Latest Ratios: P/E Ratio 43.4x · EV/EBITDA 10.8x · ROE 14.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $41.2B | $41.2B | $44.4B | $33.5B | $32.8B | $32.8B | $26.9B | $21.6B | $23.0B | $26.5B | $32.0B |
| Enterprise Value | $62.5B | $62.5B | $65.5B | $50.8B | $52.1B | $51.4B | $45.8B | $42.4B | $37.8B | $41.8B | $45.7B |
| P/E Ratio → | 43.36 | 40.81 | 16.80 | 15.59 | 14.72 | 20.03 | 10.55 | 13.17 | 7.47 | 14.04 | 16.27 |
| P/S Ratio | 0.28 | 0.28 | 0.30 | 0.22 | 0.22 | 0.24 | 0.20 | 0.18 | 0.19 | 0.22 | 0.28 |
| P/B Ratio | 7.37 | 6.94 | 5.36 | 2.88 | 3.27 | 3.48 | 2.82 | 2.52 | 2.93 | 3.84 | 4.76 |
| P/FCF | 12.29 | 12.29 | 24.98 | 11.60 | 26.56 | 9.17 | 6.82 | 14.08 | 19.18 | 43.91 | 55.77 |
| P/OCF | 5.71 | 5.71 | 7.66 | 4.93 | 7.60 | 5.30 | 3.95 | 4.64 | 5.51 | 7.77 | 7.48 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.42 | 0.45 | 0.34 | 0.35 | 0.37 | 0.35 | 0.35 | 0.31 | 0.34 | 0.40 |
| EV / EBITDA | 10.76 | 10.76 | 8.51 | 7.42 | 6.77 | 7.44 | 7.45 | 7.65 | 7.43 | 8.27 | 7.89 |
| EV / EBIT | 33.08 | 33.99 | 17.27 | 15.51 | 15.17 | 19.60 | 11.71 | 16.41 | 8.21 | 20.03 | 13.30 |
| EV / FCF | — | 18.66 | 36.86 | 17.62 | 42.29 | 14.37 | 11.61 | 27.61 | 31.55 | 69.15 | 79.78 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.3% | 23.3% | 22.7% | 22.2% | 21.4% | 22.0% | 23.3% | 22.1% | 22.0% | 22.3% | 22.4% |
| Operating Margin | 1.3% | 1.3% | 2.6% | 2.1% | 2.8% | 2.5% | 2.1% | 1.8% | 2.1% | 2.1% | 3.0% |
| Net Profit Margin | 0.7% | 0.7% | 1.8% | 1.4% | 1.5% | 1.2% | 2.0% | 1.4% | 2.6% | 1.5% | 1.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.3% | 14.3% | 26.8% | 20.0% | 23.1% | 17.4% | 28.5% | 20.2% | 42.2% | 28.0% | 29.2% |
| ROA | 2.0% | 2.0% | 5.2% | 4.3% | 4.5% | 3.4% | 5.5% | 4.0% | 8.3% | 5.2% | 5.6% |
| ROIC | 5.0% | 5.0% | 9.9% | 8.0% | 10.8% | 9.2% | 7.2% | 6.5% | 8.8% | 9.2% | 13.3% |
| ROCE | 5.5% | 5.5% | 10.8% | 9.3% | 12.7% | 10.5% | 8.6% | 8.2% | 11.2% | 11.2% | 15.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 4.16 | 4.16 | 3.03 | 1.66 | 2.04 | 2.17 | 2.16 | 2.47 | 1.94 | 2.26 | 2.10 |
| Debt / EBITDA | 4.25 | 4.25 | 3.26 | 2.81 | 2.65 | 2.96 | 3.35 | 3.82 | 3.00 | 3.09 | 2.43 |
| Net Debt / Equity | — | 3.60 | 2.55 | 1.50 | 1.94 | 1.97 | 1.98 | 2.42 | 1.89 | 2.21 | 2.05 |
| Net Debt / EBITDA | 3.67 | 3.67 | 2.74 | 2.54 | 2.52 | 2.70 | 3.07 | 3.75 | 2.91 | 3.02 | 2.37 |
| Debt / FCF | — | 6.37 | 11.89 | 6.02 | 15.73 | 5.21 | 4.78 | 13.53 | 12.36 | 25.24 | 24.01 |
| Interest Coverage | 2.88 | 2.88 | 8.26 | 7.30 | 6.32 | 4.51 | 7.14 | 4.31 | 7.46 | 3.49 | 6.61 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.80 | 0.80 | 0.96 | 0.81 | 0.74 | 0.75 | 0.81 | 0.76 | 0.76 | 0.78 | 0.80 |
| Quick Ratio | 0.42 | 0.42 | 0.52 | 0.36 | 0.30 | 0.33 | 0.35 | 0.27 | 0.28 | 0.32 | 0.29 |
| Cash Ratio | 0.25 | 0.25 | 0.33 | 0.19 | 0.12 | 0.18 | 0.18 | 0.11 | 0.11 | 0.11 | 0.10 |
| Asset Turnover | — | 2.96 | 2.80 | 2.97 | 2.99 | 2.81 | 2.72 | 2.70 | 3.20 | 3.31 | 3.16 |
| Inventory Turnover | 16.43 | 16.43 | 16.16 | 16.42 | 15.41 | 15.85 | 14.38 | 13.45 | 13.89 | 14.67 | 13.64 |
| Days Sales Outstanding | — | 5.42 | 5.45 | 5.20 | 5.50 | 4.84 | 4.91 | 5.09 | 4.76 | 4.85 | 5.22 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.0% | 2.1% | 2.0% | 2.4% | 2.1% | 1.8% | 2.0% | 2.2% | 1.9% | 1.7% | 1.3% |
| Payout Ratio | 87.1% | 87.1% | 33.1% | 36.8% | 30.4% | 35.6% | 20.7% | 29.3% | 14.1% | 23.2% | 21.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.3% | 2.5% | 6.0% | 6.4% | 6.8% | 5.0% | 9.5% | 7.6% | 13.4% | 7.1% | 6.1% |
| FCF Yield | 8.1% | 8.1% | 4.0% | 8.6% | 3.8% | 10.9% | 14.7% | 7.1% | 5.2% | 2.3% | 1.8% |
| Buyback Yield | 6.6% | 6.6% | 11.6% | 0.2% | 3.0% | 5.0% | 4.9% | 2.2% | 8.8% | 6.2% | 5.5% |
| Total Shareholder Yield | 8.6% | 8.7% | 13.6% | 2.6% | 5.1% | 6.8% | 6.9% | 4.4% | 10.7% | 7.8% | 6.9% |
| Shares Outstanding | — | $655M | $720M | $725M | $727M | $754M | $781M | $805M | $818M | $904M | $958M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying KR stock.
The Kroger Co.'s current P/E ratio is 43.4x. The historical average is 25.8x. This places it at the 90th percentile of its historical range.
The Kroger Co.'s current EV/EBITDA is 10.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.6x.
The Kroger Co.'s return on equity (ROE) is 14.3%. The historical average is 24.5%.
Based on historical data, The Kroger Co. is trading at a P/E of 43.4x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Kroger Co.'s current dividend yield is 2.02% with a payout ratio of 87.1%.
The Kroger Co. has 23.3% gross margin and 1.3% operating margin.
The Kroger Co.'s Debt/EBITDA ratio is 4.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Balance sheet deterioration and liquidity crunch
Metrics are mathematically derived from official filings.
Premium Multiple Masks Low-Growth Reality
Kroger's forward P/E of 11.72 appears reasonable, but its trailing P/E of 39.55 reflects a severe earnings distortion, and its P/S ratio of 0.25 is among the lowest in the consumer defensive sector, suggesting the market assigns minimal value to its revenue base.
The wide divergence between trailing and forward P/E multiples indicates the market is ignoring the volatile, potentially non-recurring losses that suppressed the TTM figure. However, the exceptionally low P/S ratio of 0.25 implies that for every dollar of revenue, the market assigns just twenty-five cents of value, a discount reflecting Kroger's razor-thin 0.69% net margin and the capital-intensive nature of its operations. This valuation profile is more akin to a low-margin utility than a growth company, contradicting the narrative around high-margin alternative profit streams.
Volatile Margins Reveal Operational Fragility
Kroger's gross margin has been highly erratic, swinging from 20.6% in Q2 2026 to 23.4% in Q1 2026, demonstrating extreme sensitivity to input costs and product mix, while the operating margin remains critically thin at 1.28%.
The gross margin volatility exposes a fundamental lack of pricing power and the structural drag of low-margin fuel sales, which together constrain the company's ability to build a stable earnings base. With an operating margin near 1.3%, the business operates with virtually no cushion against cost shocks like wage inflation or organized retail crime, meaning a 100-basis-point increase in operating expenses could erase over 75% of current operating income. The reported net margin of 0.69% is a poor indicator of true earning power, as it has been distorted by what appear to be significant non-cash charges in recent quarters.
Capital Returns Collapse in Leverage Spike
According to the company's quarterly data, Kroger's ROIC has declined from a stable 3.4% in early periods to just 2.4% in Q2 2026, while ROE plummeted to 10.4% from 14.5% just one quarter prior, indicating deteriorating efficiency in deploying its capital base.
The decline in ROIC is driven by both a compression in the operating margin and what appears to be a significant expansion of the invested capital base, potentially due to accounting adjustments or acquisition-related activity. The more concerning trend is the erosion in ROE, which has become highly volatile and is increasingly disconnected from operating performance. This pattern suggests that recent equity returns are not being generated by fundamental business improvements but by financial engineering, leverage changes, or non-recurring items that do not represent sustainable value creation.
Leverage Surge Elevates Solvency Risk
As reported in Kroger's financial statements, the Debt-to-Equity ratio has surged to 4.13 in Q2 2026 from 1.55 in Q1 2024, a dramatic increase that places its leverage profile far above peers like Walmart (0.63) and Target (1.26) and raises questions about capital structure sustainability.
This rapid leverage expansion, coinciding with a collapse in the equity base, fundamentally alters the company's risk profile and likely reflects significant debt-funded activities such as share repurchases, acquisitions, or pension obligations. The interest coverage ratio, while still positive at 6.22x, has shown a declining trend from its 2024 peaks, indicating that debt service is consuming a growing portion of operating income. This trajectory is unsustainable and suggests the company may need to curtail shareholder returns or pursue asset sales to de-risk the balance sheet, especially in a higher-rate environment.
Cash Position Erodes to Critical Levels
Based on Kroger's reported figures, the current ratio has deteriorated to 0.70 and the quick ratio to 0.31 in Q2 2026, with the cash position having plummeted from $4.9 billion to just $201 million over the last four quarters, signaling a severe and rapid tightening of liquidity.
A current ratio below 1.0 indicates that current liabilities now exceed current assets, leaving the company dependent on continuous cash flow generation to meet short-term obligations. The extremely low quick ratio of 0.31 highlights that without selling inventory, which has a 22-day supply, the company has almost no immediate liquidity buffer. This level of liquidity is inadequate for a business of this scale and suggests the company is operating with minimal financial flexibility, making it highly vulnerable to any disruption in cash flow or a sudden need for capital.
The P/E Trap in a Low-Margin Model
The single most misapplied ratio for Kroger is the Price-to-Earnings (P/E) ratio, which currently stands at a seemingly high 39.55, but this figure is rendered meaningless by volatile, non-recurring charges that have distorted underlying earnings power.
The P/E is misapplied because it fails to capture the true, stable earning power of the grocery business, which generates a consistent but low operating margin of around 1.3%. Analysts should instead focus on a price-to-EBITDA or EV/EBITDA multiple, which better strips out the effects of leverage, accounting differences, and non-cash charges like depreciation. Even these metrics must be interpreted cautiously, as they do not fully account for the capital-intensive nature of the business and the significant ongoing need for reinvestment to maintain its physical footprint.