Ocado Group (OCDO) AI Stock Analysis

• Market Cap: $1.86B
• Dividend Yield: N/A
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 20,261
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): -0.17
• Shares Outstanding: 838,577,000
• 10 Day Avg. Volume: 3,613,298
• 30 Day Avg. Volume: 2,707,181
• PEG Ratio: -0.97
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 2.13
• P/FCF Ratio: -19.80
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 9.85
• Enterprise Value/Gross Profit: 20.82
• Enterprise Value/Ebitda: 20.33
• 1Y Price Target: $286.63
• Price Target Upside: 27.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -34.99
• Revenue Forecast (FY): $133.17B

• Rating: 48 Neutral
• Price Target: 215.00p ▼(-4.44% Downside)

Ocado Group's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and high leverage. Technical indicators suggest a bearish trend, and valuation metrics are weak due to ongoing losses. While the earnings call provided some positive strategic insights, the company's ability to improve profitability remains uncertain.

Positive Factors

Revenue Growth

The growth in revenue, particularly in Technology Solutions and Logistics, indicates strong demand for Ocado's services, supporting long-term expansion and competitive positioning in the market.

Strong Liquidity Position

A robust liquidity position provides Ocado with the financial flexibility to invest in growth initiatives and manage debt obligations, enhancing its long-term financial stability.

New Market Launches

Entering new markets like Korea and Saudi Arabia demonstrates Ocado's ability to expand its global footprint and adapt its technology to diverse environments, supporting future growth.

Negative Factors

High Leverage

High leverage poses long-term financial risks, potentially limiting Ocado's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Increased Service Delivery Costs

Rising service delivery costs can erode profit margins, challenging Ocado's ability to maintain competitive pricing and profitability over the long term.

Negative Free Cash Flow

Negative free cash flow indicates that Ocado is not generating sufficient cash to cover its capital expenditures, which could hinder its ability to fund future growth and innovation.

Ocado Group Business Overview & Revenue Model

Company Description

Ocado Group plc operates as an online grocery retailer in the United Kingdom and internationally. The company operates through three segments: Ocado Retail, UK Solutions & Logistics, and International Solutions. It also sells general merchandise products on its Ocado.com; provides online retail solutions; and offers customer fulfillment centre and logistics services. The company was founded in 2000 and is headquartered in Hatfield, the United Kingdom.

How the Company Makes Money

Ocado Group generates revenue primarily through its grocery retail operations and technology solutions. The company's main revenue stream comes from online grocery sales, where it offers a diverse range of products sourced from various suppliers, including fresh foods, packaged goods, and household necessities. Additionally, Ocado licenses its proprietary technology and logistics solutions to other retailers, which provides a significant source of income. Strategic partnerships with notable grocery chains, such as Kroger in the United States, further enhance its earnings by expanding its reach and leveraging its technology in new markets. Ocado also benefits from economies of scale, as increased order volumes help to optimize its automated fulfillment centers, leading to higher margins on its products.

Ocado Group Financial Statement Overview

Summary

Ocado Group is facing significant financial challenges with declining revenues and persistent losses. Despite improvements in operating cash flow, high leverage and negative free cash flow pose ongoing risks. The company needs to address operational inefficiencies and reduce costs to improve profitability and financial stability.

Income Statement

Ocado Group has seen a decline in total revenue from the previous year, with the 2024 revenue dropping significantly by over 50%. The gross profit margin is unusually high due to total revenue and gross profit being equal, suggesting potential data issues. The company continues to face challenges with profitability, as indicated by negative EBIT and net income margins. This reflects ongoing operational inefficiencies and cost challenges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses long-term financial risks. Stockholders' equity has decreased over recent years, reflecting financial strain. However, the equity ratio indicates that equity financing still supports a substantial portion of total assets, providing some stability.

Cash Flow

Operating cash flow has improved significantly, indicating better cash management. However, free cash flow remains negative, suggesting high capital expenditures and ongoing challenges in generating positive cash flow. The operating cash flow to net income ratio is strong, which is a positive indicator of cash generation compared to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	345.50M	1.21B	2.83B	2.51B	2.50B	2.33B
Gross Profit	163.50M	106.60M	69.30M	629.20M	707.40M	636.50M
EBITDA	167.40M	127.90M	76.80M	-74.70M	124.10M	167.70M
Net Income	421.90M	-336.20M	-314.00M	-455.50M	-223.20M	-134.30M
Balance Sheet
Total Assets	4.39B	4.16B	4.43B	4.81B	4.38B	4.00B
Cash, Cash Equivalents and Short-Term Investments	745.80M	743.40M	884.80M	1.33B	1.47B	2.11B
Total Debt	1.79B	1.70B	1.96B	1.91B	1.83B	1.41B
Total Liabilities	2.64B	2.99B	2.92B	2.88B	2.67B	2.17B
Stockholders Equity	1.75B	1.19B	1.49B	1.84B	1.59B	1.76B
Cash Flow
Free Cash Flow	-23.80M	-130.50M	-454.20M	-760.40M	-698.00M	-214.00M
Operating Cash Flow	341.90M	268.90M	82.20M	25.50M	-7.30M	237.80M
Investing Cash Flow	-398.20M	-353.70M	-500.10M	-735.00M	-532.70M	-695.70M
Financing Cash Flow	65.50M	-24.30M	-10.10M	547.10M	282.50M	1.53B

Ocado Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 225.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:OCDO, the sentiment is Neutral. The current price of 225 is above the 20-day moving average (MA) of 224.26, below the 50-day MA of 234.26, and below the 200-day MA of 272.95, indicating a neutral trend. The MACD of -7.74 indicates Negative momentum. The RSI at 49.58 is Neutral, neither overbought nor oversold. The STOCH value of 85.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:OCDO.

Ocado Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABF	77 Outperform	£15.74B	15.62	9.22%	2.85%	-3.06%	-26.93%
TSCO	76 Outperform	£29.64B	20.06	13.65%	3.25%	1.05%	-20.25%
CCH	75 Outperform	£12.58B	16.43	28.56%	2.08%	6.00%	42.42%
SBRY	69 Neutral	£7.50B	22.30	6.63%	4.04%	0.82%	160.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TATE	59 Neutral	£1.67B	26.66	2.48%	5.20%	26.84%	-81.73%
OCDO	48 Neutral	$1.86B	―	―	―	―	―

Ocado Group Corporate Events

Ocado Completes Redemption of 2026 Senior Notes

Ocado Group PLC has announced the completion of the redemption of its 3.875% senior notes due 2026, effectively canceling all outstanding notes. This move led to the withdrawal of the notes’ listing from Euronext Dublin, potentially streamlining Ocado’s financial operations and impacting its market positioning by reducing debt obligations.

The most recent analyst rating on (GB:OCDO) stock is a Hold with a £194.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Group Announces Total Voting Rights Update

Ocado Group plc announced its total voting rights as of October 31, 2025, with 838,577,029 issued ordinary shares, each carrying one vote. The announcement details the shares held by various trustees and their voting rights, which are relevant for shareholders and stakeholders to determine their notification obligations under the FCA’s rules.

The most recent analyst rating on (GB:OCDO) stock is a Hold with a £252.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Group to Redeem Outstanding Senior Notes

Ocado Group PLC has announced its intention to redeem all outstanding 3.875% Senior Notes due 2026, as per the indenture agreement dated 8 October 2021. This move, set to be completed by 10 November 2025, reflects Ocado’s strategic financial management and may impact its financial structure, potentially influencing stakeholder confidence and market positioning.

The most recent analyst rating on (GB:OCDO) stock is a Hold with a £252.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Group Directors Participate in Share Incentive Plan

Ocado Group plc announced the participation of its directors and senior management in the Ocado Share Incentive Plan (SIP), allowing them to purchase ordinary shares at market value and receive matching shares. This move, disclosed under regulatory requirements, underscores the company’s commitment to aligning the interests of its leadership with those of its shareholders, potentially enhancing stakeholder confidence.

The most recent analyst rating on (GB:OCDO) stock is a Buy with a £3.56 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Group Announces Total Voting Rights Update

Ocado Group plc announced its total voting rights as of September 30, 2025, with 838,429,179 issued ordinary shares, each carrying one vote. The announcement outlines the distribution of shares, including those held by trustees for employee benefit plans, and clarifies that 10,646,045 shares are treated as treasury shares, impacting earnings per share calculations.

The most recent analyst rating on (GB:OCDO) stock is a Hold with a £350.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Executives Participate in Share Incentive Plan

Ocado Group plc announced the participation of its key executives, including the CEO and CFO, in the company’s Share Incentive Plan (SIP), which allows employees to purchase shares at market value and receive matching shares. This move is part of Ocado’s strategy to align employee interests with company performance, potentially enhancing stakeholder value and reinforcing its market position.

The most recent analyst rating on (GB:OCDO) stock is a Sell with a £2.40 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Group’s Deputy CEO Share Vesting and Disposal

Ocado Group plc announced that James Matthews, the Deputy CEO, had a partial vesting of shares under the Ocado Restricted Share Plan, resulting in an automatic disposal of shares to cover tax liabilities. This transaction reflects the company’s ongoing management of executive compensation and shareholding structures, potentially impacting stakeholder perceptions of executive alignment with company performance.

The most recent analyst rating on (GB:OCDO) stock is a Hold with a £367.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Group Announces Total Voting Rights and Share Distribution

Ocado Group PLC has announced its total voting rights as of August 29, 2025, with 837,872,800 issued ordinary shares, each carrying one vote. The announcement details the distribution of shares held by various trustees and the implications for earnings per share calculations, highlighting the exclusion of shares held by the Employee Benefit Trust.

The most recent analyst rating on (GB:OCDO) stock is a Hold with a £367.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Executives Participate in Share Incentive Plan

Ocado Group plc has announced the participation of its key executives, including the CEO, CFO, and Deputy CEO, in the Ocado Share Incentive Plan (SIP), an HMRC-approved all-employee share scheme. This plan allows employees to purchase ordinary shares at market value and receive matching shares, aligning the interests of the management with those of shareholders and potentially enhancing long-term company performance.

The most recent analyst rating on (GB:OCDO) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.