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  • 09 Apr 24
FTSE 100 edges higher as retail sales beat forecasts - Market Report
ftse-100-edges-higher-as-retail-sales-beat-forecasts-market-report
  • 19 Dec 23
FTSE 100 up, Ocado gains continue - Market Report
ftse-100-up-ocado-gains-continue-market-report
  • 14 Dec 23
FTSE 100 hits three-month highs — Market Report
ftse-100-hits-three-month-highs-market-report
  • 19 Sep 23
Retail trading: sales beat in Q3; volume growth on the horizon!

Ocado’s Q3 trading performance (for the retail segment) was slightly ahead of our expectations. The segment’s revenue grew 7.2% yoy, led by price increase (+8.4% yoy). Among the key developments, the segment clocked volume growth during the last month of the quarter (slightly earlier than expected). Management is likely to continue with the strategy of price investment, broader range availability and improved service levels. Management is tight-lipped about the ongoing talks (regarding contingen

Companies: Ocado Group PLC

AlphaValue
  • 18 Jul 23
Stronger than expected performance in H1 FY22/23

Ocado’s H1 FY22/23 performance was slightly stronger than our as well as the market’s expectations – sales were in line but the underlying profit was ahead. Group EBITDA came in at +£16.6m (vs consensus of ~£3.0m), mainly attributable to retail (-£2.5m vs consensus of -£10.0m) and the Technology business (+£5.9m vs flattish market expectations). The management has reiterated the annual outlook. The management is proceeding with promising initiatives like Ocado Intelligent Automation (for non-gro

Companies: Ocado Group PLC

AlphaValue
  • 23 Jun 23
Ocado up for sale?

Ocado’s investors are happy to hear about the potential bid from Amazon – the stock price surged ~32%. While the UK-based player could be good strategic fit for Amazon, an acquisition bid might also nudge the US retailer Kroger to join the race. The latter is Ocado’s largest client, a minority shareholder and a competitor of Amazon. Ocado’s shareholders are already pushed to the wall due to high FCF erosion, depleted grocery margins and limited cash / liquidity reserve.

Companies: Ocado Group PLC

AlphaValue
  • 28 Mar 23
Decent performance in Q1; FY23 outlook confirmed

Ocado’s Q1 retail sales of £583.5m were 2.4% ahead of consensus and the management has reconfirmed the FY23 outlook. However, the bears continue to dominate (stock price down c.5%). The key concerns turn around the active customer base, the rebound in retail profitability and uncertainty on new international CFC deals. Although the stock is likely to remain under pressure in the short term, we do not see structural issues with the firm. Positive recommendation maintained.

Companies: Ocado Group PLC

AlphaValue
  • 01 Mar 23
Investors spooked by poor profitability and high cash outflow

Ocado’s FY22 performance was weaker than our expectations. The underlying PBT of -£500.8m was 25% below the street expectations, attributable to a weaker EBITDA margin and high D&A (following higher investments). However, the company seems to be struggling on multiple fronts – operating losses and high cash outflows are the most pressing pain-points, and any material respite looks difficult in the near-term. This also raises the risk of a fresh capital funding requirement. We will reduce our ear

Companies: Ocado Group PLC

AlphaValue
  • 18 Jan 23
Q3 retail trading in-line with expectations; mid-term profitability remains concerning!

There were no major surprises in Ocado’s Q4 retail trading – lfl sales improved 0.3% yoy. For FY23, the company expects mid-single-digit sales growth, and retail EBITDA to be slightly positive. While we expect the segment’s profitability to improve from 2024, it would be difficult to achieve a retail EBITDA margin of high/mid-single-digits. While the consumer demand and average basket size is likely to improve from H2 FY23, we will trim FY23 EPS estimates. We maintain our positive stock valuatio

Companies: Ocado Group PLC

AlphaValue
  • 01 Nov 22
Ocado onboards a new client, finally!

Ocado’s stock price has surged more than one-third today as investors reward the company’s exclusive partnership with Lotte Shopping of South Korea. The deal involves the construction of six warehouses by 2028. If one excludes Ocado’s small contract with Auchan (in Spain and Poland), the last big catch was more than 30 months ago. We reiterate our view that Ocado is well equipped to add new clients in the international arena. Positive recommendation maintained.

Companies: Ocado Group PLC

AlphaValue
  • 14 Sep 22
Weak Q3 performance; tough times ahead!

Ocado’s Q3 trading performance was worse than our expectations. The decline in average basket size was the key reason (-6% yoy). Management has downgraded sales / earnings outlook for FY21/22. While the stock price slumped 12%, it is more than justified, considering the low contribution from the retail segment in the group’s valuation. Concerns around softening CFC orders could hold true in the near term, but the pipeline is strong enough. We will decrease the target price but maintain a positiv

Companies: Ocado Group PLC

AlphaValue
  • 22 Jul 22
Softer retail performance in H1

Ocado’s H1 FY22 performance was a lacklustre affair. Group sales declined 4.4%, mainly due to weakness in the Retail segment (-8.3% yoy). The Solutions business remains on-track and the launch of Ocado Re: Imagined suite is also a positive. However, investors have been waiting for a long time for Ocado to announce a new / big client on-boarding (akin to Kroger) to nudge the valuation / sentiment. We will trim the EPS but maintain the positive stance on the stock’s valuation.

Companies: Ocado Group PLC

AlphaValue
  • 30 Mar 22
Ocado at the inflection point!

Ocado has been bearing the brunt of ongoing lawsuits (against close competitor Autostore), lack of new client additions in the solutions business and a slowdown in the retail segment (especially at the top line). We believe the stock price has been bashed much more than warranted (it is trading at pre-pandemic levels). The business model is potent enough to clock growth in the lucrative warehousing automation domain and the recent sales slowdown in retail segment is also not a structural issue.

Companies: Ocado Group PLC

AlphaValue
  • 10 Feb 22
Decent closure to FY21; Solutions guidance is less than impressive

There were no major surprises in Ocado’s FY results. However, the stock price slumped as investors were disappointed with the FY22 outlook of the solutions business. We see this as a temporary dent and the company still enjoys a robust business model. The recently unveiled technology (called Ocado: Reimagined) is also a promising development and should underpin the probability of new client conversions. We will trim the FY22 estimates slightly but maintain our positive stance on the company’s va

Companies: Ocado Group PLC

AlphaValue
  • 15 Dec 21
Lacklustre Q4 trading; litigation win against AutoStore

Ocado’s retail business produced an unimpressive trading performance in Q4 FY20/21. The retail revenue slipped c.4% as the strength in orders per week was more than offset by a declining basket size. Management has guided for a £50m adverse impact on FY22 EBITDA. The lawsuit win against AutoStore is a shot in the arm but Ocado is still required to cement investor trust by adding more names to the client list (Solutions business). We maintain our positive recommendation on the stock’s valuation.

Companies: Ocado Group PLC

AlphaValue

Ocado Group PLC

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Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Ocado Group PLC. We currently have 247 research reports from 6 professional analysts.

  • Open: 345p
  • Range Today: 343/349p
  • 52 Week: 335/1017p
  • Daily Volume: 191.2k
  • Daily Liquidity: 0.02%
  • # Shares: 829.9m
  • Market Cap: £2,884m
  • Latest PE (hist):
  • Div Yield:

Latest News/RNS

(more news)
Date Source Announcement
15Apr24 15:15 RNS Ocado Group PLC - Director/PDMR Shareholding
15Apr24 11:57 RNS Ocado Group PLC - Holding(s) in Company
04Apr24 07:00 RNS Ocado Group PLC - Directorate Change
02Apr24 13:01 RNS Ocado Group PLC - Director/PDMR Shareholding
02Apr24 12:01 RNS Ocado Group PLC - Total Voting Rights
28Mar24 14:50 RNS Ocado Group PLC - Director/PDMR Shareholding
28Mar24 14:45 RNS Ocado Group PLC - Director/PDMR Shareholding
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