Kroger operates as a retailer in the United States and internationally. It also manufactures and processes food for sale in its supermarkets. The company was founded in 1883 and is based in Cincinnati, Ohio.
KR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Kroger Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Kroger Co ranked in the 74th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Kroger Co ended up being:
The company has produced more trailing twelve month cash flow than 86.93% of its sector Consumer Defensive.
Kroger Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 2.47% of tickers in our DCF set.
KR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 2.47% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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CINCINNATI, Sept. 29, 2020 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today announced the retirement of Robert Clark, senior vice president of supply chain, manufacturing and enterprise sourcing, after more than 35 years of service, effective February 1, 2021. Clark will be succeeded by…
The Kroger Co. (KR) is currently trading at a very attractive forward earnings multiple that's well below those of its peers, as well as players in the broader consumer staples segment. This and other considerations, as covered in this article, point to healthy long-term total returns for Kroger investors. Thesis:...
Beulah Meriam K on Seeking Alpha | September 28, 2020
ROMULUS, Mich. , Sept. 28, 2020 /PRNewswire/ -- The Kroger Co. (NYSE: KR ), America's largest grocery retailer, and Ocado (LSE: OCDO), a world leader in technology for grocery ecommerce, today announced Romulus, MI , as the latest location for a Customer Fulfillment Center (CFC). The location confirms a previous announcement stating Kroger and Ocado would construct a CFC in the Great Lakes Region . "Kroger is incredibly excited to develop one of our industry-leading Customer Fulfillment Centers in Michigan in relationship with Ocado to bring fresh food to our customers faster than ever before," said Robert Clark , Kroger's senior vice president of supply chain, manufacturing and sourcing. "We continue to invest in and constantly improve our e-commerce capabilities, focusing on cost-effe...
NEW YORK--(BUSINESS WIRE)--Everseen, the Visual AI™ company driving customer engagement and profitability for the world’s largest retailers, today announces its selection by The Kroger Co., America’s largest grocery retailer, to contribute to the grocer’s plan to redefine the customer experience. Everseen’s technology began rolling out at Kroger stores in March and will continue to be installed in the coming months, with plans to deploy the technology at 2,500 stores across the country. Eversee