Kroger Company (KR)
NYSE:KR
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Kroger Company
(NYSE:KR)
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Rating:55Neutral
Price Target:
$66.00
▼(-0.03% Downside)
Action:Reiterated
Date:04/04/26
The score is held back primarily by weakening margins and high leverage (debt-to-equity ~4.16x), partially offset by strong and improving cash generation (FCF +49% YoY). Technicals are mildly supportive, but valuation is a notable headwind given the elevated P/E (~40) relative to the business profile.
Positive Factors
Strong free cash flow generation
Sustained FCF growth provides durable internal funding to support capex, reinvestment in digital/fulfillment, private-label manufacturing, dividend funding, or debt reduction. Strong cash generation boosts strategic optionality even if margins remain thin.
Negative Factors
High leverage and eroded equity
Elevated leverage reduces financial flexibility to invest, absorb shocks, or pursue M&A. Declining equity amplifies gearing metrics and raises refinancing and covenant risk, particularly given the low‑margin retail backdrop and ongoing capital needs for fulfillment and store investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained FCF growth provides durable internal funding to support capex, reinvestment in digital/fulfillment, private-label manufacturing, dividend funding, or debt reduction. Strong cash generation boosts strategic optionality even if margins remain thin.
Read all positive factors
Kroger Company Key Performance Indicators (KPIs)
Any
Store Count
Indicates the total number of retail locations, highlighting the company's market reach and potential for customer engagement. A growing store count can signal expansion and increased market penetration.
Indicates the total number of retail locations, highlighting the company's market reach and potential for customer engagement. A growing store count can signal expansion and increased market penetration.
Data provided by:
The Fly
The FlyKroger Company (KR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.12B
Dividend Yield2.15%
Average Volume (3M)4.71M
Price to Earnings (P/E)11.5
Beta (1Y)-0.16
Revenue Growth0.35%
EPS Growth-57.81%
CountryUS
Employees409,000
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)1.57
Shares Outstanding616,560,670
10 Day Avg. Volume4,723,282
30 Day Avg. Volume4,705,366
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)6.91
Price to Sales (P/S)0.28
P/FCF Ratio12.23
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit2.09
Enterprise Value/Ebitda7.59
Forecast
1Y Price Target
$76.31Price Target Upside15.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)5.24
Revenue Forecast (FY)$149.41B
Kroger Company Business Overview & Revenue Model
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 an...
How the Company Makes Money
Kroger primarily makes money by selling groceries and everyday consumer products to retail customers through its stores and digital platforms, generating the majority of revenue from food and consumables (including fresh and center-store items) an...
Kroger Company Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jun 11, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced view with significant achievements in e-commerce growth and profitability, strong performance in pharmacy, and expansion plans. However, there are notable challenges, such as the closure of fulfillment centers, the impact of the Inflation Reduction Act, and economic pressures affecting sales.Positive Updates
E-commerce Growth and Profitability
E-commerce sales grew by 17% this quarter, led by delivery. The company expects approximately $400 million in e-commerce profitability improvements in 2026, making the e-commerce business profitable.
Negative Updates
Closure of Automated Fulfillment Centers
Three automated fulfillment centers will be closed due to not meeting operational and financial expectations, expected to close by January 2026.
Read all updates
Q3-2025 Updates
Positive
Negative
E-commerce Growth and Profitability
E-commerce sales grew by 17% this quarter, led by delivery. The company expects approximately $400 million in e-commerce profitability improvements in 2026, making the e-commerce business profitable.
Read all positive updates
Company Guidance
During The Kroger Co.'s third-quarter 2025 earnings call, the company provided guidance and updates on its strategic initiatives. The company highlighted a strong performance in e-commerce, achieving six consecutive quarters of double-digit sales growth and expecting the e-commerce business to be profitable by 2026, contributing approximately $400 million in profitability improvements. Identical sales without fuel grew 2.6% year-over-year, with a two-year stack increase of 4.9%, led by pharmacy and e-commerce. Kroger plans to expand its store footprint by breaking ground on 14 new stores in the fourth quarter, with a 30% increase in new store builds expected in 2026. The company is also closing three automated fulfillment centers by January 2026, focusing on a hybrid fulfillment model using both automated and store-based fulfillment. Kroger aims to maintain gross margin stability through a mix of private label performance, supply chain efficiencies, and promotional activities. The company narrowed its identical sales growth guidance to 2.8% to 3% and adjusted EPS guidance to $4.75 to $4.80 for the full year.Kroger Company Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
42
Neutral
Cash Flow
74
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 147.64B | 147.12B | 150.04B | 148.26B | 137.89B |
| Gross Profit | 31.07B | 30.16B | 30.24B | 28.81B | 27.52B |
| EBITDA | 5.81B | 8.48B | 8.71B | 8.11B | 7.17B |
| Net Income | 1.02B | 2.67B | 2.16B | 2.24B | 1.66B |
Balance Sheet | |||||
| Total Assets | 49.94B | 52.62B | 50.51B | 49.62B | 49.09B |
| Cash, Cash Equivalents and Short-Term Investments | 4.58B | 5.27B | 3.10B | 2.14B | 2.90B |
| Total Debt | 24.68B | 25.08B | 19.25B | 20.41B | 20.44B |
| Total Liabilities | 44.01B | 44.34B | 38.90B | 39.61B | 39.66B |
| Stockholders Equity | 5.93B | 8.29B | 11.62B | 10.04B | 9.45B |
Cash Flow | |||||
| Free Cash Flow | 3.35B | 1.78B | 2.88B | 1.23B | 3.58B |
| Operating Cash Flow | 7.21B | 5.79B | 6.79B | 4.31B | 6.19B |
| Investing Cash Flow | -3.91B | -3.23B | -3.75B | -3.02B | -2.61B |
| Financing Cash Flow | -3.98B | -490.00M | -2.17B | -2.29B | -3.44B |
Kroger Company Technical Analysis
Positive
66.02
Price Trends
69.35
Negative
66.99
Positive
66.51
Positive
Market Momentum
-0.68
Negative
55.12
Neutral
71.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR, the sentiment is Positive. The current price of 66.02 is below the 20-day moving average (MA) of 66.60, below the 50-day MA of 69.35, and below the 200-day MA of 66.51, indicating a neutral trend. The MACD of -0.68 indicates Negative momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 71.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KR.
Kroger Company Risk Analysis
Kroger Company disclosed 15 risk factors in its most recent earnings report. Kroger Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kroger Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.78B | 15.16 | 7.49% | 2.06% | 4.14% | -0.27% | |
67 Neutral | $8.31B | 11.19 | 36.06% | ― | 10.25% | 17.03% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $1.60B | 17.42 | 6.41% | 0.93% | -0.28% | 68.37% | |
55 Neutral | $42.12B | 11.48 | 13.04% | 2.15% | 0.35% | -57.81% | |
51 Neutral | $8.31B | -4.74 | 8.17% | 3.49% | 3.46% | -80.55% | |
48 Neutral | $750.82M | -0.99 | -36.58% | ― | 6.04% | -2370.84% |
* Consumer Defensive Sector Average
KR
Kroger Company
70.60
2.52
3.70%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.