The Kroger CoLTS:0JS2 +0.86%63 Debt-to-EBITDA is 2.37 as of Apr. 2026, which is 24% below its 10-year median of 3.10. GuruFocus rates LTS:0JS2 with a GF Score™ of 63/100 and a GF Value™ of $66.96 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 255 Retail - Defensive companies, The Kroger Co ranks worse than 75.69% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for The Kroger Co's Debt-to-EBITDA or its related term are showing as below:
LTS:0JS2'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.16 Med: 3.1 Max: 4.29
Current: 4.19
During the past 13 years, the highest Debt-to-EBITDA Ratio of The Kroger Co was 4.29. The lowest was 2.16. And the median was 3.10.
LTS:0JS2's Debt-to-EBITDA is ranked worse than 75.69% of 255
companies
in the Retail - Defensive industry
Industry Median: 2.19
vs LTS:0JS2: 4.19
The Kroger Co (LTS:0JS2) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The Kroger Co Debt-to-EBITDA Related Terms
The Kroger Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for The Kroger Co's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0JS2 vs SFM, ACI, WMK: Debt-to-EBITDA Comparison
For the Grocery Stores subindustry, The Kroger Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Kroger Co Debt-to-EBITDA vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where The Kroger Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
The Kroger Co (LTS:0JS2) has a Debt-to-EBITDA of 2.37 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on The Kroger Co. This is 24% below median its historical median of 3.10. Over the past decade, The Kroger Co's Debt-to-EBITDA has ranged from 2.16 to 4.29. According to the industry distribution chart, The Kroger Co ranks #193 out of 255 companies in the Retail - Defensive industry, placing it in the top 75.7%.
Is The Kroger Co's Debt-to-EBITDA too high?
The Kroger Co's current Debt-to-EBITDA of 2.37 is 24% below median its 10-year median of 3.10. Over the past 10 years, this metric has ranged from a low of 2.16 to a high of 4.29. The Retail - Defensive industry median Debt-to-EBITDA is 2.19. The Kroger Co's value of 2.37 is 8.2% above this industry median. Based on the distribution chart, The Kroger Co ranks #193 out of 255 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, The Kroger Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Kroger Co's Debt-to-EBITDA compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #193 out of 255 companies for Debt-to-EBITDA. This places The Kroger Co in the lower half of its industry. The industry median Debt-to-EBITDA is 2.19. The Kroger Co's value of 2.37 is 8.2% above this benchmark. Historically, The Kroger Co's own Debt-to-EBITDA has ranged from 2.16 to 4.29 over the past decade. While the company's 10-year median is 3.10 vs. the industry median of 2.19, The Kroger Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Defensive company?
The median Debt-to-EBITDA among Retail - Defensive companies is 2.19, based on 255 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kroger Co's current Debt-to-EBITDA of 2.37 is 8.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on The Kroger Co. For the Retail - Defensive industry, the median Debt-to-EBITDA is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kroger Co's current Debt-to-EBITDA is 2.37, which is 24% below median its own 10-year median of 3.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kroger Co stock overvalued right now?
Based on GuruFocus' analysis, The Kroger Co (LTS:0JS2) is currently considered Modestly Undervalued. The stock's GF Value™ is $66.96, compared to a current price of $58.60 — trading 12.5% below its estimated fair value. The current Debt-to-EBITDA is 2.37, which is 24% below median its 10-year median of 3.10 and 8.2% above the Retail - Defensive industry median of 2.19. The Kroger Co's overall GF Score™ is 63/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For The Kroger Co (LTS:0JS2), the current Debt-to-EBITDA is 2.37 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Kroger Co (LTS:0JS2) Overvalued in 2026?
Based on GuruFocus' analysis, The Kroger Co stock appears to be undervalued.
The current stock price of $58.60 is trading 12.5% below its estimated GF Value™ of $66.96.
GuruFocus considers The Kroger Co to be Modestly Undervalued.
Key valuation signals for LTS:0JS2:
Debt-to-EBITDA: 2.37 (24% below median its 10-year median of 3.10)
GF Value™: $66.96 vs. price of $58.60 (12.5% below fair value)
Industry Position: 8.2% above the Retail - Defensive median (#193 of 255)
No single metric tells the full story. See the LTS:0JS2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1883, Kroger is the largest pure-play supermarket operator in the United States, operating roughly 2,700 stores across more than 30 banners. Kroger's business is primarily grocery-led (roughly 78% of sales), spanning fresh food and private-label offerings, complemented by fuel centers (9%) and pharmacies (12%). The firm also generates income from advertising, data analytics, and manufacturing.
63GF Score
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