The Kroger Co. (KR)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Kroger as a defensive grocer, not a growth story, and I do not see evidence of a wide moat in these numbers: grocery retail is competitive and margins are thin, though scale helps. Kroger operates food and drug stores and had 400,000 employees; in fiscal year 2025, the year ended 2026-01-31, revenue was $147.6B, net income $1.0B, and diluted EPS $1.54, versus net income of $2.7B and diluted EPS of $3.67 in fiscal year 2024, the year ended 2025-02-01. In fiscal Q2 2026, the quarter ended 2026-08-15, revenue was $34.6B, net income $641.0M, and diluted EPS $1.05, so the latest filing is positive but the margin is thin. At the 2026-10-26 close, FairStock shows P/E 36.09, P/B 6.81, ROCE 5.80%, and D/E 4.13; leverage is high and returns are modest relative to the price. The FairStock Graham Number is $19.85, with a -236.37% margin of safety, so the price is far above that conservative anchor. FairStock’s Lynch category is SLOW GROWER—Shrinking, with profit down 17.0% a year over five years and revenue up 2.2%, which fits the filed profit drop. Positives: TTM FCF is $2.4B, a 6.0% FCF yield, dividend yield is 2.60%, and beta is 0.41. Still, FairStock PEG 6.87 and Piotroski F-Score 4/9 suggest the market is paying for improvement not yet demonstrated in the filings.

In plain English: Kroger runs grocery, pharmacy and general merchandise stores. The business looks stable but not strong: sales are large, yet profit has fallen sharply and the latest filed quarter was only modestly profitable. At $66.77, the price looks expensive compared with recent profits and the accounting value of what it owns minus what it owes.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-15) · fiscal Q1 2026 10-Q (period ended 2026-05-23) · fiscal Q4 2025 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-11-08) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-02-01) · FY2023 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer