KROGER CO (KR) Factsheet

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KROGER CO (KR) Stock Analysis

Analysis from 10-Q filed 2026-09-18. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 5.3%. FCF margin 1.6%. D/E 2.6x. Source: 10-Q filed 2026-09-18.

Metric Value Context
ROIC 5.3% Below expectations
FCF Margin 1.6% Cash flow pressure
Debt/Equity 2.6x Elevated debt

ROIC 5.3% — Bottom 50% of sector peers. FCF margin 1.6% — Bottom 50%.

Explore KROGER CO: Earnings History | Overview

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_section, get_metric_history, compare_companies, screen_filing_signals.


Profitability: KROGER CO earns 5.3% ROIC, Bottom 50% in Consumer Discretionary

ROIC TTM 5.3%, sector median 6.8%, Bottom 50%. DuPont: NOPAT margin 1.1% × asset turnover 2.9x. Gross margin 23.1%. Operating margin 1.4%. Source: 10-Q filed 2026-09-18.

Metric KR Rating Context
Return on Invested Capital (ROIC) 5.3% Warning Below sector median of 6.8%
Return on Equity (ROE) 16.1% Good Efficient use of shareholder equity
Gross Margin 23.1% Adequate Competitive pricing environment
Operating Margin 1.4% Warning Moderate operational efficiency

Cash Flow: KROGER CO generates $2.4B FCF at 1.6% margin, positive NaN/8 quarters

FCF TTM $2.4B. FCF margin 1.6%, Bottom 50%. OCF/Net income 6.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-09-18.

Metric KR Rating Context
Free Cash Flow Margin 1.6% Warning Thin cash margins
Free Cash Flow (TTM) $2.4B Good Positive cash generation
OCF/Net Income 6.2x Excellent High earnings quality
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: KROGER CO at 2.6x leverage, 3.2x interest coverage

Debt/Equity 2.6x. Total debt $15.4B, cash & investments $1.7B. Interest coverage 3.2x. Source: 10-Q filed 2026-09-18.

Metric KR Rating Context
Debt to Equity 2.6x Warning Elevated leverage
Net Cash Position $-13.7B Warning Net debt position
Interest Coverage 3.2x Adequate Monitor debt obligations

Valuation: KROGER CO trades at 38.5x earnings

P/E 38.5x. EV/Sales 0.4x. FCF yield 5.8%. Dividend yield 2.1%. Source: 10-Q filed 2026-09-18.

Metric KR Rating Context
P/E Ratio 38.5x Adequate Premium valuation
EV/Sales 0.4x Excellent Attractive revenue multiple
FCF Yield 5.8% Good Attractive cash return
Dividend Yield 2.1% Adequate Growth focus over income

Capital Allocation: KROGER CO returns 11.3% shareholder yield, reducing shares 10.9% YoY

Total shareholder yield 11.3% (div 2.1% + buyback 9.1%). Share count -10.9% YoY. Capital returned $4.7B TTM. Source: 10-Q filed 2026-09-18.

Metric KR Rating Context
Total Shareholder Yield 11.3% Excellent Dividend + buyback yield combined
Buyback Yield 9.1% Good Active share repurchases
Share Count Change (YoY) -10.9% Good Net share reduction (accretive)
Total Capital Returned (TTM) $4.7B Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 5.3% Bottom 50% 0.8x below
Free Cash Flow Margin 1.6% Bottom 50% 0.5x below
Gross Margin 23.1% Bottom 25% 0.6x below
Operating Margin 1.4% Bottom 50% 0.3x below
Return on Equity (ROE) 16.1% Top 50% 1.4x above
P/E Ratio 38.5x N/A -

Financial Scorecard

Metric KR Rating Sector Context
Return on Invested Capital (ROIC) 5.3% Warning Bottom 50% of sector (median: 6.8%)
Free Cash Flow Margin 1.6% Warning Bottom 50% of sector (median: 3.2%)
Gross Margin 23.1% Adequate Bottom 25% of sector (median: 38.1%)
Debt to Equity Ratio 263.1% Warning High financial leverage
P/E Ratio (Price-to-Earnings) 38.5x Adequate High expectations priced in
Free Cash Flow Yield 5.8% Good Solid cash yield

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 5.3%. The 8-quarter median ROIC is 8.8% with a improving trend. Sector median 6.8%. Source: 10-Q filed 2026-09-18.

Q: What is KROGER CO's Free Cash Flow Margin?

KROGER CO (KR) has a free cash flow margin of 1.6%, generating $2.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-09-18.

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 38.5x, which is above the sector median of N/A. EV/Sales 0.4x. FCF yield 5.8%. Source: 10-Q filed 2026-09-18.

Q: Does KROGER CO pay a dividend?

KROGER CO (KR) currently pays a dividend yield of 2.1%. Total shareholder yield (dividend + buybacks) 11.3%. Source: 10-Q filed 2026-09-18.

Q: How much debt does KROGER CO have?

KROGER CO (KR) has a debt-to-equity ratio of 2.6x with total debt of $15.4 billion. Interest coverage 3.2x. Net debt $13.7 billion. Source: 10-Q filed 2026-09-18.

Q: What is KROGER CO's revenue and earnings growth?

KROGER CO (KR) grew revenue by 1.6% year-over-year. EPS -56.7% YoY. Source: 10-Q filed 2026-09-18.

Q: Is KROGER CO buying back stock?

KROGER CO (KR) repurchased $3.8 billion of stock over the trailing twelve months. This represents a buyback yield of 9.1%. Share count -10.9% YoY. Source: 10-Q filed 2026-09-18.

Q: How does KROGER CO compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, KROGER CO (KR) shows: ROIC 5.3%, sector median 6.8% (Bottom 50%). FCF margin 1.6%, sector median 3.2% (Bottom 50%). Gross margin 23.1%, 15.0pp 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 1.6% (below 5%); 2) debt/equity 2.6x (above 1.5x threshold); 3) interest coverage 3.2x (below 5x). Source: 10-Q filed 2026-09-18.


Data Source: Data sourced from 10-Q filed 2026-09-18. TTM metrics as of Q3 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.

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