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The Kroger Co. (NYSE: KR) – Is this large market cap stock undervalued?

The Kroger Co. (NYSE: KR), is firmly in the large market cap category with market cap of 28174.03. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for The Kroger Co. is 29.84 (with a change from open of -0.43%), this in conjunction with a target price of 36.36. Volume today has so far reached 10817000, with an average volume of about 9686.43. The GAP for this stock, is 0.23%.

The P/E ratio is 14.06, bringing the forward P/E to a value of 12.95. The current EPS for The Kroger Co., is 2.12, with a EPS growth for this year coming to a value of 18.60%. Performance has been interesting with performance year to date coming to -27.98%.

Looking further into the growth statistics for The Kroger Co., EPS is looking like it will grow 7.87% in the next year. Looking even further it is projected to be 8.04%. Quarter over quarter is -9.90% for EPS growth and for sales growth quarter over quarter it is 4.00%. Looking at past EPS growth statistics we see that for the past five years it has been 18.90%. Sales growth for the past five years has in fact been 6.00%.

Looking at the ownership, we see that the insider ownership is at 0.60% and institutional ownership is 82.30%. Shares outstanding is 944.17, while shares float is at a value of 939.11. Float short for The Kroger Co. is 2.91% and the short ratio is 2.82.

In terms of debt, long term debt/equity is 1.47, while the total debt/equity comes to 1.89. The ability to meet these debts, means that the current ratio is 0.7, and the quick ratio is 0.2. The most recent gross margin is 22.60% and their operating margin is 3.20%. The profit margin is 1.80%.

The Kroger Co. has seen returns on assets of 6.10%, and on investment, 13.40%. Return on equity is 31.50%. Price/Earnings to growth ratio is 1.75. Price/Sales ratio is at a value of 0.25, with Price/book ratio coming to 4.28 and Price/cash is 88.32, and finally Price/Free cash Flow is 563.48.

The simple moving averages are -8.33% and -17.63% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -29.53% and the 52 week low is 0.00%.

The Kroger Co. has a dividend yield of 1.61%, with a current price of 29.84. The ability to pay this means the payout ratio is 20.20%. This is in an industry, Grocery Stores, with equally high dividends from other companies in this sector, which it is Services. The Kroger Co. is based in USA.

Performance in the Grocery Stores industry means that The Kroger Co. has seen performance for the past week of -3.24%, with performance for the month coming to -7.70%. Looking at the data for the quarter it is at a value of -17.83%, and for the half year the performance is -15.16%. Volatility for this week is 1.31% and for the month this is 1.83%.

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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