Stock Watch: KR’s Uniform Adjusted EPS’ is not as strong as traditional metrics suggest, and as such, valuations are more expensive than investors may realize

Sunday, June 18, 2017

KR’s Uniform Adjusted EPS’ is not as strong as traditional metrics suggest, and as such, valuations are more expensive than investors may realize

KR’s profitability is materially distorted by accounting for operating leases and long-lived assets
As such, their UAFRS EPS’ is expected to remain below as-reported EPS, reaching only $2.05 in 2017
After making the appropriate UAFRS adjustments, KR is trading at an 23.7x Uniform P/E, which implies a PEG ratio of 2.0x+, indicating longer-term underperformance may be justified

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Submitted June 18, 2017 at 09:40PM by Valens_Research http://ift.tt/2ruueO5

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