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Is this Large Market Cap Stock target price reasonable for The Kroger Co. (NYSE:KR)?

The company in question is, The Kroger Co. (NYSE:KR) currently with a stock price of 35.87 (-1.51% today). The market cap for The Kroger Co. is 34543.28, and is in the sector Services, and Grocery Stores industry. The target price for The Kroger Co. is 41.39. Currently The Kroger Co. is trading with a P/E of 17.05, and a forward P/E of 14.98. Average volume for The Kroger Co. is 7951.15 and so far today it is 2542708.

Performance in the last year for The Kroger Co. has been -3.56%. For EPS growth, The Kroger Co. has seen a growth of 18.60%, and is looking to grow in the next year to 9.41%. More long term stats show that EPS growth has been 18.90% over the last five years and could be 9.79% for the next five years. The Kroger Co. has seen sales growth quarter over quarter at 4.70%, with EPS growth quarter over quarter at 12.00%. The 20-day simple moving average is -0.37%, with the 200-day simple moving average coming to -4.50%.

Since the IPO date for The Kroger Co. on the 1/3/1977, The Kroger Co. has seen performance year to date to be -12.42%. With The Kroger Co. trading at 35.87, the dividend yield is 1.32%, and the EPS is 2.14.

So could The Kroger Co., be undervalued? Well as said before P/E is 17.05. The PEG is 1.74, P/S is 0.31 and the P/B is at 5.43. The P/cash is 88.35, with P/free cash flow at 29.42.

The Kroger Co. ability to deal with debt shows that the current ratio is 0.7, and the quick ratio is 0.2. This is with long term debt/equity at 1.52, and total debt/equity at 1.93.

In terms of margins, The Kroger Co. has a gross margin of 22.40%, an operating margin of 3.30% and a profit margin of 1.90%.Payout ratio for The Kroger Co. is 19.40%. Return on assets come to 6.40% with return on investment coming to 13.40%.

Insider ownership for The Kroger Co., is at 0.60% and institutional ownership comes to 82.60%. Outstanding shares are at 948.47. While shares float is 943.92. The float short is currently 3.67%, and short ratio is 4.36.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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