GO Stock Fair Value Calculation – Grocery Outlet Holding Corp Offers Prime Opportunity for Savvy Investors with Improved Buy-In Window
September 18, 2024

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The company offers a wide range of high-quality, name-brand products at discounted prices, making it a popular choice for budget-conscious consumers.
However, with recent market fluctuations and uncertainties, the stock has dipped to an improved buy-in window, presenting a prime opportunity for savvy investors. For those unfamiliar with Grocery Outlet Holding ($NASDAQ:GO) Corp, it is important to note that the company has a unique business model that sets it apart from traditional supermarket retailers. GO sources products directly from manufacturers and suppliers and sells them at significantly lower prices compared to other retailers. This allows the company to offer deep discounts on popular products, attracting a loyal customer base. With the current economic climate and rising grocery prices, consumers are increasingly looking for more affordable options. This has worked in favor of Grocery Outlet Holding Corp, with the company reporting strong sales growth and impressive financial results. This is a testament to the company’s resilience and ability to thrive even during challenging times. For investors, GO presents a unique opportunity to invest in a company with a proven track record of success and strong growth potential. With its unique business model, GO has a competitive advantage in the retail industry and is well-positioned for continued success in the long run. The company also has a strong balance sheet with minimal long-term debt, providing stability and potential for future dividends. Furthermore, the recent dip in GO’s stock price presents a more favorable entry point for investors looking to add this promising company to their portfolio. With its current low valuation, GO offers a better buy-in window for those who may have missed the initial opportunity to invest in this rapidly growing company. Its unique business model, consistent growth, and improved buy-in window make it an attractive choice for those looking to add a successful and resilient company to their portfolio. With its strong performance and potential for future success, GO is a stock worth considering for those looking to maximize their investment potential.
Market Price
GROCERY OUTLET HOLDING, a growing discount grocery store chain, has recently caught the attention of savvy investors with its improved buy-in window. On Tuesday, the company’s stock opened at $16.98 and closed at $16.83, showcasing a small decrease of 0.18% from the previous day’s closing price of $16.86. This slight dip in stock price may seem like a red flag to some investors, but it actually presents a prime opportunity for those who are looking to invest in GROCERY OUTLET HOLDING. With a lower buy-in price, investors can acquire more shares for their investment, potentially leading to higher returns in the future. Moreover, GROCERY OUTLET HOLDING has been experiencing strong growth in recent years, making it a highly attractive investment opportunity. The company has a unique business model that focuses on buying surplus and overstocked products from manufacturers and selling them at discounted prices, allowing them to offer customers significant savings compared to traditional grocery stores.
In addition to its successful business model, GROCERY OUTLET HOLDING has also been expanding its store footprint, opening new locations across the United States. This continued growth is a clear indication of the company’s potential for long-term success. Furthermore, with the rise of e-commerce and online grocery shopping, GROCERY OUTLET HOLDING is well-positioned to tap into this growing market. The company has been investing in its digital capabilities and is starting to offer online ordering and delivery options, further solidifying its position as a leader in the discount grocery sector. With a lower buy-in window and strong growth potential, the company is well-positioned for long-term success in the highly competitive grocery industry. 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 |
| 3.97k | 79.44 | 2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GO. More…
| Operations | Investing | Financing |
| 303.45 | -194.16 | -97.02 |
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 |
| 2.97k | 1.75k | 12.28 |
Key Ratios Snapshot
Some of the financial key ratios for GO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.2% | 5.4% | 3.2% |
| FCF Margin | ROE | ROA |
| 2.8% | 6.6% | 2.7% |
Analysis – GO Stock Fair Value Calculation
After thorough research and analysis of GROCERY OUTLET HOLDING’s state of wellbeing, I can confidently say that the company is undervalued in the stock market. Our team at GoodWhale has conducted a detailed examination of the company’s financials, market trends, and future growth potential. Based on our proprietary Valuation Line, we have determined that the intrinsic value of GROCERY OUTLET HOLDING’s share is approximately $35.0. This value takes into consideration various factors such as the company’s revenue, expenses, and projected earnings. This suggests that the stock is currently undervalued by 51.9%. Despite its undervalued status, GROCERY OUTLET HOLDING has shown strong performance in the past and has potential for future growth. It operates in the growing grocery retail industry and has a unique business model that sets it apart from traditional supermarkets. The company has also consistently reported positive earnings and has a strong balance sheet. We believe that the undervaluation of the stock presents an attractive buying opportunity for investors looking to add a promising company to their portfolio. In conclusion, our analysis shows that GROCERY OUTLET HOLDING is currently undervalued in the stock market. As always, we recommend conducting thorough research and consulting with a financial advisor before making any investment decisions. 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
Investors may want to consider buying into Grocery Outlet Holding Corp. now, as there may be a better opportunity to do so. This company has the potential for growth in the future and could provide a good return on investment. It is important to conduct thorough analysis and research before making any investment decisions.
Factors such as market trends, financial performance, and industry competition should be taken into consideration. With careful evaluation and a well-timed buy-in, investors may be able to take advantage of potential gains in Grocery Outlet Holding Corp.
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