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The Kroger CoBSP:K1RC34 70 Gross Margin % is 23.04% as of Apr. 2026, which is 4% above its 10-year median of 22.26. GuruFocus rates BSP:K1RC34 with a GF Score™ of 70/100 and a GF Value™ of R$327.79 (Fairly Valued). The stock has 2 warning signs investors should review. Among 306 Retail - Defensive companies, The Kroger Co ranks worse than 54.9% on this metric.
The historical rank and industry rank for The Kroger Co's Gross Margin % or its related term are showing as below:
BSP:K1RC34'
s Gross Margin % Range Over the Past 10 Years
Min: 21.43 Med: 22.26 Max: 23.32
Current: 23.19
During the past 13 years, the highestGross Margin % of The Kroger Co was 23.32%. The lowest was 21.43%. And the median was 22.26%.
BSP:K1RC34's Gross Margin % is ranked worse than 54.9% of 306
companies
in the Retail - Defensive industry
Industry Median: 24.055
vs BSP:K1RC34: 23.19
The Kroger Co had a gross margin of 23.04% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Kroger Co was 0.40% per year.
The Kroger Co (BSP:K1RC34) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Kroger Co had a gross margin of 23.04% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Kroger Co Gross Margin % Related Terms
The Kroger Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Kroger Co's Gross Margin % 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.
BSP:K1RC34 vs SFM, ACI, WMK: Gross Margin % Comparison
For the Grocery Stores subindustry, The Kroger Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Kroger Co's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Kroger Co (BSP:K1RC34) has a Gross Margin % of 23.04% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Kroger Co and its competitors. This is near median its historical median of 22.26. Over the past decade, The Kroger Co's Gross Margin % has ranged from 21.43 to 23.32. According to the industry distribution chart, The Kroger Co ranks #168 out of 306 companies in the Retail - Defensive industry, placing it in the top 54.9%.
Is The Kroger Co's Gross Margin % too high?
The Kroger Co's current Gross Margin % of 23.04% is near median its 10-year median of 22.26. Over the past 10 years, this metric has ranged from a low of 21.43 to a high of 23.32. The Retail - Defensive industry median Gross Margin % is 24.06. The Kroger Co's value of 23.04% is 4.2% below this industry median. Based on the distribution chart, The Kroger Co ranks #168 out of 306 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, The Kroger Co has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Kroger Co's Gross Margin % compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #168 out of 306 companies for Gross Margin %. This places The Kroger Co in the lower half of its industry. The industry median Gross Margin % is 24.06. The Kroger Co's value of 23.04% is 4.2% below this benchmark. Historically, The Kroger Co's own Gross Margin % has ranged from 21.43 to 23.32 over the past decade. While the company's 10-year median is 22.26 vs. the industry median of 24.06, The Kroger Co has consistently been below 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 Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.06, based on 306 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kroger Co's current Gross Margin % of 23.04% is 4.2% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Kroger Co and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kroger Co's current Gross Margin % is 23.04%, which is near median its own 10-year median of 22.26. 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 (BSP:K1RC34) is currently considered Fairly Valued. The stock's GF Value™ is R$327.79, compared to a current price of R$334.94 — trading 2.2% above its estimated fair value. The current Gross Margin % is 23.04%, which is near median its 10-year median of 22.26 and 4.2% below the Retail - Defensive industry median of 24.06. The Kroger Co's overall GF Score™ is 70/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Kroger Co (BSP:K1RC34), the current Gross Margin % is 23.04% 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 (BSP:K1RC34) Overvalued in 2026?
Based on GuruFocus' analysis, The Kroger Co stock appears to be overvalued.
The current stock price of R$334.94 is trading 2.2% above its estimated GF Value™ of R$327.79.
GuruFocus considers The Kroger Co to be Fairly Valued.
Key valuation signals for BSP:K1RC34:
Gross Margin %: 23.04% (near median its 10-year median of 22.26)
GF Value™: R$327.79 vs. price of R$334.94 (2.2% above fair value)
Industry Position: 4.2% below the Retail - Defensive median (#168 of 306)
No single metric tells the full story. See the BSP:K1RC34 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.
70GF Score
Get the complete analysis for BSP:K1RC34
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