Kroger Stock Analysis, Valuation (NYSE:KR)

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$21.44 $0.13 (0.6%) KR stock closing price Sep 18, 2017 (Closing)
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Kroger
Updated on : Sep 18, 2017
previous close
KR 21.4 (0%)
S&P 500 2503.9 (0%)
Closing Price On: Sep 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Supermarkets
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
2.4%
Sector Average:
5.6%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
14.05B
Debt/Equity Ratio:
 2.29
Compared to the industry
Cash Flow
Operating cash flow:
$1.02B
Net Income:
$353M
Dividend Yield
KR dividend yield:
2.24%
PROS      CONS
Recent Growth
Cash Flow
ROE
PE Valuation
PS Valuation
Operating Margins
Net Margins
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
KR PS :
0.2
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
8.8%
Return on Equity:
24.1%
Free Cash Flow Margin:
1.2%
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Kroger Analysis Video

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View Kroger stock analysis video. This is our KR analyst opinion covering the buy and sell arguments for KR stock.

The Kroger Co Stock Rating (3/5)

Our Kroger stock opinion is based on fundamentals of the company. This Kroger stock analysis is based on latest 2018 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy KR stock?

  • The Year Over Year (YoY) revenue growth for Kroger was 3.9% in 2018 Q2.
  • The company has an operating cash flow which is 2.9 times the net income.
  • The price to earnings multiple of 11.2 is attractive when compared with the industry average PE ratio of 17.6.
  • When compared with the Retail-Supermarkets industry average PS ratio of 0.7, the price-to-sales ratio of 0.2 for KR stock is attractive.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Kroger at 24.1%.

Should you sell KR stock?

  • Kroger had an unimpressive average operating margin of 2.4% during the Last Twelve Months (LTM).
  • Kroger's LTM Net margins were poor at 1.3%.
  • Kroger is debt laden and has a high debt/equity ratio of  2.29.

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