# The Kroger Co. (KR) — Stock CV

The Kroger Co. is a $36.1B consumer company. Revenue shrank 15.2% over the last year, it keeps 1¢ of every dollar of sales as profit, and its net debt equals ~4.3 years of free cash flow. It trades at 33.6× earnings — in the most expensive third of its own history.

> Founded in 1883, Kroger is the largest pure-play supermarket operator in the United States, operating roughly 2,700 stores across more than 30 banners.

## Identity

- **Ticker**: KR
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Grocery Stores
- **Headquarters**: CINCINNATI, OH
- **Employees**: 403 000
- **Website**: https://www.thekrogerco.com
- **Market cap**: $36.1B
- **Last price**: $61.09
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $355B
- **Net income**: $4.98B
- **Free cash flow**: $5.23B
- **Net debt**: $22.5B
- **P/E**: 33.6
- **Revenue growth (YoY)**: -15.2%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 67 |
| Growth | 25 |
| Profitability | 28 |
| Health | 46 |
| Quality | 90 |
| Moat | 68 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [ ] Revenue growing — -15.2% YoY
- [x] Profitable — $4.98B TTM
- [ ] Profit growing — -20.5% YoY
- [x] Generates cash — $5.23B TTM
- [x] Debt under control — ~4.3y of cash flow to repay
- [x] Established company — $36.1B market cap
- [x] Not printing shares — -18.0% shares over ~5y
- [x] Proven track record — 12/12 profitable years
- [x] Financially stable — Altman Z 3.0 — safe
- [x] Pays a dividend — yield 2.46%
- [x] Valuation not extreme — P/E 33.6

## Experience (career milestones)

- **2024** — However, in January 2024, Washington state sued to block the proposed $25 billion merger between Kroger and…
- **Oct 14, 2022** — Kroger announced a merger with Albertsons in a deal worth $24.6 billion, combining both…
- **FY2018** — Best year on record: $10.5B net income
- **FY2016** — Profitable every year on record: 12 consecutive profitable years in our data
- **FY2016** — Revenue already above $100B: $299B in first reported year
- **FY2016** — Positive free cash flow every year since: 12-year streak
- **1998** — Kroger merged with the then fifth-largest grocery company Fred Meyer, along with its subsidiaries, Ralphs, QFC
- **1988** — Kroger opened stores in Florida under the SupeRx and Florida Choice banners from the 1960s until 1988
- **1977** — Kroger entered the Charlotte market in 1977 and expanded rapidly throughout the 1980s when it bought some stores…
- **1970** — Kroger exited the Minneapolis–Saint Paul area in 1970, selling 16 stores to Quality Foods
- **1967** — The first bar code scanner was introduced in a Kroger supermarket in Cincinnati, Ohio
- **1965** — Henke's Family Center stores were folded into the newly-created Kroger Family Center subdivision
- **1963** — Kroger acquired the 56-store chain Market Basket, providing them with a foothold in the lucrative…
- **1883** — The company was founded by Bernard Kroger in 1883 in Cincinnati

## Strengths

- Altman Z-Score 3.01 — low bankruptcy-risk zone

## Watch-outs

- Revenue shrinking 15.2% year over year
- Net debt would take ~6.5 years of free cash flow to repay

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | $385B | $5.40B | $7.62B |
| FY2024 | $387B | $6.55B | $6.46B |
| FY2025 | $384B | $5.16B | $6.35B |
| FY2026 | $387B | $3.60B | $6.33B |
| FY2027 | $127B | $2.43B | $1.13B |

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Source: https://stockcv.com/KR — derived from company filings; may be delayed or incomplete. Information, not investment advice.