KROGER CO
$70.80
+0.99 (+1.42%) · delayed · Nov 13, 2026
Five-year price
52w $54.15 to $76.58
- Market cap
- $41.8B
- Enterprise value
- $54.4B
- P/E
- 46.0×
- 26.0× on 3y avg EPS
- EV / EBIT
- 28.8×
- FCF yield
- 8.3%
- ROIC
- 8.7%
- Debt / equity
- 2.68
- Piotroski F
- 6/9
Value scorecard · FY2026
Does it pass the value tests?
Quality
83
- ●ROIC > 12% (5y avg)5y avg ROIC 13.2%
- ●ROE > 15% (5y avg)5y avg ROE 21.6%
- ●Stable operating marginsMargin volatility 0.5% (σ, 5y)
- ●Earnings convert to cashFCF / net income 164% (5y avg)
- ○Growing revenueRevenue CAGR 5y 2.2%
- ●Shrinking share countDiluted shares -16.1% over 5y
Value
20
- ○P/E below 15P/E 46.0
- ○EV/EBIT below 12EV/EBIT 28.8
- ●FCF yield above 6%FCF yield 8.3%
- ○Price below Graham NumberGraham Number $18.65
- ○P/B below 3P/B 7.1
Safety
20
- ○Debt / equity below 0.5D/E 2.68
- ○Debt payable in < 4 yrs of earningsNet debt $12.5B
- ○Interest coverage > 8xCoverage 3.0x
- ○Current ratio > 1.5Current ratio 0.80
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
43
- ●Adequate size (revenue > $2B)Revenue $147.6B
- ○Strong condition (current ratio ≥ 2)Current ratio 0.80
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ○Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 3%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 26.0
- ○P/E × P/B ≤ 22.5Product 183.4
Valuation lab
What do you have to believe?
At $70.80, the market is pricing in about 2.5% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $12.5B · 591M shares · 5y revenue CAGR 2.2%
Intrinsic value
$67.64
Price
$70.80
Premium paid
5%
What the price implies
The market is paying for 2.5% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
53% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 115,337 | 123,280 | 121,852 | 122,286 | 132,498 | 137,888 | 148,258 | 150,039 | 147,123 | 147,642 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 3,452 | 2,612 | 2,614 | 2,251 | 2,780 | 3,477 | 4,126 | 3,096 | 3,849 | 1,890 |
| Operating margin | 3.0% | 2.1% | 2.1% | 1.8% | 2.1% | 2.5% | 2.8% | 2.1% | 2.6% | 1.3% |
| Pre-tax income | 2,914 | 1,484 | 3,978 | 1,981 | 3,370 | 2,051 | 2,902 | 2,836 | 3,342 | 1,200 |
| Income tax | 957 | (405) | 900 | 469 | 782 | 385 | 653 | 667 | 670 | 176 |
| Net income | 1,975 | 1,907 | 3,110 | 1,659 | 2,585 | 1,655 | 2,244 | 2,164 | 2,665 | 1,016 |
| EPS (diluted) | 2.05 | 2.09 | 3.76 | 2.04 | 3.27 | 2.17 | 3.06 | 2.96 | 3.67 | 1.54 |
| Diluted shares | 958 | 904 | 818 | 805 | 781 | 754 | 727 | 725 | 720 | 655 |
Who owns it