Looking At The Kroger Co. (NYSE:KR) From All Angles

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I've been keeping an eye on The Kroger Co. (NYSE:KR) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe KR has a lot to offer. Basically, it is a dependable dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Kroger here.

Established dividend payer and good value

KR is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of KR's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the consumer retailing industry, KR is also trading below its peers, relative to earnings generated. This bolsters the proposition that KR's price is currently discounted.

NYSE:KR Intrinsic value, July 8th 2019
NYSE:KR Intrinsic value, July 8th 2019

For those seeking income streams from their portfolio, KR is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.9%.

NYSE:KR Historical Dividend Yield, July 8th 2019
NYSE:KR Historical Dividend Yield, July 8th 2019

Next Steps:

For Kroger, I've put together three important factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for KR’s future growth? Take a look at our free research report of analyst consensus for KR’s outlook.

  2. Historical Performance: What has KR's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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