Kroger Intrinsic Stock Value – KROGER Reports Third Quarter Earnings Results for FY2024
December 1, 2023
🌥️Earnings Overview
KROGER ($NYSE:KR) reported their fiscal third quarter earnings results for the period ending November 30 2023 on October 31 2023. Overall, total revenue for the quarter was USD 33957.0 million, a decrease of 0.7% from the same period in the previous year. However, net income saw an increase of 62.3%, amounting to USD 646.0 million.
Stock Price
The company’s stock opened at $43.6 and closed the day at $44.3, up by 1.4% from the previous closing price of $43.6. This was a positive sign for the company and showed investors that their investments were paying off. Additionally, the company was able to reduce its debt-to-equity ratio which further demonstrated its commitment to achieving long-term financial stability. Despite these positive results, KROGER experienced some challenges in the third quarter. The company’s operating income fell by 2% from the previous quarter and by 10% from the same quarter in the previous year. This shows that the company is still struggling to reach its full potential in terms of profitability. This suggests that KROGER may need to look for ways to reduce costs and increase efficiency if it wants to continue to report positive earnings results in the future. The positive stock performance on Thursday and the improvement in net sales show that KROGER is making progress towards achieving long-term financial stability and profitability.
However, there is still room for improvement and the company must address its operating expenses and focus on increasing efficiency if it wants to continue to report positive earnings results in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kroger. More…
| Total Revenues | Net Income | Net Margin |
| 147.8k | 1.88k | 1.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kroger. More…
| Operations | Investing | Financing |
| 6.03k | -3.57k | -1.65k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kroger. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 51.02k | 39.83k | 14.77 |
Key Ratios Snapshot
Some of the financial key ratios for Kroger are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.2% | -7.7% | 2.0% |
| FCF Margin | ROE | ROA |
| 1.6% | 17.5% | 3.6% |
Analysis – Kroger Intrinsic Stock Value
At GoodWhale, we have recently conducted an analysis of KROGER‘s fundamentals. Based on our proprietary Valuation Line, we have determined that the fair value of KROGER shares is around $48.5. Currently, KROGER stock is trading at $44.3, which is a good price but slightly undervalued by 8.6%. We believe this presents a great opportunity for investors looking to take advantage of the market gap. We are confident that KROGER shares will reach the fair value price in the near future, making now a great time to purchase them. More…
Peers
The Kroger Co is the largest supermarket chain in the United States. It operates 2,800 supermarkets and multi-department stores in 35 states and the District of Columbia under two dozen local banner names including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Harris Teeter, Jay C, King Soopers, QFC, Ralphs and Smith’s. Albertsons Companies Inc is the 2nd largest supermarket chain in the United States with 2,200 stores across 34 states and the District of Columbia. Sprouts Farmers Market Inc is the 3rd largest U.S. supermarket chain with 340 stores across 22 states. Grocery Outlet Holding Corp is the 4th largest U.S. supermarket chain with nearly 300 stores across 23 states.
– Albertsons Companies Inc ($NYSE:ACI)
Albertsons Companies Inc is a grocery store chain in the United States. It is the second-largest grocery store chain in the country after Walmart. The company has a market cap of 14.26B as of 2022 and a Return on Equity of 45.75%. Albertsons was founded in 1939 in Boise, Idaho. The company operates stores under the Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, and Carrs banners. The company also has a pharmacy chain, under the Albertsons Pharmacy banner.
– Sprouts Farmers Market Inc ($NASDAQ:SFM)
Sprouts Farmers Market Inc is a grocery store chain based in the United States. The company offers a variety of fresh and organic produce, meats, and other groceries. As of 2022, Sprouts Farmers Market Inc has a market cap of 3B and a Return on Equity of 21.14%. The company has been growing steadily in recent years, and its strong financial performance is expected to continue in the future.
– Grocery Outlet Holding Corp ($NASDAQ:GO)
Grocery Outlet Holding Corp is a publicly traded company that owns and operates a chain of discount grocery stores. The company was founded in 1946 and is headquartered in Emeryville, California. As of 2022, the company had a market cap of 3.22 billion and a return on equity of 6.43%. The company’s stores offer a wide variety of food and household products at discount prices.
Summary
Investors should take a closer look at KROGER‘s third quarter FY2024 earnings results, released on October 31 2023. Despite total revenue dropping slightly by 0.7%, net income saw an impressive increase of 62.3% to USD 646.0 million. This indicates the company is in a strong financial position and further growth could be on the horizon. It may be a good time for investors to consider entering the market or increasing their exposure to KROGER stock.
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