LSE:OCDO

Stock Analysis Report

Executive Summary

Ocado Group plc operates as an online grocery retailer in the United Kingdom and internationally.

Snowflake

Fundamentals

Adequate balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Ocado Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.1%

OCDO

1.2%

GB Online Retail

0.2%

GB Market


1 Year Return

67.4%

OCDO

4.4%

GB Online Retail

1.7%

GB Market

Return vs Industry: OCDO exceeded the UK Online Retail industry which returned 4.4% over the past year.

Return vs Market: OCDO exceeded the UK Market which returned 1.7% over the past year.


Shareholder returns

OCDOIndustryMarket
7 Day-5.1%1.2%0.2%
30 Day-0.9%0.4%-1.7%
90 Day6.9%8.7%-3.1%
1 Year67.4%67.4%5.0%4.4%6.7%1.7%
3 Year374.0%374.0%45.1%42.4%17.7%3.1%
5 Year454.9%454.9%144.2%133.5%36.1%5.5%

Price Volatility Vs. Market

How volatile is Ocado Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ocado Group undervalued compared to its fair value and its price relative to the market?

23.43x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OCDO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate OCDO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: OCDO is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: OCDO is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OCDO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OCDO is overvalued based on its PB Ratio (23.4x) compared to the GB Online Retail industry average (3.7x).


Next Steps

Future Growth

How is Ocado Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

53.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCDO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: OCDO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: OCDO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: OCDO's revenue (11.7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: OCDO's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OCDO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Ocado Group performed over the past 5 years?

-77.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OCDO is unprofitable, and losses have increased over the past 5 years at a rate of -77.7% per year.

Accelerating Growth: Unable to compare OCDO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OCDO is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (21.4%).


Return on Equity

High ROE: OCDO has a negative Return on Equity (-45.53%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: OCDO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: OCDO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Ocado Group's financial position?


Financial Position Analysis

Short Term Liabilities: OCDO's short term assets (£561.8M) exceeds its short term liabilities (£411.0M)

Long Term Liabilities: OCDO's short term assets (561.8M) exceeds its long term liabilities (506.7M)


Debt to Equity History and Analysis

Debt Level: OCDO's debt to equity ratio (64.1%) is considered high

Reducing Debt: OCDO's debt to equity ratio has increased from 3.7% to 64.1% over the past 5 years.


Balance Sheet

Inventory Level: OCDO has a high level of physical assets or inventory.

Debt Coverage by Assets: OCDO's debt is covered by short term assets (assets are 2.294930x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: OCDO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: OCDO has sufficient cash runway for 1.911696 years if free cash flow continues to reduce at historical rates of -39.3% each year.


Next Steps

Dividend

What is Ocado Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage3.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate OCDO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate OCDO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if OCDO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OCDO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OCDO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Ocado Group's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Tim Steiner (49yo)

19.8yrs

Tenure

UK£3,077,000

Compensation

Mr. Timothy Steiner, OBE, also known as Tim, serves as the Chief Executive Officer of Ocado Group PLC and Ocado Retail Limited. Mr. Steiner worked for eight years as a banker at Goldman Sachs. He has been ...


CEO Compensation Analysis

Compensation vs. Market: Tim's total compensation ($USD3.99M) is about average for companies of similar size in the UK market ($USD4.97M).

Compensation vs Earnings: Tim's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.7yrs

Average Tenure

54yo

Average Age

Experienced Management: OCDO's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

54yo

Average Age

Experienced Board: OCDO's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: OCDO insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUK£10,136,18917 Oct 19
Neill Abrams
EntityIndividual
Role
Member of the Board of Directors
Group General Counsel
Shares750,000
Max PriceUK£13.52
BuyUK£115,33007 Aug 19
Luke G. Jensen
EntityIndividual
Role
Member of the Board of Directors
CEO of Ocado Solutions & Executive Director
Shares10,000
Max PriceUK£11.53
SellUK£7,348,61524 May 19
Stuart Alan Rose
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares600,000
Max PriceUK£12.33

Ownership Breakdown


Management Team

  • Duncan Tatton-Brown (54yo)

    CFO & Director

    • Tenure: 7.1yrs
    • Compensation: UK£1.54m
  • Tim Steiner (49yo)

    CEO & Executive Director

    • Tenure: 19.8yrs
    • Compensation: UK£3.08m
  • Neill Abrams (54yo)

    Group General Counsel

    • Tenure: 19.1yrs
    • Compensation: UK£1.15m
  • David Shriver

    Communications Director

    • Tenure: 2.1yrs
  • Luke G. Jensen (52yo)

    CEO of Ocado Solutions & Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£1.83m
  • David Hardiman-Evans

    Senior Vice President of North America - Ocado Solutions

    • Tenure: 2.1yrs
  • Mark Richardson (54yo)

    COO & Executive Director

    • Tenure: 7.7yrs
    • Compensation: UK£1.53m
  • Robert Cooper

    Deputy Company Secretary

    • Tenure: 0yrs

Board Members

  • Jörn Rausing (59yo)

    Non-Executive Director

    • Tenure: 16.6yrs
    • Compensation: UK£52.00k
  • Stuart Alan Rose (70yo)

    Non-Executive Chairman

    • Tenure: 6.4yrs
    • Compensation: UK£200.00k
  • Duncan Tatton-Brown (54yo)

    CFO & Director

    • Tenure: 7.1yrs
    • Compensation: UK£1.54m
  • Andrew Harrison (48yo)

    Senior Independent Director

    • Tenure: 0.6yrs
    • Compensation: UK£59.00k
  • Emma Lloyd (49yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£52.00k
  • Tim Steiner (49yo)

    CEO & Executive Director

    • Tenure: 19.8yrs
    • Compensation: UK£3.08m
  • Neill Abrams (54yo)

    Group General Counsel

    • Tenure: 19.1yrs
    • Compensation: UK£1.15m
  • Julie Southern (60yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£11.00k
  • Luke G. Jensen (52yo)

    CEO of Ocado Solutions & Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£1.83m
  • Mark Richardson (54yo)

    COO & Executive Director

    • Tenure: 7.7yrs
    • Compensation: UK£1.53m

Company Information

Ocado Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ocado Group plc
  • Ticker: OCDO
  • Exchange: LSE
  • Founded: 2000
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: UK£9.035b
  • Shares outstanding: 698.25m
  • Website: https://www.ocadogroup.com

Number of Employees


Location

  • Ocado Group plc
  • Buildings 1 & 2 Trident Place
  • Hatfield Business Park
  • Hatfield
  • Hertfordshire
  • AL10 9UL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCDOLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2010
0OCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2010
OCDG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2010
OCDOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2010
OCDO NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2010
OCDD.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDSep 2015

Biography

Ocado Group plc operates as an online grocery retailer in the United Kingdom and internationally. The company operates through two segments, Retail and Solutions. It sells general merchandise products on i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:12
End of Day Share Price2019/10/22 00:00
Earnings2019/06/02
Annual Earnings2018/12/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.