Kroger Beneish M Score

KR
 Stock
  

USD 47.84  1.20  2.45%   

This module uses fundamental data of Kroger to approximate the value of its Beneish M Score. Kroger M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please see Kroger Piotroski F Score and Kroger Altman Z Score analysis.
  
Kroger Debt Current is relatively stable at the moment as compared to the past year. Kroger reported last year Debt Current of 1.21 Billion. As of 11/27/2022, Long Term Debt to Equity is likely to grow to 1.67, while Debt Non Current is likely to drop slightly above 15.2 B.
At this time, it appears that Kroger Company is an unlikely manipulator. The earnings manipulation may begin if Kroger's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Kroger executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Kroger's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.18
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.95Focus
Asset QualityN/AFocus
Expense Coverage0.97Focus
Gross Margin Strengs1.03Focus
Accruals Factor0.97Focus
Depreciation Resistance1.01Focus
Net Sales Growth0.94Focus
Financial Leverage Condition0.99Focus

Kroger Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Kroger's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense21.2 B23.2 B
Significantly Down
Increasing
Slightly volatile
Revenues129.7 B137.9 B
Notably Down
Increasing
Slightly volatile
Trade and Non Trade Receivables1.6 B1.8 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net25.5 B30.5 B
Fairly Down
Increasing
Slightly volatile
Operating Income3.5 B3.5 B
Slightly Up
Increasing
Slightly volatile
Net Cash Flow from Operations5.4 B6.2 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current19.5 B23.3 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities14.6 B16.3 B
Moderately Down
Increasing
Slightly volatile
Total Liabilities34.1 B39.6 B
Fairly Down
Increasing
Slightly volatile
Gross Margin22.7222.0099
Sufficiently Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion2.8 B3.4 B
Significantly Down
Increasing
Slightly volatile
Debt Non Current15.2 B19.2 B
Significantly Down
Increasing
Slightly volatile
Debt Current1.6 B1.2 B
Significantly Up
Decreasing
Very volatile
Total Debt16.9 B20.4 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current30.8 B36.9 B
Fairly Down
Increasing
Slightly volatile
Current Assets11.1 B12.2 B
Significantly Down
Increasing
Slightly volatile
Total Assets41.9 B49.1 B
Fairly Down
Increasing
Slightly volatile

Kroger Company Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Kroger's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Kroger in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Kroger's degree of accounting gimmicks and manipulations.

About Kroger Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Cost of Revenue

101.61 Billion

Kroger Cost of Revenue is relatively stable at the moment as compared to the past year. Kroger reported last year Cost of Revenue of 107.54 Billion

Kroger ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Kroger's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Kroger's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Kroger Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Kroger Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Kroger using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Kroger Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio. Kroger operates under Grocery Stores classification in the United States and is traded on New York Stock Exchange. It employs 500000 people.

Kroger Investors Sentiment

The influence of Kroger's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Kroger. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Kroger's public news can be used to forecast risks associated with investment in Kroger. The trend in average sentiment can be used to explain how an investor holding Kroger can time the market purely based on public headlines and social activities around Kroger Company. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Kroger's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Kroger's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Kroger's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Kroger.

Kroger Implied Volatility

    
  59.42  
Kroger's implied volatility exposes the market's sentiment of Kroger Company stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Kroger's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Kroger stock will not fluctuate a lot when Kroger's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Kroger in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Kroger's short interest history, or implied volatility extrapolated from Kroger options trading.

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Kroger Company using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Please see Kroger Piotroski F Score and Kroger Altman Z Score analysis. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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When running Kroger Company price analysis, check to measure Kroger's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Kroger is operating at the current time. Most of Kroger's value examination focuses on studying past and present price action to predict the probability of Kroger's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Kroger's price. Additionally, you may evaluate how the addition of Kroger to your portfolios can decrease your overall portfolio volatility.
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Is Kroger's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Kroger. If investors know Kroger will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Kroger listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.64
Market Capitalization
35.1 B
Quarterly Revenue Growth YOY
0.093
Return On Assets
0.0564
Return On Equity
0.26
The market value of Kroger Company is measured differently than its book value, which is the value of Kroger that is recorded on the company's balance sheet. Investors also form their own opinion of Kroger's value that differs from its market value or its book value, called intrinsic value, which is Kroger's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Kroger's market value can be influenced by many factors that don't directly affect Kroger's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kroger's value and its price as these two are different measures arrived at by different means. Investors typically determine Kroger value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kroger's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.