Kroger Company (KR) AI Stock Analysis

• Market Cap: $45.83B
• Dividend Yield: 1.85%
• Average Volume (3M): 7.48M
• Price to Earnings (P/E): 18.8
• Beta (1Y): -0.01
• Revenue Growth: -2.11%
• EPS Growth: 25.03%
• Country: US
• Employees: 409,000
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Grocery Stores
• EPS (TTM): 1.49
• Shares Outstanding: 661,155,800
• 10 Day Avg. Volume: 5,829,174
• 30 Day Avg. Volume: 7,476,644
• PEG Ratio: N/A
• Price to Book (P/B): 5.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.61
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 3.05
• Enterprise Value/Ebitda: 3.20
• 1Y Price Target: $77.25
• Price Target Upside: 11.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 68 Neutral
• Price Target: $76.00 ▲(9.67%Upside)

Kroger's overall stock score reflects a balance of stable financial performance and positive long-term prospects driven by strategic focus on e-commerce and fresh categories. However, high leverage and challenges in e-commerce profitability pose risks. The moderate valuation and mixed technical signals suggest a cautious yet optimistic outlook.

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.

Pharmacy growth

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

Sales and market share

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

Negative Factors

Competition and consumer slowdown

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

E-commerce profitability

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

Market share loss

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

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 and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company's marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and price impact warehouse stores provide grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets and online; and sells fuel through 1,613 fuel centers. As of January 29, 2022, the company operated 2,726 supermarkets under various banner names in 35 states and the District of Columbia. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

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 shows stable profitability with a gross profit margin of 23% and a net profit margin of 1.76%. However, modest revenue growth and high leverage with a debt-to-equity ratio of 2.83 pose financial risks. The company demonstrates strong cash generation, but declining free cash flow growth is concerning.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.12B	150.04B	148.26B	137.89B	132.50B
Gross Profit	33.40B	33.36B	31.78B	30.35B	30.90B
EBITDA	7.64B	7.04B	7.03B	6.06B	7.29B
Net Income	2.67B	2.16B	2.24B	1.66B	2.58B
Balance Sheet
Total Assets	52.62B	50.51B	49.54B	49.09B	48.64B
Cash, Cash Equivalents and Short-Term Investments	5.27B	3.10B	2.14B	2.90B	2.78B
Total Debt	25.08B	19.25B	20.41B	20.44B	20.59B
Total Liabilities	44.34B	38.90B	39.52B	39.66B	39.09B
Stockholders Equity	8.29B	11.62B	10.01B	9.43B	9.55B
Cash Flow
Free Cash Flow	1.78B	2.88B	1.23B	3.58B	3.95B
Operating Cash Flow	5.79B	6.79B	4.31B	6.19B	6.82B
Investing Cash Flow	-3.23B	-3.75B	-3.02B	-2.61B	-2.81B
Financing Cash Flow	-490.00M	-2.17B	-2.29B	-3.44B	-2.71B

Kroger Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR, the sentiment is Neutral. The current price of 69.3 is below the 20-day moving average (MA) of 71.09, below the 50-day MA of 69.43, and above the 200-day MA of 64.31, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 7.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KR.

Kroger Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFM	72 Outperform	$15.36B	35.58	35.74%	―	15.51%	53.77%
KR	68 Neutral	$45.83B	18.84	24.06%	1.85%	-2.11%	25.03%
WMK	68 Neutral	$1.97B	18.38	7.54%	1.85%	1.76%	6.01%
Sector *	65 Neutral	$27.10B	15.29	-1.16%	3.10%	1.15%	2.75%
GO	64 Neutral	$1.32B	78.92	1.43%	―	10.37%	-73.84%
IMKTA	63 Neutral	$1.16B	19.19	4.00%	1.03%	-7.79%	-64.85%
ACI	61 Neutral	$11.01B	11.99	31.10%	2.93%	1.96%	-14.99%

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.