Kroger Company (KR) AI Stock Analysis

• Market Cap: $46.45B
• Dividend Yield: 1.82%
• Average Volume (3M): 8.07M
• Price to Earnings (P/E): 19.2
• Beta (1Y): -0.02
• Revenue Growth: -2.11%
• EPS Growth: 25.03%
• Country: US
• Employees: 409,000
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Grocery Stores
• EPS (TTM): 1.49
• Shares Outstanding: 661,155,800
• 10 Day Avg. Volume: 5,625,209
• 30 Day Avg. Volume: 8,067,740
• PEG Ratio: 0.17
• Price to Book (P/B): 5.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.79
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 3.11
• Enterprise Value/Ebitda: 2.04
• 1Y Price Target: $77.50
• Price Target Upside: 9.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $79.00 ▲(11.72%Upside)

Kroger's overall score of 73 reflects a balanced view of moderate financial performance and positive technical indicators. The company is successfully growing in e-commerce and fresh segments, but high leverage and challenges in profitability in certain areas, such as e-commerce and fuel, are key risks. Valuation remains a concern with a relatively low dividend yield.

Positive Factors

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.

Market Share and Sales Growth

KR outgrew the industry for the first time in over 2 years, indicating a positive market share inflection.

Pharmacy and Customer Growth

Pharmacy growth was strong and accelerated, driven by existing customers fulfilling more scripts and new customer growth due to competitor closures.

Negative Factors

Competitive and Macro Risks

The macro environment and heightened industry competition remain risks.

E-commerce Profitability

E-commerce remains unprofitable despite having the best QoQ improvement in profits yet.

Market Share Challenges

Modest market share losses are estimated, indicating that further valuation expansion likely requires stronger grocery market share trends.

Kroger Company Business Overview & Revenue Model

Company Description

The Kroger Company (KR) is one of the largest retail companies in the United States, operating a range of supermarket chains and multi-department stores. Founded in 1883 and headquartered in Cincinnati, Ohio, Kroger provides a variety of products and services including groceries, pharmaceuticals, and general merchandise. The company also operates fuel centers, convenience stores, and jewelry stores, serving millions of customers across the country.

How the Company Makes Money

Kroger makes money primarily through the sale of grocery products, which include fresh and prepared foods, as well as household essentials. The company's revenue model is built on a multi-channel retail strategy that includes brick-and-mortar stores, e-commerce, and private label brands. Key revenue streams include the sale of national and private label products, fuel, and pharmacy services. Additionally, Kroger has partnerships with a variety of suppliers and leverages data analytics through its loyalty programs to optimize inventory and marketing strategies. The company's earnings are also supported by its investments in technology and distribution networks to enhance operational efficiency and customer experience.

Kroger Company Financial Statement Overview

Summary

Kroger's financial performance is solid, with stable revenue and profitability. Improvements in profit margins and a strong ROE indicate operational efficiency. However, the increased leverage and declining free cash flow pose some financial risks.

Income Statement

Kroger displays robust revenue figures with a slight decline from $150.039B in 2024 to $147.123B in 2025, indicating a revenue growth rate of -1.94%. The gross profit margin improved to 22.7%, reflecting efficient cost management. The net profit margin is stable at 1.81%, aligning with industry norms. However, EBIT and EBITDA margins show an upward trend, suggesting operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio increased to 3.03, indicating higher leverage, which could pose risk during economic downturns. The equity ratio stands at 15.74%, implying moderate financial stability. Return on equity is 32.17%, showcasing strong profitability. However, the decrease in stockholders' equity from $11.615B to $8.281B is a concern.

Cash Flow

Operating cash flow to net income ratio is strong at 2.17, indicating healthy cash generation relative to net income. Free cash flow decreased significantly by 38.4% from 2024 to 2025, highlighting potential cash management issues. Free cash flow to net income ratio is 0.67, showing adequate conversion of earnings to free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	101.84B	147.12B	150.04B	148.26B	137.89B	132.50B
Gross Profit	23.26B	33.40B	33.36B	31.78B	30.35B	30.90B
EBITDA	12.27B	7.04B	7.04B	7.03B	6.06B	7.29B
Net Income	4.30B	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	340.00M	5.27B	3.10B	1.01B	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	10.01B	9.43B	9.55B
Cash Flow
Free Cash Flow	1.71B	1.78B	2.88B	1.23B	3.58B	3.95B
Operating Cash Flow	5.47B	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: 70.71
• 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 70.71 is above the 20-day moving average (MA) of 69.62, above the 50-day MA of 69.14, and above the 200-day MA of 63.18, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 38.58 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	73 Outperform	$46.45B	19.22	24.06%	1.82%	-2.11%	25.03%
SFM	72 Outperform	$15.63B	35.73	35.74%	―	15.51%	53.77%
ACI	71 Outperform	$12.59B	13.57	31.26%	2.69%	1.46%	-26.54%
WMK	69 Neutral	$2.00B	18.76	7.54%	1.82%	1.76%	6.01%
Sector *	65 Neutral	$26.88B	15.20	-4.27%	3.19%	1.02%	1.89%
IMKTA	65 Neutral	$1.23B	20.27	4.00%	1.00%	-7.79%	-64.85%
GO	58 Neutral	$1.26B	77.70	1.43%	―	10.37%	-73.84%

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.