Ocado Group OCDO.L
United KingdomConsumer Defensive · Grocery StoresLondon Stock Exchange · GBP
2.45 GBP (−14.4%)
13 analysts
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Ocado Group is a British technology and logistics company that operates its own online supermarket and sells its warehouse automation platform (Ocado Smart Platform) to grocery retailers worldwide.
Listed on London Stock Exchange · Symbol OCDO.L · LON: OCDO · Currency GBP
Key points
from its scores- ✓Strong growth10.0
- ✕Unfavourable risk and backdrop1.1
- ✕Little or no dividend1.5
- ✕Poor share-price trend2.6
AI analysis
bottom line, main risk, context and newsGrowth and valuation are attractive, but the lack of profitability and moderate leverage warrant caution until the business model demonstrates its ability to generate sustainable returns.
Ocado shows exceptional revenue growth (53.90%) and an attractive valuation (EV/EBITDA 7.26, FCF yield 6.73%), but its profitability is poor (ROE -15.03%) and its financial health is only acceptable (Net Debt/EBITDA 2.10), reflecting a business in an investment phase with a moat yet to be proven.
The main risk is the dependence on international contracts for its technology platform; if these are not renewed or are delayed, revenue growth could slow sharply, exposing its weak profitability.
Context and risks
Ocado operates in the UK, a country with moderate governance risk. Its business model depends on international contracts with retailers (such as Kroger in the US or Auchan in Europe), exposing it to geopolitical and tariff tensions that could affect the expansion of its technology platform.
Is Ocado Group stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 33% below the Consumer Defensive median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 7.3 | 10.8 | −33% |
| Price / book | 1.5 | 2.7 | −44% |
| Price / sales | 1.4 | 1.2 | +11% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 2.45 GBP, −14.4% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 5.9 (sector 5.5), Growth 10.0 (sector 5.3).
Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- Forward P/E
- −9.5
- EV / EBITDA
- 7.3
- Price / book
- 1.5
- Price / sales
- 1.4
- Market cap
- 2.4B GBP
- Enterprise value
- 3.3B GBP
Profitability
- ROE
- −15.0%
- ROA
- 0.3%
- ROIC (approx.)
- 6.3%
- Gross margin
- 23.0%
- Operating margin
- 11.9%
- Net margin
- −14.3%
- Free cash flow
- 161.4M GBP
- FCF yield
- 6.7%
- Cash conversion
- 35%
Solvency
- Total debt
- 1.7B GBP
- Net debt
- 969.5M GBP
- Cash
- 764.6M GBP
- EBITDA
- 461.0M GBP
- Net debt / EBITDA
- 2.10
- Debt / equity
- 110.64
- Current ratio
- 1.41
- Quick ratio
- 1.35
Growth
- Revenue growth
- +53.9%
- EPS (TTM)
- −0.30 GBP
- EPS (forward)
- −0.30 GBP
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 2.34
- Analyst consensus
- Buy (13)
- Target price
- 2.45 GBP
Recent news
All OCDO.L news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about Ocado Group
Is Ocado Group stock cheap or expensive?
On EV / EBITDA, it trades 33% below the Consumer Defensive median. Valuation score: 5.0 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 2.45 GBP, −14.4% versus the price. This is not investment advice.
What score does Ocado Group get on MeridIAn Screener?
It scores 4.1 out of 10, rank 1,956 of 2,130 (better than 8% of the companies analysed). Its strongest category is Growth (10.0) and its weakest, Risk & Context (1.1). Analysis of 08/10/2026.
How much is Ocado Group worth on the stock market?
Its market capitalisation is 2.4B GBP and its enterprise value, debt included, is 3.3B GBP.
How much debt does Ocado Group have?
Its net debt (debt minus cash) is 969.5M GBP. That is 2.10 times its EBITDA; the Consumer Defensive median is 2.38.
Does Ocado Group pay a dividend?
It pays no dividend, or almost none.
How has Ocado Group stock performed over the last year?
It has risen 22.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 2.99 GBP. Past performance does not guarantee future results.
What do analysts think of Ocado Group?
13 analysts cover it; their average recommendation is “Buy” and their average target is 2.45 GBP (−14.4% versus the price). It is an estimate, not market data.