Hot Keys to Identify Price Guidance: The Kroger Co. (NYSE: KR)

The Kroger Co. (NYSE: KR) stock observed trading -12.43% off 52-week high price. On the other end, the stock has been noted 55.85% away from low price over the last 52-weeks. The stock disclosed a move of -0.38% away from 50 day moving average and 12.43% away from 200 day moving average. Moving closer, we can see that shares have been trading -0.80% off 20-day moving average. It has market cap of $25708.32M and dividend yield of 1.98%.

The Kroger Co. (KR) recently stated its first quarter 2020 results, provided a Restock Kroger progress update on the three-year transformation plan and an update to the COVID-19 response.

Total company sales were $42B in the first quarter, contrast to $37B for the same period last year. Not Including fuel and dispositions, sales grew 19.1%.

Gross margin was 24.3% of sales for the first quarter. The FIFO gross margin rate not including fuel increased 44 basis points, Because of sales leverage related to shrink, transportation, warehousing and advertising costs.

The LIFO charge for the quarter was $31M , contrast to $15M for the same period last year, primarily driven by higher inflation in meat.

The Operating, General & Administrative rate increased 51 basis points, not including fuel and adjustment items (Table 6). No adjustment was made for COVID-19 related costs.

During the quarter, Kroger made the decision to contribute an additional $236M to multi-employer pension plans, helping stabilize associates’ future benefits. Not Including this contribution, fuel and adjustment items (Table 6), the OG&A rate improved 10 basis points.

Rent and depreciation not including fuel reduced 37 basis points Because of sales leverage.

Capital Allocation Strategy

Kroger’s capital allocation strategy is to use its adjusted free cash flow to invest in the business and drive profitable growth while also maintaining its current investment grade debt rating and returning capital to shareholders. The company actively balances the use of its adjusted free cash flow to achieve these goals.

Kroger’s net total debt to adjusted EBITDA ratio is 1.81, contrast to 2.54 a year ago (Table 5). The company’s net total debt to adjusted EBITDA ratio target range is 2.30 to 2.50. Kroger held temporary cash investments of about $2.3B as of the end of the quarter, reflecting improved operating performance and important improvement in working capital.

Kroger’s COVID-19 Response

Kroger’s most urgent priority during the COVID-19 pandemic has been to provide a safe environment for associates and consumers with open stores, ecommerce solutions and an efficiently operating supply chain so that its communities have access to fresh, affordable food and essentials. The Kroger Family of Companies reported investments of over $830M to reward associates and safeguard associates, consumers and communities. The Company’s response to the COVID-19 pandemic demonstrates that when a company is clear on its purpose, values, and vision, we can navigate through any challenge together.

 USA based company The Kroger Co. moved with change of -1.35% to $32.26 with the total traded volume of 9527288 shares in recent session versus to an average volume of 12911.1K. KR’s shares are at 5.05% for the quarter and driving a 31.03% return over the course of the past year and is now at 11.28% since this point in 2018. The average volatility for the week and month was at 3.34% and 3.17% respectively.

 

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