Could the nations largest grocery store chain be on the market? It’s possible that interest could be there if the price was right.

Kroger Co., the parent of Hutchinson-based Dillon Stores, is trading at an 86-percent discount to its projected sales this fiscal year, leaving it cheaper than 99 percent of companies in the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

According to an article in Tuesday’s Wichita Eagle, the Cincinnati-based company, which lost $4.7 billion in market capitalization during the last recession, is now valued at 10.8 times estimated earnings, the lowest level for a U.S. food retailer greater than $2 billion, the data shows.

Kroger, which has increased sales in every year since at least 1987 even as Target and Wal-Mart Stores grabbed market share from other supermarkets, may now become a target for retailers outside the U.S. or private equity firms, according to Northcoast Research Holdings.

Valued at $13.7 billion, Kroger could still attract a takeover offer 30 percent above its current price, Point View Wealth Management Inc. said, making it the largest grocery acquisition on record.
While Kroger was able to boost sales through the recession, its profitability declined in each of the past five years as the company lowered prices to compete with discount store chains such as Wal-Mart.

Kroger earned 2.6 cents in operating income for every dollar of sales in the past 12 months, the least among U.S. food retailers with more than $2 billion in market value, according to data compiled by Bloomberg.

The supermarket chain also has lower operating margins because it operates gas stations, a less profitable business, according to Charles Cerankosky, a Cleveland-based analyst for Northcoast. Keith Dailey, a spokesman for Kroger, said the company doesn’t comment on rumor or speculation.