Grocery Outlet Holding Corp. (GO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ingles Markets, Inc.

Sprouts Farmers Market, Inc.

Weis Markets, Inc.

PriceSmart, Inc.

Natural Grocers by Vitamin Cottage, Inc.

Village Super Market, Inc.

The Kroger Co.

ARKO Corp.

Albertsons Cos., Inc.

Grocery Outlet Holding Corp.

Big Lots, Inc.

Why is Grocery Outlet Holding Corp. ?

Poor long term growth as Operating profit has grown by an annual rate 15.94% of over the last 5 years

ROCE(HY) Lowest at -38.45%
DEBT-EQUITY RATIO (HY) Highest at 220.89 %
INTEREST COVERAGE RATIO(Q) Lowest at 498.91

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -27.37%, its profits have risen by 135.4% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.37% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Grocery Outlet Holding Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Grocery Outlet Holding Corp.

-27.37%

-0.81

67.38%

S&P 500

22.93%

1.75

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.39%

EBIT Growth (5y)

15.94%

EBIT to Interest (avg)

4.52

Debt to EBITDA (avg)

2.01

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

2.58

Tax Ratio

42.29%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.82%

ROE (avg)

6.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.71

EV to EBIT

5.30

EV to EBITDA

3.37

EV to Capital Employed

0.81

EV to Sales

0.26

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

15.21%

ROE (Latest)

9.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

NET PROFIT(HY)

At USD 44.21 MM has Grown at 144.64%

INVENTORY TURNOVER RATIO(HY)

Highest at 8.55 times

-16What is not working for the Company

ROCE(HY)

Lowest at -38.45%

DEBT-EQUITY RATIO (HY)

Highest at 220.89 %

INTEREST COVERAGE RATIO(Q)

Lowest at 498.91

OPERATING PROFIT(Q)

Lowest at USD 37.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.23 %

PRE-TAX PROFIT(Q)

Lowest at USD -1.19 MM

NET PROFIT(Q)

Lowest at USD 2.87 MM

Here's what is working for Grocery Outlet Holding Corp.

Inventory Turnover Ratio

Highest at 8.55 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Grocery Outlet Holding Corp.

Pre-Tax Profit

At USD -1.19 MM has Fallen at -106.22%

over average net sales of the previous four periods of USD 19.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 2.87 MM has Fallen at -87.85%

over average net sales of the previous four periods of USD 23.62 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 498.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 220.89 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at USD 37.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 3.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -1.19 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 2.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)