Ocado GroupLSE:OCDO +0.11%48 Return-on-Tangible-Equity is -43.87% as of Nov. 2025. GuruFocus rates LSE:OCDO with a GF Score™ of 48/100 and a GF Value™ of £3.36 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 300 Retail - Defensive companies, Ocado Group ranks better than 85.33% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ocado Group's annualized net income for the quarter that ended in Nov. 2025 was £-433 Mil. Ocado Group's average shareholder tangible equity for the quarter that ended in Nov. 2025 was £988 Mil. Therefore, Ocado Group's annualized Return-on-Tangible-Equity for the quarter that ended in Nov. 2025 was -43.87%.
The historical rank and industry rank for Ocado Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:OCDO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -48.08 Med: -16.71 Max: 56.8
Current: 48.51
During the past 13 years, Ocado Group's highest Return-on-Tangible-Equity was 56.80%. The lowest was -48.08%. And the median was -16.71%.
LSE:OCDO's Return-on-Tangible-Equity is ranked better than 85.33% of 300
companies
in the Retail - Defensive industry
Industry Median: 11.085
vs LSE:OCDO: 48.51
Ocado Group (LSE:OCDO) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ocado Group Return-on-Tangible-Equity Related Terms
Ocado Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ocado Group's Return-on-Tangible-Equity 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.
LSE:OCDO vs KR, SFM: Return-on-Tangible-Equity Comparison
For the Grocery Stores subindustry, Ocado Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ocado Group Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Ocado Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ocado Group's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Nov. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -43.87% mean?
Ocado Group (LSE:OCDO) has a Return-on-Tangible-Equity of -43.87% as of Nov. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ocado Group and its competitors. According to the industry distribution chart, Ocado Group ranks #44 out of 300 companies in the Retail - Defensive industry, placing it in the top 14.7%.
Is Ocado Group's Return-on-Tangible-Equity too high?
Ocado Group's current Return-on-Tangible-Equity is -43.87%. Based on the distribution chart, Ocado Group ranks #44 out of 300 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Ocado Group ranks #44 out of 300 companies for Return-on-Tangible-Equity. This places Ocado Group in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.09. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 11.09, based on 300 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ocado Group and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 11.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ocado Group's current Return-on-Tangible-Equity is -43.87%. 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 £3.36, compared to a current price of £1.77 — trading 47.4% below its estimated fair value. The current Return-on-Tangible-Equity is -43.87%. Ocado Group's overall GF Score™ is 48/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ocado Group (LSE:OCDO), the current Return-on-Tangible-Equity is -43.87% as of Nov. 2025. 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 £1.77 is trading 47.4% below its estimated GF Value™ of £3.36.
GuruFocus considers Ocado Group to be Possible Value Trap.
Key valuation signals for LSE:OCDO:
Return-on-Tangible-Equity: -43.87%
GF Value™: £3.36 vs. price of £1.77 (47.4% below fair value)
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.
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
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