The Kroger CoLTS:0JS2 +2.25%69 ROE % is 60.85% as of Apr. 2026, which is 144% above its 10-year median of 24.90. 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 306 Retail - Defensive companies, The Kroger Co ranks better than 64.71% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The Kroger Co's annualized net income for the quarter that ended in Apr. 2026 was $3,612 Mil. The Kroger Co's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was $5,936 Mil. Therefore, The Kroger Co's annualized ROE % for the quarter that ended in Apr. 2026 was 60.85%.
The historical rank and industry rank for The Kroger Co's ROE % or its related term are showing as below:
LTS:0JS2'
s ROE % Range Over the Past 10 Years
Min: 13.34 Med: 24.9 Max: 41.98
Current: 13.34
During the past 13 years, The Kroger Co's highest ROE % was 41.98%. The lowest was 13.34%. And the median was 24.90%.
LTS:0JS2's ROE % is ranked better than 64.71% of 306
companies
in the Retail - Defensive industry
Industry Median: 8.53
vs LTS:0JS2: 13.34
The Kroger Co (LTS:0JS2) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
The Kroger Co ROE % Related Terms
The Kroger Co ROE % Historical Data
* Premium members only.
The historical data trend for The Kroger Co's ROE % 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.
For the Grocery Stores subindustry, The Kroger Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's ROE % distribution charts can be found below:
* The bar in red indicates where The Kroger Co's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
The Kroger Co (LTS:0JS2) has a ROE % of 60.85% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Kroger Co and its competitors. This is 144% above median its historical median of 24.90. Over the past decade, The Kroger Co's ROE % has ranged from 13.34 to 41.98. According to the industry distribution chart, The Kroger Co ranks #108 out of 306 companies in the Retail - Defensive industry, placing it in the top 35.3%.
Is The Kroger Co's ROE % too high?
The Kroger Co's current ROE % of 60.85% is 144% above median its 10-year median of 24.90. Over the past 10 years, this metric has ranged from a low of 13.34 to a high of 41.98. The Retail - Defensive industry median ROE % is 8.53. The Kroger Co's value of 60.85% is 613.4% above this industry median. Based on the distribution chart, The Kroger Co ranks #108 out of 306 companies in the Retail - Defensive industry, which is above 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 ROE % compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #108 out of 306 companies for ROE %. This puts The Kroger Co in the upper half of its industry. The industry median ROE % is 8.53. The Kroger Co's value of 60.85% is 613.4% above this benchmark. Historically, The Kroger Co's own ROE % has ranged from 13.34 to 41.98 over the past decade. While the company's 10-year median is 24.90 vs. the industry median of 8.53, 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 ROE % for a Retail - Defensive company?
The median ROE % among Retail - Defensive companies is 8.53, based on 306 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kroger Co's current ROE % of 60.85% is 613.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Kroger Co and its competitors. For the Retail - Defensive industry, the median ROE % is 8.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kroger Co's current ROE % is 60.85%, which is 144% above median its own 10-year median of 24.90. 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 ROE % is 60.85%, which is 144% above median its 10-year median of 24.90 and 613.4% above the Retail - Defensive industry median of 8.53. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For The Kroger Co (LTS:0JS2), the current ROE % is 60.85% 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 $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:
ROE %: 60.85% (144% above median its 10-year median of 24.90)
GF Value™: $66.84 vs. price of $58.54 (12.4% below fair value)
Industry Position: 613.4% above the Retail - Defensive median (#108 of 306)
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
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0JS2 has been successfully added to your 
