Ocado Group (OCDO) AI Stock Analysis

• Market Cap: $3.06B
• Dividend Yield: N/A
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.85
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 20,261
• Sector: Consumer Defensive
• Sector Strength: 59
• Industry: Grocery Stores
• EPS (TTM): -0.17
• Shares Outstanding: 836,594,360
• 10 Day Avg. Volume: 2,806,595
• 30 Day Avg. Volume: 3,163,944
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 31.93
• Enterprise Value/Ebitda: 26.61
• 1Y Price Target: $333.86
• Price Target Upside: -7.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 58 Neutral
• Price Target: 364.00p ▲(1.14% Upside)

Ocado Group's stock score reflects significant financial challenges and unattractive valuation metrics, counterbalanced by strong market momentum and positive earnings call highlights. The company's strategic moves and liquidity position are promising, but operational inefficiencies and cost challenges remain critical concerns.

Positive Factors

Cash Flow

Ocado's free cash flow is guided to be better than previous estimates due to lower capex.

Financial Efficiency

Ocado is guiding for a substantial reduction in technology costs from FY24, implying improved financial efficiency.

Negative Factors

Expansion Timeline

The delay in Kroger's go-live of CFCs to FY26 affects Ocado's anticipated timeline for expansion.

Growth Expectations

Kroger's earnings call suggests no imminent commitment to new CFCs, impacting Ocado's growth expectations.

Module Deployment

The shares are expected to react negatively due to a weak FY25 module run-rate guidance.

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, including declining revenues and persistent losses. The company has high leverage and negative free cash flow, despite some improvement in operating cash flow. This indicates ongoing financial strain and the necessity for operational improvements.

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

Ocado Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 359.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 359.9 is above the 20-day moving average (MA) of 345.16, above the 50-day MA of 284.79, and above the 200-day MA of 291.73, indicating a bullish trend. The MACD of 24.61 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 50.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:OCDO.

Ocado Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABF	79 Outperform	£16.19B	12.82	11.89%	2.77%	-0.38%	14.68%
CCH	75 Outperform	£14.12B	18.43	28.56%	1.94%	6.00%	42.42%
TSCO	75 Outperform	£26.94B	17.16	10.18%	3.32%	―	―
SBRY	73 Outperform	£6.68B	19.85	6.21%	4.59%	0.34%	153.91%
TATE	69 Neutral	£2.35B	37.61	3.39%	3.75%	5.40%	-67.46%
Sector *	63 Neutral	$20.97B	14.56	-8.07%	3.14%	2.79%	-9.90%
OCDO	58 Neutral	$3.06B	―	-14.70%	―	―	―

Ocado Group Corporate Events

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.

Ocado Group’s Deputy CEO Engages in Share Transactions

Ocado Group plc announced transactions involving its Deputy CEO, James Matthews, who sold and purchased ordinary shares in the company to invest in an ISA. These transactions, conducted on the London Stock Exchange, were part of routine financial management and align with regulatory requirements for transparency. The announcement underscores Ocado’s commitment to maintaining transparency in its financial dealings, potentially impacting stakeholder trust positively.

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 Directors Participate in Share Incentive Plan

Ocado Group plc announced the participation of its directors and senior management in the company’s Share Incentive Plan (SIP), which allows employees to purchase shares at market value and receive matching shares. This move, involving key figures like the CEO and CFO, underscores Ocado’s commitment to aligning the interests of its leadership with those of its shareholders, potentially impacting the company’s market perception positively.

The most recent analyst rating on (GB:OCDO) stock is a Hold with a £340.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado Group Releases Interim Results for First Half of 2025

Ocado Group plc has released its interim results for the 26 weeks ended 1 June 2025. The results are accessible on their corporate website and have been submitted to the Financial Conduct Authority’s National Storage Mechanism. This release is part of Ocado’s ongoing commitment to transparency and regulatory compliance, potentially impacting investor confidence and stakeholder engagement.

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 for June 2025

Ocado Group plc announced its total voting rights as of June 30, 2025, with 836,505,123 issued ordinary shares, each carrying one vote. The announcement impacts stakeholders by clarifying the number of shares and voting rights, which is essential for compliance with the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:OCDO) stock is a Hold with a £340.00 price target. To see the full list of analyst forecasts on Ocado Group stock, see the GB:OCDO Stock Forecast page.

Ocado and Bon Preu Expand Partnership with New Catalonia Fulfilment Centre

Ocado Group and Bon Preu Group have announced the construction of a new Customer Fulfilment Centre in Catalonia, expanding their partnership to enhance Bon Preu’s online grocery services. This new automated facility will leverage Ocado’s advanced technologies to improve order efficiency, freshness, and cost-effectiveness, further solidifying Bon Preu’s leading position in the Catalan online grocery market and potentially increasing its market share.

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 Director Participation in Share Incentive Plan

Ocado Group plc announced the participation of its directors and senior management in the Ocado Share Incentive Plan (SIP), a tax-advantaged all-employee share scheme. This initiative allows employees to purchase ordinary shares at market value and receive matching shares, aligning the interests of management with shareholders and potentially enhancing 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 Draws Down $152M Letter of Credit from Kroger Partnership

Ocado Group Plc has drawn down on a US$152 million Letter of Credit from the Bank of Nova Scotia, which was part of a 2018 partnership arrangement with The Kroger Co. This financial move marks the maturity of the agreement, providing Ocado with capital to support its investment in Kroger’s online business. This development could bolster Ocado’s financial position and further its strategic goals in the online grocery sector.

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’s Deputy CEO Share Vesting and Disposal

Ocado Group announced that an award granted to James Matthews, Deputy CEO, partially vested under the Ocado Restricted Share Plan, resulting in an automatic disposal of shares to cover tax liabilities. This transaction, conducted on the London Stock Exchange, reflects the company’s adherence to regulatory requirements and transparency in executive share dealings.

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 Bond Repurchase and New Note Issuance

Ocado Group has announced a financial maneuver involving the repurchase of £80 million of its senior unsecured convertible bonds and the issuance of £100 million in high-yield notes. This strategy aims to extend the company’s debt maturity profile and reduce leverage over time, potentially impacting its financial stability and market positioning.

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 Leadership Transition with New Company Secretary

Ocado Group plc announced the retirement of Neill Abrams, a founding team member who significantly contributed to the company’s growth, from his role as Group General Counsel and Company Secretary. Mollie Stoker, with prior experience at Ocado and Britvic, will take over the position, ensuring a smooth transition and continuity in leadership.

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 Update

Ocado Group plc announced its total voting rights as of May 30, 2025, with 835,621,588 issued ordinary shares, each carrying one vote. The announcement clarifies the voting rights structure, including shares held by trustees for employee plans, and provides a denominator for shareholders to calculate their interests under FCA rules.

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 Executives Participate in Share Incentive Plan

Ocado Group plc has announced the participation of its key executives in the Ocado Share Incentive Plan, a tax-advantaged scheme allowing employees to purchase company shares at market value. This initiative underscores Ocado’s commitment to aligning employee interests with company performance, potentially strengthening stakeholder confidence and enhancing its market position.

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.