Grocery Outlet Holding
Market Cap
US$2.9b
Last Updated
2020/02/19 02:12 UTC
Data Sources
Company Financials +
Executive Summary
Grocery Outlet Holding Corp. owns and operates a chain of grocery stores in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with imperfect balance sheet.
Similar Companies
Share Price & News
How has Grocery Outlet Holding's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.8%
GO
2.3%
US Consumer Retailing
0.06%
US Market
1 Year Return
n/a
GO
17.0%
US Consumer Retailing
19.4%
US Market
Return vs Industry: Insufficient data to determine how GO performed against the US Consumer Retailing industry.
Return vs Market: Insufficient data to determine how GO performed against the US Market.
Shareholder returns
| GO | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 2.3% | 0.06% |
| 30 Day | -6.8% | 2.6% | 1.1% |
| 90 Day | 4.1% | 0.4% | 8.9% |
| 1 Year | n/a | 19.3%17.0% | 21.9%19.4% |
| 3 Year | n/a | 49.0%39.4% | 48.9%39.3% |
| 5 Year | n/a | 49.6%34.0% | 71.9%53.1% |
Price Volatility Vs. Market
How volatile is Grocery Outlet Holding's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
The Independent Director of Grocery Outlet Holding Corp. (NASDAQ:GO), Norman Matthews, Just Sold 37% Of Their Holding3 weeks ago | Simply Wall St
Have Insiders Been Selling Grocery Outlet Holding Corp. (NASDAQ:GO) Shares?1 month ago | Simply Wall St
How Do Grocery Outlet Holding Corp.’s (NASDAQ:GO) Returns Compare To Its Industry?Valuation
Is Grocery Outlet Holding undervalued compared to its fair value and its price relative to the market?
2435.53x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GO ($32.91) is trading above our estimate of fair value ($16.16)
Significantly Below Fair Value: GO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GO is poor value based on its PE Ratio (2496.2x) compared to the Consumer Retailing industry average (22.2x).
PE vs Market: GO is poor value based on its PE Ratio (2496.2x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: GO is poor value based on its PEG Ratio (46.1x)
Price to Book Ratio
PB vs Industry: GO is overvalued based on its PB Ratio (4x) compared to the US Consumer Retailing industry average (2.1x).
Next Steps
Future Growth
How is Grocery Outlet Holding forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
54.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GO's forecast earnings growth (54.2% per year) is above the savings rate (1.7%).
Earnings vs Market: GO's earnings (54.2% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GO's revenue (10.6% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: GO's revenue (10.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GO's Return on Equity is forecast to be low in 3 years time (10%).
Next Steps
Past Performance
How has Grocery Outlet Holding performed over the past 5 years?
-94.3%
Last years earnings growth
Earnings and Revenue History
Quality Earnings: GO has a large one-off loss of $11.5M impacting its September 28 2019 financial results.
Growing Profit Margin: GO's current net profit margins (0.04%) are lower than last year (0.8%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if GO's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: GO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GO had negative earnings growth (-94.3%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-6.1%).
Return on Equity
High ROE: GO's Return on Equity (0.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Grocery Outlet Holding's financial position?
Financial Position Analysis
Short Term Liabilities: GO's short term assets ($278.0M) exceed its short term liabilities ($206.2M).
Long Term Liabilities: GO's short term assets ($278.0M) do not cover its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: GO's debt to equity ratio (63.3%) is considered high.
Reducing Debt: Insufficient data to determine if GO's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: GO's debt is well covered by operating cash flow (27%).
Interest Coverage: GO's interest payments on its debt are not well covered by EBIT (1.2x coverage).
Balance Sheet
Inventory Level: GO has a high level of physical assets or inventory.
Debt Coverage by Assets: GO's debt is not covered by short term assets (assets are 0.6x debt).
Next Steps
Dividend
What is Grocery Outlet Holding's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate GO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate GO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GO'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 GO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Eric Lindberg (48yo)
1.1yrs
Tenure
US$3,327,809
Compensation
Mr. Eric J. Lindberg Jr., has been Chief Executive Officer of Grocery Outlet Holding Corp since January 1, 2019 and its Director since January 2006. Previously, from January 2006 to December 2018, Mr. Lind ...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD3.33M) is below average for companies of similar size in the US market ($USD4.89M).
Compensation vs Earnings: Insufficient data to compare Eric's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.1yrs | US$3.33m | 3.46% $98.9m | |
| Executive Vice Chairman | 1.1yrs | US$3.16m | no data | |
| President | 1.1yrs | US$1.53m | 0.011% $321.1k | |
| CFO & Treasurer | 7.5yrs | US$1.51m | 0.050% $1.4m | |
| Executive Vice President Of Retail Store Operations | 11.2yrs | US$1.04m | 0.10% $2.9m | |
| Chief Administrative Officer | 1.1yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Vice President of Marketing | 2.6yrs | no data | no data | |
| Vice President of Human Resources | 3yrs | no data | no data | |
| Senior Vice President of New Markets | 4.7yrs | no data | no data |
2.8yrs
Average Tenure
48yo
Average Age
Experienced Management: GO's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.1yrs | US$3.33m | 3.46% $98.9m | |
| Executive Vice Chairman | 1.1yrs | US$3.16m | no data | |
| Independent Director | 5.3yrs | US$213.02k | 0.10% $3.0m | |
| Independent Chairman of the Board | 5.3yrs | no data | no data | |
| Independent Director | 16.1yrs | US$226.99k | 0.10% $2.9m | |
| Independent Director | 9.3yrs | US$218.36k | 0.18% $5.1m | |
| Independent Director | 5.3yrs | no data | no data | |
| Independent Director | 0.3yrs | US$13.70k | no data | |
| Independent Director | 0.9yrs | no data | no data | |
| Independent Director | 9.1yrs | US$212.68k | 0.055% $1.6m |
5.3yrs
Average Tenure
55yo
Average Age
Experienced Board: GO's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: GO only recently listed within the past 12 months, with total shares outstanding growing by 8.1% in the past year..
Top Shareholders
Company Information
Grocery Outlet Holding Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Grocery Outlet Holding Corp.
- Ticker: GO
- Exchange: NasdaqGS
- Founded: 1946
- Industry: Food Retail
- Sector: Consumer Retailing
- Market Cap: US$2.854b
- Shares outstanding: 88.89m
- Website: https://www.groceryoutlet.com
Number of Employees
Location
- Grocery Outlet Holding Corp.
- 5650 Hollis Street
- EmeryVille
- California
- 94608
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GO | NasdaqGS (Nasdaq Global Select) | Yes | Voting Common Stock | US | USD | Jun 2019 |
Biography
Grocery Outlet Holding Corp. owns and operates a chain of grocery stores in the United States. The company offers products in various categories, such as grocery, dairy and deli, produce, refrigerated and frozen, floral, beer and wine, general merchandise, and health and beauty care, as well as fresh meat and seafood; and natural, organic, specialty, and healthy products. As of December 28, 2019, it had 347 stores, which included 342 independent operated stores and 5 company operated stores in California, Washington, Oregon, Pennsylvania, Idaho, and Nevada. The company was founded in 1946 and is headquartered in Emeryville, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 02:12 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/09/28 |
| Annual Earnings | 2018/12/29 |
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.