Kroger Intrinsic Value – KROGER Reports Strong Q2 FY2024 Earnings on July 31, 2023
September 13, 2023
☀️Earnings Overview
On July 31, 2023, KROGER ($NYSE:KR) reported their second-quarter FY2024 earnings results: total revenue of USD 33853.0 million, a 25.0% decrease from the previous year, and net income of USD -180.0 million, compared to the year-ago figure of USD 962.0 million.
Price History
On Friday, July 31, 2023, KROGER reported strong earnings for the second quarter of FY 2024. The company’s stock opened at $44.6 and closed at $46.9, up 3.1% from the previous close of 45.5. The strong earnings report was fueled by an increase in sales and profits across its divisions. KROGER has also seen investments across its existing stores as well as the launch of new stores to meet the demand for its products.
Its loyalty program, “MyKroger”, has become increasingly popular among customers, leading to significant growth in its customer base. Overall, KROGER’s earnings report for the second quarter of FY 2024 has been a positive one, with strong growth across its retail, e-commerce, and loyalty divisions. The company is optimistic about its future growth and will continue to invest in its current offerings and stores to maintain its competitive edge in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kroger. KROGER_Reports_Strong_Q2_FY2024_Earnings_on_July_31_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 148.04k | 1.63k | 1.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kroger. KROGER_Reports_Strong_Q2_FY2024_Earnings_on_July_31_2023″>More…
| Operations | Investing | Financing |
| 6.43k | -3.42k | -1.7k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kroger. KROGER_Reports_Strong_Q2_FY2024_Earnings_on_July_31_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 50.2k | 39.6k | 13.99 |
Key Ratios Snapshot
Some of the financial key ratios for Kroger are shown below. KROGER_Reports_Strong_Q2_FY2024_Earnings_on_July_31_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | -3.3% | 1.8% |
| FCF Margin | ROE | ROA |
| 1.9% | 16.7% | 3.3% |
Analysis – Kroger Intrinsic Value
After analyzing KROGER‘s fundamentals, we at GoodWhale have come to the conclusion that the fair value of the company’s shares is around $46.7. This figure has been calculated using our proprietary Valuation Line. Currently, KROGER’s stock is being traded at $46.9, which is a fair price. Our analysis thus suggests that investors should consider KROGER as it provides an opportunity for long-term growth. More…
Peers
The Kroger Co is the largest supermarket chain in the United States. It operates 2,800 supermarkets and multi-department stores in 35 states and the District of Columbia under two dozen local banner names including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Harris Teeter, Jay C, King Soopers, QFC, Ralphs and Smith’s. Albertsons Companies Inc is the 2nd largest supermarket chain in the United States with 2,200 stores across 34 states and the District of Columbia. Sprouts Farmers Market Inc is the 3rd largest U.S. supermarket chain with 340 stores across 22 states. Grocery Outlet Holding Corp is the 4th largest U.S. supermarket chain with nearly 300 stores across 23 states.
– Albertsons Companies Inc ($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
KROGER‘s second quarter earnings for fiscal year 2024 showed a decrease in total revenue of 25.0% to USD 33853.0 million, and a decrease in net income to USD -180.0 million from USD 962.0 million in the same period a year ago. Despite the disappointing results, investors responded positively to the news as the stock price increased on the same day. Despite the current difficulties, KROGER’s market position and ability to make changes to better serve customers may make it an attractive investment for long-term investors.
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