|Bid||0.00 x N/A|
|Ask||0.00 x N/A|
|Day's range||15.07 - 15.07|
|52-week range||11.30 - 17.78|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
Ocado may have stumbled, but will a change to its systems help its shares in the years to come?The post Panic buying highlights the strengths and weaknesses of Ocado’s model appeared first on The Motley Fool UK.
British supermarkets are frantically trying to build up their online operations during the coronavirus emergency but no matter how hard they work they will not have enough capacity to meet unprecedented levels of demand. With Britain in lockdown, analysts estimate about 25% of food purchasing has switched from cafes, restaurants and bars to the grocery retail sector as people adapt to the new way of living. Prior to the health crisis about 8% of British grocery demand was ordered online, with 92% bought in stores.
(Bloomberg Opinion) -- As lockdowns shutter stores and keep consumers cooped up at home, there will be many losers from the outbreak of the Covid-19 virus. But there will also be a few winners.Casino Guichard Perrachon SA, the French supermarket operator that’s been a target for short-selling hedge funds, is emerging as a beneficiary, in line with other grocers seeing a frantic stockpiling of food on both sides of the Atlantic.While Casino’s complex financial structure has long been a source of consternation, there are some jewels in its highly leveraged crown. These are the Monoprix and Franprix chains, both of which have strongholds in Paris.Between its brands, Casino has more than 40% of the Paris market, compared with 11.5% nationally, according to Charles Allen, an analyst at Bloomberg Intelligence. Much of French capital is served by small supermarkets, such as Franprix, which average around 5,300 square feet. This format has been particularly strong over recent weeks, as Parisians, like city dwellers worldwide, don’t want to venture too far from their homes to stock up on groceries. And while Monoprix’s clothing range will be under pressure, demand for food has rocketed.Casino should be able to capitalize on a boom in home delivery too. The company sells through Amazon and it just began testing an online grocery service with Ocado Group Plc. Its online non-food business Cdiscount is also expanding its grocery offer, and may benefit from increased demand for all kinds of electronics as people are forced to work from home.But as ever with the company controlled by Jean-Charles Naouri, things aren’t straightforward. Despite the upswing, Casino on Thursday gave no guidance and suspended its three-year targets, saying the coronavirus pandemic makes predictions impossible. Although free cash flow before disposals improved, the company’s ability to deliver cash in France has been disappointing over the past couple of years. While frantic shoppers in today’s environment should give Casino a boost, its weak cash generation and high leverage shouldn’t be overlooked. Moves to sell and lease back stores over the past two years add rental payments to its financial obligations.Net debt in France fell from 2.7 billion euros to 2.3 billion euros in 2019, helped by the asset sales. But overall borrowings rose from 3.4 billion euros to 4.1 billion euros, after Casino used debt to finance the simplification of its structure in Latin America.What’s more, Casino has decided to hit pause on its disposal program as it grapples with “unprecedented demand,” both in its stores and online. Still on the list to be offloaded is the Geant hypermarket business.The company is in the midst of a 4.5 billion-euro divestment program, having struck 2.8 billion euros of deals so far. Of this, about 1 billion euros worth have been signed, but not yet completed. When these transactions cross the finish line, Casino should be able to repay bonds due in 2021 and 2022. Still, Casino must agree another 1.7 billion of disposals to reach its targets. It’s confident it will still achieve them in time and it’s done a good job so far, with a better-than-expected price just this month from selling its Leader Price chain to German discount rival Aldi for example. But conditions could be rockier from here given the economic fallout from the coronavirus.The disposal program is important for both Casino and its parent Rallye, Naouri’s investment group. The proceeds are key for Casino to be able to resume paying dividends, and Rallye, which owns 52% of Casino, is counting on them. The debt-laden Rallye agreed a restructuring plan with the French courts last month that gives it 10 years to pay back 2.9 billion euros.Although the shares initially fell as much as 7.75% on Thursday, they ended up 1.7%, cementing their outperformance over the past month. So investors seem convinced it will continue to benefit from the current crisis. But as long-time followers of Casino know, even when the chips are looking up, there are always more spins to come.(Corrects Thursday’s share price move in final paragraph.)This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Ocado is the lone riser in the FTSE 100 during the market crash of 2020, is this enough of a reason to buy shares in the online supermarket company?The post Should you buy the only FTSE 100 stock to rise in the 2020 market crash? appeared first on The Motley Fool UK.
This FTSE 100 (INDEXFTSE:UKX) growth hero continues to defy the stock market crash.The post This FTSE 100 stock is up 36% in the stock market crash. Here's what I'd do now appeared first on The Motley Fool UK.
British shoppers were queuing around the block early on Thursday morning to buy basic goods such as bottled water and tinned goods ahead of an expected toughening of measures to contain the coronavirus outbreak. Reuters reporters saw more than 100 people queuing in the rain before the 7 opening of a large Sainsbury's store in Clapham Common, south of the river Thames, while a few miles away in Vauxhall queues snaked around another Sainsbury's store. Prime Minister Boris Johnson has joined the country's biggest supermarkets including Tesco, Sainsbury's, Asda and Morrisons in urging shoppers not to stockpile, but the pleas have fallen on deaf ears.
(Bloomberg) -- Ocado Group Plc has temporarily closed its website as it struggles to cope with demand from shoppers trying to stockpile groceries.The U.K. online grocer closed its site until Saturday as it faces a “simply staggering amount of traffic” and is trying to catch up with orders. The site also won’t accept new customers for the time being because it wouldn’t be able to keep up.The closure will allow the company to “complete essential work that will help to make sure distribution of products and delivery slots is as fair and as accessible as possible,” Melanie Smith, chief executive officer of Ocado Retail, said in a statement.Growing fears about the new coronavirus pandemic have prompted stockpiling, even though the British government and grocers have reassured consumers that there is enough food to go around. Ocado said basket sizes have been increasing, with growth in the second quarter so far at twice the rate of the first. The website now has a system by which customers wait in line to be able to order.The stock traded 2.5% higher at 8:18 a.m. in London, bringing the five-day gain to 34%.Britain’s two biggest supermarkets -- Tesco Plc and J Sainsbury Plc -- have recently introduced limits of three items on grocery products in an effort to try to ease the pressure on their supply chains. Other grocers have also introduced rationing. Wm Morrison Supermarkets Plc said this week that it planned to hire more workers as it expands its home delivery service to meet demand.Ocado said its retail revenue had risen 10% in the 13 weeks to March 1. The real surge in demand came since then.(Updates with shares)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Jabran Khan explores two stocks that present a long-term opportunity.The post These 2 FTSE 100 stocks are winners in a stock market crash appeared first on The Motley Fool UK.
British online supermarket Ocado has closed access to its website until March 21 as it struggles to deal with "a simply staggering amount of traffic" because of the coronavirus, it said on Wednesday.
The stock market crash continues. But I'm betting on these stocks (and companies) that are racing ahead.The post As the stock market crash continues, I'd invest in these FTSE 100 winners appeared first on The Motley Fool UK.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London. European stocks opened well into red but less than what futures suggested just an hour or two ago. The STOXX 600 was nevertheless down 2.8% despite Wall Street pulling off a 6% jump yesterday thanks to the hundreds of billions of dollars pledged in the U.S. and worldwide to cushion the hit of the coronavirus pandemic.
* Fed, ECB coordinated emergency move fails to reassure * STOXX 600, FTSE 100 extend losses * Shares in holiday operator TUI plummet 30% Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com) and Julien Ponthus (firstname.lastname@example.org) in London. THE SURPRISE STOCK IN THE BLACK (1318 GMT) Cigarette maker Imperial Brands gained a eye-popper 6% this morning and is now up about 1% while most European shares are in free fall and only a handful of stocks are trading in the black across Europe.
The share price for Ocado has only fallen slightly in the past month, making it the best performer in the FTSE 100 index.The post I'd buy the best performing FTSE 100 stock of the past month in this market crash! appeared first on The Motley Fool UK.
Britain's biggest supermarket Tesco can keep shelves stocked and withstand shopper hoarding over coronavirus that has seen runs on pasta, hand sanitiser and toilet roll, its chairman said on Thursday. "There’s plenty of product in the supply chain, there’s plenty of food at Tesco and other supermarkets, and I don’t think anybody needs to panic buy," he told BBC radio.
British environment minister George Eustice said on Friday he had been reassured by supermarkets that they had contingency plans in place to prevent food shortages linked to coronavirus. "The retailers reassured me they have well-established contingency plans and are taking all the necessary steps to ensure consumers have the food and supplies they need," Eustice said in a statement following a meeting with representatives from the food industry.
It has long been understood that cheap stocks have a tendency to outperform expensive stocks in the stock market. While this is not true every single year, ove8230;
British online supermarket Ocado has advised customers to place orders further in advance because of "exceptionally high demand", indicating a possible reaction from shoppers to the spreading coronavirus outbreak. Britain announced a jump in coronavirus cases on Sunday, with 13 new infections taking the total to 36 and Prime Minister Boris Johnson warning that the number is likely to rise. Ocado, a pioneer in online food shopping, e-mailed some customers on Friday to warn of high demand for its delivery service.
Ocado (LON: OCDO) was the fastest-growing grocer in the UK in 2019, and I think 2020 could be even better.The post Why I think the Ocado share price will continue to beat Tesco in 2020 appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- Ocado Group Plc, the British online grocer that’s morphed into a technology company, has always been a jam tomorrow stock. Now it’s asking shareholders to wait not just for the jam but the full afternoon tea.The specialist in automating how supermarket orders are filled on Tuesday announced that its 2019 pre-tax loss jumped to 214.5 million pounds ($277 million), from a loss of 44.4 million pounds a year earlier. Part of this was due to a damaging fire at its Andover warehouse almost exactly a year ago, which was unfortunate but Ocado has coped well with the disruption.What’s more worrying for investors is the impact of investment in its burgeoning international division, which has been striking deals to operate the online grocery businesses of chains from the U.S. to France and Japan. While that’s a credit to Chief Executive Officer Tim Steiner, who has been knocking on retailers’ doors for the the past five years, it means Ocado has an awful lot to do — and pay for. Ocado’s international technology arm could be more lucrative in the future, but for now, it’s a drain on capital. Consequently, Ocado said expenditure would more than double this year to 600 million pounds. Take away the impact of the warehouse fire, and that leaves a balance of just over 500 million pounds for building state-of-the-art warehouses that are fully equipped to pack grocery orders with limited need for humans.The majority of this will be spent on getting its automated warehouses up and running for international customers, including Casino Guichard Perrachon SA in France, Canada’s Sobeys Inc. and the U.S. chain operator Kroger Co. Some of the expenditure will be offset by expected fees from its international clients of more than 100 million pounds, but most of it is a down payment on future income once the systems are fully up and running. That doesn’t leave much scope for any unexpected hiccups in the meantime.Until those warehouses are open, Ocado cannot recognize the international revenue, but it must incur the costs. That showed in its 2019 results. Ocado invoiced fees of 81.4 million pounds to its international partners, an increase of almost 40%. But revenue from this arm was less than 1 million pounds, while it made a loss before interest, tax, depreciation and amortization of 62.1 million pounds. For this year, Ocado forecasts international revenue of less than 10 million pounds. Warehouses for Casino and Sobeys will be open for only part of the period. In the meantime, Ocado must continue its heavy spending. It had 751 million pounds in the bank at the year end, thanks to its deal to sell half of its U.K. retail business to Marks & Spencer Group Plc. It also raised 600 million pounds through a convertible bond issue after the year end. The company says this gives it plenty of headroom. But with such an investment burden over the next few years — it has also signed a deal with Aeon Co. in Japan — further calls on shareholders can’t be ruled out.And let’s not forget challenges closer to home. In September, M&S will replace Waitrose as Ocado’s supplier for its U.K. online supermarket, a massive changeover with huge execution risk.For now, investors appear confident that once the different warehouses are operational the fees will start to flow into profit and cash flow. The shares have risen by a third in the past year. Ocado’s enterprise value is currently just over 4 times forward sales, even ahead of Amazon.com Inc., on just over 3 times.This looks divorced from the reality of both Ocado’s spending needs, and the long haul to generate a return on its investment.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.