Kroger Stock Analysis, Valuation (NYSE:KR)

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$30.06 $0.39 (1.28%) KR stock closing price Aug 15, 2018 (Closing)

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 3.2/5

Amigobulls KR stock analysis takes into account various financial ratios like relative valuation, Kroger revenue, growth and return on equity based on latest quarter 2019 Q1 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 company saw a significant growth in revenue with a 5 year CAGR of 4.9.
  • The price to earnings multiple of 13.9 is attractive when compared with the sector average PE ratio of 21.4.
  • The lower PS ratio 0.2 for KR stock versus Retail-Wholesale sector average of 0.8 is a positive for the company.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Kroger at 56.1.
  • The company has a good Free Cash Flow (FCF) margin of 4.4.

Should you sell KR stock?

  • Kroger had an unimpressive average operating margin of 2.01 during the Last Twelve Months (LTM).
  • Kroger's Net margins were poor at 2.9% in the last twelve months.
  • Kroger has a debt/equity ratio of 2.06, which is worse than the average in the Retail-Wholesale sector.

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.