| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 82 | 27.9x | 17.8x | Top tier | |
Growth | 12 | 0.8% | 7.1% | Bottom tier | |
Quality | 68 | 5.7% | 4.5% | Top tier | |
Safety | 53 | 3.5x | 2.6x | Around median | |
Capital Return | 82 | 2.34% | 2.12% | Top tier | |
Momentum | 20 | -16.9% | 2.9% | Bottom tier | |
Sentiment | 70 | 13 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Kroger Co. operates a food retail network that combines physical stores, e-commerce, pharmacies, and fuel, relying on fresh foods and its portfolio of private brands, such as Simple Truth and Private Selection, to attract customers. In addition to retail sales, the company generates alternative profits from its media, Kroger Personal Finance, and Insights businesses; the combined operating profit of these activities reached $1.5 billion in fiscal year 2025. Its e-commerce business also exceeded $16 billion after seven consecutive quarters of double-digit growth.
In quarter 4 of fiscal year 2025, revenue according to EDGAR data was approximately $34.7 billion, and net income was $861 million. The earnings call reported adjusted FIFO operating profit of $1.2 billion and adjusted earnings per share of $1.28, representing annual growth of 12%, while the FIFO gross margin rate, excluding rent, depreciation, amortization, and fuel, was unchanged compared with the same period. The operating mix was led by 20% e-commerce growth, alongside pharmacies and fresh foods, but the higher share of lower-margin pharmacy sales limited margin improvement.
For fiscal year 2025, Kroger recorded revenue of $147.6 billion, net income of $1 billion, and reported earnings per share of $1.54, while adjusted earnings per share reached $4.85, up 9%. Identical sales excluding fuel grew 2.9%, and the adjusted FIFO gross margin improved by 14 basis points despite price reductions on thousands of products. In the September 11, 2026 update, the sales picture appeared weaker, with revenue of $34.62 billion and identical sales excluding fuel growth of 0.2%, compared with adjusted e-commerce growth of 20% and precision marketing profit growth of 24%.
The analyst consensus rates KR stock as a “Buy,” with an average target of $70.9 within a wide range of $58 to $82; the average is below the 52-week range high of $76.58, while the upper end of the target range exceeds that high. The large gap between the lowest and highest targets reflects differing assessments of the ability of e-commerce and media growth and cost savings to offset the reduced sales outlook and slowing unit volumes, and the available data do not provide a valid price-to-earnings ratio for adding another valuation anchor.
Figures in the text are as of 2026-09-12; the live price is shown at the top of the page.
Kroger's e-commerce business exceeded $16 billion after seven consecutive quarters of double-digit growth, and its adjusted sales rose 20% in the latest results. The company expects sales from delivery services facilitated through Instacart, DoorDash, and Uber Eats to exceed approximately $1.5 billion during 2026. Its media, Kroger Personal Finance, and Insights businesses also generated combined operating profit of $1.5 billion in fiscal year 2025, and management is targeting double-digit media growth in 2026.
Management expected identical sales excluding fuel to grow between 1% and 2% in fiscal year 2026, with an approximately 130-basis-point negative impact from the Inflation Reduction Act. Excluding this impact, the expected growth range becomes 2.3% to 3.3%. The company is also targeting adjusted FIFO operating profit of between $5 billion and $5.2 billion, adjusted earnings per share of between $5.10 and $5.30, and adjusted free cash flow of between $2.7 billion and $2.9 billion.
Management said on the March 5, 2026 earnings call that it plans to achieve e-commerce profitability during the first half of 2026. This depends on fulfilling more orders from stores close to customers and using Instacart, DoorDash, and Uber Eats to reduce last-mile costs. This path is supported by 20% growth in adjusted e-commerce sales, but achieving the target remains dependent on fulfillment efficiency, product availability, and delivery speed.
Automated analysis for informational purposes only — not investment advice.
Kroger relies on procurement and sourcing savings, shrink reduction, and higher e-commerce productivity to fund lower prices and improve service. In fiscal year 2025, the adjusted FIFO gross margin increased by 14 basis points despite greater price investment, while the rate was unchanged in quarter 4 compared with the same period. Management is targeting further improvement in the adjusted gross margin rate during fiscal year 2026, while acknowledging that the lower-margin pharmacy mix and price investments create offsetting pressures.
Kroger introduced more than 1,100 new Our Brands products in fiscal year 2025, up from more than 900 products in the previous year. Simple Truth and Private Selection led the portfolio's growth, and private-brand sales continued to outperform national brands when excluding the impact of lower egg prices. Fresh also contributed to growth in quarter 4 of fiscal year 2025, and management noted improved performance in meat, seafood, bakery, and prepared foods.
Identical sales growth excluding fuel fell to 0.2% in the September 11, 2026 update, prompting Kroger to lower its annual sales outlook while maintaining its earnings targets. Management expects unit volumes to remain negative during the first half of fiscal year 2026, alongside a 130-basis-point impact from the Inflation Reduction Act on identical sales. Price competition also requires continued funding from cost savings while the company executes the closure of 60 stores and the elimination of approximately 1,000 corporate jobs.
