To The Moon

Earnings Calendar (16Jun25)

I am interested in the earnings of Jabil, Kroger, and Accenture.

Let us look at Kroger in detail.

The stock price has risen 32.9% from a year ago. The technical analysis has a “Strong Sell” recommendation. The analysts’ analysis has a “Buy” rating. With a target price of $70.69, there is an upside of 7.82%.

Let us review the performance of the business from the last 10 years:

• Gross Profit and Margin: Gross profit grew from $24.334 billion in 2016 to $33.403 billion in 2025, with the 10-year average gross margin at 22.2%, a reflection of stable profitability.

• Revenue has grown from $109.8B (2016) to $147.1B (2025).

• Operating profit has grown from $3.576B (2016) to $3.849B (2025).

• Earnings per share (EPS) have seen steady growth from $2.06 (2016) to $3.67 (2025).

• Competitive Advantage: The stable gross margin and ROIC highlight Kroger’s ability to maintain profitability in a competitive retail sector, supported by its scale and private-label offerings.

Overall Assessment (from Grok)

Over the period from 2019 to 2025, Kroger has demonstrated stable growth, with revenue increasing at a 3.1% CAGR and EPS at a 7.9% CAGR, driven by its strong presence in the U.S. grocery market. Operating profits have grown steadily, reflecting consistent profitability despite industry challenges. The company has consistently raised dividends, and its P/E ratio of 16.4 suggests a reasonable valuation. Modest FCF growth (2.5% CAGR) and a manageable debt profile (debt/equity 2.1) support its financial flexibility. Kroger’s competitive advantages include its extensive store network, omnichannel strategy (e.g., partnership with Ocado), and strong private-label brands, positioning it well in the consumer staples sector. However, limited revenue growth and margin pressure from inflation and competition suggest a need for continued innovation to sustain long-term growth.

The forecast of EPS and revenue is $1.45 and $45.28B, respectively.

Kroger can be a good consideration for the portfolio with an attractive P/E and healthy performance.

@TigerStars

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