The Kroger CoLTS:0JS2 69 Return-on-Tangible-Asset is 7.74% as of Apr. 2026, which is 47% above its 10-year median of 5.25. GuruFocus rates LTS:0JS2 with a GF Score™ of 69/100 and a GF Value™ of $66.90 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 310 Retail - Defensive companies, The Kroger Co ranks worse than 64.52% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. The Kroger Co's annualizedNet Income for the quarter that ended in Apr. 2026 was $3,612 Mil. The Kroger Co's average total tangible assets for the quarter that ended in Apr. 2026 was $46,684 Mil. Therefore, The Kroger Co's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was 7.74%.
The historical rank and industry rank for The Kroger Co's Return-on-Tangible-Asset or its related term are showing as below:
LTS:0JS2'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.12 Med: 5.25 Max: 9.29
Current: 2.18
During the past 13 years, The Kroger Co's highest Return-on-Tangible-Asset was 9.29%. The lowest was 2.12%. And the median was 5.25%.
LTS:0JS2's Return-on-Tangible-Asset is ranked worse than 64.52% of 310
companies
in the Retail - Defensive industry
Industry Median: 3.88
vs LTS:0JS2: 2.18
The Kroger Co (LTS:0JS2) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
The Kroger Co Return-on-Tangible-Asset Related Terms
The Kroger Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for The Kroger Co's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Grocery Stores subindustry, The Kroger Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where The Kroger Co's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.74% mean?
The Kroger Co (LTS:0JS2) has a Return-on-Tangible-Asset of 7.74% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on The Kroger Co and its competitors. This is 47% above median its historical median of 5.25. Over the past decade, The Kroger Co's Return-on-Tangible-Asset has ranged from 2.12 to 9.29. According to the industry distribution chart, The Kroger Co ranks #200 out of 310 companies in the Retail - Defensive industry, placing it in the top 64.5%.
Is The Kroger Co's Return-on-Tangible-Asset too high?
The Kroger Co's current Return-on-Tangible-Asset of 7.74% is 47% above median its 10-year median of 5.25. Over the past 10 years, this metric has ranged from a low of 2.12 to a high of 9.29. The Retail - Defensive industry median Return-on-Tangible-Asset is 3.88. The Kroger Co's value of 7.74% is 99.5% above this industry median. Based on the distribution chart, The Kroger Co ranks #200 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 Return-on-Tangible-Asset compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #200 out of 310 companies for Return-on-Tangible-Asset. This places The Kroger Co in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.88. The Kroger Co's value of 7.74% is 99.5% above this benchmark. Historically, The Kroger Co's own Return-on-Tangible-Asset has ranged from 2.12 to 9.29 over the past decade. While the company's 10-year median is 5.25 vs. the industry median of 3.88, 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 Return-on-Tangible-Asset for a Retail - Defensive company?
The median Return-on-Tangible-Asset among Retail - Defensive companies is 3.88, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kroger Co's current Return-on-Tangible-Asset of 7.74% is 99.5% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on The Kroger Co and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Asset is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kroger Co's current Return-on-Tangible-Asset is 7.74%, which is 47% above median its own 10-year median of 5.25. 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 $66.90, compared to a current price of $57.58 — trading 13.9% below its estimated fair value. The current Return-on-Tangible-Asset is 7.74%, which is 47% above median its 10-year median of 5.25 and 99.5% above the Retail - Defensive industry median of 3.88. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For The Kroger Co (LTS:0JS2), the current Return-on-Tangible-Asset is 7.74% 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 $57.58 is trading 13.9% below its estimated GF Value™ of $66.90.
GuruFocus considers The Kroger Co to be Modestly Undervalued.
Key valuation signals for LTS:0JS2:
Return-on-Tangible-Asset: 7.74% (47% above median its 10-year median of 5.25)
GF Value™: $66.90 vs. price of $57.58 (13.9% below fair value)
Industry Position: 99.5% above the Retail - Defensive median (#200 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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