Ocado Group (LSE:OCDO) Operating Income: £-8 Mil (TTM As of May. 2026)

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LSE:OCDO Ocado Group PLC LSE:OCDO
48 GF Score
Price £1.87
GF Value £4.04
Valuation Possible Value Trap
! 5 Warning Signs
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What is Ocado Group Operating Income?

Ocado Group LSE:OCDO +2.81% 48 Operating Income is £-8 Mil as of May. 2026. GuruFocus rates LSE:OCDO with a GF Score™ of 48/100 and a GF Value™ of £4.04 (Possible Value Trap). The stock has 5 warning signs investors should review.

Ocado Group's Operating Income for the six months ended in May. 2026 was £123 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was £-8 Mil.

Warning Sign:

Ocado Group PLC has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ocado Group's Operating Income for the six months ended in May. 2026 was £123 Mil. Ocado Group's Revenue for the six months ended in May. 2026 was £1,037 Mil. Therefore, Ocado Group's Operating Margin % for the quarter that ended in May. 2026 was 11.89%.

Warning Sign:

Ocado Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -30.2%.

Ocado Group's 5-Year average Growth Rate for Operating Margin % was -30.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ocado Group's annualized ROC % for the quarter that ended in May. 2026 was 0.00%. Ocado Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 12.25%.

Ocado Group  (LSE:OCDO) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Ocado Group's annualized ROC % for the quarter that ended in May. 2026 is calculated as:

ROC % (Q: May. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2025 ) + Invested Capital (Q: May. 2026 ))/ count )
=246.6 * ( 1 - 100% )/( (3549.7 + 3628.3)/ 2 )
=0/3589
=0.00 %

where

Invested Capital(Q: Nov. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4279 - 262.3 - ( 738.8 - max(0, 469.2 - 936.2+738.8))
=3549.7

Invested Capital(Q: May. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4166.3 - 248.4 - ( 764.6 - max(0, 703.2 - 992.8+764.6))
=3628.3

Note: The Operating Income data used here is two times the semi-annual (May. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Ocado Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: May. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Nov. 2025  Q: May. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=186.8/( ( (1618.8 + max(-222.1, 0)) + (1431.7 + max(-98.5, 0)) )/ 2 )
=186.8/( ( 1618.8 + 1431.7 )/ 2 )
=186.8/1525.25
=12.25 %

where Working Capital is:

Working Capital(Q: Nov. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(53.6 + 31.9 + 71.2) - (262.3 + 0 + 116.5)
=-222.1

Working Capital(Q: May. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(165.3 + 36.3 + 26.6) - (248.4 + 0 + 78.3)
=-98.5

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (May. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Ocado Group's Operating Margin % for the quarter that ended in May. 2026 is calculated as:

Operating Margin %=Operating Income (Q: May. 2026 )/Revenue (Q: May. 2026 )
=123.3/1037
=11.89 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Ocado Group Operating Income Related Terms

Ocado Group Operating Income Historical Data

* Premium members only.

The historical data trend for Ocado Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ocado Group Operating Income Chart

Ocado Group Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -227.90 -525.00 -401.80 -302.10 -213.20

Ocado Group Semi-Annual Data
Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25 May26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -134.10 -168.00 -82.40 -130.80 123.30
LSE:OCDO
48GF Score
Ocado Group PLC LSE:OCDO
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Ocado Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in May. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-8 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of £-8 Mil mean?
Ocado Group (LSE:OCDO) has a Operating Income of £-8 Mil as of May. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Ocado Group and its competitors.
Is Ocado Group's Operating Income too high?
Ocado Group's current Operating Income is £-8 Mil. Overall, Ocado Group has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ocado Group's Operating Income compare to KR and SFM?
Ocado Group's Operating Income of £-8 Mil can be compared against companies in the Retail - Defensive industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Defensive company?
A good Operating Income depends on the Retail - Defensive industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Ocado Group and its competitors. Ocado Group's current Operating Income is £-8 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ocado Group stock overvalued right now?
Based on GuruFocus' analysis, Ocado Group (LSE:OCDO) is currently considered Possible Value Trap. The stock's GF Value™ is £4.04, compared to a current price of £1.87 — trading 53.7% below its estimated fair value. The current Operating Income is £-8 Mil. Ocado Group's overall GF Score™ is 48/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Ocado Group (LSE:OCDO), the current Operating Income is £-8 Mil as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ocado Group (LSE:OCDO) Overvalued in 2026?

Based on GuruFocus' analysis, Ocado Group stock appears to be undervalued. The current stock price of £1.87 is trading 53.7% below its estimated GF Value™ of £4.04. GuruFocus considers Ocado Group to be Possible Value Trap.

Key valuation signals for LSE:OCDO:

  • Operating Income: £-8 Mil
  • GF Value™: £4.04 vs. price of £1.87 (53.7% below fair value)
  • GF Score™: 48/100 with 5 warning signs

No single metric tells the full story. See the LSE:OCDO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ocado Group Business Description

Address Mosquito Way, Buildings One and Two Trident Place, Hatfield Business Park, Hatfield, Hertfordshire, GBR, AL10 9UL
Founded in 2000, Ocado provides automation and logistics solutions to grocers. Ocado operates in two segments: logistics and solutions. Logistics provides fulfillment and delivery services in the United Kingdom. Solutions is based on the Ocado Smart Platform, a modular, automated online retail fulfillment and delivery solution that provides software, fulfillment hardware, and support services to corporate customers in return for upfront and recurring fees. Partners include leading grocers around the world, like Sobeys, Morrisons, ICA, Groupe Casino, Bon Preu, Kroger, and Coles. Ocado also has a 50% stake in Ocado Retail, a pure-play e-grocery business. The other 50% is owned by Marks & Spencer.
48GF Score

Get the complete analysis for LSE:OCDO

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£1.87
Price
£4.04
GF Value