The Kroger CoLTS:0JS2 +2.25%69 Net Margin % is 1.96% as of Apr. 2026, which is 28% above its 10-year median of 1.53. 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 310 Retail - Defensive companies, The Kroger Co ranks worse than 70.65% on this metric.
Net margin is calculated as Net Income divided by its Revenue. The Kroger Co's Net Income for the
three
months ended in Apr. 2026 was $903 Mil. The Kroger Co's Revenue for the
three
months ended in Apr. 2026 was $46,121 Mil. Therefore, The Kroger Co's net margin for the quarter that ended in Apr. 2026 was 1.96%.
The historical rank and industry rank for The Kroger Co's Net Margin % or its related term are showing as below:
LTS:0JS2'
s Net Margin % Range Over the Past 10 Years
Min: 0.69 Med: 1.53 Max: 2.55
Current: 0.71
LTS:0JS2's Net Margin % is ranked worse than 70.65% of 310
companies
in the Retail - Defensive industry
Industry Median: 2.155
vs LTS:0JS2: 0.71
The Kroger Co (LTS:0JS2) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
The Kroger Co Net Margin % Related Terms
The Kroger Co Net Margin % Historical Data
* Premium members only.
The historical data trend for The Kroger Co's Net 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.
LTS:0JS2 vs SFM, ACI, WMK: Net Margin % Comparison
For the Grocery Stores subindustry, The Kroger Co's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where The Kroger Co's Net 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.
The Kroger Co (LTS:0JS2) has a Net Margin % of 1.96% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on The Kroger Co and its competitors. This is 28% above median its historical median of 1.53. Over the past decade, The Kroger Co's Net Margin % has ranged from 0.69 to 2.55. According to the industry distribution chart, The Kroger Co ranks #219 out of 310 companies in the Retail - Defensive industry, placing it in the top 70.6%.
Is The Kroger Co's Net Margin % too high?
The Kroger Co's current Net Margin % of 1.96% is 28% above median its 10-year median of 1.53. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 2.55. The Retail - Defensive industry median Net Margin % is 2.16. The Kroger Co's value of 1.96% is 9% below this industry median. Based on the distribution chart, The Kroger Co ranks #219 out of 310 companies in the Retail - Defensive industry, which is below the industry midpoint. 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 Net Margin % compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #219 out of 310 companies for Net Margin %. This places The Kroger Co in the lower half of its industry. The industry median Net Margin % is 2.16. The Kroger Co's value of 1.96% is 9% below this benchmark. Historically, The Kroger Co's own Net Margin % has ranged from 0.69 to 2.55 over the past decade. While the company's 10-year median is 1.53 vs. the industry median of 2.16, 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 Net Margin % for a Retail - Defensive company?
The median Net Margin % among Retail - Defensive companies is 2.16, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kroger Co's current Net Margin % of 1.96% is 9% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on The Kroger Co and its competitors. For the Retail - Defensive industry, the median Net Margin % is 2.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kroger Co's current Net Margin % is 1.96%, which is 28% above median its own 10-year median of 1.53. 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 Net Margin % is 1.96%, which is 28% above median its 10-year median of 1.53 and 9% below the Retail - Defensive industry median of 2.16. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For The Kroger Co (LTS:0JS2), the current Net Margin % is 1.96% 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:
Net Margin %: 1.96% (28% above median its 10-year median of 1.53)
GF Value™: $66.84 vs. price of $58.54 (12.4% below fair value)
Industry Position: 9% below the Retail - Defensive median (#219 of 310)
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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