Home Sectors Consumer Defensive Love or Hate: Kroger Company (NYSE: KR)

Love or Hate: Kroger Company (NYSE: KR)

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Kroger Company trades as part of the consumer defensive sector and is in the retail defensive industry. The Kroger Co operates grocery stores. Its coverage includes retail food and drug stores, multi-department stores, jewelry stores and convenience stores.

Previous Intraday Trading Performance:

The KR stock showed a previous change of -0.27% with an open at 25.77 and a close of 25.67. It reached an intraday high of 25.97 and a low of 25.52.

SeekingAlpha:  Fines threatened for Walmart, Kroger, others in selling tobacco to minors

Liquidity:

The stock has a market cap of $20.5b with 798.3m shares outstanding, of which the float is 786.6m shares. Trading volume reached 10,352,399 shares compared to its average volume of 10,733,474 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Kroger Company shares returned 7.59% and in the past 30 trading days it returned -10.37%. Over three months, it changed -9.87%. In one year it has changed 8.26% and within that year its 52-week high was 32.74 and its 52-week low was 23.52. KR stock is 9.14% above its 52 Week Low.

Our calculations show a 200 day moving average of 28.33 and a 50 day moving average of 26.36. Currently KR stock is trading -9.39% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Fines threatened for Walmart, Kroger, others in selling tobacco to minors

Earnings:

The last annual fiscal EPS for the company was reported at 3.71 that ended on 31st of January 2019, which according to the previous close, that is a PE of 6.92. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.63. The TTM EPS is 2.19, which comes to a TTM PE of 11.72. Historically, the PE high was 24.90 and the PE low was 6.92. If the stock reached its PE low, that would represent a price of 15.15, which is a decrease of -40.96%.

The dividend per share is currently 0.56, which is a dividend yield of 2.18%. Also, the payout ratio is 25.57%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 63.15, which means it is possibly undervalued and has a margin of safety of 59.35%

Indicators to Watch:

Based on the latest filings, there is 1.40% of insider ownership and 130.80% of institutional ownership. Short-interest is 35,672,441, which is 4.47% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.11. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.64

CNBC:  Goldman analysts believe these stocks will surge more than 60% in the next year and one will double

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 41.52%, return on assets is 8.17%, profit margin is 2.54%, price-to-sales is 0.17 and price-to-book is 2.60.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 4  :Past Performance Score
 3  :Financial Strength Score
 0  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.