Latest news with #GroceryOutletHolding
Yahoo
3 days ago
- Business
- Yahoo
Investors in Grocery Outlet Holding (NASDAQ:GO) have unfortunately lost 64% over the last three years
While not a mind-blowing move, it is good to see that the Grocery Outlet Holding Corp. (NASDAQ:GO) share price has gained 20% in the last three months. But over the last three years we've seen a quite serious decline. Tragically, the share price declined 64% in that time. So the improvement may be a real relief to some. While many would remain nervous, there could be further gains if the business can put its best foot forward. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Grocery Outlet Holding saw its EPS decline at a compound rate of 33% per year, over the last three years. This change in EPS is reasonably close to the 29% average annual decrease in the share price. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. In this case, it seems that the EPS is guiding the share price. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. Investors in Grocery Outlet Holding had a tough year, with a total loss of 38%, against a market gain of about 13%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Grocery Outlet Holding better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Grocery Outlet Holding you should be aware of. Grocery Outlet Holding is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
29-04-2025
- Business
- Yahoo
Grocery Outlet Holding Insiders Added US$6.95m Of Stock To Their Holdings
In the last year, multiple insiders have substantially increased their holdings of Grocery Outlet Holding Corp. (NASDAQ:GO) stock, indicating that insiders' optimism about the company's prospects has increased. While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing. Our free stock report includes 3 warning signs investors should be aware of before investing in Grocery Outlet Holding. Read for free now. In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director Erik Ragatz bought US$2.1m worth of shares at a price of US$20.91 per share. That means that an insider was happy to buy shares at above the current price of US$16.03. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Happily, we note that in the last year insiders paid US$7.0m for 439.00k shares. But they sold 122.96k shares for US$1.7m. In the last twelve months there was more buying than selling by Grocery Outlet Holding insiders. Their average price was about US$15.83. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! Check out our latest analysis for Grocery Outlet Holding Grocery Outlet Holding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. There has been significantly more insider buying, than selling, at Grocery Outlet Holding, over the last three months. In total, five insiders bought US$2.7m worth of shares in that time. On the other hand, insiders netted US$1.7m by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares. Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Grocery Outlet Holding insiders own about US$65m worth of shares. That equates to 4.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Grocery Outlet Holding we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Grocery Outlet Holding you should be aware of. But note: Grocery Outlet Holding may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
26-03-2025
- Business
- Yahoo
Is Grocery Outlet Holding Corp.'s (NASDAQ:GO) Stock Price Struggling As A Result Of Its Mixed Financials?
It is hard to get excited after looking at Grocery Outlet Holding's (NASDAQ:GO) recent performance, when its stock has declined 23% over the past three months. It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. Fundamentals usually dictate market outcomes so it makes sense to study the company's financials. Particularly, we will be paying attention to Grocery Outlet Holding's ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Grocery Outlet Holding is: 3.3% = US$39m ÷ US$1.2b (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.03 in profit. View our latest analysis for Grocery Outlet Holding Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. It is quite clear that Grocery Outlet Holding's ROE is rather low. Even compared to the average industry ROE of 14%, the company's ROE is quite dismal. Given the circumstances, the significant decline in net income by 2.1% seen by Grocery Outlet Holding over the last five years is not surprising. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. For instance, the company has a very high payout ratio, or is faced with competitive pressures. That being said, we compared Grocery Outlet Holding's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 12% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. Is Grocery Outlet Holding fairly valued compared to other companies? These 3 valuation measures might help you decide. Grocery Outlet Holding doesn't pay any regular dividends, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds. Overall, we have mixed feelings about Grocery Outlet Holding. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
05-03-2025
- Business
- Yahoo
There May Be Some Bright Spots In Grocery Outlet Holding's (NASDAQ:GO) Earnings
Investors were disappointed with the weak earnings posted by Grocery Outlet Holding Corp. (NASDAQ:GO ). However, our analysis suggests that the soft headline numbers are getting counterbalanced by some positive underlying factors. Check out our latest analysis for Grocery Outlet Holding To properly understand Grocery Outlet Holding's profit results, we need to consider the US$25m expense attributed to unusual items. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Grocery Outlet Holding to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from Grocery Outlet Holding's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Grocery Outlet Holding's statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you want to do dive deeper into Grocery Outlet Holding, you'd also look into what risks it is currently facing. Case in point: We've spotted 4 warning signs for Grocery Outlet Holding you should be aware of. Today we've zoomed in on a single data point to better understand the nature of Grocery Outlet Holding's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
