KROGER CO (KR) Factsheet
KROGER CO (KR) Stock Analysis
Analysis from 10-Q filed 2025-12-12. Data as of Q4 2025.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 4.2%. FCF margin 1.5%. D/E 2.3x. Source: 10-Q filed 2025-12-12.
| Metric | Value | Context |
|---|---|---|
| ROIC | 4.2% | Below expectations |
| FCF Margin | 1.5% | Cash flow pressure |
| Debt/Equity | 2.3x | Elevated debt |
ROIC 4.2% — Bottom 50% of sector peers. FCF margin 1.5% — Bottom 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 4.2% ROIC, Bottom 50% in Consumer Discretionary
ROIC TTM 4.2%, sector median 8.1%, Bottom 50%. DuPont: NOPAT margin 1.0% × asset turnover 2.7x. Gross margin 23.2%. Operating margin 1.1%. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 4.2% | Warning | Below sector median of 8.1% |
| Return on Equity (ROE) | 8.5% | Adequate | Moderate equity returns |
| Gross Margin | 23.2% | Adequate | Competitive pricing environment |
| Operating Margin | 1.1% | Warning | Moderate operational efficiency |
Cash Flow: KROGER CO generates $2.3B FCF at 1.5% margin, positive NaN/8 quarters
FCF TTM $2.3B. FCF margin 1.5%, Bottom 50%. OCF/Net income 7.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 1.5% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $2.3B | Good | Positive cash generation |
| OCF/Net Income | 7.8x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: KROGER CO at 2.3x leverage
Debt/Equity 2.3x. Total debt $16.0B, cash & investments $4.0B. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| Debt to Equity | 2.3x | Warning | Elevated leverage |
| Net Cash Position | $-12.0B | Warning | Net debt position |
Valuation: KROGER CO trades at 59.0x earnings
P/E 59.0x. EV/Sales 0.4x. FCF yield 5.2%. Dividend yield 2.1%. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| P/E Ratio | 59.0x | Warning | Premium valuation |
| EV/Sales | 0.4x | Excellent | Attractive revenue multiple |
| FCF Yield | 5.2% | Good | Attractive cash return |
| Dividend Yield | 2.1% | Adequate | Growth focus over income |
Capital Allocation: KROGER CO returns 13.6% shareholder yield
Total shareholder yield 13.6% (div 2.1% + buyback 11.5%). Capital returned $5.9B TTM. Source: 10-Q filed 2025-12-12.
| Metric | KR | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 13.6% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 11.5% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $5.9B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 4.2% | Bottom 50% | 0.5x below |
| Free Cash Flow Margin | 1.5% | Bottom 50% | 0.7x below |
| Gross Margin | 23.2% | Bottom 25% | 0.6x below |
| Operating Margin | 1.1% | Bottom 50% | 0.3x below |
| Return on Equity (ROE) | 8.5% | Bottom 50% | 0.8x below |
| P/E Ratio | 59.0x | N/A | - |
Financial Scorecard
| Metric | KR | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 4.2% | Warning | Bottom 50% of sector (median: 8.1%) |
| Free Cash Flow Margin | 1.5% | Warning | Bottom 50% of sector (median: 2.2%) |
| Gross Margin | 23.2% | Adequate | Bottom 25% of sector (median: 38.7%) |
| Debt to Equity Ratio | 226.5% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 59.0x | Warning | High expectations priced in |
| Free Cash Flow Yield | 5.2% | 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 4.2%. 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 1.5%, generating $2.3 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 59.0x, which is above the sector median of N/A. EV/Sales 0.4x. FCF yield 5.2%. Source: 10-Q filed 2025-12-12.
Q: Does KROGER CO pay a dividend?
KROGER CO (KR) currently pays a dividend yield of 2.1%. Total shareholder yield (dividend + buybacks) 13.6%. 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 2.3x with total debt of $16.0 billion. Net debt $12.0 billion. Source: 10-Q filed 2025-12-12.
Q: What is KROGER CO's revenue and earnings growth?
KROGER CO (KR) declined revenue by 1.8% year-over-year. EPS -71.4% YoY. Source: 10-Q filed 2025-12-12.
Q: Is KROGER CO buying back stock?
KROGER CO (KR) repurchased $5.0 billion of stock over the trailing twelve months. This represents a buyback yield of 11.5%. 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 4.2%, sector median 8.1% (Bottom 50%). FCF margin 1.5%, sector median 2.2% (Bottom 50%). Gross margin 23.2%, 15.5pp 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 1.5% (below 5%); 2) ROIC declining -15.4% over 8 quarters; 3) debt/equity 2.3x (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 Q4 2025.
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.