📊 GO Key Takeaways
Is Grocery Outlet Holding Corp. (GO) a Good Investment?
Grocery Outlet is operationally unprofitable with a $178M operating loss on $1.2B revenue, destroying shareholder value with -22.3% ROE despite adequate gross margins of 29.6%. Severely constrained by minimal cash reserves ($59M), negative free cash flow, and deteriorating profitability trends that indicate fundamental structural problems rather than temporary headwinds.
Revenue growth is intact and leverage is moderate, but fundamentals have deteriorated sharply with negative operating and net margins and no interest coverage. While operating cash flow remains positive, high capex leaves only thin free cash flow. Until profitability normalizes and coverage improves, the risk profile outweighs the growth.
Why Buy Grocery Outlet Holding Corp. Stock? GO Key Strengths
- Gross margin of 29.6% is reasonable for grocery retail, indicating product-level profitability and some pricing power
- Positive operating cash flow of $52.6M demonstrates ability to convert some revenue to actual cash
- Debt-to-equity of 0.61x is moderate and manageable, showing restrained leverage
- Solid revenue growth (+7.3% YoY)
- Healthy gross margin for the category (30.3%)
- Moderate leverage (0.50x D/E) and positive operating cash flow
GO Stock Risks: Grocery Outlet Holding Corp. Investment Risks
- Operating margin of -15.3% with $178M operating loss reveals fundamental unprofitability that cannot sustain the business
- Cash and equivalents of only $59M relative to $3B assets and $489M debt creates acute solvency and liquidity risk
- Free cash flow of -$193K despite $52.6M operating cash flow indicates CapEx and operations are consuming all available cash, leaving no margin for error
- Negative returns (ROE: -22.3%, ROA: -6.1%) indicate the company is destroying shareholder and asset value at an accelerating rate
- Revenue growing 7.3% while operating losses widen suggests structural cost problems that growth alone cannot fix
- Negative operating and net margins with severe YoY deterioration
- No interest coverage, indicating earnings cannot service debt costs
- Thin free cash flow (0.5% margin) and low cash balance
Key Metrics to Watch
- Operating margin trend and path to profitability
- Cash balance and burn rate relative to operating obligations
- Free cash flow conversion and sustainability of capex levels
- Gross margin stability vs. operating expense reduction initiatives
- Operating margin
- Interest coverage
Grocery Outlet Holding Corp. (GO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Grocery Outlet Holding Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
GO Profit Margin, ROE & Profitability Analysis
GO vs Consumer Sector: How Grocery Outlet Holding Corp. Compares
How Grocery Outlet Holding Corp. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Grocery Outlet Holding Corp. Stock Overvalued? GO Valuation Analysis 2026
Based on fundamental analysis, Grocery Outlet Holding Corp. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Grocery Outlet Holding Corp. Balance Sheet: GO Debt, Cash & Liquidity
GO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Grocery Outlet Holding Corp.'s revenue has grown significantly by 50% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.79 reflects profitable operations.
GO Revenue Growth, EPS Growth & YoY Performance
GO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.1B | -$23.3M | $-0.24 |
| Q3 2025 | $1.1B | -$1.0M | $-0.07 |
| Q2 2025 | $1.1B | -$1.0M | $0.05 |
| Q1 2025 | $1.0B | -$1.0M | $-0.01 |
| Q3 2024 | $1.0B | -$1.0M | $0.24 |
| Q2 2024 | $1.0B | -$1.0M | $0.13 |
| Q1 2024 | $965.5M | -$1.0M | $-0.01 |
| Q3 2023 | $918.2M | $11.6M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Grocery Outlet Holding Corp. Dividends, Buybacks & Capital Allocation
GO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Grocery Outlet Holding Corp. (CIK: 0001771515)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GO
What is the AI rating for GO?
Grocery Outlet Holding Corp. (GO) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GO's key strengths?
Claude: Gross margin of 29.6% is reasonable for grocery retail, indicating product-level profitability and some pricing power. Positive operating cash flow of $52.6M demonstrates ability to convert some revenue to actual cash. ChatGPT: Solid revenue growth (+7.3% YoY). Healthy gross margin for the category (30.3%).
What are the risks of investing in GO?
Claude: Operating margin of -15.3% with $178M operating loss reveals fundamental unprofitability that cannot sustain the business. Cash and equivalents of only $59M relative to $3B assets and $489M debt creates acute solvency and liquidity risk. ChatGPT: Negative operating and net margins with severe YoY deterioration. No interest coverage, indicating earnings cannot service debt costs.
What is GO's revenue and growth?
Grocery Outlet Holding Corp. reported revenue of $1.2B.
Does GO pay dividends?
Grocery Outlet Holding Corp. does not currently pay dividends.
Where can I find GO SEC filings?
Official SEC filings for Grocery Outlet Holding Corp. (CIK: 0001771515) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GO's EPS?
Grocery Outlet Holding Corp. has a diluted EPS of $-1.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Grocery Outlet Holding Corp. has a SELL rating with 79% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GO stock overvalued or undervalued?
Valuation metrics for GO: ROE of -22.3% (sector avg: 18%), net margin of -15.5% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy GO stock in 2026?
Our dual AI analysis gives Grocery Outlet Holding Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GO's free cash flow?
Grocery Outlet Holding Corp.'s operating cash flow is $52.6M, with capital expenditures of $52.8M. FCF margin is 0.0%.
How does GO compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -15.5% (avg: 8%), ROE -22.3% (avg: 18%), current ratio 1.28 (avg: 1.5).