---
title: Kroger (KR) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/kr
ticker: KR
as_of: 2026-10-17
sector: Consumer Defensive
industry: Grocery Stores
---
# Kroger (KR)

Kroger (KR) closed at $63.63 on Oct 16, 2026, overvalued by 57% vs its model value of $40.63 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $63.63 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $40.63 |
| Price vs model | overvalued by 57% vs model |
| Range of that model | $17.31 – $127.84 |
| Market value | $37.6B |
| P/E (fiscal 2026) | 41.3 |
| Net margin (fiscal 2026) | 0.7% |
| Free cash flow (fiscal 2026) | $3.5B |
| Dividend yield (trailing twelve months) | 2.26% |
| Beta | 0.41 |
| Cost of capital (WACC) | 6.62% |
| Business classification | Dividend Payer (Revenue declining (~-1% recent), Thin margins (0.7% net margin), Pays dividends, Highly cyclical earnings, High leverage (D/E 2.7x), Strong FCF yield (9.2%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Highest free cash flow yield | #42 | 9.2% | https://sweetvaluelab.com/lists/highest-free-cash-flow-yield |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.26% |
| Dividends per share, last 12 months | $1.44 |
| Dividends / free cash flow (fiscal 2026) | 25.6% |
| Raised | 19 years in a row |
| Growth over 5 years | 13.9% a year |
| Latest payment | $0.39, ex-date Aug 14, 2026, paid Sep 1, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 12, 2021 | $0.75 |
| To Aug 12, 2022 | $0.89 |
| To Aug 14, 2023 | $1.07 |
| To Aug 15, 2024 | $1.19 |
| To Aug 15, 2025 | $1.31 |
| Trailing twelve months (to Aug 14, 2026) | $1.44 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $40.63 | $17.31 | $127.84 |
| DCF · Perpetuity growth · 10y | cross check | $37.24 | $16.67 | $114.86 |
| DCF · EBITDA exit · 5y | cross check | $64.01 | $32.97 | $100.84 |
| DCF · EBITDA exit · 10y | cross check | $57.71 | $28.92 | $96.94 |
| P/E · peers | cross check | $42.97 | $30.72 | $47.43 |
| P/E · own history | cross check | $62.94 | $53.93 | $73.31 |
| PEG | sanity check | $129.70 | $129.70 | $129.70 |
| EV/EBITDA · peers | cross check | $66.96 | $38.92 | $85.59 |
| EV/Revenue · peers | cross check | $96.82 | $28.76 | $144.45 |
| Earnings power value | cross check | $28.08 | $19.36 | $41.92 |
| Dividend discount | cross check | $37.01 | $24.22 | $67.22 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 3 open-market sales ($4.4M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 25, 2026 | DEMARTINO EMILEE F. | Executive Vice President | Grant / award | 12,769 | $0 |
| Sep 25, 2026 | Shaffer Megan N. | Group Vice President | Tax withholding | 269 | $15,801.1 |
| Sep 25, 2026 | Vincent George H. | Executive Vice President | Tax withholding | 1,677 | $98,507 |
| Sep 18, 2026 | Adcock Mary Ellen | Executive Vice President | Open-market sell | 24,095 | $1.5M |
| Sep 18, 2026 | Adcock Mary Ellen | Executive Vice President | Open-market sell | 10,846 | $657,723.1 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 5, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/56873/000110465926113599/tm2626754d1_8k.htm |
| Sep 29, 2026 | 424B5 | Prospectus supplement | https://www.sec.gov/Archives/edgar/data/56873/000110465926111923/tm2625941-2_424b5.htm |
| Sep 28, 2026 | 424B5 | Prospectus supplement | https://www.sec.gov/Archives/edgar/data/56873/000110465926111205/tm2625941-1_424b5.htm |
| Sep 18, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/56873/000110465926108926/kr-20260815x10q.htm |
| Sep 11, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/56873/000110465926106941/tm2625060d2_8ka.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Buffett | 2026-06-30 | 39,000,000 | $2.2B |
| Bridgewater | 2026-06-30 | 125,009 | $6.9M |
| Jensen | 2026-06-30 | 62,390 | $3.5M |

3 tracked managers in all.

## About

The Kroger Co. functions as a significant retail entity throughout the United States, encompassing a varied collection of store formats. Its operations include integrated food and drug stores, which stock a broad range of products from natural and organic sections to pharmacies, general merchandise, pet centers, fresh seafood, and organic produce. The company also runs multi-department stores that broaden their offerings to include apparel, home fashion and furnishings, outdoor living goods, electronics, automotive products, and toys. Furthermore, Kroger's marketplace stores blend comprehensive grocery services, pharmacies, health and beauty care, and perishable items with general merchandise such as clothing and household goods. Its price impact warehouse stores, on the other hand, concentrate on providing groceries, health and beauty essentials, meat, dairy, baked goods, and fresh prod…

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Source: https://sweetvaluelab.com/stocks/kr (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.