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Kroger (KR) Stock Analysis

Consumer Defensive Updated August 23, 2026
$57.86
52W $54.15 – $76.58
45/100
$35.47B
33.5
0.41
AI Committee Verdict
Watch
45/100
Conviction: Contested · 50% agreement · 6 analysts
+9.9%
-6.4%
1.54:1
Contested

Is KR Bullish or Bearish?

Mixed. Innellis AI committee rates Kroger Company (KR) Watch with a composite score of 45/100 , based on 6 analysts with 50% agreement. Last updated August 23, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +15.47 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -4.53 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Macro Analyst sees a compelling case. Growth Analyst remains cautious — eps declining -53.4% yoy despite any revenue growth. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • Dividend yield of 2.6% pays you to wait — Value
  • MACD histogram positive -- bullish momentum — Technical
Bear Case
  • P/E of 33.0 is moderate-to-rich — Value
  • Price-to-book of 6.7x prices in significant intangible value — Value
  • ROE of only 2.5% -- cheap may mean cheap for a reason — Value
  • Debt-to-equity of 2.96 adds balance-sheet risk to the value case — Value
  • EPS declining -53.4% YoY despite any revenue growth — Growth
  • Price structure making lower highs and lower lows — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 23, 2026
Overall Committee Score
45/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 100%
of 72 Consumer Defensive peers
Value Analyst bearish
34 / 100 · High confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
+ Dividend yield of 2.6% pays you to wait
− P/E of 33.0 is moderate-to-rich
Growth Analyst bearish
30 / 100 · Moderate confidence
Growth story is weak, decelerating, or inconsistent
− EPS declining -53.4% YoY despite any revenue growth
Technical Analyst neutral
46 / 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst bearish
32 / 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 2.96) amplifies downside in a stress scenario
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst neutral
60 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3069.37)
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Investment Thesis Evolution

Committee score moved marginally from 44.5 to 44.5.

Comparing 2026-08-22 to 2026-08-23 (1 day apart).

Technical Analysis

RSI (14)
62.0
Neutral
MACD Histogram
0.128
Bullish Momentum
Trend Direction
Downtrend
Weekly: Uptrend
Market Structure
Mixed
Support
$54.16
Resistance
$63.57
Bollinger %B
0.65
Inside Bands
Price vs Moving Averages
EMA 9
$56.79 Above
EMA 21
$57.14 Above
EMA 50
$58.72 Below
EMA 200
$63.31 Below

Fundamental Analysis

Valuation
55
Growth
54
Profitability
29
Financial Health
0
Cash Flow
70
Valuation
P/E Ratio 33.5×
P/B Ratio 5.48×
PEG Ratio -0.63
Dividend Yield 2.49%
52W High $76.58
52W Low $54.15
Quality & Growth
ROE 1714.2%
ROA 203.4%
Gross Margin 2318.5%
Operating Margin 132.9%
Revenue Growth YoY
Debt / Equity 3.63
AI Fundamental Assessment
P/E ratio of 33.5 (rich relative to a 15-40x range); Price-to-book of 5.5x; PEG ratio of -0.6 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 17.1%; Return on assets of 2.0%; Net margin of 0.7%; Gross margin of 23.2%; Current ratio of 0.79 (tight short-term liquidity); Debt-to-equity of 3.63; Free cash flow per share is positive (4.71); Most recent quarter missed estimates by 3.6%; EPS growth roughly steady (+21.9% -> +23.4% QoQ); Analyst estimates rising over recent quarters
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