Ocado Group (OCDO) AI Stock Analysis

• Market Cap: £1.87B
• Dividend Yield: N/A
• Average Volume (3M): 3.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• 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: 838,429,200
• 10 Day Avg. Volume: 3,861,396
• 30 Day Avg. Volume: 3,226,209
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £307.93
• Price Target Upside: 32.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 49 Neutral
• Price Target: 305.00p ▲(31.58% Upside)

Ocado Group's overall stock score is primarily impacted by its financial performance, which shows significant challenges with declining revenues and persistent losses. Technical analysis indicates bearish momentum, further weighing down the score. Valuation metrics are unattractive due to negative earnings. The earnings call provided some positive insights on revenue growth and liquidity, but these are overshadowed by cost pressures and financial risks.

Positive Factors

Negative Factors

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 generates revenue primarily through its online grocery sales, where customers place orders via its website and mobile app, with deliveries made directly to their homes. Additionally, the company has a significant revenue stream from its technology solutions, which it licenses to other retailers looking to enhance their e-commerce capabilities. Key partnerships with major grocery chains, both in the UK and internationally, contribute to its earnings, as these partners leverage Ocado's technology to improve their own logistics and fulfillment operations. The company also benefits from sourcing and selling its own branded products, providing an additional margin on their sales.

Ocado Group Financial Statement Overview

Summary

Ocado Group is facing significant financial challenges reflected in declining revenues and persistent losses. While there is some improvement 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: Negative
• Last Price: 231.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:OCDO, the sentiment is Negative. The current price of 231.8 is below the 20-day moving average (MA) of 244.01, below the 50-day MA of 303.44, and below the 200-day MA of 284.64, indicating a bearish trend. The MACD of -21.79 indicates Negative momentum. The RSI at 34.54 is Neutral, neither overbought nor oversold. The STOCH value of 60.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:OCDO.

Ocado Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBRY	76 Outperform	£7.52B	22.36	3.64%	4.06%	0.34%	153.91%
CCH	75 Outperform	£12.22B	15.96	25.60%	2.28%	6.00%	42.42%
TSCO	75 Outperform	£29.28B	19.70	13.94%	3.05%	―	―
ABF	73 Outperform	£14.93B	11.84	13.01%	3.00%	-0.38%	14.68%
TATE	67 Neutral	£1.64B	26.21	8.99%	5.42%	5.40%	-67.46%
OCDO	49 Neutral	£1.87B	―	-14.70%	―	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Ocado Group Corporate Events

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.

Ocado Group Announces Total Voting Rights and Share Distribution

Ocado Group plc announced its total voting rights as of July 31, 2025, with 836,594,362 issued ordinary shares, each carrying one vote. The announcement details the distribution of shares held by trustees and the implications for shareholder notifications under FCA rules, highlighting that 10,647,347 shares are treated as treasury shares in financial calculations.

The most recent analyst rating on (GB:OCDO) stock is a Sell with a £280.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Group Announces Director Participation in Share Incentive Plan

Ocado Group plc has announced the participation of its directors and employees in the Ocado Share Incentive Plan, a tax-advantaged scheme approved by HMRC. This plan allows employees and directors to receive ordinary shares up to the value of £3,600 annually, with recent grants made to key executives including the CEO, CFO, and Deputy CEO, reflecting the company’s commitment to employee engagement and retention.

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.