- Kroger registered top line gains of 11.60% due to the combination with Harris Teeter, more households shopping at Kroger, increase in transaction count and higher product pricing.
- The company was able to witness an improvement of 8 basis points in its gross margin during the second quarter in 2014 which clocked in at 20.54%.
- Operating profit margin had plunged to 2.54% as a proportion of sales in the second quarter of 2014 from 2.62% during the same period last year.
- Immediate short-term liquidity position is weak. However, long term survival may not be an issue as Kroger is generating CFO that covers up to 40-45% of long term debt.
- The stock’s P/E based valuation represents a capital return potential of approximately 46%.