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The Kroger Co.
S&P 500
$42.2B
Market Cap
40.8
P/E
1.83
PEG
3.9%
ROCE
14.4%
ROE
3.74
D/E
1.3%
OPM
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🌏 Global Investor Returns
Currency-adjusted total returns for KR including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

The Kroger Co. operates as a food and drug retailer in the United States.

Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding KR
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Manager Shares Value % of Fund Period
Warren Buffett Berkshire Hathaway Inc 27.26M $2.0B 0.75% Mar 2026
Warren Buffett Berkshire Hathaway Inc 16.11M $1.2B 0.44% Mar 2026
Warren Buffett Berkshire Hathaway Inc 5.37M $388.4M 0.15% Mar 2026
Warren Buffett Berkshire Hathaway Inc 768.5K $55.6M 0.02% Mar 2026
Warren Buffett Berkshire Hathaway Inc 500.0K $36.2M 0.01% Mar 2026
Jim Simons Renaissance Technologies LLC 10.0K $724K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Mixed → Stable 4 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q4 2026
Revenue
$34.7B
+1.2% YoY
Operating Income
$1,246M
+36.6% YoY
Operating Margin
3.6%
+0.9pp YoY
What Went Right
  • Positive market share growth in final period (period 13) - strongest since 2021
  • eCommerce adjusted sales grew 20% to $16B annual business
  • Adjusted EPS grew 12% to $1.28, at high end of expectations
What to Watch
  • IRA headwind of 38 bps in Q4 and expected 130 bps in 2026
  • Still lost share overall in Q4; units remain slightly down
  • Pharmacyl growth moderating due to IRA and brand-to-generic shift
Management Guidance
  • 2026 ID sales without fuel: 1%-2% (ex-IRA 2.3%-3.3%)
  • Adjusted FIFO operating profit: $5.0B-$5.2B
  • Adjusted EPS: $5.10-$5.30
Investor Lens
The thesis strengthens: Kroger is successfully balancing price investments with margin discipline, evidenced by improving share trends and a clear path to e-commerce profitability in 2026. New CEO Greg Foran's focus on accelerating top-line growth and cost savings, funded by self-help, adds confidence. However, headwinds from the IRA and competitive pricing remain, but the self-funding model provides a buffer.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Kroger Q4: positive share gains, strong e-commerce; guidance in-line.
Revenue
Total Q4 revenue was $34.7B, up 1.2% YoY, driven by 2.4% identical sales growth (ex-fuel) despite a 38 bps IRA headwind. E-commerce adjusted sales grew 20% and fresh categories improved.
Profitability
Operating profit rose 36.6% to $1,246M. Adjusted EPS of $1.28 grew 12% YoY, at the high end of expectations. Full-year adjusted EPS was $4.85.
Margins
Operating margin improved 0.9pp to 3.6%. FIFO gross margin rate (ex-fuel, rent, D&A) was flat YoY, with sourcing improvements and lower shrink offsetting price investments. OG&A rate increased 21 bps due to labor investments and cycling real estate gains.
Balance Sheet
Adjusted free cash flow was $3.9B in Q4, exceeding expectations due to strong operating performance and working capital initiatives. CapEx guidance for 2026 is $3.8B-$4.0B. Net debt/EBITDA remains below target.
Key Risks
IRA headwinds will be 130 bps to ID sales in 2026. Egg deflation continues into Q1. Market share remains negative overall in Q4, only turning positive in the final period.
Outlook
For 2026, Kroger guides ID sales without fuel of 1%-2% (ex-IRA 2.3%-3.3%), adjusted FIFO operating profit of $5.0B-$5.2B, and adjusted EPS of $5.10-$5.30. Q1 ID sales expected near low end of range.
Generated by AI · Q4 2026 results · Not investment advice
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
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