining power of customers is low due to Kroger's large market share and lack of concentration among customers. Additionally, Kroger's loyalty programs and rewards help to reduce customer bargaining power.
Bargaining Power Of Suppliers
The bargaining power of suppliers is moderate due to the presence of large suppliers such as Procter & Gamble and PepsiCo. However, Kroger's large scale and diversified supplier base help to mitigate this threat.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the grocery retail industry, including the need for significant capital investment and established supply chains.
Intensity Of Rivalry
The intensity of rivalry is high due to the presence of several large competitors, including Walmart and Costco, and the ongoing price wars in the industry.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 48.71% |
| Debt Cost | 3.95% |
| Equity Weight | 51.29% |
| Equity Cost | 6.38% |
| WACC | 5.19% |
| Leverage | 94.96% |
The Kroger Co. : Quality Control
The Kroger Co. passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| VLGEA | Village Super Market, Inc. operates a chain of supermarkets in the United States. Its stores feature specialty departments, such as an on-site bakery, an expanded delicatessen; and various natural and … |
| MO | Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe … |
| COST | Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, … |
| NGVC | Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company's stores offer natural and organic grocery … |
| KHC | The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. Its products include condiments and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Altria
A-Score
1-Year Total Return ->
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Village Super Market
A-Score
1-Year Total Return ->
🥉
Kroger
A-Score
1-Year Total Return ->
4
Costco Wholesale
A-Score
1-Year Total Return ->
5
Natural Grocers
A-Score
1-Year Total Return ->
6
