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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