📦 Ocado Group: Tech-Driven Grocery Logistics
Ocado has transitioned from an online grocer to a global tech platform, licensing its Ocado Smart Platform (OSP) to retailers worldwide. It’s now a FTSE 100 contender again, riding a wave of operational improvements and investor optimism.
📈 Share Price & Market Performance
- Current Price: 387.8p
- 1-Month Gain: +68%
- Market Cap: £3.2 billion
- New Price Target: 437p (JPMorgan Cazenove)
Ocado hit a 6-month high on 8 August 2025, up 25.8% since 21 July.
💰 Valuation Metrics
| Metric | Value | Notes |
|---|---|---|
| P/E Ratio | 7.6 | Based on trailing 12-month earnings |
| PEG Ratio | Not available | EPS growth distorted by one-off gains and restructuring |
Ocado’s valuation looks cheap on a P/E basis, but PEG remains unreliable due to volatile earnings.
📊 Financial Highlights (H1 2025)
- Revenue: £674 million (+13.2% YoY)
- Technology Solutions: +14.9% revenue, +109% EBITDA growth
- Statutory Profit: £611.8 million (boosted by £782.6m gain from deconsolidating Ocado Retail)
- Cash Flow: Expected to turn positive in FY 2026
JPMorgan projects a 43% CAGR in group EBITDA through 2027.
🧠 Analyst Sentiment
- JPMorgan: Overweight, citing improved tech margins, cost control, and reduced client risk
- Morningstar: Fair value estimate raised to 300p
- Retail JV with M&S: Fastest-growing UK retailer (+16.3% revenue)
🛒 Recent Developments
- Leon Grocery Launch: Korean GFC Nuggets exclusive to Ocado from 20 August
- Product Recall: Daylesford Organic nut butter recalled due to metal contamination
