KROGER CO (KR) Factsheet
KROGER CO (KR) Stock Analysis
Analysis from 10-Q filed 2025-12-12. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 4.7%. FCF margin 2.3%. D/E 2.7x. Source: 10-Q filed 2025-12-12.
| Metric | Value | Context |
|---|---|---|
| ROIC | 4.7% | Below expectations |
| FCF Margin | 2.3% | Cash flow pressure |
| Debt/Equity | 2.7x | Elevated debt |
ROIC 4.7% — Bottom 50% of sector peers. FCF margin 2.3% — Top 50%.
Explore KROGER CO: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for KR: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: KROGER CO earns 4.7% ROIC, Bottom 50% in Consumer Discretionary
ROIC TTM 4.7%, sector median 8.1%, Bottom 50%. DuPont: NOPAT margin 1.1% × asset turnover 2.8x. Gross margin 23.3%. Operating margin 1.3%. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 4.7% | Warning | Below sector median of 8.1% |
| Return on Equity (ROE) | 12.4% | Adequate | Moderate equity returns |
| Gross Margin | 23.3% | Adequate | Competitive pricing environment |
| Operating Margin | 1.3% | Warning | Moderate operational efficiency |
Cash Flow: KROGER CO generates $3.5B FCF at 2.3% margin, positive NaN/8 quarters
FCF TTM $3.5B. FCF margin 2.3%, Top 50%. OCF/Net income 7.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 2.3% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $3.5B | Good | Positive cash generation |
| OCF/Net Income | 7.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: KROGER CO at 2.7x leverage
Debt/Equity 2.7x. Total debt $15.9B, cash & investments $3.3B. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| Debt to Equity | 2.7x | Warning | Elevated leverage |
| Net Cash Position | $-12.5B | Warning | Net debt position |
Valuation: KROGER CO trades at 40.9x earnings
P/E 40.9x. EV/Sales 0.4x. FCF yield 8.4%. Dividend yield 2.2%. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| P/E Ratio | 40.9x | Adequate | Premium valuation |
| EV/Sales | 0.4x | Excellent | Attractive revenue multiple |
| FCF Yield | 8.4% | Excellent | Attractive cash return |
| Dividend Yield | 2.2% | Adequate | Growth focus over income |
Capital Allocation: KROGER CO returns 8.7% shareholder yield
Total shareholder yield 8.7% (div 2.2% + buyback 6.6%). Capital returned $3.6B TTM. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 8.7% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 6.6% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $3.6B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 4.7% | Bottom 50% | 0.6x below |
| Free Cash Flow Margin | 2.3% | Top 50% | 1.0x at |
| Gross Margin | 23.3% | Bottom 25% | 0.6x below |
| Operating Margin | 1.3% | Bottom 50% | 0.3x below |
| Return on Equity (ROE) | 12.4% | Top 50% | 1.2x above |
| P/E Ratio | 40.9x | N/A | - |
Financial Scorecard
| Metric | KR | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 4.7% | Warning | Bottom 50% of sector (median: 8.1%) |
| Free Cash Flow Margin | 2.3% | Warning | Top 50% of sector (median: 2.3%) |
| Gross Margin | 23.3% | Adequate | Bottom 25% of sector (median: 39.3%) |
| Debt to Equity Ratio | 267.8% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 40.9x | Adequate | High expectations priced in |
| Free Cash Flow Yield | 8.4% | Excellent | High cash return |
Frequently Asked Questions
Q: What is KROGER CO's Return on Invested Capital (ROIC)?
KROGER CO (KR) has a trailing twelve-month Return on Invested Capital (ROIC) of 4.7%. Sector median 8.1%. Source: 10-Q filed 2025-12-12.
Q: What is KROGER CO's Free Cash Flow Margin?
KROGER CO (KR) has a free cash flow margin of 2.3%, generating $3.5 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-12-12.
Q: What is KROGER CO's P/E ratio and how does it compare to peers?
KROGER CO (KR) trades at a P/E ratio of 40.9x, which is above the sector median of N/A. EV/Sales 0.4x. FCF yield 8.4%. Source: 10-Q filed 2025-12-12.
Q: Does KROGER CO pay a dividend?
KROGER CO (KR) currently pays a dividend yield of 2.2%. Total shareholder yield (dividend + buybacks) 8.7%. Source: 10-Q filed 2025-12-12.
Q: How much debt does KROGER CO have?
KROGER CO (KR) has a debt-to-equity ratio of 2.7x with total debt of $15.9 billion. Net debt $12.5 billion. Source: 10-Q filed 2025-12-12.
Q: What is KROGER CO's revenue and earnings growth?
KROGER CO (KR) grew revenue by 0.4% year-over-year. EPS -58.4% YoY. Source: 10-Q filed 2025-12-12.
Q: Is KROGER CO buying back stock?
KROGER CO (KR) repurchased $2.7 billion of stock over the trailing twelve months. This represents a buyback yield of 6.6%. Source: 10-Q filed 2025-12-12.
Q: How does KROGER CO compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, KROGER CO (KR) shows: ROIC 4.7%, sector median 8.1% (Bottom 50%). FCF margin 2.3%, sector median 2.3% (Top 50%). Gross margin 23.3%, 16.0pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with KROGER CO?
Quantitative warning flags for KROGER CO (KR): 1) FCF margin 2.3% (below 5%); 2) ROIC declining -8.2% over 8 quarters; 3) debt/equity 2.7x (above 1.5x threshold). Source: 10-Q filed 2025-12-12.
Data Source: Data sourced from 10-Q filed 2025-12-12. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.