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NYSE:KR

Kroger (KR) Stock Price, News & Analysis

Kroger logo
$57.42
+1.15 (+2.04%)
(As of 11/5/2024 ET)

About Kroger Stock (NYSE:KR)

Key Stats

Today's Range
$56.17
$57.48
50-Day Range
$51.50
$57.62
52-Week Range
$42.10
$58.34
Volume
2.46 million shs
Average Volume
4.73 million shs
Market Capitalization
$41.54 billion
P/E Ratio
15.03
Dividend Yield
2.23%
Price Target
$60.09
Consensus Rating
Moderate Buy

Company Overview

The Kroger Co. is a well-established supermarket chain that has been in operation for over a century. The company is headquartered in Cincinnati, Ohio and operates over 2,700 supermarkets and multi-department stores across 35 states under various banners, including Kroger, Ralphs, Smith's, King Soopers, and Fry's. The company's extensive network of stores and diverse range of products and services has made it one of the most prominent players in the US retail industry.

In addition to groceries, Kroger sells health and beauty products and household essentials and provides pharmacy services. The company strongly emphasizes community involvement, sustainability, and innovation, with its "Zero Hunger Zero Waste" program aiming to eliminate hunger and waste in its communities by 2025. This initiative has garnered significant attention and praise from consumers and investors alike, with the company's commitment to social responsibility resonating with many stakeholders.

Kroger is led by a highly experienced and diverse management team, with Rodney McMullen serving as the Chairman of the Board and Chief Executive Officer. McMullen has been with Kroger since 1978 and was appointed CEO in 2014. His extensive experience in various leadership roles within the company has helped to guide Kroger through changes in consumer preferences and increased competition. 

Over the past few years, Kroger has demonstrated consistent financial performance, with revenue increasing yearly. Notably, net income is relatively low compared to revenue due to Kroger's relatively low-profit margin. In 2022 Kroger's made a net income of $1.6 billion from over $137 billion in sales. These financial results have been achieved despite the highly competitive nature of the retail industry, highlighting the company's ability to adapt to changing market conditions and consumer preferences.

Kroger's long-term debt is significant, but the company has adequate assets to cover the debt burden. While this level of debt may concern some investors, it is worth noting that the company sold its convenience store business for $2.15 billion in 2019, which allowed it to reduce its debt levels and focus on its core supermarket business.

Kroger's valuation metrics compare favorably to its industry peers, with a price-to-earnings ratio and a price-to-book ratio below the industry average. The company's market capitalization is approximately $34 billion, and it has consistently paid dividends to its shareholders over the past decade. 

In terms of market performance, the company has also experienced increased demand for its online grocery ordering and delivery services, which has helped to offset the decline in in-store shopping during the pandemic. This shift towards digital channels has been a key focus for Kroger in recent years, with the company investing heavily in its online capabilities to serve its customers better.

Kroger operates in the highly competitive grocery industry, which has seen increased consolidation and disruption in recent years. The company faces competition from traditional brick-and-mortar supermarkets and online retailers such as Amazon and Walmart. These competitors have invested heavily in their online capabilities, putting pressure on Kroger to keep up with the industry's changing landscape.

In addition to the competitive pressures, the grocery industry is subject to significant regulatory and political issues that may impact Kroger's operations. The company must adhere to strict regulations regarding food safety, labeling, and pricing, among other things. Furthermore, changes in government policies related to tariffs, trade agreements, and labor laws may also impact the company's operations and profitability.

Despite these challenges, Kroger has identified several growth opportunities that could help the company maintain its position as a leader in the industry. One of these opportunities is to expand its private label products, which have higher profit margins than branded products. Kroger has already made significant strides in this area, with private-label products accounting for over 30% of its sales in recent years.

Kroger may also pursue acquisitions or partnerships to expand its operations and reach new markets. The company has already made several acquisitions in recent years, including purchasing the meal kit company Home Chef and the merger with meal kit delivery company Ocado. These acquisitions have helped Kroger to diversify its offerings and expand its reach in the fast-growing meal kit market.

Despite the growth opportunities, Kroger faces risks and challenges that may impact its future performance. One of the most significant risks is changes in consumer preferences, which could reduce demand for traditional supermarkets and increase competition from non-traditional retailers. Kroger must continually adapt to changing consumer needs and preferences to remain competitive.

Another challenge facing Kroger is the increasing pressure to provide competitive pricing to consumers. The company must balance the need to maintain profit margins with the demand for affordable products, which could impact its profitability in the long run.

Kroger is subject to potential disruptions in its supply chain, which could impact its ability to provide products to its customers. Disruptions could occur due to natural disasters, global pandemics, or other unexpected events that could affect the company's operations and profitability.

Kroger Stock Analysis - MarketRank™

See Top Rated MarketRank™ Stocks
96th Percentile Overall Score

KR MarketRank™: 

Kroger scored higher than 96% of companies evaluated by MarketBeat, and ranked 16th out of 215 stocks in the retail/wholesale sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Consensus Rating

    Kroger has received a consensus rating of Moderate Buy. The company's average rating score is 2.75, and is based on 7 buy ratings, 4 hold ratings, and no sell ratings.

  • Amount of Analyst Coverage

    Kroger has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

  • Read more about Kroger's stock forecast and price target.
  • Earnings Growth

    Earnings for Kroger are expected to grow by 4.04% in the coming year, from $4.46 to $4.64 per share.

  • Price to Earnings Ratio vs. the Market

    The P/E ratio of Kroger is 15.03, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 129.80.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of Kroger is 15.03, which means that it is trading at a less expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 121.31.

  • Price to Earnings Growth Ratio

    Kroger has a PEG Ratio of 0.88. PEG Ratios below 1 indicate that a company could be undervalued.

  • Price to Book Value per Share Ratio

    Kroger has a P/B Ratio of 3.56. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

  • Read more about Kroger's valuation and earnings.
  • Percentage of Shares Shorted

    1.35% of the float of Kroger has been sold short.
  • Short Interest Ratio / Days to Cover

    Kroger has a short interest ratio ("days to cover") of 2.5, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in Kroger has recently decreased by 5.00%, indicating that investor sentiment is improving.
  • Dividend Yield

    Kroger pays a meaningful dividend of 2.26%, higher than the bottom 25% of all stocks that pay dividends.

  • Dividend Growth

    Kroger has been increasing its dividend for 19 years.

  • Dividend Coverage

    The dividend payout ratio of Kroger is 33.51%. This payout ratio is at a healthy, sustainable level, below 75%.

  • Dividend Sustainability

    Based on earnings estimates, Kroger will have a dividend payout ratio of 27.59% next year. This indicates that Kroger will be able to sustain or increase its dividend.

  • Read more about Kroger's dividend.
  • Percentage of Shares Shorted

    1.35% of the float of Kroger has been sold short.
  • Short Interest Ratio / Days to Cover

    Kroger has a short interest ratio ("days to cover") of 2.5, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in Kroger has recently decreased by 5.00%, indicating that investor sentiment is improving.
  • News Sentiment

    Kroger has a news sentiment score of 0.35. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Retail/Wholesale companies.
  • News Coverage This Week

    MarketBeat has tracked 25 news articles for Kroger this week, compared to 32 articles on an average week.
  • Search Interest

    Only 16 people have searched for KR on MarketBeat in the last 30 days. This is a decrease of -50% compared to the previous 30 days.
  • MarketBeat Follows

    18 people have added Kroger to their MarketBeat watchlist in the last 30 days. This is an increase of 38% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, Kroger insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $721,243.00 in company stock.

  • Percentage Held by Insiders

    Only 1.40% of the stock of Kroger is held by insiders.

  • Percentage Held by Institutions

    80.93% of the stock of Kroger is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

  • Read more about Kroger's insider trading history.
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KR Stock News Headlines

The logo of the United States Department of Agriculture is seen, August 10, 2007, at the US Embassy…
Listeria recall grows to 12 million pounds of meat and poultry, some of it sent to US schools
A nationwide recall of meat and poultry products potentially contaminated with listeria bacteria has expanded to nearly 12 million pounds
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If you missed it, my emergency election broadcast is now available - but will be removed soon
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Has Costco Stock Run Its Course for Now? (KR)
Costco stock has had a great 2024, but its rise has slowed significantly. However, Wall Street is raising price targets as the stock declines.
Kroger breaking ground on $40 million Marketplace store
See More Headlines

KR Stock Analysis - Frequently Asked Questions

Kroger's stock was trading at $45.71 at the beginning of the year. Since then, KR shares have increased by 25.6% and is now trading at $57.42.
View the best growth stocks for 2024 here
.

The Kroger Co. (NYSE:KR) issued its quarterly earnings data on Thursday, September, 12th. The company reported $0.93 EPS for the quarter, topping the consensus estimate of $0.91 by $0.02. The business's quarterly revenue was up .2% on a year-over-year basis.
Read the conference call transcript
.

Shares of Kroger split before market open on Tuesday, July 14th 2015. The 2-1 split was announced on Thursday, June 25th 2015. The newly created shares were distributed to shareholders after the closing bell on Monday, July 13th 2015. An investor that had 100 shares of stock prior to the split would have 200 shares after the split.

Kroger subsidiaries include these companies: Home Chef, Murray’s Cheese LLC, ModernHealth LTC, Roundy's, Vitacost, YOU Technology, Harris Teeter, and more.

Kroger's top institutional investors include Maj Invest Holding A S (0.41%), Robeco Institutional Asset Management B.V. (0.32%), Sumitomo Mitsui Trust Group Inc. (0.30%) and DekaBank Deutsche Girozentrale (0.27%). Insiders that own company stock include Timothy A Massa, Gary Millerchip, Stuart Aitken, Yael Cosset, Mary Ellen Adcock, Christine S Wheatley, Kenneth C Kimball, Valerie L Jabbar, Carin L Fike, Todd A Foley, Brian W Nichols, Ronald Sargent, Mark C Tuffin and Calvin J Kaufman.
View institutional ownership trends
.

Shares of KR stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Based on aggregate information from My MarketBeat watchlists, some other companies that Kroger investors own include Verizon Communications (VZ), Meta Platforms (META), NVIDIA (NVDA), Salesforce (CRM), Advanced Micro Devices (AMD), Home Depot (HD) and Walmart (WMT).

Company Calendar

Ex-Dividend for 9/1 Dividend
8/15/2024
Dividend Payable
9/01/2024
Last Earnings
9/12/2024
Today
11/05/2024
Ex-Dividend for 12/1 Dividend
11/15/2024
Dividend Payable
12/01/2024
Next Earnings (Estimated)
12/05/2024
Fiscal Year End
1/31/2025

Industry, Sector and Symbol

Industry
Grocery stores
Sub-Industry
Food Retail
CUSIP
50104410
Employees
414,000
Year Founded
1883

Price Target and Rating

Average Stock Price Target
$60.09
High Stock Price Target
$72.00
Low Stock Price Target
$50.00
Potential Upside/Downside
+5.2%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.75
Research Coverage
12 Analysts

Profitability

Net Income
$2.16 billion
Pretax Margin
2.39%

Debt

Sales & Book Value

Annual Sales
$150.04 billion
Cash Flow
$10.14 per share
Book Value
$16.12 per share

Miscellaneous

Free Float
713,357,000
Market Cap
$41.31 billion
Optionable
Optionable
Beta
0.48

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This page (NYSE:KR) was last updated on 11/5/2024 by MarketBeat.com Staff
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