Kroger Stock Analysis, Valuation (NYSE:KR)

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$29.95 $0.77 (2.64%) KR stock closing price Sep 21, 2018 (Closing)

Watch the robo advisor video of Kroger stock analysis on Amigobulls. Our KR analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

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 3/5

Amigobulls KR stock analysis relies on business fundamentals such as Kroger revenue growth, profits and return on equity measures from the latest quarter 2019 Q2 earnings. We compare Kroger valuation with its sector peers to gauge relative attractiveness of KR stock. Kroger stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy KR stock?

  • Revenue growth has been tremendous with a compounded annual growth of 4.9 over the last 5 years.
  • KR stock is trading at an earnings multiple of 13.9 which is better than the sector average of 21.1.
  • KR stock is trading at a favorable price to sales multiple of 0.2 as against the Retail-Wholesale sector average multiple of 0.8.
  • Kroger has a good Return On Equity (ROE) of 56.1.
  • Kroger has a healthy FCF (Free Cash Flow) margin of 4.4.

Should you sell KR stock?

  • Kroger had a poor average operating margin of 2.01 over the last 4 quarters.
  • Kroger's LTM Net margins were poor at 2.9%.
  • Kroger is debt laden and has a high debt/equity ratio of 2.06.

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. Company's fundamentals remain one of the key driver of KR stock and helps investors in making good buy and sell decision.

Kroger revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Kroger stock.