The Kroger CoLTS:0JS2 -0.04%69 ROC (Joel Greenblatt) % is 17.75% as of Apr. 2026, which is 65% above its 10-year median of 10.73. 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 308 Retail - Defensive companies, The Kroger Co ranks worse than 72.73% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. The Kroger Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 17.75%.
The historical rank and industry rank for The Kroger Co's ROC (Joel Greenblatt) % or its related term are showing as below:
LTS:0JS2'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 5.79 Med: 10.73 Max: 21.53
Current: 6.06
During the past 13 years, The Kroger Co's highest ROC (Joel Greenblatt) % was 21.53%. The lowest was 5.79%. And the median was 10.73%.
LTS:0JS2's ROC (Joel Greenblatt) % is ranked worse than 72.73% of 308
companies
in the Retail - Defensive industry
Industry Median: 13.375
vs LTS:0JS2: 6.06
The Kroger Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -9.40% per year.
The Kroger Co (LTS:0JS2) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The Kroger Co ROC (Joel Greenblatt) % Related Terms
The Kroger Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for The Kroger Co's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Grocery Stores subindustry, The Kroger Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Kroger Co's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 17.75% mean?
The Kroger Co (LTS:0JS2) has a ROC (Joel Greenblatt) % of 17.75% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The Kroger Co and its competitors. This is 65% above median its historical median of 10.73. Over the past decade, The Kroger Co's ROC (Joel Greenblatt) % has ranged from 5.79 to 21.53. According to the industry distribution chart, The Kroger Co ranks #224 out of 308 companies in the Retail - Defensive industry, placing it in the top 72.7%.
Is The Kroger Co's ROC (Joel Greenblatt) % too high?
The Kroger Co's current ROC (Joel Greenblatt) % of 17.75% is 65% above median its 10-year median of 10.73. Over the past 10 years, this metric has ranged from a low of 5.79 to a high of 21.53. The Retail - Defensive industry median ROC (Joel Greenblatt) % is 13.38. The Kroger Co's value of 17.75% is 32.7% above this industry median. Based on the distribution chart, The Kroger Co ranks #224 out of 308 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 ROC (Joel Greenblatt) % compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #224 out of 308 companies for ROC (Joel Greenblatt) %. This places The Kroger Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 13.38. The Kroger Co's value of 17.75% is 32.7% above this benchmark. Historically, The Kroger Co's own ROC (Joel Greenblatt) % has ranged from 5.79 to 21.53 over the past decade. While the company's 10-year median is 10.73 vs. the industry median of 13.38, 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 ROC (Joel Greenblatt) % for a Retail - Defensive company?
The median ROC (Joel Greenblatt) % among Retail - Defensive companies is 13.38, based on 308 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kroger Co's current ROC (Joel Greenblatt) % of 17.75% is 32.7% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The Kroger Co and its competitors. For the Retail - Defensive industry, the median ROC (Joel Greenblatt) % is 13.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kroger Co's current ROC (Joel Greenblatt) % is 17.75%, which is 65% above median its own 10-year median of 10.73. 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 ROC (Joel Greenblatt) % is 17.75%, which is 65% above median its 10-year median of 10.73 and 32.7% above the Retail - Defensive industry median of 13.38. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For The Kroger Co (LTS:0JS2), the current ROC (Joel Greenblatt) % is 17.75% 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:
ROC (Joel Greenblatt) %: 17.75% (65% above median its 10-year median of 10.73)
GF Value™: $65.97 vs. price of $55.52 (15.8% below fair value)
Industry Position: 32.7% above the Retail - Defensive median (#224 of 308)
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
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