| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 76 | 29.8x | 17.3x | Top tier | |
Growth | 14 | 1.0% | 7.1% | Bottom tier | |
Quality | 69 | 6.9% | 4.5% | Top tier | |
Safety | 53 | 3.4x | 2.6x | Around median | |
Capital Return | 94 | 2.12% | 0.06% | Top tier | |
Momentum | 59 | -14.1% | -1.6% | Around median | |
Sentiment | 67 | 13 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
77% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, 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 in grocery retail through stores and e-commerce, selling fresh food, prepared meals, and private-label products, alongside pharmacies and fuel. It also generates revenue from advertising targeted at brands through its retail media business. Its 35 manufacturing facilities give it control over the cost and quality of its private-label products, while SimplyPoints links grocery purchases to fuel rewards, with points also available to reduce grocery bills in stores and online.
In quarter 2 of fiscal year 2026, ended 2026-08-15, revenue reached $34.6 billion, up 2.0% from the same quarter a year earlier, while net income was $641.0 million and diluted earnings per share were $1.05. The operating margin rose to 2.8%, versus 2.5% in quarter 2 of fiscal year 2025, ended 2025-08-15 according to the monthly period label available through 2025-08, an improvement of 0.3 percentage points. Performance combines limited growth in traditional sales with accelerating digital activities; identical sales excluding fuel grew 0.2%, while adjusted e-commerce sales rose 20% and retail advertising increased 24% from the same quarter a year earlier.
According to EL7 data, operating cash flow reached $7.3 billion for the last 12 months through 2026-08-15, versus net income of $1.3 billion, equivalent to 552% of net income. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditure) for the last 12 months through 2026-08-15 was approximately $2.8 billion. This cash-generating capacity supports store funding and share repurchases, but it coexists with total debt of $16.8 billion versus cash and short-term investments of $1.7 billion at the end of quarter 2 of fiscal year 2026, ended 2026-08-15, according to EL7 data.
Q2 FY2026 (2026-08)
Last 12 months to
When: 2026-12-03
Operating margin relative to the 2.8% threshold
Adjusted e-commerce sales growth relative to the 20% threshold
The industry-multiple valuation is $82, within a range of $65–110, valuing Kroger's sales at a median multiple of 0.3 across 13 comparable companies. The median target of 7 analysts is $70, within a range of $58–82, reflecting growth expectations, while the consensus average is $70.62 with an overall Buy recommendation, and analyst targets inherently tend toward optimism. The no-growth value is $12, measuring what remains if current after-tax operating profit stays constant forever at a discount rate of 8.7%. The analyst target and industry-multiple ranges overlap, but the no-growth value is clearly below both, highlighting the two higher valuations' dependence on expectations for business development and peer-company pricing, versus an assumption that growth stops entirely.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
In quarter 2 of fiscal year 2026, ended 2026-08-15, identical sales excluding fuel grew 0.2% from the same quarter a year earlier, while the operating margin reached 2.8%. Kroger relies on sourcing savings, productivity, improvements in e-commerce and advertising, and the pharmacy mix to fund investment in prices. On the 2026-09-11 call, management maintained fiscal year 2026 adjusted diluted earnings per share guidance at $5.10–5.30 despite lowering sales growth expectations.
Adjusted e-commerce sales grew 20% from the same quarter a year earlier in quarter 2 of fiscal year 2026, ended 2026-08-15, alongside a 20% increase in new customers for the business. Retail advertising grew 24% from the same quarter a year earlier, and the company achieved its second consecutive quarter of profitable e-commerce growth alongside strong advertising. The strategy benefits from in-store order fulfillment and delivery in under an hour, and Kroger also began offering an order combining groceries and eligible prescriptions in collaboration with Instacart in 2026-08.
Automated analysis for informational purposes only — not investment advice.
When: Fiscal year 2026
Adjusted diluted earnings per share guidance at a range of $5.10–5.30
Kroger owns approximately 35 manufacturing facilities, giving it control over the cost and quality of its private-label products. In quarter 2 of fiscal year 2026, ended 2026-08-15, Private Selection sales rose by more than 14% from the same quarter a year earlier, and private-label share increased by approximately 50 basis points. Its portfolio includes SmartWay, Kroger, Private Selection, and Simple Truth, allowing it to offer both budget and premium options without relying exclusively on national brands.
According to EL7 data, total debt reached $16.8 billion versus cash and short-term investments of $1.7 billion at the end of quarter 2 of fiscal year 2026, ended 2026-08-15. The debt figure may include lease liabilities, while the cash and short-term investments figure excludes long-term marketable securities. Meanwhile, free cash flow as calculated by EL7 (operating cash flow minus capital expenditure) for the last 12 months through 2026-08-15 was approximately $2.8 billion, providing a resource for funding investment, obligations, and capital distributions.
Kroger said on the 2026-09-11 call that the planned acquisition of Giant Eagle aims to serve new customers in areas where it does not operate, with the deal expected to close in 2027. The deal remains under regulatory review and therefore does not represent completed expansion. Separately, a news report dated 2026-10-12 stated that the company intends to eliminate approximately 3000 administrative jobs over three years to simplify operations and enable investment in frontline employees.