Kroger Company (KR) AI Stock Analysis

• Market Cap: $46.76B
• Dividend Yield: 1.82%
• Average Volume (3M): 6.39M
• Price to Earnings (P/E): 19.2
• Beta (1Y): <0.01
• Revenue Growth: -2.11%
• EPS Growth: 25.03%
• Country: US
• Employees: 409,000
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Grocery Stores
• EPS (TTM): 1.49
• Shares Outstanding: 661,155,800
• 10 Day Avg. Volume: 6,914,976
• 30 Day Avg. Volume: 6,394,102
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.13
• Enterprise Value/Ebitda: 8.34
• 1Y Price Target: $76.71
• Price Target Upside: 7.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 70 Outperform
• Price Target: $77.00 ▲(7.81% Upside)

Kroger's overall stock score reflects a stable financial performance with significant leverage, balanced by strong operational efficiency and cash generation. The earnings call provided a positive outlook with strategic growth initiatives, despite challenges in store closures and e-commerce profitability. Technical analysis and valuation present a mixed picture, with no significant undervaluation or overvaluation.

Positive Factors

Cost Management

Strong cost management and potential modest tailwinds from higher Food at Home inflation and Express Scripts re-entering the ID base are expected to accelerate EBIT growth.

E-commerce Growth

Faster e-commerce growth of 15% YoY contributed an incremental growth suggesting e-commerce growth likely accounted for the majority of the sequential market share improvements.

Sales and Market Share

KR outgrew the industry for the first time in over 2 years, driven by strong pharmacy growth and new customer growth due to competitor closures.

Negative Factors

E-commerce Profitability

E-commerce remains unprofitable despite having the best QoQ improvement in profits yet, leading to questions about KR's longer-term commitment to Ocado.

Industry Competition

Heightened competition and risk of a broader consumer slowdown balance risk/reward.

Market Share Losses

There are modest market share losses and further valuation expansion likely requires stronger grocery market share trends.

Kroger Company Business Overview & Revenue Model

Company Description

Kroger Company (KR) is one of the largest grocery chains in the United States, operating supermarkets and multi-department stores under various banners, including Kroger, Ralphs, Fred Meyer, and King Soopers. The company provides a wide range of products and services, including groceries, pharmacy, health and beauty, and general merchandise. Kroger also offers online shopping and delivery services, catering to the evolving shopping preferences of consumers.

How the Company Makes Money

Kroger generates revenue primarily through the sale of food and grocery items, which includes fresh produce, meat, dairy products, and canned goods. The company operates on a low-margin, high-volume business model, where it sells a large volume of products at competitive prices. Key revenue streams include in-store sales, online grocery orders, and pharmacy services. Additionally, Kroger earns income through its private label products, which typically have higher margins than national brands. The company also benefits from pharmacy sales, fuel centers, and partnerships with third-party vendors for advertising and promotions, contributing to its overall earnings.

Kroger Company Financial Statement Overview

Summary

Kroger's financial statements depict a stable yet leveraged company with moderate profitability. The income statement shows steady operational efficiency, but the high debt-to-equity ratio and low equity ratio on the balance sheet highlight financial risks. Strong cash generation is evident, but declining free cash flow growth could impact future liquidity.

Income Statement

Kroger's income statement reveals a stable gross profit margin of approximately 23%, with a TTM net profit margin of 1.76%. The revenue growth has been modest, slightly declining over the past year. However, EBIT and EBITDA margins are relatively steady, indicating decent operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.83, indicating significant leverage. Return on equity has been improving, currently at 29% TTM, suggesting effective use of equity. The equity ratio is low at 16.7%, highlighting potential financial risk due to high liabilities.

Cash Flow

Kroger's cash flow statement displays a healthy operating cash flow to net income ratio of 2.12 TTM, indicating strong cash generation relative to its earnings. However, the free cash flow growth has declined, and the free cash flow to net income ratio is relatively low, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.97B	147.12B	150.04B	148.26B	137.89B	132.50B
Gross Profit	30.51B	30.16B	30.24B	28.81B	27.52B	28.15B
EBITDA	7.77B	7.65B	7.04B	7.03B	6.06B	7.29B
Net Income	2.58B	2.67B	2.16B	2.24B	1.66B	2.58B
Balance Sheet
Total Assets	53.25B	52.62B	50.51B	49.54B	49.09B	48.64B
Cash, Cash Equivalents and Short-Term Investments	5.92B	5.27B	3.10B	2.14B	2.90B	2.78B
Total Debt	25.21B	25.08B	19.25B	20.41B	20.44B	20.59B
Total Liabilities	44.34B	44.34B	38.90B	39.52B	39.66B	39.09B
Stockholders Equity	8.91B	8.29B	11.62B	10.04B	9.45B	9.58B
Cash Flow
Free Cash Flow	1.84B	1.78B	2.88B	1.23B	3.58B	3.95B
Operating Cash Flow	5.60B	5.79B	6.79B	4.31B	6.19B	6.82B
Investing Cash Flow	-3.25B	-3.23B	-3.75B	-3.02B	-2.61B	-2.81B
Financing Cash Flow	-473.00M	-490.00M	-2.17B	-2.29B	-3.44B	-2.71B

Kroger Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 71.42 is above the 20-day moving average (MA) of 71.07, above the 50-day MA of 70.46, and above the 200-day MA of 65.29, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 45.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KR.

Kroger Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR	70 Outperform	$46.76B	19.22	24.06%	1.82%	-2.11%	25.03%
GO	68 Neutral	$1.79B	232.41	0.68%	―	8.47%	-85.17%
WMK	67 Neutral	$1.77B	17.78	7.86%	1.90%	2.49%	15.99%
SFM	67 Neutral	$14.39B	31.12	36.94%	―	16.83%	52.71%
Sector *	63 Neutral	$20.95B	14.50	-4.08%	3.12%	2.72%	-11.24%
ACI	61 Neutral	$10.88B	11.85	31.10%	2.89%	1.96%	-14.99%
IMKTA	52 Neutral	$1.22B	22.10	3.58%	1.01%	-7.96%	-64.67%

Kroger Company Corporate Events

Kroger Company Holds Annual Shareholders Meeting

On June 26, 2025, Kroger Company held its Annual Meeting of Shareholders, where ten directors were elected, executive compensation was approved, and PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025. Several shareholder proposals were rejected, including reports on cigarette pollution, a third-party framework for U.S. farmers, and consumer health data privacy. During the meeting, technical difficulties affected the audio webcast, preventing the final question’s response from being heard. The company addressed concerns about tariffs, stating efforts to avoid passing costs to consumers by sourcing products from less affected areas.

The most recent analyst rating on (KR) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Kroger Company stock, see the KR Stock Forecast page.