Greencore (GNC) AI Stock Analysis

• Market Cap: £935.63M
• Dividend Yield: 0.91%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.58
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 13,300
• Sector: Consumer Defensive
• Sector Strength: 79
• Industry: Packaged Foods
• EPS (TTM): 0.04
• Shares Outstanding: 441,621,770
• 10 Day Avg. Volume: 3,038,833
• 30 Day Avg. Volume: 1,920,462
• PEG Ratio: -2.06
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £218.83
• Price Target Upside: 1.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: 206.00p ▼(-4.85%Downside)

Greencore's strong financial performance and strategic initiatives, such as the acquisition of Bakkavor, position it well for future growth despite some challenges. The company's effective cash flow management and operational improvements are key strengths. While technical indicators show moderate momentum and valuation is fair, the positive earnings outlook and corporate events provide a solid foundation for continued success.

Positive Factors

Financial Performance

Greencore has reported strong revenue and volume momentum supported by growth with customers and new business.

Mergers and Acquisitions

Substantial synergies would arise from the combination of Greencore and Bakkavor, potentially making this a firmly accretive deal.

Negative Factors

Cost Challenges

Strong trading performance was stymied by well-flagged headwinds from NLW/NIC.

Valuation Concerns

Greencore's proposals for Bakkavor were rejected by the Board, which concluded they significantly undervalued the group and its future prospects.

Greencore Business Overview & Revenue Model

Company Description

Greencore Group plc, together with its subsidiaries, engages in the manufacture and sale of convenience food products primarily in the United Kingdom and Ireland. The company provides various products, including sandwiches, salads, sushi, chilled snacking, chilled ready meals, chilled soups and sauces, chilled quiche, ambient sauces and pickles, and frozen Yorkshire Puddings. It is also involved in the trading of Irish ingredients; finance activities; and property business. The company supplies its products to supermarkets, convenience and travel retail outlets, discounters, coffee shops, foodservice, and other retailers. Greencore Group plc was incorporated in 1991 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Greencore generates revenue primarily through the manufacturing and sale of convenience food products to retail and foodservice customers. The company's key revenue streams include supplying own-label products to supermarkets and branded products to convenience stores, cafes, and foodservice outlets. Greencore's earnings are bolstered by long-term supply agreements and strategic partnerships with major retailers such as Tesco, Sainsbury's, and Marks & Spencer, which provide stable and recurring income. Additionally, the company leverages its extensive distribution network and economies of scale to optimize production costs and maximize profitability.

Greencore Financial Statement Overview

Summary

Greencore exhibits a well-rounded financial profile with efficient operations and solid cash flow management. While the balance sheet is stable, the income statement indicates a need for margin enhancements. Continued focus on reducing debt and improving profitability will be crucial for sustained growth.

Income Statement

Greencore's income statement shows a stable revenue base with a slight decline from the previous year, indicating potential market challenges. The company maintains healthy gross and EBIT margins, implying strong operational efficiency. However, net profit margins are modest, suggesting room for improvement in managing expenses.

Balance Sheet

The balance sheet reflects a sound equity position with a manageable debt-to-equity ratio. Return on equity has been positive, indicating decent profitability for shareholders. Nevertheless, the company's total debt level should be monitored to prevent financial strain.

Cash Flow

Greencore's cash flow statement is robust, with consistent free cash flow generation and positive operating cash flow to net income ratio. The company has demonstrated effective cash management practices, supporting operational and strategic initiatives.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.81B	1.91B	1.74B	1.32B	1.26B
	Gross Profit
599.60M	568.80M	523.00M	422.90M	405.20M
	EBIT
84.30M	66.00M	52.10M	33.50M	27.00M
	EBITDA
147.80M	124.10M	110.60M	101.30M	80.30M
	Net Income Common Stockholders
46.30M	35.90M	32.30M	25.40M	-9.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.30M	116.50M	99.60M	119.10M	267.00M
	Total Assets
1.20B	1.30B	1.34B	1.29B	1.43B
	Total Debt
250.30M	315.50M	327.60M	361.80M	678.20M
	Net Debt
193.00M	199.00M	228.00M	242.70M	411.20M
	Total Liabilities
754.50M	837.90M	873.10M	868.30M	1.14B
	Stockholders Equity
450.20M	459.80M	465.60M	423.20M	276.50M
Cash Flow		Free Cash Flow
79.60M	61.60M	42.90M	62.50M	-29.40M
	Operating Cash Flow
112.00M	99.00M	92.90M	102.70M	2.50M
	Investing Cash Flow
-31.70M	-31.30M	-50.00M	-17.60M	-31.60M
	Financing Cash Flow
-98.70M	-81.50M	-69.40M	-58.10M	34.60M

Greencore Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 216.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GNC, the sentiment is Positive. The current price of 216.5 is above the 20-day moving average (MA) of 194.62, above the 50-day MA of 185.48, and above the 200-day MA of 191.18, indicating a bullish trend. The MACD of 9.02 indicates Negative momentum. The RSI at 75.62 is Negative, neither overbought nor oversold. The STOCH value of 92.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GNC.

Greencore Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFD	79 Outperform	£1.83B	14.88	9.02%	0.81%	5.90%	11.24%
CWK	78 Outperform	£2.85B	21.11	14.14%	1.72%	8.74%	-8.69%
HFG	78 Outperform	£798.85M	20.31	12.74%	3.65%	-0.03%	7.88%
TATE	76 Outperform	£2.40B	38.46	3.39%	3.54%	-11.03%	-2.05%
GNC	75 Outperform	£935.63M	21.50	10.18%	0.91%	―	―
BAKK	70 Outperform	£1.20B	21.73	9.10%	3.83%	4.03%	3.21%
Sector *	65 Neutral	$8.84B	14.90	4.69%	203.33%	3.49%	-1.84%

Greencore Corporate Events

Greencore Acquires Bakkavor to Form UK Convenience Food Leader

Greencore Group PLC has announced a recommended acquisition of Bakkavor Group PLC to create a leading UK convenience food business with combined revenues of approximately £4 billion. The transaction offers significant value creation potential for shareholders of both companies, with Bakkavor shareholders receiving a premium on their shares and the opportunity to benefit from the future growth of the combined entity. The merger is expected to enhance product offerings, strengthen commercial relationships, and contribute positively to the UK economy.

The most recent analyst rating on (GB:GNC) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Greencore stock, see the GB:GNC Stock Forecast page.

Greencore Reports Strong H1 2025 Results and Upgrades Full-Year Guidance

Greencore Group PLC reported strong financial performance for the first half of 2025, with a 6.5% increase in revenue to £922 million and a significant rise in adjusted operating profit by 59.7% to £45.2 million. The company also announced an upgrade to its full-year profit guidance and a recommended acquisition of Bakkavor Group PLC. The results were driven by disciplined cost management, operational excellence, and new business wins, alongside a focus on product innovation. Greencore’s strategic initiatives, including automation and IT infrastructure improvements, have bolstered its market position, and the company expects continued growth despite a challenging market environment.

The most recent analyst rating on (GB:GNC) stock is a Buy with a £160.00 price target. To see the full list of analyst forecasts on Greencore stock, see the GB:GNC Stock Forecast page.

Greencore Announces Change in Major Shareholdings

Greencore Group plc has reported a change in its major holdings, with Societe Generale acquiring or disposing of voting rights that now total 5.628% of the company’s shares. This adjustment in holdings reflects a slight shift in the company’s shareholder structure, potentially impacting its governance and strategic decisions. The notification indicates that Societe Generale holds a significant stake, which may influence future company policies and stakeholder interests.

Greencore Announces Current Voting Rights and Capital Structure

Greencore Group PLC announced that its issued ordinary share capital consists of 441,621,777 shares, each carrying one vote, resulting in a total of 441,621,777 voting rights. This information is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules, impacting how they report changes in their shareholding interests.

Greencore Appoints Deutsche Numis as Joint Corporate Broker

Greencore Group PLC has appointed Deutsche Numis as a joint corporate broker alongside Goodbody Stockbrokers and Shore Capital. This strategic move aims to strengthen Greencore’s financial advisory team and enhance its market presence, potentially impacting its operations and stakeholder relations positively.

Greencore’s Voting Rights Restructure Following Bank of America Transaction

Greencore Group plc has announced a significant change in its voting rights structure due to an acquisition or disposal of financial instruments by Bank of America Corporation. The notification reveals that Bank of America’s voting rights in Greencore have decreased significantly from 8.089045% to 1.441075%. This shift in holdings could impact Greencore’s shareholder dynamics and influence future corporate decisions.

Bank of America Increases Stake in Greencore Group PLC

Greencore Group PLC has announced that Bank of America Corporation has crossed a significant threshold in its voting rights within the company, now holding a total of 8.089045% of voting rights. This change, effective from April 10, 2025, reflects Bank of America’s strategic financial movements through both direct shares and financial instruments, potentially impacting Greencore’s shareholder dynamics and market positioning.

Greencore Group Announces Change in Voting Rights Structure

Greencore Group plc has announced a significant change in its voting rights structure following an acquisition by JPMorgan Asset Management Holdings Inc., which now holds a total of 5.136534% of the voting rights. This acquisition marks a notable shift in the company’s shareholder dynamics, potentially impacting its strategic decisions and stakeholder relations.

BlackRock Increases Stake in Greencore Group PLC

Greencore Group PLC, a company in the food manufacturing industry, has announced a significant change in its shareholder structure. BlackRock, Inc. has increased its holdings in Greencore, surpassing the 5% threshold, now holding 5.29% of voting rights. This acquisition may influence Greencore’s strategic decisions and impact its market positioning, as BlackRock’s increased stake indicates a strong vote of confidence in the company’s future prospects.

Greencore and Bakkavor Agree on Potential Merger to Form Leading UK Convenience Food Business

Greencore Group PLC and Bakkavor Group PLC have reached an agreement in principle on a possible cash and share offer by Greencore for Bakkavor, aiming to create a leading UK convenience food business with a combined revenue of approximately £4 billion. The proposed merger is expected to bring strategic and financial benefits, including enhanced innovation, supply chain capabilities, and economies of scale, which could lead to significant value creation for stakeholders and increased market capitalisation.

Greencore Exceeds Profit Expectations with Strong Q2 Performance

Greencore Group PLC reported strong revenue and volume growth in the second quarter of 2025, driven by customer expansion and new business acquisitions from the previous year. The company exceeded management’s profit expectations due to operational and commercial excellence initiatives and cost control measures. Greencore now anticipates its adjusted operating profit for the full year 2025 to surpass market expectations, ranging between £112-£115 million. This positive outlook underscores Greencore’s robust market positioning and operational efficiency, potentially benefiting stakeholders and enhancing its competitive edge in the convenience food industry.

Greencore’s Shareholder Voting Rights Update

Greencore Group PLC has announced a change in the voting rights attached to its shares, following a transaction involving BlackRock, Inc. BlackRock’s holdings in Greencore have fallen below the 5% threshold, now standing at 4.98%. This adjustment in voting rights may influence Greencore’s shareholder dynamics and could have implications for the company’s governance and decision-making processes.

Greencore’s Shareholding Update: BlackRock’s Stake Falls Below 5%

Greencore Group PLC has announced a change in the voting rights attached to its shares, with BlackRock, Inc.’s holdings falling below the 5% threshold. This adjustment in shareholding indicates a shift in the investment landscape for Greencore, potentially impacting its market positioning and stakeholder interests.

Greencore’s Acquisition Proposals for Bakkavor Rejected

Greencore Group PLC has made two proposals to acquire Bakkavor Group plc, both of which were rejected by Bakkavor’s board. The revised proposal offered a combination of cash and shares, valuing Bakkavor at a 25% premium to its recent share price. Greencore believes the acquisition would create a leading UK convenience food business with significant revenue and potential for growth, benefiting shareholders with enhanced market capitalisation and liquidity.

Greencore Announces Current Voting Rights and Capital Structure

Greencore Group PLC has announced that its issued ordinary share capital consists of 441,603,994 ordinary shares, each carrying one vote, resulting in a total of 441,603,994 voting rights. This information is crucial for shareholders as it serves as the denominator for calculating their interests or changes in interests under the FCA’s Disclosure and Transparency Rules.