Numbers Numbers Numbers - Simply Wall St22 Oct 2025 15:33
"Ocado Group (LON:OCDO) shareholders are up 6.9% this past week, but still in the red over the last five years"
October 22, 2025
'Ocado Group plc (LON:OCDO) shareholders should be happy to see the share price up 13% in the last month. But will that heal all the wounds inflicted over 5 years of declines? Unlikely. Indeed, the share price is down a whopping 89% in that time. While the recent increase might be a green shoot, we're certainly hesitant to rejoice. The real question is whether the business can leave its past behind and improve itself over the years ahead. We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
While the stock has risen 6.9% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
Given that Ocado Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.
Over half a decade Ocado Group reduced its trailing twelve month revenue by 15% for each year. That puts it in an unattractive cohort, to put it mildly. So it's not that strange that the share price dropped 14% per year in that period. We don't think this is a particularly promising picture. Ironically, that behavior could create an opportunity for the contrarian investor - but only if there are good reasons to predict a brighter future.
A Different Perspective:
Ocado Group shareholders are down 30% for the year, but the market itself is up 17%. However, keep in mind that even the best stocks will sometimes under-perform the market over a twelve month period. However, the loss over the last year isn't as bad as the 14% per annum loss investors have suffered over the last half decade.
We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize'.
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