📊 KR Key Takeaways
Is Kroger Co (KR) a Good Investment?
Kroger faces deteriorating fundamentals with nearly flat revenue growth (+0.4% YoY) and declining net income (-1.5% YoY), while carrying excessive leverage (2.38x debt/equity) and concerning liquidity ratios (0.79x current ratio). Although the company generates positive operating cash flow ($1.8B) with adequate interest coverage (6.8x), the combination of stagnant growth, declining profitability, and high financial risk creates an asymmetric risk profile.
Kroger remains profitable and generates positive free cash flow, but nearly flat revenue, declining net income, and sharply lower diluted EPS indicate weakening earnings quality. Adequate interest coverage and resilient operating cash flow are offset by thin margins, high leverage, weak liquidity, and limited free-cash-flow headroom.
Kroger Co Key Strengths (KR)
- Large stable revenue base of $46.1B provides consistent cash generation in defensive grocery sector
- Operating cash flow of $1.8B demonstrates sustainable underlying business economics
- Interest coverage of 6.8x indicates sufficient debt service capacity despite high leverage
- Positive operating income and net income despite the low-margin grocery environment
- Operating cash flow of $1.77B supports capital investment and debt service
- Interest coverage of 6.8x provides a reasonable near-term debt-service cushion
KR Stock Risks: Kroger Co Investment Risks
- Critically low liquidity metrics (current ratio 0.79x, quick ratio 0.50x) indicate potential working capital stress and limited financial flexibility
- Excessive leverage (2.38x debt/equity, $15.4B long-term debt) with declining profitability reduces deleveraging capability
- Revenue stagnation (+0.4% YoY) and declining net profitability (-1.5% YoY) signal eroding competitive position in mature grocery market
- High leverage, with $15.38B of long-term debt and debt-to-equity of 2.38x
- Current and quick ratios below 1.0x indicate limited balance-sheet liquidity
- Free cash flow margin of only 1.0% leaves little protection against cost pressure or operational disruption
Key Metrics to Watch
- Free cash flow sustainability (currently 1.0% margin) and debt paydown trajectory
- Operating margin stability and competitive pricing pressure in grocery retail
- Current and quick ratio improvement or deterioration indicating liquidity condition changes
- Free cash flow margin and operating cash flow conversion
- Net debt reduction and interest coverage
Kroger Co (KR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.0% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
KR Profit Margin, ROE & Profitability Analysis
KR vs Consumer Sector: How Kroger Co Compares
How Kroger Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kroger Co Stock Overvalued? KR Valuation Analysis 2026
Based on fundamental analysis, Kroger Co shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kroger Co Balance Sheet: KR Debt, Cash & Liquidity
KR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kroger Co's revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.06 reflects profitable operations.
KR Revenue Growth, EPS Growth & YoY Performance
KR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $45.1B | $866.0M | $1.29 |
| Q3 2025 | $33.6B | $155.0M | $0.23 |
| Q2 2025 | $33.9B | $466.0M | $0.64 |
| Q1 2025 | $45.1B | $866.0M | $1.29 |
| Q3 2024 | $33.6B | $618.0M | $0.84 |
| Q2 2024 | $33.9B | -$180.0M | $-0.25 |
| Q1 2024 | $45.2B | $947.0M | $1.29 |
| Q3 2023 | $34.0B | $398.0M | $0.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kroger Co Dividends, Buybacks & Capital Allocation
KR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kroger Co (CIK: 0000056873)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KR
What is the AI rating for KR?
Kroger Co (KR) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KR's key strengths?
Claude: Large stable revenue base of $46.1B provides consistent cash generation in defensive grocery sector. Operating cash flow of $1.8B demonstrates sustainable underlying business economics. ChatGPT: Positive operating income and net income despite the low-margin grocery environment. Operating cash flow of $1.77B supports capital investment and debt service.
What are the risks of investing in KR?
Claude: Critically low liquidity metrics (current ratio 0.79x, quick ratio 0.50x) indicate potential working capital stress and limited financial flexibility. Excessive leverage (2.38x debt/equity, $15.4B long-term debt) with declining profitability reduces deleveraging capability. ChatGPT: High leverage, with $15.38B of long-term debt and debt-to-equity of 2.38x. Current and quick ratios below 1.0x indicate limited balance-sheet liquidity.
What is KR's revenue and growth?
Kroger Co reported revenue of $46.1B.
Does KR pay dividends?
Kroger Co pays dividends, with $215.0M distributed to shareholders in the trailing twelve months.
Where can I find KR SEC filings?
Official SEC filings for Kroger Co (CIK: 0000056873) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KR's EPS?
Kroger Co has a diluted EPS of $1.46.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KR's fundamental grade?
Based on our AI fundamental analysis in July 2026, Kroger Co has a B grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KR stock overvalued or undervalued?
Valuation metrics for KR: ROE of 14.0% (sector avg: 18%), net margin of 2.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is KR's AI grade for 2026?
Our dual AI analysis gives Kroger Co a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KR's free cash flow?
Kroger Co's operating cash flow is $1.8B, with capital expenditures of $1.3B. FCF margin is 1.0%.
How does KR compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 2.0% (avg: 8%), ROE 14.0% (avg: 18%), current ratio 0.79 (avg: 1.5).
Is Kroger Co carrying too much debt?
KR has a debt-to-equity ratio of 2.38x, which is above the Consumer sector average of 0.8x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.