KRKroger
Is the business good?
The checks split: earnings fully cash-backed (4.0×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 16% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is KR?
Kroger earns 8.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.57 points below what the capital costs: growth destroys value
- Operating margin
- 1.4%
Operating margin · Grocery Stores median 1.9% · 12 months to Q2 2026
- Cash conversion
- 3.96×
Cash conversion · 1.92× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −8.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 2.1% |
| FY2021 | 2.5% |
| FY2022 | 2.8% |
| FY2023 | 2.1% |
| FY2024 | 2.6% |
| FY2025 | 1.3% |
Details›
- Gross margin12 months to Q2 2026
- 23%
- Operating margin12 months to Q2 2026
- 1.4%
- Net margin12 months to Q2 2026
- 0.73%
- Free cash flow margin
- 1.6%
- Revenue, trailing twelve months
- $149.3B
- Free cash flow, trailing twelve months
- $2.38B
- Net income, trailing twelve months
- $1.08B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from KR and who it buys from, as the companies report it.
None disclosed.
- COKECoca-Cola Consolidated, Inc.12%
KR is 12% of its revenue · FY2025 10-K
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; KR’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Grocery Stores
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