The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 12.8x | 20.8x | Top tier | |
Growth | 21 | 0.8% | 6.1% | Bottom tier | |
Quality | 57 | 15.4% | 6.6% | Around median | |
Safety | 38 | 1.9x | 0.7x | Bottom tier | |
Capital Return | 67 | 2.20% | 2.02% | Top tier | |
Momentum | 33 | -10.4% | 4.1% | Bottom tier | |
Sentiment | 65 | 13 | 3 | Around median |
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. is an American food retailer listed on the NYSE under the ticker KR, operating a network of local grocery stores and multiple banners focused mainly on fresh food, consumer goods, pharmacies, fuel, and private-label products under the Our Brands umbrella such as Simple Truth and Private Selection. Kroger generates its revenue from brick-and-mortar store sales, e-commerce, pharmacies, fuel, private labels, as well as alternative profit businesses including Media, Kroger Personal Finance, and Insights; management stated that these alternative businesses generated 1.5 billion dollars of operating profit in 2025. E-commerce has also become a large-scale business within the company, as management said it now exceeds 16 billion dollars in sales with adjusted growth of 20% in the latest quarter.
In the latest EDGAR data shown for 2025 Q4, revenue was 147.1 billion dollars, net income was 2.7 billion dollars, and earnings per share were 3.67 dollars; this equals a net income margin of about 1.8% calculated from net income to revenue. On the earnings call, the company said identical store sales excluding fuel grew 2.4% in the fourth quarter, despite a negative impact of about 40 basis points from the Inflation Reduction Act, while adjusted FIFO operating profit was about 1.2 billion dollars and adjusted earnings per share were 1.28 dollars, up 12% year over year. For full-year 2025, management said identical store sales excluding fuel grew 2.9%, and adjusted earnings per share were 4.85 dollars, up 9%, a level at the high end of its long-term expectations.
The growth mix in the latest quarter was driven by e-commerce, pharmacies, and Fresh performance, with management pointing to improving food volumes and grocery becoming a larger share of the sales mix. FIFO gross margin excluding rent, depreciation, amortization, and fuel was stable in the fourth quarter, as sourcing improvements, lower supply chain costs, and reduced shrink offset the impact of price investments and the lower-margin pharmacy mix. By contrast, the operating, general, and administrative expense rate excluding fuel and adjusted items increased 21 basis points in the fourth quarter, due to a comparison with real estate gains in the prior year and labor investments to improve the customer experience.
The analyst consensus on KR is Buy, and the average price target is 72.23 dollars, with the highest target at 83 dollars and the lowest target at 58 dollars; therefore, valuation should be read relative to this updated target outside the text rather than to a fixed real-time price. The price-to-earnings multiple is not available in the data shown, but the 52-week range between 55.6 and 76.58 dollars shows that the stock moved during the year within a relatively wide range around analysts’ targets. From a fundamental perspective, valuation support depends on Kroger’s ability to convert e-commerce growth, sourcing savings, and the Media business into guided earnings per share between 5.10 and 5.30 dollars in 2026.
Figures in the text are as of 2026-06-27; the live price is shown at the top of the page.
Greg Foran took the helm at Kroger about a month before the fourth-quarter earnings call held on 5 March 2026. He said he visited stores, a distribution center, and a manufacturing facility, and that his first focus is accelerating sales growth through better value, stronger products, and a better store experience. His prior experience includes leading Walmart U.S. and Air New Zealand, and the company linked his appointment to strengthening e-commerce, improving productivity, and reducing costs to fund prices. He did not announce a completely different strategy on the call, but said the mission is to execute the current strategy faster.
Management said e-commerce was not a small focus, but has become a business exceeding 16 billion dollars in sales. In the fourth quarter, adjusted e-commerce sales grew 20%, and the company said it has 7 consecutive quarters of double-digit growth in this business. Management said it expects the e-commerce business to become profitable in 2026, and added in the Q&A section that the plan targets profitability in the first half of 2026. A large part of the improvement is tied to the hybrid fulfillment model, meaning the use of stores as preparation centers with partners such as Instacart, DoorDash, and Uber Eats.
Automated analysis for informational purposes only — not investment advice.
Kroger expects identical store sales excluding fuel to grow between 1% and 2% in 2026. Management explained that the Inflation Reduction Act will subtract about 130 basis points from this growth, so the range is between 2.3% and 3.3% when excluding this impact. The company also expects adjusted FIFO operating profit between 5.0 and 5.2 billion dollars, and adjusted earnings per share between 5.10 and 5.30 dollars. Expected adjusted free cash flow in 2026 ranges between 2.7 and 2.9 billion dollars, with capital expenditures between 3.8 and 4.0 billion dollars.
Management said food inflation slowed in the fourth quarter by about 90 basis points compared with the third quarter. Egg price deflation was a major headwind to sales, while beef price inflation partly offset it. Kroger expects the first quarter of 2026 to be near the low end of identical sales growth guidance because of the continued impact of egg deflation. By contrast, management said deliberate investment in categories such as meat helped improve units, and that meat, seafood, deli, and bakery were among the areas that showed relatively better performance.
Kroger said Our Brands recorded a strong quarter, and that sales excluding the impact of egg price deflation continued to outperform national brands. Management specifically pointed to Simple Truth and Private Selection as growth leaders because of the combination of quality and affordable price. In 2025, the company introduced more than 1,100 new products within Our Brands, compared with more than 900 products in the prior year. It also said a growing number of these products focus on health, an area where it sees rising customer demand.
Yes, but that should be read within a general framework and not as an individual recommendation. In 2025, Kroger completed a 7.5 billion dollar share repurchase authorization, which included a 5 billion dollar accelerated share repurchase program and then open-market purchases. In December, the board approved a new 2 billion dollar share repurchase authorization, and the company expects to complete it by the end of fiscal 2026. The board also raised the annual dividend by 11% to 1.56 dollars per share according to the 25 June 2026 news.