Stock fact sheet · data as of
The Kroger Co. (KR): fair value, margin of safety and Wheel Score
Consumer Defensive · Grocery Stores · United States · Defensive
Is KR undervalued?
At 62.71 (close of 16 Oct 2026), KR trades 49% over the GLS average fair value of 42.02, with 3 of 9 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between GLS Growth (5.24) and 10 Cap (125.99). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files KR under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for KR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 72.91 | +16% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 19.70 | -69% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 32.45 | -48% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 8.98 | -86% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 5.24 | -92% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 125.99 | +101% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 71.86 | +15% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 21.19 | -66% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 19.89 | -68% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -49.95 | -180% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 70.62 | +13% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
The Kroger Co. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability KR scores 5.1/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are thin or negative - ROIC 3.3%, ROE 17.1%, ROA 2.0% - with debt at 4.16 times equity and a free-cash-flow yield of 6.1%. Debt of 4.16 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 2.30% at a payout ratio of 82%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Perishable 67%, Pharmacy 33% (fiscal year FY2025).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 8/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 3.3% |
|---|---|---|---|
| GLS Moat | 5.1 / 10 | ROE | 17.1% |
| Debt / equity | 4.16 | ROA | 2.0% |
| Free-cash-flow yield | 6.1% | Payout ratio | 82% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 8 / 10 |
Wheel Score 62: Fair
A Wheel Score of 62 puts The Kroger Co. in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 16/20, Moat 8/15, Premium 19/20 and Stability 20/20; the weakest part is Value (0/25).
Implied volatility is 34% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (19 of 20 points). The option chain is deep: 142,447 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 9.6M shares a day on a market cap of $37.0B, with a beta of 0.41 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -49% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 8 / 15 | moat 5.1/10 | |
| Premium | 19 / 20 | implied volatility 34% | |
| Stability | 20 / 20 | 9.6M shares/day, $37.0B cap, beta 0.41 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Dec 2026, 48 days away - outside the window of a 30-45-day put sold today. The next ex-dividend date is 16 Nov 2026 (0.3900 per share).
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Grocery Stores
The 12 companies below are the closest to The Kroger Co. by market cap within the Grocery Stores industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ACI Albertsons Companies, Inc. | 13.03 | 46.98 | +72% | 45Weak | $6.3B |
| SFM Sprouts Farmers Market, Inc. | 64.65 | 117.83 | +45% | 93Prime | $6.0B |
| WMK Weis Markets, Inc. | 75.22 | 42.10 | -79% | 56Fair | $1.9B |
| IMKTA Ingles Markets, Incorporated | 86.78 | 101.34 | +14% | 65Good | $1.6B |
| GO Grocery Outlet Holding Corp. | 13.06 | 6.75 | -93% | 45Weak | $1.3B |
| NGVC Natural Grocers by Vitamin Cottage, Inc. | 30.60 | 31.11 | +2% | 59Fair | $705M |
| YSWY Yesway, Inc. | 21.51 | 666.02 | +97% | 39No options | $671M |
| VLGEA Village Super Market, Inc. | 44.85 | 63.08 | +29% | 39No options | $664M |
| DNUT Krispy Kreme, Inc. | 3.10 | 4.01 | +23% | 45Weak | $538M |
| DDL Dingdong (Cayman) Limited | 2.14 | 21.20 | +90% | 69Good | $468M |
| VHUB VenHub Global, Inc. Common Stock | 0.3694 | - | - | 21No options | $36M |
| MSS Maison Solutions Inc. Class A Common Stock | 1.38 | - | - | 30No options | $1M |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about KR
Is KR undervalued right now?
No: at 62.71 the stock trades 49% above the GLS average fair value of 42.02 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of KR and what does it mean?
KR scores 62 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for KR?
42.02 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does The Kroger Co. report earnings next?
The next earnings report is due on 3 Dec 2026 (before the open), 48 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KR have listed options, and how liquid are they?
Yes. The nightly snapshot found 774 listed contracts with 142,447 open interest across all expiries and implied volatility of 34% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.