Kroger Stock Analysis, Valuation (NYSE:KR)

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$27.22 $0.19 (0.69%) KR stock closing price Feb 22, 2018 (Closing)
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Kroger
Updated on : Feb 22, 2018
previous close
KR 27.2 (0%)
S&P 500 2704 (0%)
Closing Price On: Feb 22, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Supermarkets
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
2.4%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
14.85B
Debt/Equity Ratio:
 2.39
Compared to the industry
Cash Flow
Operating cash flow:
-$271M
Net Income:
$397M
Dividend Yield
KR dividend yield:
1.8%
PROS      CONS
ROE
PE Valuation
PS Valuation
Operating Margins
Net Margins
High Debt Burden
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
KR PS :
0.2
Industry PS :
0.8
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
8.8%
Return on Equity:
24.5%
Free Cash Flow Margin:
-3.1%
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Kroger Stock Analysis

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View the Kroger stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for KR stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

The Kroger Co Stock Rating 2.7/5

Amigobulls KR stock analysis takes into account various financial ratios like relative valuation, Kroger revenue, growth and return on equity based on latest quarter 2018 Q3 financial statements. We also check Kroger dividend performance. Kroger valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Kroger stock rating which is indicative of the company's financial performance.

Should you buy KR stock?

  • The Kroger stock currently trades at a price to earnings ratio of 14. We rate this as a positive, compared to the industry average of 20.4.
  • The lower PS ratio 0.2 for KR stock versus Retail-Supermarkets industry average of 0.8 is a positive for the company.
  • Kroger has a good Return On Equity (ROE) of 24.5%.

Should you sell KR stock?

  • Kroger's TTM operating margin of 2.4% was rather poor.
  • Kroger's LTM Net margins were poor at 1.3%.
  • Kroger has a debt/equity ratio of  2.39, which is worse than the average in the Retail-Wholesale sector.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -3.1%.

Comments on this video and Kroger stock

Investors can use Amigobulls Kroger stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

Kroger revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about KR stock.