Is the business good?
How good a business is KR?
Kroger earns 6.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.3%
Return on invested capital · cost of capital 9.0% · 2.7 points below what the capital costs: growth destroys value
- Operating margin
- 1.1%
Operating margin · Grocery Stores median 2.5% · 12 months to Q4 2025
- Cash conversion
- 3.66×
Cash conversion · 0.28× a year ago · every dollar of reported profit arrived as cash, and more
- Gross margin
- 23%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 2.1% |
| FY2021 | 2.5% |
| FY2022 | 2.8% |
| FY2023 | 2.1% |
| FY2024 | 2.6% |
| FY2025 | 1.3% |
Details›
- Gross margin12 months to Q4 2025
- 23%
- Operating margin12 months to Q4 2025
- 1.1%
- Net margin12 months to Q4 2025
- 0.57%
- Free cash flow margin
- 2.1%
- Revenue, trailing twelve months
- $136.8B
- Free cash flow, trailing twelve months
- $2.87B
- Net income, trailing twelve months
- $784M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Grocery Stores
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