Is Kroger worthy of your portfolio - Earnings calendar 16Jun25

KYHBKO
06-15

Earnings Calendar (16Jun25)

I am interested in the earnings of Jabil, Kroger, and Accenture.

Let us look at Kroger in detail.

The stock price has risen 32.9% from a year ago. The technical analysis has a “Strong Sell” recommendation. The analysts’ analysis has a “Buy” rating. With a target price of $70.69, there is an upside of 7.82%.

Let us review the performance of the business from the last 10 years:

  • Gross Profit and Margin: Gross profit grew from $24.334 billion in 2016 to $33.403 billion in 2025, with the 10-year average gross margin at 22.2%, a reflection of stable profitability.

  • Revenue has grown from $109.8B (2016) to $147.1B (2025).

  • Operating profit has grown from $3.576B (2016) to $3.849B (2025).

  • Earnings per share (EPS) have seen steady growth from $2.06 (2016) to $3.67 (2025).

  • Competitive Advantage: The stable gross margin and ROIC highlight Kroger’s ability to maintain profitability in a competitive retail sector, supported by its scale and private-label offerings.

Overall Assessment (from Grok)

Over the period from 2019 to 2025, Kroger has demonstrated stable growth, with revenue increasing at a 3.1% CAGR and EPS at a 7.9% CAGR, driven by its strong presence in the U.S. grocery market. Operating profits have grown steadily, reflecting consistent profitability despite industry challenges. The company has consistently raised dividends, and its P/E ratio of 16.4 suggests a reasonable valuation. Modest FCF growth (2.5% CAGR) and a manageable debt profile (debt/equity 2.1) support its financial flexibility. Kroger’s competitive advantages include its extensive store network, omnichannel strategy (e.g., partnership with Ocado), and strong private-label brands, positioning it well in the consumer staples sector. However, limited revenue growth and margin pressure from inflation and competition suggest a need for continued innovation to sustain long-term growth.

The forecast of EPS and revenue is $1.45 and $45.28B, respectively.

Kroger can be a good consideration for the portfolio with an attractive P/E and healthy performance.

@TigerStars

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May is Done! How Do You Expect June Movement?
S&P 500 has risen 6.15% this month, marking its best monthly gain of the year. After April’s sell-off and May’s surge, did you make any money? There’s a saying: “Sell in May and go away.” Will you follow it? Interestingly, the market clearly ignored that advice last year. However, June hasn’t historically been a standout month in terms of performance. Historically, the market has NEVER made the top for the year in the month of June. (since 1980) Will you continue to hold or take profits? Will June defy seasonal patterns, or see a temporary cooldown?
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Comments

  • happygo
    06-16
    happygo
    Interesting indeed
    • KYHBKO: 
      thanks for your kind words
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