The Kroger CoLTS:0JS2 +2.25%69 Interest Coverage is 6.73 as of Apr. 2026, which is 20% above its 10-year median of 5.60. GuruFocus rates LTS:0JS2 with a GF Score™ of 69/100 and a GF Value™ of $66.84 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 254 Retail - Defensive companies, The Kroger Co ranks worse than 80.31% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. The Kroger Co's
Operating Income
for the
three
months ended in Apr. 2026 was $1,407 Mil. The Kroger Co's Interest Expense for the
three
months ended in Apr. 2026 was $-209 Mil.
The Kroger Co's interest coverage for the quarter that ended in Apr. 2026 was 6.73.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The Kroger Co's Interest Coverage or its related term are showing as below:
LTS:0JS2'
s Interest Coverage Range Over the Past 10 Years
Min: 2.96 Med: 5.6 Max: 8.55
Current: 3.05
LTS:0JS2's Interest Coverage is ranked worse than 80.31% of 254
companies
in the Retail - Defensive industry
Industry Median: 9.065
vs LTS:0JS2: 3.05
The Kroger Co (LTS:0JS2) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
The Kroger Co Interest Coverage Related Terms
The Kroger Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for The Kroger Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LTS:0JS2 vs SFM, ACI, WMK: Interest Coverage Comparison
For the Grocery Stores subindustry, The Kroger Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Kroger Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
The Kroger Co (LTS:0JS2) has a Interest Coverage of 6.73 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Kroger Co and its competitors. This is 20% above median its historical median of 5.60. Over the past decade, The Kroger Co's Interest Coverage has ranged from 2.96 to 8.55. According to the industry distribution chart, The Kroger Co ranks #204 out of 254 companies in the Retail - Defensive industry, placing it in the top 80.3%.
Is The Kroger Co's Interest Coverage too high?
The Kroger Co's current Interest Coverage of 6.73 is 20% above median its 10-year median of 5.60. Over the past 10 years, this metric has ranged from a low of 2.96 to a high of 8.55. The Retail - Defensive industry median Interest Coverage is 9.07. The Kroger Co's value of 6.73 is 25.8% below this industry median. Based on the distribution chart, The Kroger Co ranks #204 out of 254 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, The Kroger Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Kroger Co's Interest Coverage compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #204 out of 254 companies for Interest Coverage. This places The Kroger Co in the lower half of its industry. The industry median Interest Coverage is 9.07. The Kroger Co's value of 6.73 is 25.8% below this benchmark. Historically, The Kroger Co's own Interest Coverage has ranged from 2.96 to 8.55 over the past decade. While the company's 10-year median is 5.60 vs. the industry median of 9.07, 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 Interest Coverage for a Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 9.07, based on 254 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kroger Co's current Interest Coverage of 6.73 is 25.8% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Kroger Co and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 9.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kroger Co's current Interest Coverage is 6.73, which is 20% above median its own 10-year median of 5.60. 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 $66.84, compared to a current price of $58.54 — trading 12.4% below its estimated fair value. The current Interest Coverage is 6.73, which is 20% above median its 10-year median of 5.60 and 25.8% below the Retail - Defensive industry median of 9.07. The Kroger Co's overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For The Kroger Co (LTS:0JS2), the current Interest Coverage is 6.73 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 $58.54 is trading 12.4% below its estimated GF Value™ of $66.84.
GuruFocus considers The Kroger Co to be Modestly Undervalued.
Key valuation signals for LTS:0JS2:
Interest Coverage: 6.73 (20% above median its 10-year median of 5.60)
GF Value™: $66.84 vs. price of $58.54 (12.4% below fair value)
Industry Position: 25.8% below the Retail - Defensive median (#204 of 254)
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.
69GF Score
Get the complete analysis for LTS:0JS2
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