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Grocery Outlet Holding

Nasdaq:GO
Snowflake Description

Reasonable growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GO
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Consumer Retailing
Company description

Grocery Outlet Holding Corp. owns and operates a chain of grocery stores in the United States. The last earnings update was 6 days ago. More info.


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GO Share Price and Events
7 Day Returns
1.8%
NasdaqGS:GO
1.5%
US Consumer Retailing
7.2%
US Market
1 Year Returns
-
NasdaqGS:GO
10.1%
US Consumer Retailing
-10.4%
US Market
GO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Grocery Outlet Holding (GO) 1.8% 6.8% 4.2% - - -
US Consumer Retailing 1.5% 1.6% -8.9% 10.1% 30.2% 22.9%
US Market 7.2% -12.6% -19.4% -10.4% 8.3% 21%
1 Year Return vs Industry and Market
  • No trading data on GO.
  • No trading data on GO.
Price Volatility
Industry
5yr Volatility vs Market

GO Value

 Is Grocery Outlet Holding undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Grocery Outlet Holding to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Grocery Outlet Holding.

NasdaqGS:GO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:GO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.487 (1 + (1- 21%) (41.27%))
0.763
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.8 * 5.44%)
6.09%

Discounted Cash Flow Calculation for NasdaqGS:GO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Grocery Outlet Holding is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:GO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.09%)
2020 58.00 Analyst x1 54.67
2021 60.53 Analyst x2 53.78
2022 62.51 Est @ 3.27% 52.35
2023 64.27 Est @ 2.81% 50.73
2024 65.87 Est @ 2.49% 49.01
2025 67.36 Est @ 2.27% 47.24
2026 68.78 Est @ 2.11% 45.47
2027 70.16 Est @ 2% 43.71
2028 71.51 Est @ 1.92% 42.00
2029 72.84 Est @ 1.87% 40.32
Present value of next 10 years cash flows $479.00
NasdaqGS:GO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $72.84 × (1 + 1.74%) ÷ (6.09% – 1.74%)
$1,702.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,702.85 ÷ (1 + 6.09%)10
$942.65
NasdaqGS:GO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $479.00 + $942.65
$1,421.65
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,421.65 / 89.90
$15.81
NasdaqGS:GO Discount to Share Price
Calculation Result
Value per share (USD) From above. $15.81
Current discount Discount to share price of $33.80
= -1 x ($33.80 - $15.81) / $15.81
-113.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Grocery Outlet Holding is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Grocery Outlet Holding's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Grocery Outlet Holding's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:GO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-28) in USD $0.20
NasdaqGS:GO Share Price ** NasdaqGS (2020-03-30) in USD $33.8
United States of America Consumer Retailing Industry PE Ratio Median Figure of 22 Publicly-Listed Consumer Retailing Companies 15.68x
United States of America Market PE Ratio Median Figure of 2,938 Publicly-Listed Companies 13.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Grocery Outlet Holding.

NasdaqGS:GO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:GO Share Price ÷ EPS (both in USD)

= 33.8 ÷ 0.20

173.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grocery Outlet Holding is overvalued based on earnings compared to the US Consumer Retailing industry average.
  • Grocery Outlet Holding is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Grocery Outlet Holding's expected growth come at a high price?
Raw Data
NasdaqGS:GO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 173.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
39.9%per year
United States of America Consumer Retailing Industry PEG Ratio Median Figure of 13 Publicly-Listed Consumer Retailing Companies 2.16x
United States of America Market PEG Ratio Median Figure of 2,007 Publicly-Listed Companies 1.01x

*Line of best fit is calculated by linear regression .

NasdaqGS:GO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 173.27x ÷ 39.9%

4.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grocery Outlet Holding is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Grocery Outlet Holding's assets?
Raw Data
NasdaqGS:GO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-28) in USD $8.37
NasdaqGS:GO Share Price * NasdaqGS (2020-03-30) in USD $33.8
United States of America Consumer Retailing Industry PB Ratio Median Figure of 29 Publicly-Listed Consumer Retailing Companies 1.12x
United States of America Market PB Ratio Median Figure of 5,134 Publicly-Listed Companies 1.27x
NasdaqGS:GO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:GO Share Price ÷ Book Value per Share (both in USD)

= 33.8 ÷ 8.37

4.04x

* Primary Listing of Grocery Outlet Holding.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grocery Outlet Holding is overvalued based on assets compared to the US Consumer Retailing industry average.
X
Value checks
We assess Grocery Outlet Holding's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Grocery Outlet Holding has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GO Future Performance

 How is Grocery Outlet Holding expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
39.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Grocery Outlet Holding expected to grow at an attractive rate?
  • Grocery Outlet Holding's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Grocery Outlet Holding's earnings growth is expected to exceed the United States of America market average.
  • Grocery Outlet Holding's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:GO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:GO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 39.9%
NasdaqGS:GO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 10.4%
United States of America Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 4.9%
United States of America Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:GO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:GO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,546 188 64 3
2021-12-31 3,227 169 75 9
2020-12-31 2,986 165 66 9
2020-03-31
2019-12-31 2,559 128 12 7
NasdaqGS:GO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-28 2,560 133 15
2019-09-28 2,489 125 1
2019-06-29 2,414 90 -4
2019-03-30 2,343 97 14
2018-12-29 2,288 106 16
2017-12-30 2,075 85 21
2016-12-31 1,832 71 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Grocery Outlet Holding's earnings are expected to grow significantly at over 20% yearly.
  • Grocery Outlet Holding's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:GO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Grocery Outlet Holding Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.86 1.08 0.64 2.00
2021-12-31 0.81 1.10 0.54 5.00
2020-12-31 0.73 0.97 0.47 5.00
2020-03-31
2019-12-31 0.28 0.77 0.15 5.00
NasdaqGS:GO Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-28 0.20
2019-09-28 0.01
2019-06-29 -0.06
2019-03-30 0.21
2018-12-29 0.23
2017-12-30 0.30
2016-12-31 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Grocery Outlet Holding is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Grocery Outlet Holding's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Grocery Outlet Holding has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GO Past Performance

  How has Grocery Outlet Holding performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Grocery Outlet Holding's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Grocery Outlet Holding's year on year earnings growth rate was positive over the past 5 years.
  • Grocery Outlet Holding's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Grocery Outlet Holding's 1-year earnings growth is negative, it can't be compared to the US Consumer Retailing industry average.
Earnings and Revenue History
Grocery Outlet Holding's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Grocery Outlet Holding Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-28 2,559.62 15.42 670.88
2019-09-28 2,489.30 0.98 647.54
2019-06-29 2,413.60 -3.80 623.59
2019-03-30 2,343.37 14.12 583.07
2018-12-29 2,287.66 15.87 567.51
2017-12-30 2,075.47 20.60 511.80
2016-12-31 1,831.53 10.20 459.96

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Grocery Outlet Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Grocery Outlet Holding used its assets less efficiently than the US Consumer Retailing industry average last year based on Return on Assets.
  • Unable to establish if Grocery Outlet Holding improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Grocery Outlet Holding's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Grocery Outlet Holding has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GO Health

 How is Grocery Outlet Holding's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Grocery Outlet Holding's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Grocery Outlet Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Grocery Outlet Holding's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Grocery Outlet Holding's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Grocery Outlet Holding Company Filings, last reported 3 months ago.

NasdaqGS:GO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-28 745.38 447.99 28.10
2019-09-28 730.88 462.52 44.02
2019-06-29 716.69 462.39 18.68
2019-03-30 303.85 854.66 19.60
2018-12-29 299.95 855.35 21.06
2017-12-30 427.13 708.77 5.80
2016-12-31
  • Grocery Outlet Holding's level of debt (60.1%) compared to net worth is high (greater than 40%).
  • Unable to establish if Grocery Outlet Holding's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (29.7%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Grocery Outlet Holding's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Grocery Outlet Holding has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GO Dividends

 What is Grocery Outlet Holding's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Grocery Outlet Holding dividends. Estimated to be 0% next year.
If you bought $2,000 of Grocery Outlet Holding shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Grocery Outlet Holding's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Grocery Outlet Holding's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:GO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:GO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 2.00
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2020-03-31
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Grocery Outlet Holding has not reported any payouts.
  • Unable to verify if Grocery Outlet Holding's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Grocery Outlet Holding's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Grocery Outlet Holding has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Grocery Outlet Holding's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Grocery Outlet Holding's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Grocery Outlet Holding afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Grocery Outlet Holding has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GO Management

 What is the CEO of Grocery Outlet Holding's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Eric Lindberg
COMPENSATION $3,327,809
AGE 48
TENURE AS CEO 1.2 years
CEO Bio

Mr. Eric J. Lindberg Jr., has been Chief Executive Officer of Grocery Outlet Holding Corp., and Grocery Outlet Inc since January 1, 2019 and its Director since January 2006. Previously, from January 2006 to December 2018, Mr. Lindberg served as Co-Chief Executive Officer of Grocery Outlet Holding Corp. Prior to being appointed Co-Chief Executive Officer, Mr. Lindberg served in various positions with Grocery Outlet Holding Corp since 1996. Mr. Lindberg holds a Bachelor of Arts in Economics & Spanish from Hampden-Sydney College.

CEO Compensation
  • Insufficient data for Eric to compare compensation growth.
  • Eric's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Grocery Outlet Holding management team in years:

1.2
Average Tenure
48
Average Age
  • The average tenure for the Grocery Outlet Holding management team is less than 2 years, this suggests a new team.
Management Team

Eric Lindberg

TITLE
CEO & Director
COMPENSATION
$3M
AGE
48
TENURE
1.2 yrs

S. Read

TITLE
Vice Chairman
COMPENSATION
$3M
AGE
48

RJ Sheedy

TITLE
President
COMPENSATION
$2M
AGE
44
TENURE
1.2 yrs

Charles Bracher

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
46
TENURE
7.6 yrs

Tom McMahon

TITLE
Executive Vice President of Sales & Merchandising
COMPENSATION
$1M
AGE
57
TENURE
11.3 yrs

Pamela Burke

TITLE
Chief Administrative Officer
AGE
51
TENURE
1.2 yrs

Joseph Pelland

TITLE
Vice President of Investor Relations

Layla Kasha

TITLE
Senior Vice President of Marketing & Communications
TENURE
0.2 yrs

Andrea Bortner

TITLE
Chief Human Resources Officer
AGE
57

Jeff Oki

TITLE
Senior Vice President of New Markets
TENURE
4.7 yrs
Board of Directors Tenure

Average tenure and age of the Grocery Outlet Holding board of directors in years:

5.4
Average Tenure
55
Average Age
  • The tenure for the Grocery Outlet Holding board of directors is about average.
Board of Directors

Erik Ragatz

TITLE
Independent Chairman of the Board
AGE
46
TENURE
5.4 yrs

Eric Lindberg

TITLE
CEO & Director
COMPENSATION
$3M
AGE
48
TENURE
14.2 yrs

S. Read

TITLE
Vice Chairman
COMPENSATION
$3M
AGE
48
TENURE
1.2 yrs

Jeb Bachman

TITLE
Independent Director
COMPENSATION
$14K
AGE
63
TENURE
0.3 yrs

Norm Matthews

TITLE
Independent Director
COMPENSATION
$213K
AGE
86
TENURE
5.4 yrs

Thomas Herman

TITLE
Independent Director
COMPENSATION
$227K
AGE
78
TENURE
16.2 yrs

Jeff York

TITLE
Independent Director
COMPENSATION
$218K
AGE
55
TENURE
9.3 yrs

Kenneth Alterman

TITLE
Independent Director
COMPENSATION
$213K
AGE
62
TENURE
9.2 yrs

Matt Eisen

TITLE
Independent Director
AGE
30
TENURE
1 yrs

Sameer Narang

TITLE
Independent Director
TENURE
5.4 yrs
Who owns this company?
Recent Insider Trading
  • Grocery Outlet Holding individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Feb 20 Sell Hellman & Friedman LLC Company 03. Feb 20 03. Feb 20 -14,935,531 $31.85 $-475,621,985
05. Feb 20 Sell Jeffrey York Individual 03. Feb 20 03. Feb 20 -25,000 $31.85 $-796,125
05. Feb 20 Sell Norman Matthews Individual 03. Feb 20 03. Feb 20 -53,891 $31.85 $-1,716,159
28. Jun 19 Buy Steven Wilson Individual 24. Jun 19 24. Jun 19 20,000 $22.00 $440,000
10. Oct 19 Sell Hellman & Friedman LLC Company 08. Oct 19 08. Oct 19 -11,398,299 $32.57 $-371,228,920
10. Oct 19 Sell Norman Matthews Individual 08. Oct 19 08. Oct 19 -44,973 $32.57 $-1,464,717
10. Oct 19 Sell Eric Lindberg Individual 08. Oct 19 08. Oct 19 -225,000 $32.57 $-7,327,980
24. Jun 19 Buy Charles Bracher Individual 24. Jun 19 24. Jun 19 2,610 $22.00 $57,420
24. Jun 19 Buy Eric Lindberg Individual 24. Jun 19 24. Jun 19 920 $22.00 $20,240
28. Jun 19 Buy Robert Sheedy Individual 24. Jun 19 24. Jun 19 10,000 $22.00 $220,000
28. Jun 19 Buy Jeffrey York Individual 24. Jun 19 24. Jun 19 25,000 $22.00 $550,000
X
Management checks
We assess Grocery Outlet Holding's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Grocery Outlet Holding has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GO News

Simply Wall St News

GO Company Info

Description

Grocery Outlet Holding Corp. owns and operates a chain of grocery stores in the United States. The company offers products in various categories, such as grocery, dairy and deli, produce, refrigerated and frozen, floral, beer and wine, general merchandise, and health and beauty care, as well as fresh meat and seafood; and natural, organic, specialty, and healthy products. As of December 28, 2019, it had 347 stores, which included 342 independent operated stores and 5 company operated stores in California, Washington, Oregon, Pennsylvania, Idaho, and Nevada. The company was founded in 1946 and is headquartered in Emeryville, California.

Details
Name: Grocery Outlet Holding Corp.
GO
Exchange: NasdaqGS
Founded: 1946
$3,038,639,130
89,900,566
Website: http://www.groceryoutlet.com
Address: Grocery Outlet Holding Corp.
5650 Hollis Street,
EmeryVille,
California, 94608,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS GO Voting Common Stock Nasdaq Global Select US USD 20. Jun 2019
Number of employees
Current staff
Staff numbers
765
Grocery Outlet Holding employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 04:04
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/25
Last earnings filing: 2020/03/25
Last earnings reported: 2019/12/28
Last annual earnings reported: 2019/12/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.