OCDO LN

Ocado Group PLC

TMT


Presented:01/20/2016
Price:£2.82
Cap:$2.67B
Current Price:£3.70
Cap:$4.72B

Presented

Date01/20/2016
Price£2.82
Market Cap$2.67B
Ent Value$3.79B
P/E Ratio220.83x
Book Value£0.40
Div Yield0%
Shares O/S617.60M
Ave Daily Vol2,446,971
Short IntN/A

Current

Price£3.70
Market Cap$4.72B
Ocado Group Plc engages in the operation of online grocery supermarket. It offers the Ocado Smart Platform that provides grocery electronic commerce and fulfillment solution. The company was founded by Jonathan Fairman, Jason Gissing, and Timothy Steiner in 2000 and is headquartered in Hatfield, United Kingdom.

Publicly traded companies mentioned herein: Ocado Group PLC (OCDO LN), Tesco (TSCO LN), J. Sainsbury (SBRY LN) and WM Morrison (MRW LN).

Highlights

Ocado provides home delivery of groceries in the UK. Competition in the space has been heating up, with Amazon Pantry (AMZN) recently having entered the UK market in the non-fresh category and reportedly seeking to expand from there into fresh food delivery. Ocado for some time now has talked about the potential to license its technology and implementation to third parties, previously having self-imposed a deadline of year-end 2015 to identify potential grocery partners. That promise, however, has thus far failed to materialize, and the presenter expects that the market will likely soon recognize and begin to price in Ocado’s inability to find a partner on suitable economic terms. Meanwhile, Ocado continues to burn cash, leading the presenter to conclude that the company could soon be forced to tap the equity market or draw on its revolver.

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Idea Discussion

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