The Kroger CoLTS:0JS2 -0.04%69 Return-on-Tangible-Equity is 130.85% as of Apr. 2026, which is 212% above its 10-year median of 41.93. GuruFocus rates LTS:0JS2 with a GF Score™ of 69/100 and a GF Value™ of $65.97 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 298 Retail - Defensive companies, The Kroger Co ranks better than 75.17% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Kroger Co's annualized net income for the quarter that ended in Apr. 2026 was $3,612 Mil. The Kroger Co's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $2,761 Mil. Therefore, The Kroger Co's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 130.85%.
The historical rank and industry rank for The Kroger Co's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0JS2'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.1 Med: 41.93 Max: 96.48
Current: 26.1
During the past 13 years, The Kroger Co's highest Return-on-Tangible-Equity was 96.48%. The lowest was 26.10%. And the median was 41.93%.
LTS:0JS2's Return-on-Tangible-Equity is ranked better than 75.17% of 298
companies
in the Retail - Defensive industry
Industry Median: 11.085
vs LTS:0JS2: 26.10
The Kroger Co (LTS:0JS2) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Kroger Co Return-on-Tangible-Equity Related Terms
The Kroger Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Kroger Co's Return-on-Tangible-Equity 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-Equity Comparison
For the Grocery Stores subindustry, The Kroger Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Kroger Co's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 130.85% mean?
The Kroger Co (LTS:0JS2) has a Return-on-Tangible-Equity of 130.85% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Kroger Co and its competitors. This is 212% above median its historical median of 41.93. Over the past decade, The Kroger Co's Return-on-Tangible-Equity has ranged from 26.10 to 96.48. According to the industry distribution chart, The Kroger Co ranks #74 out of 298 companies in the Retail - Defensive industry, placing it in the top 24.8%.
Is The Kroger Co's Return-on-Tangible-Equity too high?
The Kroger Co's current Return-on-Tangible-Equity of 130.85% is 212% above median its 10-year median of 41.93. Over the past 10 years, this metric has ranged from a low of 26.10 to a high of 96.48. The Retail - Defensive industry median Return-on-Tangible-Equity is 11.09. The Kroger Co's value of 130.85% is 1080.4% above this industry median. Based on the distribution chart, The Kroger Co ranks #74 out of 298 companies in the Retail - Defensive industry, which is in the top quartile — a strong position 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 Return-on-Tangible-Equity compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #74 out of 298 companies for Return-on-Tangible-Equity. This places The Kroger Co in the top 25% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.09. The Kroger Co's value of 130.85% is 1080.4% above this benchmark. Historically, The Kroger Co's own Return-on-Tangible-Equity has ranged from 26.10 to 96.48 over the past decade. While the company's 10-year median is 41.93 vs. the industry median of 11.09, 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-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 11.09, based on 298 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 130.85% is 1080.4% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Kroger Co and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 11.09 — 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-Equity is 130.85%, which is 212% above median its own 10-year median of 41.93. 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 $65.97, compared to a current price of $55.52 — trading 15.8% below its estimated fair value. The current Return-on-Tangible-Equity is 130.85%, which is 212% above median its 10-year median of 41.93 and 1080.4% above the Retail - Defensive industry median of 11.09. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Kroger Co (LTS:0JS2), the current Return-on-Tangible-Equity is 130.85% 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 $55.52 is trading 15.8% below its estimated GF Value™ of $65.97.
GuruFocus considers The Kroger Co to be Modestly Undervalued.
Key valuation signals for LTS:0JS2:
Return-on-Tangible-Equity: 130.85% (212% above median its 10-year median of 41.93)
GF Value™: $65.97 vs. price of $55.52 (15.8% below fair value)
Industry Position: 1080.4% above the Retail - Defensive median (#74 of 298)
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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