NYSE · Consumer Defensive

The Kroger Co.

KR · Grocery Stores

$67.19

▼ -0.58 (-0.86%)

Data cached · refreshes every 10 min

Mr. Market is currently offering The Kroger Co. at $67.19.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability F

Gross Profit Margin 23.3%

Operating Margin 1.3%

Net Income Margin 0.7%

Fin. Health F

Years to Pay Off Debt 24.3 yrs

Working Capital vs Long-Term Debt -$18.1B

Working Capital -$3.6B

Valuation F

Margin of Safety 0.0%

Price-to-Book 6.94x

Cash Flow C

Free Cash Flow $3.5B

CapEx % of Net Income 379.4%

Owner Earnings $8.8B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $42.5B

Enterprise Value $75.4B

P/E (TTM) 43.63

Dividend Yield 2.02%

Exchange NYSE

Key Margins

Gross Profit 23.3%

Operating Margin 1.3%

Net Margin 0.7%

Company Info

Sector Consumer Defensive

Industry Grocery Stores

Employees 403000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering The Kroger Co. at $67.19.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $67.19, the stock trades at a 267% premium to its Graham Number of $18.31. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About The Kroger Co.

The Kroger Co. operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and its multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company's marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and its price impact warehouse stores provide grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets and online; and sells fuel through its fuel centers. The company sells its products through its stores, fuel centers, and online platforms. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

Showing Key Metrics

Income Highlights

Metric	2026	2025	2024	2023	2022
Gross Profit %	23.3% ▲	22.7%	22.2%	21.4%	N/A
Operating Margin %	1.3% ▼	2.6%	2.1%	2.8%	N/A
Net Income %	0.7% ▼	1.8%	1.4%	1.5%	N/A
Diluted EPS	1.54 ▼	3.67	2.96	3.06	N/A

Balance Sheet Highlights

Metric	2026	2025	2024	2023	2022
Total Assets	$50.0B	$52.6B	$50.5B	$49.6B	N/A
Total Debt	$24.7B ↓	$25.1B	$19.2B	$20.4B	N/A
Working Capital	-$3.6B ▼	-$667M	-$3.1B	-$4.6B	N/A
Years to Pay Debt	24.30	9.41	8.89	9.10	N/A

Cash Flow Highlights

Metric	2026	2025	2024	2023	2022
Free Cash Flow	$3.5B ▲	$1.8B	$2.9B	$1.4B	N/A
Owner Earnings	$8.8B	$10.5B	$9.8B	$8.9B	N/A
CapEx % of Net Income	379.4%	150.7%	180.4%	137.2%	N/A

Income Statement

	2026	2025	2024	2023	2022
Tax Effect Of Unusual Items	-6,027	-13,833	35,485	-163,800
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	5,800,000	7,710,000	6,876,000	7,744,000
Total Unusual Items	-41,000	-69,000	151,000	-728,000
Total Unusual Items Excluding Goodwill	-41,000	-69,000	151,000	-728,000
Net Income From Continuing Operation Net Minority Interest	1,016,000	2,665,000	2,164,000	2,244,000
Reconciled Depreciation	3,920,000	3,849,000	3,750,000	3,579,000
Reconciled Cost Of Revenue	112,652,000	113,117,000	116,050,000	115,866,000
EBITDA	5,759,000	7,641,000	7,027,000	7,016,000
EBIT	1,839,000	3,792,000	3,277,000	3,437,000
Net Interest Income	-639,000	-450,000	-441,000	-535,000
Interest Expense	639,000	450,000	441,000	535,000
Normalized Income	1,050,973	2,720,167	2,048,485	2,808,200
Net Income From Continuing And Discontinued Operation	1,016,000	2,665,000	2,164,000	2,244,000
Total Expenses	145,752,000	143,274,000	146,943,000	144,132,000
Rent Expense Supplemental	872,000	877,000	891,000	839,000
Total Operating Income As Reported	1,890,000	3,849,000	3,096,000	4,126,000
Diluted Average Shares	655,000	720,000	725,000	727,000
Basic Average Shares	652,000	715,000	718,000	718,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,009,000	2,645,000	2,146,000	2,224,000
Net Income Common Stockholders	1,009,000	2,645,000	2,146,000	2,224,000
Otherunder Preferred Stock Dividend	7,000	20,000	18,000	20,000
Net Income	1,016,000	2,665,000	2,164,000	2,244,000
Minority Interests	-8,000	-7,000	-5,000	-5,000
Net Income Including Noncontrolling Interests	1,024,000	2,672,000	2,169,000	2,249,000
Net Income Continuous Operations	1,024,000	2,672,000	2,169,000	2,249,000
Tax Provision	176,000	670,000	667,000	653,000
Pretax Income	1,200,000	3,342,000	2,836,000	2,902,000
Other Income Expense	-51,000	-57,000	181,000	-689,000
Other Non Operating Income Expenses	-10,000	12,000	30,000	39,000
Special Income Charges	0	79,000	0	0
Gain On Sale Of Business	0	79,000	0	0
Gain On Sale Of Security	-41,000	-148,000	151,000	-728,000
Net Non Operating Interest Income Expense	-639,000	-450,000	-441,000	-535,000
Interest Expense Non Operating	639,000	450,000	441,000	535,000
Operating Income	1,890,000	3,849,000	3,096,000	4,126,000
Operating Expense	32,512,000	29,554,000	30,268,000	27,652,000
Other Operating Expenses	28,308,000	25,431,000	26,252,000	23,848,000
Depreciation Amortization Depletion Income Statement	3,332,000	3,246,000	3,125,000	2,965,000
Depreciation And Amortization In Income Statement	3,332,000	3,246,000	3,125,000	2,965,000
Selling General And Administration	872,000	877,000	891,000	839,000
General And Administrative Expense	872,000	877,000	891,000	839,000
Other Gand A			26,252,000	23,848,000	23,203,000
Rent And Landing Fees	872,000	877,000	891,000	839,000
Salaries And Wages			-30,000	-39,000	34,000
Gross Profit	34,402,000	33,403,000	33,364,000	31,778,000
Cost Of Revenue	113,240,000	113,720,000	116,675,000	116,480,000
Total Revenue	147,642,000	147,123,000	150,039,000	148,258,000
Operating Revenue	147,642,000	147,123,000	150,039,000	148,258,000

Balance Sheet

	2026	2025	2024	2023	2022
Treasury Shares Number	1,303,000	1,258,000	1,198,000	1,202,000
Ordinary Shares Number	615,000	659,600	720,000	716,000
Share Issued	1,918,000	1,917,600	1,918,000	1,918,000
Net Debt	12,541,000	11,950,000	8,304,000	10,277,000
Total Debt	24,692,000	25,082,000	19,247,000	20,412,000
Tangible Book Value	2,524,000	4,777,000	7,800,000	6,227,000
Invested Capital	21,802,000	24,194,000	21,802,000	21,334,000
Working Capital	-3,603,000	-667,000	-3,110,000	-4,568,000
Net Tangible Assets	2,524,000	4,777,000	7,800,000	6,227,000
Capital Lease Obligations	8,817,000	9,173,000	9,060,000	9,120,000
Common Stock Equity	5,927,000	8,285,000	11,615,000	10,042,000
Total Capitalization	20,436,000	24,090,000	21,777,000	20,181,000
Total Equity Gross Minority Interest	5,936,000	8,281,000	11,601,000	10,014,000
Minority Interest	9,000	-4,000	-14,000	-28,000
Stockholders Equity	5,927,000	8,285,000	11,615,000	10,042,000
Gains Losses Not Affecting Retained Earnings	-635,000	-621,000	-489,000	-632,000
Other Equity Adjustments	-635,000	-621,000	-489,000	-632,000
Treasury Stock	28,113,000	24,823,000	20,682,000	20,650,000
Retained Earnings	28,850,000	28,724,000	26,946,000	25,601,000
Additional Paid In Capital	3,907,000	3,087,000	3,922,000	3,805,000
Capital Stock	1,918,000	1,918,000	1,918,000	1,918,000
Common Stock	1,918,000	1,918,000	1,918,000	1,918,000
Total Liabilities Net Minority Interest	44,017,000	44,335,000	38,904,000	39,609,000
Total Non Current Liabilities Net Minority Interest	25,909,000	28,395,000	22,846,000	22,371,000
Other Non Current Liabilities	2,169,000	2,380,000	2,503,000	1,823,000
Employee Benefits	421,000	387,000	385,000	436,000
Non Current Pension And Other Postretirement Benefit Plans	421,000	387,000	385,000	436,000
Non Current Deferred Liabilities	1,094,000	1,417,000	1,579,000	1,672,000
Non Current Deferred Taxes Liabilities	1,094,000	1,417,000	1,579,000	1,672,000
Long Term Debt And Capital Lease Obligation	22,225,000	24,211,000	18,379,000	18,440,000
Long Term Capital Lease Obligation	7,716,000	8,406,000	8,217,000	8,301,000
Long Term Debt	14,509,000	15,805,000	10,162,000	10,139,000
Current Liabilities	18,108,000	15,940,000	16,058,000	17,238,000
Other Current Liabilities	3,886,000	3,615,000	3,486,000	3,341,000
Current Debt And Capital Lease Obligation	2,467,000	871,000	868,000	1,972,000
Current Capital Lease Obligation	1,101,000	767,000	843,000	819,000
Current Debt	1,366,000	104,000	25,000	1,153,000
Other Current Borrowings	1,366,000	104,000	25,000	1,153,000
Payables And Accrued Expenses	11,755,000	11,454,000	11,704,000	11,925,000
Current Accrued Expenses	1,267,000	1,330,000	1,323,000	1,746,000
Payables	10,488,000	10,124,000	10,381,000	10,179,000
Accounts Payable	10,488,000	10,124,000	10,381,000	10,179,000
Total Assets	49,953,000	52,616,000	50,505,000	49,623,000
Total Non Current Assets	35,448,000	37,343,000	37,557,000	36,953,000
Other Non Current Assets	1,103,000	1,293,000	1,820,000	1,750,000
Goodwill And Other Intangible Assets	3,403,000	3,508,000	3,815,000	3,815,000
Other Intangible Assets	808,000	834,000	899,000	899,000
Goodwill	2,595,000	2,674,000	2,916,000	2,916,000
Net PPE	30,942,000	32,542,000	31,922,000	31,388,000
Accumulated Depreciation	-35,763,000	-34,369,000	-31,463,000	-28,642,000
Gross PPE	66,705,000	66,911,000	63,385,000	60,030,000
Leases	15,695,000	16,119,000	15,095,000	14,015,000
Construction In Progress	2,820,000	3,162,000	3,574,000	4,044,000
Other Properties	27,812,000	27,921,000	26,067,000	23,990,000
Buildings And Improvements	16,754,000	16,100,000	15,137,000	14,539,000
Land And Improvements	3,624,000	3,609,000	3,512,000	3,442,000
Current Assets	14,505,000	15,273,000	12,948,000	12,670,000
Other Current Assets	843,000	769,000	609,000	734,000
Prepaid Assets					660,000
Inventory	6,892,000	7,038,000	7,105,000	7,560,000
Inventories Adjustments Allowances	-2,553,000	-2,404,000	-2,309,000	-2,196,000
Other Inventories	9,445,000	9,442,000	9,414,000	9,756,000
Receivables	2,192,000	2,195,000	2,136,000	2,234,000
Accounts Receivable	2,192,000	2,195,000	2,136,000	2,234,000
Cash Cash Equivalents And Short Term Investments	4,578,000	5,271,000	3,098,000	2,142,000
Other Short Term Investments	1,244,000	1,312,000	1,215,000	1,127,000
Cash And Cash Equivalents	3,334,000	3,959,000	1,883,000	1,015,000

Cash Flow

	2026	2025	2024	2023	2022
Free Cash Flow	3,456,000	1,777,000	2,884,000	1,420,000
Repurchase Of Capital Stock	-2,699,000	-5,156,000	-62,000	-993,000
Repayment Of Debt	-540,000	-4,883,000	-1,301,000	-552,000
Issuance Of Debt	43,000	10,502,000	15,000	0
Issuance Of Capital Stock	182,000	127,000	50,000	134,000
Capital Expenditure	-3,855,000	-4,017,000	-3,904,000	-3,078,000
Interest Paid Supplemental Data	633,000	252,000	488,000	545,000
Income Tax Paid Supplemental Data	635,000	681,000	751,000	698,000
End Cash Position	3,334,000	3,959,000	1,883,000	1,015,000
Beginning Cash Position	3,959,000	1,883,000	1,015,000	1,821,000
Changes In Cash	-625,000	2,076,000	868,000	-806,000
Financing Cash Flow	-4,022,000	-490,000	-2,170,000	-2,289,000
Cash Flow From Continuing Financing Activities	-4,022,000	-490,000	-2,170,000	-2,289,000
Net Other Financing Charges	-123,000	-197,000	-76,000	-196,000
Cash Dividends Paid	-885,000	-883,000	-796,000	-682,000
Common Stock Dividend Paid	-885,000	-883,000	-796,000	-682,000
Net Common Stock Issuance	-2,517,000	-5,029,000	-12,000	-859,000
Common Stock Payments	-2,699,000	-5,156,000	-62,000	-993,000
Common Stock Issuance	182,000	127,000	50,000	134,000
Net Issuance Payments Of Debt	-497,000	5,619,000	-1,286,000	-552,000
Net Long Term Debt Issuance	-497,000	5,619,000	-1,286,000	-552,000
Long Term Debt Payments	-540,000	-4,883,000	-1,301,000	-552,000
Long Term Debt Issuance	43,000	10,502,000	15,000	0
Investing Cash Flow	-3,914,000	-3,228,000	-3,750,000	-3,015,000
Cash Flow From Continuing Investing Activities	-3,914,000	-3,228,000	-3,750,000	-3,015,000
Net Other Investing Changes	-111,000	325,000	154,000	63,000
Net Business Purchase And Sale	52,000	464,000	0	0
Sale Of Business	52,000	464,000	0	0
Net PPE Purchase And Sale	-3,855,000	-4,017,000	-3,904,000	-3,078,000
Purchase Of PPE	-3,855,000	-4,017,000	-3,904,000	-3,078,000
Operating Cash Flow	7,311,000	5,794,000	6,788,000	4,498,000
Cash Flow From Continuing Operating Activities	7,311,000	5,794,000	6,788,000	4,498,000
Change In Working Capital	-330,000	-1,012,000	808,000	-3,193,000
Change In Other Working Capital	-457,000	-68,000	840,000	-775,000
Change In Other Current Liabilities	-529,000	-609,000	-695,000	-622,000
Change In Payables And Accrued Expense	553,000	360,000	323,000	-123,000
Change In Accrued Expense	165,000	107,000	-222,000	-167,000
Change In Payable	388,000	253,000	545,000	44,000
Change In Account Payable	388,000	253,000	545,000	44,000
Change In Prepaid Assets	76,000	-263,000	-16,000	-81,000
Change In Inventory	-86,000	-144,000	342,000	-1,370,000
Change In Receivables	113,000	-288,000	14,000	-222,000
Other Non Cash Items	158,000	115,000	182,000	618,000
Stock Based Compensation	157,000	175,000	172,000	190,000
Asset Impairment Charge	2,684,000	98,000	69,000	232,000
Deferred Tax	-330,000	-102,000	-155,000	161,000
Deferred Income Tax	-330,000	-102,000	-155,000	161,000
Depreciation Amortization Depletion	3,920,000	3,849,000	3,750,000	3,579,000
Depreciation And Amortization	3,920,000	3,849,000	3,750,000	3,579,000
Depreciation	3,920,000	3,849,000	3,750,000	3,579,000
Operating Gains Losses	28,000	-1,000	-207,000	662,000
Pension And Employee Benefit Expense		-2,000	-9,000	-26,000	50,000
Gain Loss On Investment Securities	41,000	148,000	-151,000	728,000
Gain Loss On Sale Of Business	0	-79,000	0	0
Net Income From Continuing Operations	1,024,000	2,672,000	2,169,000	2,249,000

These metrics estimate what The Kroger Co. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$18.31

Margin of Safety

Market Cap ÷ Company Value

3.44

P/B Ratio

6.94

Warren's Owner Earnings

$8.8B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$147.6B

vs > $1.5B revenue

❌ Strong Financial Condition

0.80x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.02%

vs Uninterrupted dividends

❌ Earnings Growth

-49.7% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

43.6x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

6.94x P/B (P/E×P/B: 303.0)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-48.18

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$34.28

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2026	2025	2024	2023	2022
Capital Expenditure % of Net Income	379.4%	150.7%	180.4%	137.2%	N/A
Repurchase of Capital Stock	-$2.7B	-$5.2B	-$62M	-$993M	N/A
Free Cash Flow	$3.5B ▲	$1.8B ▼	$2.9B ▲	$1.4B •	N/A •
Warren's Owner Earnings	$8.8B	$10.5B	$9.8B	$8.9B	N/A

Peers & Industry

No auto-detected peers for Grocery Stores. You can manually compare KR against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

9.12%

Moderate — some alignment with shareholders

Return on Equity (ROE)

17.1%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

2.0%

Fair — average asset utilization

Share Buybacks (Latest Year)

$2.7B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-1.6% YoY

Debt is declining — management is deleveraging

Leadership Team

Gregory Foran

CEO & Director

Age 64

David John Christopher Kennerley

Executive VP & CFO

Age 51

Robinson Quast CPA

Vice President of Investor Relations

Dana Zurcher

President of the Columbus Division

Valerie Jabbar

Senior Vice President of Retail Divisions

Age 56

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	12.60%	77,169,425
Blackrock Inc.	8.85%	54,245,917
Berkshire Hathaway, Inc	8.16%	50,000,000
State Street Corporation	5.22%	31,987,451
Wellington Management Group, LLP	3.28%	20,068,489
Geode Capital Management, LLC	2.65%	16,225,118
FMR, LLC	2.48%	15,166,478
GQG Partners LLC	2.19%	13,398,072

⚠️ Very high debt-to-equity — leverage risk

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.46

Low volatility — more stable than the market

Short Interest

4.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

4.16x

High leverage — significant financial risk

Current Ratio