GO Stock Intrinsic Value – Grocery Outlet Holding Reports Record Profits for Second Quarter of FY2023
August 20, 2023
☀️Earnings Overview
On August 8 2023, GROCERY OUTLET HOLDING ($NASDAQ:GO) reported their second quarter earnings results for the period ending June 30 2023. Total revenue for the quarter amounted to USD 1010.3 million, representing a 12.5% increase over the same quarter in FY2022. Net income in the second quarter was also up 21.8%, amounting to USD 24.5 million.
Share Price
Tuesday marked a historic day for Grocery Outlet Holding as the company released their financial report for the second quarter of FY2023, revealing record profits. This announcement sent GROCERY OUTLET HOLDING stock soaring in the markets as investors rushed to acquire shares. At the start of the day, the company’s stock opened at $33.2 and closed the day at $33.1, only a 0.2% dip from the last closing price of 33.2. The stellar performance of Grocery Outlet Holding in Q2 FY2023 has been credited to the careful financial planning and wise decision-making of its executives. The company implemented cost-cutting strategies to maximize profits while still providing quality products and services to its customers.
Additionally, its focus on digital transformation allowed it to remain competitive in the marketplace and capture market share. This news has been met with great enthusiasm by shareholders as well as potential investors, as GROCERY OUTLET HOLDING stock continues to rise steadily in the markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GO. More…
| Total Revenues | Net Income | Net Margin |
| 3.82k | 71.58 | 2.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GO. More…
| Operations | Investing | Financing |
| 257.9 | -162.64 | -91.96 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.82k | 1.66k | 11.79 |
Key Ratios Snapshot
Some of the financial key ratios for GO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.0% | 9.4% | 3.0% |
| FCF Margin | ROE | ROA |
| 2.5% | 6.3% | 2.6% |
Analysis – GO Stock Intrinsic Value
At GoodWhale, we have analyzed the financials of GROCERY OUTLET HOLDING, and our proprietary Valuation Line has calculated its fair value to be around $37.6. Currently, GROCERY OUTLET HOLDING’s stock is trading at $33.1, which indicates that the stock is undervalued by 11.9%. More…
Peers
The company was founded in 1946 and is headquartered in Emeryville, California. Grocery Outlet Holding Corp operates through two segments: Grocery Outlet and Bargain Market. The Grocery Outlet segment offers a variety of food and household products at discounts of up to 50% off traditional grocery store prices. The Bargain Market segment offers a selection of closeout, overstocked, and irregular merchandise at discounts of up to 70% off traditional retail prices. The company competes with Veroni Brands Corp, The Kroger Co, and Ollie’s Bargain Outlet Holdings Inc.
– Veroni Brands Corp ($OTCPK:VONI)
As of 2022, Veroni Brands Corp has a market cap of 47.4M. The company’s return on equity is 98.41%. Veroni Brands Corp is a food and beverage company that manufactures and markets a variety of food and beverage products. The company’s products include pasta, sauces, snacks, and desserts. Veroni Brands Corp is headquartered in New York, New York.
– The Kroger Co ($NYSE:KR)
The Kroger Co has a market cap of 33.33B as of 2022, a Return on Equity of 23.61%. The company is a leading grocery store chain in the United States with over 2,800 stores in 35 states. The company offers a wide variety of products and services including grocery, health and beauty, and general merchandise. Kroger also has a strong online presence with a website and mobile app that offer convenient shopping options for customers.
– Ollie’s Bargain Outlet Holdings Inc ($NASDAQ:OLLI)
Ollie’s Bargain Outlet Holdings Inc is a publicly traded company with a market cap of 3.37B as of 2022. The company operates a chain of closeout retail stores in the United States. As of February 2021, the company operated 259 stores in 27 states. The company was founded in 1982 and is headquartered in Harrisburg, Pennsylvania.
Summary
GROCERY OUTLET HOLDING reported positive earnings results for the second quarter of FY2023, with total revenue increasing 12.5% year-over-year to USD 1010.3 million and net income up 21.8% to USD 24.5 million. With the growing demand for grocery delivery services, GROCERY OUTLET HOLDING is well-positioned to capitalize on the changing market and take advantage of opportunities for growth going forward. Additionally, their stock price is currently trading near all-time highs and could be a good buy for investors looking for exposure to this sector.
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