Grocery Outlet Gross Profit vs. Price To Earning

GO Stock  USD 19.59  0.24  1.24%   
Based on Grocery Outlet's profitability indicators, Grocery Outlet Holding may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Grocery Outlet's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2018-03-31
Previous Quarter
349.2 M
Current Value
344.9 M
Quarterly Volatility
53.9 M
 
Covid
At this time, Grocery Outlet's Price To Sales Ratio is very stable compared to the past year. As of the 11th of December 2024, EV To Sales is likely to grow to 1.44, while Days Sales Outstanding is likely to drop 1.10. At this time, Grocery Outlet's Interest Income is very stable compared to the past year. As of the 11th of December 2024, Income Tax Expense is likely to grow to about 25.9 M, while Net Interest Income is likely to drop (21.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.250.27
Significantly Down
Slightly volatile
Net Profit Margin0.01210.0164
Way Down
Pretty Stable
Operating Profit Margin0.03520.0305
Fairly Up
Pretty Stable
Pretax Profit Margin0.01380.0191
Way Down
Slightly volatile
Return On Assets0.01720.0211
Significantly Down
Slightly volatile
Return On Equity0.04830.0527
Significantly Down
Slightly volatile
For Grocery Outlet profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Grocery Outlet to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Grocery Outlet Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Grocery Outlet's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Grocery Outlet Holding over time as well as its relative position and ranking within its peers.
  

Grocery Outlet's Revenue Breakdown by Earning Segment

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Is Consumer Staples Distribution & Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Grocery Outlet. If investors know Grocery will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Grocery Outlet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.11)
Earnings Share
0.51
Revenue Per Share
42.988
Quarterly Revenue Growth
0.104
Return On Assets
0.0194
The market value of Grocery Outlet Holding is measured differently than its book value, which is the value of Grocery that is recorded on the company's balance sheet. Investors also form their own opinion of Grocery Outlet's value that differs from its market value or its book value, called intrinsic value, which is Grocery Outlet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Grocery Outlet's market value can be influenced by many factors that don't directly affect Grocery Outlet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Grocery Outlet's value and its price as these two are different measures arrived at by different means. Investors typically determine if Grocery Outlet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Grocery Outlet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Grocery Outlet Holding Price To Earning vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Grocery Outlet's current stock value. Our valuation model uses many indicators to compare Grocery Outlet value to that of its competitors to determine the firm's financial worth.
Grocery Outlet Holding is rated below average in gross profit category among its peers. It is one of the top stocks in price to earning category among its peers . The ratio of Gross Profit to Price To Earning for Grocery Outlet Holding is about  20,179,213 . At this time, Grocery Outlet's Gross Profit is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Grocery Outlet's earnings, one of the primary drivers of an investment's value.

Grocery Price To Earning vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Grocery Outlet

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.09 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Grocery Outlet

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
54.12 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Grocery Price To Earning Comparison

Grocery Outlet is currently under evaluation in price to earning category among its peers.

Grocery Outlet Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Grocery Outlet, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Grocery Outlet will eventually generate negative long term returns. The profitability progress is the general direction of Grocery Outlet's change in net profit over the period of time. It can combine multiple indicators of Grocery Outlet, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Net Interest Income-20.5 M-21.5 M
Interest Income6.4 M6.8 M
Operating Income125.8 M97.5 M
Net Income From Continuing Ops81.2 M51.9 M
Income Before Tax104.1 M58.5 M
Total Other Income Expense Net-21.7 M-22.8 M
Net Income Applicable To Common Shares74.8 M46.5 M
Net Income79.4 M51.6 M
Income Tax Expense24.6 M25.9 M
Non Operating Income Net Other-1.1 M-1.1 M
Change To Netincome55.7 M33.5 M
Net Income Per Share 0.60  0.41 
Income Quality 3.28  5.14 
Net Income Per E B T 0.77  0.67 

Grocery Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Grocery Outlet. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Grocery Outlet position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Grocery Outlet's important profitability drivers and their relationship over time.

Use Grocery Outlet in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Grocery Outlet position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Grocery Outlet will appreciate offsetting losses from the drop in the long position's value.

Grocery Outlet Pair Trading

Grocery Outlet Holding Pair Trading Analysis

The ability to find closely correlated positions to Grocery Outlet could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Grocery Outlet when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Grocery Outlet - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Grocery Outlet Holding to buy it.
The correlation of Grocery Outlet is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Grocery Outlet moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Grocery Outlet Holding moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Grocery Outlet can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Grocery Outlet position

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To fully project Grocery Outlet's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Grocery Outlet Holding at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Grocery Outlet's income statement, its balance sheet, and the statement of cash flows.
Potential Grocery Outlet investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Grocery Outlet investors may work on each financial statement separately, they are all related. The changes in Grocery Outlet's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Grocery Outlet's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.