Ocado Group (OCDO) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: N/A
• Average Volume (3M): 3.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• 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: 2,202,224
• 30 Day Avg. Volume: 3,656,816
• 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: 1.66
• Enterprise Value/Revenue: 9.85
• Enterprise Value/Gross Profit: 20.82
• Enterprise Value/Ebitda: 20.33
• 1Y Price Target: $309.27
• Price Target Upside: 25.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 51 Neutral
• Price Target: 252.00p ▲(2.48% Upside)

Ocado Group's overall stock score reflects significant financial challenges, including declining revenues and high leverage. While there are positive signs from the earnings call, such as revenue growth and strong liquidity, the technical indicators suggest bearish momentum, and the valuation remains unattractive due to ongoing losses. The company's strategic focus on improving cash flow and profitability is a positive factor but requires careful execution.

Positive Factors

Revenue Growth

The 13% revenue growth, driven by strong performance in Technology Solutions and Logistics, indicates robust demand and effective business expansion strategies, enhancing long-term market position.

Improved Cash Flow

Significant improvement in cash flow by GBP 93 million demonstrates better cash management and operational efficiency, supporting financial stability and future investment capacity.

Strong Liquidity Position

A strong liquidity position of GBP 1.2 billion provides Ocado with the financial flexibility to manage debt maturities and invest in growth opportunities, ensuring long-term resilience.

Negative Factors

High Leverage

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

Increased Service Delivery Costs

Rising service delivery costs due to wage increases could pressure margins, challenging Ocado's ability to maintain profitability and competitive pricing in the long term.

Negative Free Cash Flow

Negative free cash flow indicates ongoing challenges in generating surplus cash, potentially constraining Ocado's capacity to fund new projects or reduce debt.

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: 245.90
• 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 245.9 is above the 20-day moving average (MA) of 236.17, below the 50-day MA of 270.84, and below the 200-day MA of 279.97, indicating a neutral trend. The MACD of -3.37 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 74.01 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
TSCO	76 Outperform	£28.89B	19.41	13.65%	3.20%	1.05%	-20.25%
CCH	75 Outperform	£12.63B	16.50	28.56%	2.17%	6.00%	42.42%
ABF	73 Outperform	£16.19B	12.89	11.89%	2.76%	-0.38%	14.68%
SBRY	70 Neutral	£7.72B	22.83	6.21%	3.99%	0.34%	153.91%
TATE	65 Neutral	£1.71B	27.37	3.39%	5.11%	5.40%	-67.46%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
OCDO	51 Neutral	$2.05B	―	―	―	―	―

Ocado Group Corporate Events

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.

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.

Ocado CEO Extends Share Transfer Agreements

Ocado Group announced that CEO Tim Steiner has agreed to extend the completion dates for several forward sale agreements involving the transfer of shares to his father, Nicolas Steiner. The completion dates for these agreements have been extended by one year each, with no additional consideration payable, allowing Tim Steiner to retain a beneficial interest in the shares until completion.

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.