Kroger Co.

KR-N

NYSE:KR

33.44
0.68 (2.08%)
The Kroger Company, or simply Kroger, is an American retailing company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.
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Analysis and Opinions about KR-N

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
August 22, 2019

Grocers are tough, operating on skinny margins. You have big competition. WMT-N and AMZN-Q are big into grocery. He owns WMT-N.

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Kroger Co. (KR-N)
August 22, 2019

Grocers are tough, operating on skinny margins. You have big competition. WMT-N and AMZN-Q are big into grocery. He owns WMT-N.

DON'T BUY
DON'T BUY
August 13, 2019
She would not buy into this space of US grocers. It looks cheap, but she would stay away. It might be somewhat recession proof, because of the lower cost metrics and people have to buy groceries. It is neither a growth or income stock, so she has no real interest.
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Kroger Co. (KR-N)
August 13, 2019
She would not buy into this space of US grocers. It looks cheap, but she would stay away. It might be somewhat recession proof, because of the lower cost metrics and people have to buy groceries. It is neither a growth or income stock, so she has no real interest.
DON'T BUY
DON'T BUY
August 7, 2019
The pay a small dividend about 2-3%. The technicals suggest you stay away -- it is making lower highs consistently. Fundamentally, they are facing greater competition as is witnessed by the names on the trucks delivering groceries these days. Stay away.
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Kroger Co. (KR-N)
August 7, 2019
The pay a small dividend about 2-3%. The technicals suggest you stay away -- it is making lower highs consistently. Fundamentally, they are facing greater competition as is witnessed by the names on the trucks delivering groceries these days. Stay away.
DON'T BUY
DON'T BUY
August 2, 2019

A serial dividend grower? Traditional grocery stores are threatened by Amazon and hard discounters (in the U.S.). The latter dominate Europe and are a rising threat in North America. He prefers Costco who have the lowest prices anywhere; they also have the best demographics of anyone selling groceries, the wealthy, which makes Costco very defensive/safe.

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Kroger Co. (KR-N)
August 2, 2019

A serial dividend grower? Traditional grocery stores are threatened by Amazon and hard discounters (in the U.S.). The latter dominate Europe and are a rising threat in North America. He prefers Costco who have the lowest prices anywhere; they also have the best demographics of anyone selling groceries, the wealthy, which makes Costco very defensive/safe.

WEAK BUY
WEAK BUY
July 30, 2019

PE only at 10 times? He would buy Amazon instead -- they will steal market share from them. You could by KR-N and still do well, but there needs to be more upward momentum to excite him.

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Kroger Co. (KR-N)
July 30, 2019

PE only at 10 times? He would buy Amazon instead -- they will steal market share from them. You could by KR-N and still do well, but there needs to be more upward momentum to excite him.

PAST TOP PICK
PAST TOP PICK
September 18, 2018

(A Top Pick November 13, 2017. Up 34%). He bought this stock expecting inflationary food prices to take it up, then tripled his position when Amazon caused a panic by buying Whole Foods. He sold off the investment and has bought other consumer stocks with the proceeds.

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Kroger Co. (KR-N)
September 18, 2018

(A Top Pick November 13, 2017. Up 34%). He bought this stock expecting inflationary food prices to take it up, then tripled his position when Amazon caused a panic by buying Whole Foods. He sold off the investment and has bought other consumer stocks with the proceeds.

DON'T BUY
DON'T BUY
September 4, 2018

This was suffering with its entire industry a few years ago but has figured out how to compete and is now doing extremely well. It has strong earnings. He expects acquisitions to be a bolt-on variety (e.g. niches). Grocery is a tough space because of entrenched competition from Amazon, CostCo and Walmart. He is not buying grocery stocks because of the difficulty of this space, but he is very impressed with the management of Kroger and their success in this space.

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Kroger Co. (KR-N)
September 4, 2018

This was suffering with its entire industry a few years ago but has figured out how to compete and is now doing extremely well. It has strong earnings. He expects acquisitions to be a bolt-on variety (e.g. niches). Grocery is a tough space because of entrenched competition from Amazon, CostCo and Walmart. He is not buying grocery stocks because of the difficulty of this space, but he is very impressed with the management of Kroger and their success in this space.

TOP PICK
TOP PICK
November 13, 2017

This had a couple of issues. First there was food deflation, which tends to cause excess competition in the grocery sector. And then there was the Amazon purchase of Whole Foods. That took the company down from $30 to $20. This is selling at about 10X earnings, compared to Loblaw’s (L-T) selling at 17-18 times. Kroger has a little more debt, but own half their stores. The largest retailer in the US. Dividend yield of 2.3%. (Analysts’ price target is $23.)

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Kroger Co. (KR-N)
November 13, 2017

This had a couple of issues. First there was food deflation, which tends to cause excess competition in the grocery sector. And then there was the Amazon purchase of Whole Foods. That took the company down from $30 to $20. This is selling at about 10X earnings, compared to Loblaw’s (L-T) selling at 17-18 times. Kroger has a little more debt, but own half their stores. The largest retailer in the US. Dividend yield of 2.3%. (Analysts’ price target is $23.)

DON'T BUY
DON'T BUY
August 10, 2017

You have stocks that screen really well on a lot of metrics, and this company is one of them. It generates cash flow. The industry has been beaten up. There are some valid reasons for that, with a lot of big players coming into the grocery space, including Amazon (AMZN-Q) which has just annihilated businesses. What makes it challenging, is that they are dealing with consumers. She doesn’t like the consumer space, because there is no loyalty, and would rather be elsewhere.

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Kroger Co. (KR-N)
August 10, 2017

You have stocks that screen really well on a lot of metrics, and this company is one of them. It generates cash flow. The industry has been beaten up. There are some valid reasons for that, with a lot of big players coming into the grocery space, including Amazon (AMZN-Q) which has just annihilated businesses. What makes it challenging, is that they are dealing with consumers. She doesn’t like the consumer space, because there is no loyalty, and would rather be elsewhere.

DON'T BUY
DON'T BUY
June 15, 2017

She does not follow it closely. Food retaining is quite competitive. She does not like the space in the US. She only owns L-T in Canada and they also have shoppers which she likes. She would not add US retailers to the US portfolios.

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Kroger Co. (KR-N)
June 15, 2017

She does not follow it closely. Food retaining is quite competitive. She does not like the space in the US. She only owns L-T in Canada and they also have shoppers which she likes. She would not add US retailers to the US portfolios.

COMMENT
COMMENT
May 9, 2017

The grocery space has been really, really tough. Underperformance relative to the market really shows that. There has been a lot of competition coming in such as Wal-Mart (WMT-N) and Costco (COST-Q). Now you are getting potential online entrants. If Amazon (AMZN-Q) decides to get into an industry, completely decimate margins, and operate at what seems like a loss in order to take share, it is really tough for incumbent competitors. She would be on the sidelines with this.

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Kroger Co. (KR-N)
May 9, 2017

The grocery space has been really, really tough. Underperformance relative to the market really shows that. There has been a lot of competition coming in such as Wal-Mart (WMT-N) and Costco (COST-Q). Now you are getting potential online entrants. If Amazon (AMZN-Q) decides to get into an industry, completely decimate margins, and operate at what seems like a loss in order to take share, it is really tough for incumbent competitors. She would be on the sidelines with this.

PAST TOP PICK
PAST TOP PICK
April 27, 2017

(Top Pick Jun 21’16, Up 11.95%) This is his sore one. He is hanging in, though. It is because of fears of food deflation. He sees this as a temporary blip. They have a pretty good brand of organics. They have this segment of food and it is not perceived as just for the elite. They have a great deal of market share.

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Kroger Co. (KR-N)
April 27, 2017

(Top Pick Jun 21’16, Up 11.95%) This is his sore one. He is hanging in, though. It is because of fears of food deflation. He sees this as a temporary blip. They have a pretty good brand of organics. They have this segment of food and it is not perceived as just for the elite. They have a great deal of market share.

BUY WEAKNESS
BUY WEAKNESS
January 12, 2017

He has a small position because it is one of the top market share grocers in the US. They have their organic line, private label, as a catalyst for growth. This could help propel margin expansion. Find it in the low $30s or below. There may be some fund flows out of this stock in some funds and this would create an opportunity.

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Kroger Co. (KR-N)
January 12, 2017

He has a small position because it is one of the top market share grocers in the US. They have their organic line, private label, as a catalyst for growth. This could help propel margin expansion. Find it in the low $30s or below. There may be some fund flows out of this stock in some funds and this would create an opportunity.

COMMENT
COMMENT
November 29, 2016

The 2nd largest grocer in the US, only behind Walmart. Trading at a big discount to Walmart. There has been pressure on the company, but it is trading at only 11.5X earnings. Dividend yield of only 1.8%, but have grown it at a double-digit rate for the past decade. Also, only pays out about 20% of earnings. They’ve also done very strategic acquisitions throughout the US to buy smaller regional supermarkets. He likes this a lot.

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Kroger Co. (KR-N)
November 29, 2016

The 2nd largest grocer in the US, only behind Walmart. Trading at a big discount to Walmart. There has been pressure on the company, but it is trading at only 11.5X earnings. Dividend yield of only 1.8%, but have grown it at a double-digit rate for the past decade. Also, only pays out about 20% of earnings. They’ve also done very strategic acquisitions throughout the US to buy smaller regional supermarkets. He likes this a lot.

COMMENT
COMMENT
October 6, 2016

The grocery business is tough. Razor thin margins and very competitive. Food inflation is starting to fall back a little. This started to decline 5 months ago when there was changed guidance on the name, expecting things to fall off a little. This is also showing up in Canada. Also, he understands that Walmart had taken a lot of market share from them, not only in a general basis, but in very specific regional markets.

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Kroger Co. (KR-N)
October 6, 2016

The grocery business is tough. Razor thin margins and very competitive. Food inflation is starting to fall back a little. This started to decline 5 months ago when there was changed guidance on the name, expecting things to fall off a little. This is also showing up in Canada. Also, he understands that Walmart had taken a lot of market share from them, not only in a general basis, but in very specific regional markets.

COMMENT
COMMENT
October 4, 2016

This is facing food deflation in the US as well as a more competitive environment. There is an impact across the sector. A phenomenal grocery store chain, and he likes it. Has a reasonable valuation.

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Kroger Co. (KR-N)
October 4, 2016

This is facing food deflation in the US as well as a more competitive environment. There is an impact across the sector. A phenomenal grocery store chain, and he likes it. Has a reasonable valuation.

DON'T BUY
DON'T BUY
September 19, 2016

He would stay away from grocery in general. A major factor is food deflation, but even if the gross margin of a grocery store were to remain constant, and selling prices are lower, they are delivering less growth margin dollars against the fixed costs. The other problem is that a lot of the profit pools of the grocery industry are really under assault. There are hard discounters coming into the US like Aldi, Richard selling natural foods at incredibly low prices, working on very low markups. (See Top Picks.)

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Kroger Co. (KR-N)
September 19, 2016

He would stay away from grocery in general. A major factor is food deflation, but even if the gross margin of a grocery store were to remain constant, and selling prices are lower, they are delivering less growth margin dollars against the fixed costs. The other problem is that a lot of the profit pools of the grocery industry are really under assault. There are hard discounters coming into the US like Aldi, Richard selling natural foods at incredibly low prices, working on very low markups. (See Top Picks.)

BUY
BUY
September 12, 2016

Believes this is the biggest grocery store in the US. It off about 20% in the last little while. There is basically a lot of focus on food and cost inflation, and how are they going to successfully manage both and pass it on to the consumer. He prefers using his Cdn$ to buy a name like Loblaw’s (L-T). Kroger is trading at about 13X earnings with a yield of about 1.5%, and thinks they will manage through this. The kind of name you want to buy in this correction.

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Kroger Co. (KR-N)
September 12, 2016

Believes this is the biggest grocery store in the US. It off about 20% in the last little while. There is basically a lot of focus on food and cost inflation, and how are they going to successfully manage both and pass it on to the consumer. He prefers using his Cdn$ to buy a name like Loblaw’s (L-T). Kroger is trading at about 13X earnings with a yield of about 1.5%, and thinks they will manage through this. The kind of name you want to buy in this correction.

DON'T BUY
DON'T BUY
September 7, 2016

(Market Call Minute.) A little too expensive. A supermarket that is trading close to 20X earnings. Margins are traditionally extremely skinny in this type of business.

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Kroger Co. (KR-N)
September 7, 2016

(Market Call Minute.) A little too expensive. A supermarket that is trading close to 20X earnings. Margins are traditionally extremely skinny in this type of business.

TOP PICK
TOP PICK
September 1, 2016

Gaining share the last few years. The market is worried about food price inflation. You will get double digit earnings growth. 14 times earnings and great dividend growth. These guys are great at execution.

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Kroger Co. (KR-N)
September 1, 2016

Gaining share the last few years. The market is worried about food price inflation. You will get double digit earnings growth. 14 times earnings and great dividend growth. These guys are great at execution.

TOP PICK
TOP PICK
June 21, 2016

They are across all the US and are the largest market share in terms of business that also has a niche play into affordable organic foods, which was only launched 2 years ago, but represents $1.2 billion of their annual sales. They recently made an $800 million acquisition and got 24 new grocery store locations, giving them access to Wisconsin and the Mariano’s name in Chicago. They are #2 in terms of market share, 2nd only to Walmart. Dividend yield of 1.22%.

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Kroger Co. (KR-N)
June 21, 2016

They are across all the US and are the largest market share in terms of business that also has a niche play into affordable organic foods, which was only launched 2 years ago, but represents $1.2 billion of their annual sales. They recently made an $800 million acquisition and got 24 new grocery store locations, giving them access to Wisconsin and the Mariano’s name in Chicago. They are #2 in terms of market share, 2nd only to Walmart. Dividend yield of 1.22%.

DON'T BUY
DON'T BUY
January 21, 2016

They have done a great job of growing same store sales. They are the largest grocer in the US. The whole industry could use a little inflation, which is good for grocers. The difficulty he has right now is the valuation. It is a good company, but not such a good stock.

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Kroger Co. (KR-N)
January 21, 2016

They have done a great job of growing same store sales. They are the largest grocer in the US. The whole industry could use a little inflation, which is good for grocers. The difficulty he has right now is the valuation. It is a good company, but not such a good stock.

DON'T BUY
DON'T BUY
November 30, 2015

A lot of investors have been hanging out in these highly defensive names, which are trading at pretty big PE multiples. The whole business is getting very competitive. Consumers are changing their shopping habits, and grocers are going to have to make increasing efforts to remain competitive. You also have to worry about food price inflation. There are better areas to be invested in.

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Kroger Co. (KR-N)
November 30, 2015

A lot of investors have been hanging out in these highly defensive names, which are trading at pretty big PE multiples. The whole business is getting very competitive. Consumers are changing their shopping habits, and grocers are going to have to make increasing efforts to remain competitive. You also have to worry about food price inflation. There are better areas to be invested in.

COMMENT
COMMENT
October 29, 2015

Stock has been moving sideways, but still paying a decent dividend. He likes this company given the fact that the US domestic economy and environment is improving. That should help a name like this. Thinks they will improve on their sales growth and their margins as the company benefits from its expanding offerings of wider margin type of business, including organic foods and natural foods and private label foods. Pays a moderate dividend of 1.1%.

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Kroger Co. (KR-N)
October 29, 2015

Stock has been moving sideways, but still paying a decent dividend. He likes this company given the fact that the US domestic economy and environment is improving. That should help a name like this. Thinks they will improve on their sales growth and their margins as the company benefits from its expanding offerings of wider margin type of business, including organic foods and natural foods and private label foods. Pays a moderate dividend of 1.1%.

HOLD
HOLD
April 17, 2015

One of the biggest supermarket chains in the US. This has been an attractive area because it is purely domestic and earnings have been growing as they’ve been consolidating some of their stores and cutting expenses. This has been boosting profitability. The stock has done very well.

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Kroger Co. (KR-N)
April 17, 2015

One of the biggest supermarket chains in the US. This has been an attractive area because it is purely domestic and earnings have been growing as they’ve been consolidating some of their stores and cutting expenses. This has been boosting profitability. The stock has done very well.

DON'T BUY
DON'T BUY
February 26, 2015

It has had a pretty good run and it is not attractive from a valuation point of view. It will pullback more than others in a market correction.

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Kroger Co. (KR-N)
February 26, 2015

It has had a pretty good run and it is not attractive from a valuation point of view. It will pullback more than others in a market correction.

BUY WEAKNESS
BUY WEAKNESS
July 12, 2013

Likes the sector and likes their latest acquisition. These are low margin/low growth vehicles. This one has had a good run this last year because of the safety of the business. This is one of the best managed stores. Has a very good presence in a number of markets.

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Kroger Co. (KR-N)
July 12, 2013

Likes the sector and likes their latest acquisition. These are low margin/low growth vehicles. This one has had a good run this last year because of the safety of the business. This is one of the best managed stores. Has a very good presence in a number of markets.

COMMENT
COMMENT
July 8, 2013

Chart shows a big upward parabolic move off of the trend line earlier this year. It had to be corrected and it did and now it is starting to move out again. In technical language, this could be called a “down flag” in an uptrend. Stock looks great.

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Kroger Co. (KR-N)
July 8, 2013

Chart shows a big upward parabolic move off of the trend line earlier this year. It had to be corrected and it did and now it is starting to move out again. In technical language, this could be called a “down flag” in an uptrend. Stock looks great.

DON'T BUY
DON'T BUY
July 2, 2013

Amazing comeback story. They figured out how to handle Walmart. There will be very little growth in the whole business. Grocery store space is growing faster than the population.

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Kroger Co. (KR-N)
July 2, 2013

Amazing comeback story. They figured out how to handle Walmart. There will be very little growth in the whole business. Grocery store space is growing faster than the population.

HOLD
HOLD
December 6, 2011
Has done very, very well, nice balance sheet, profitable, reasonable dividend. Have proven they can take on the competition. Know what they are doing. The stock upside is too muted for him but for other systems it could be a good play.
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Kroger Co. (KR-N)
December 6, 2011
Has done very, very well, nice balance sheet, profitable, reasonable dividend. Have proven they can take on the competition. Know what they are doing. The stock upside is too muted for him but for other systems it could be a good play.
PAST TOP PICK
PAST TOP PICK
August 24, 2009
(A Top Pick Aug 12/08. down 28.07%.) Biggest retail grocer in North America and the only one that did not lose market share to Wal-Mart (WMT-N). Earnings and same store sales continue to come in above expectations. Has languished because of a flight to risk and grocery stores are the ultimate anti-risk. Still a Buy.
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Kroger Co. (KR-N)
August 24, 2009
(A Top Pick Aug 12/08. down 28.07%.) Biggest retail grocer in North America and the only one that did not lose market share to Wal-Mart (WMT-N). Earnings and same store sales continue to come in above expectations. Has languished because of a flight to risk and grocery stores are the ultimate anti-risk. Still a Buy.
PAST TOP PICK
PAST TOP PICK
June 8, 2009
(A Top Pick June 13/08. Down 17.74%.) Largest supermarket chain in the US. Profits and margins have been increasing. Never lost market share to Wal-Mart (WMT-N). Earnings continue to do well. Stock got hit when money moved out of defensive stocks.
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Kroger Co. (KR-N)
June 8, 2009
(A Top Pick June 13/08. Down 17.74%.) Largest supermarket chain in the US. Profits and margins have been increasing. Never lost market share to Wal-Mart (WMT-N). Earnings continue to do well. Stock got hit when money moved out of defensive stocks.
PAST TOP PICK
PAST TOP PICK
October 14, 2008
(Top Pick Oct 23/07, Down 9%). In bad times people eat at home more. There is food inflation, which is good for grocers. They also win as people move down to private label. They have strong private label program.
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Kroger Co. (KR-N)
October 14, 2008
(Top Pick Oct 23/07, Down 9%). In bad times people eat at home more. There is food inflation, which is good for grocers. They also win as people move down to private label. They have strong private label program.
TOP PICK
TOP PICK
August 12, 2008
Largest supermarket chain in the US. The only chain in history that has not lost market share to Wal-Mart. Have been gaining market share lately and have been gaining their earnings. Reinstated the dividend. In a slowing economy they have been building up their private label business and it is now 25% of their business.
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Kroger Co. (KR-N)
August 12, 2008
Largest supermarket chain in the US. The only chain in history that has not lost market share to Wal-Mart. Have been gaining market share lately and have been gaining their earnings. Reinstated the dividend. In a slowing economy they have been building up their private label business and it is now 25% of their business.
TOP PICK
TOP PICK
June 13, 2008
His 3 Top Picks are inflation hedges. The only food retailer in North America not to lose market share to Wal-Mart (WMT-N). Continuing to gain sales and market share and profitability.
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Kroger Co. (KR-N)
June 13, 2008
His 3 Top Picks are inflation hedges. The only food retailer in North America not to lose market share to Wal-Mart (WMT-N). Continuing to gain sales and market share and profitability.
TOP PICK
TOP PICK
May 28, 2008
Biggest supermarket chain in the US. Never lost market share to Wal-Mart (WMT-N). Now that margins are expanding they are starting to make a lot of money. Food retailers generally like food inflation.
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Kroger Co. (KR-N)
May 28, 2008
Biggest supermarket chain in the US. Never lost market share to Wal-Mart (WMT-N). Now that margins are expanding they are starting to make a lot of money. Food retailers generally like food inflation.