Greencore Group PLC (GB:GNC)
LSE:GNC
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Greencore
(LSE:GNC)
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Rating:69Neutral
Price Target:
239.00 p
▼(-7.15% Downside)
Action:Downgraded
Date:05/28/26
The score is driven primarily by solid financial performance and a favorable earnings-call outlook, reinforced by a low P/E and dividend support. These positives are offset by weak technicals, with the share price below key moving averages and negative MACD indicating a bearish trend despite near-oversold readings.
Positive Factors
Strong free cash flow
Sustained free cash inflow and high conversion (GBP 120.5m; 66.5%) indicate robust cash generation from operations. This durable cash profile supports reinvestment, dividend growth, debt paydown and funding of M&A (eg Bakkavor), reducing reliance on external financing over the medium term.
Negative Factors
Low operating margins
Relatively low EBIT and EBITDA margins imply limited operating leverage in a low-margin manufacturing segment. Sustained low margins constrain the firm's ability to absorb input cost shocks and can limit free cash flow upside unless structural cost or mix improvements occur.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained free cash inflow and high conversion (GBP 120.5m; 66.5%) indicate robust cash generation from operations. This durable cash profile supports reinvestment, dividend growth, debt paydown and funding of M&A (eg Bakkavor), reducing reliance on external financing over the medium term.
Read all positive factors
Greencore (GNC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.61B
Dividend Yield0.79%
Average Volume (3M)1.51M
Price to Earnings (P/E)164.8
Beta (1Y)0.96
Revenue Growth25.76%
EPS Growth-73.03%
CountryUK
Employees13,300
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.04
Shares Outstanding803,582,460
10 Day Avg. Volume1,533,080
30 Day Avg. Volume1,508,070
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)2.02
Price to Sales (P/S)0.51
P/FCF Ratio8.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£272.75Price Target Upside5.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.17
Revenue Forecast (FY)£3.32B
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 ...
How the Company Makes Money
Greencore makes money by manufacturing convenience food products for customers and selling them at agreed wholesale prices, with revenue recognized from the delivery of those products. Its core revenue stream is the supply of chilled prepared food...
Greencore Earnings Call Summary
Earnings Call Date:Nov 18, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance with record profitability, significant revenue growth, and successful new product launches. While there were challenges, such as inflationary pressures and underperformance in the salad category, these were outweighed by the positive financial metrics and progress in strategic initiatives like the Bakkavor acquisition.Positive Updates
Record Profitability Achieved
The company reached a record level of profitability, achieving a 15% return on invested capital (ROIC), which is an increase of 350 basis points from the previous fiscal year.
Negative Updates
Challenges in the Salad Portfolio
Performance in parts of the salad portfolio was challenging in comparison to other segments.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Profitability Achieved
The company reached a record level of profitability, achieving a 15% return on invested capital (ROIC), which is an increase of 350 basis points from the previous fiscal year.
Read all positive updates
Company Guidance
In the fiscal year 2025, the company reported a strong performance across multiple financial metrics, achieving a revenue of nearly GBP 2 billion, which represents a 7.7% year-on-year growth. The adjusted operating profit increased by 28.9% to GBP 125.7 million, resulting in an operating margin growth of 110 basis points to 6.5%. The return on invested capital (ROIC) rose to 15%, a 350 basis point increase from the previous year. The company's free cash flow was GBP 120.5 million, with a leverage ratio of 0.4x net debt to EBITDA. The successful onboarding of new contracts, particularly in the ready meals segment, contributed significantly to this growth. Additionally, the company launched 534 new products and maintained over 99% service levels with ongoing operational excellence initiatives. Looking ahead, the company anticipates continued profitable growth and plans to close the acquisition of Bakkavor in early 2026, projecting at least GBP 80 million in cost synergies. The company remains committed to enhancing shareholder value through disciplined capital allocation and strategic investments.Greencore Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
68
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.34B | 1.95B | 1.81B | 1.91B | 1.74B | 1.32B |
| Gross Profit | 672.40M | 632.50M | 599.60M | 568.80M | 523.00M | 422.90M |
| EBITDA | 207.40M | 158.70M | 147.80M | 124.10M | 110.60M | 101.30M |
| Net Income | 7.00M | 57.60M | 46.30M | 35.90M | 32.30M | 25.40M |
Balance Sheet | ||||||
| Total Assets | 3.82B | 1.27B | 1.20B | 1.30B | 1.34B | 1.29B |
| Cash, Cash Equivalents and Short-Term Investments | 197.70M | 81.80M | 57.30M | 116.50M | 99.60M | 119.10M |
| Total Debt | 1.15B | 207.70M | 250.30M | 315.50M | 327.60M | 361.80M |
| Total Liabilities | 2.39B | 780.70M | 754.50M | 837.90M | 873.10M | 868.30M |
| Stockholders Equity | 1.43B | 492.00M | 450.20M | 459.80M | 465.60M | 423.20M |
Cash Flow | ||||||
| Free Cash Flow | 15.00M | 122.20M | 79.60M | 61.60M | 42.90M | 62.50M |
| Operating Cash Flow | 59.80M | 165.60M | 112.00M | 99.00M | 92.90M | 102.70M |
| Investing Cash Flow | -512.60M | -43.40M | -31.70M | -31.30M | -50.00M | -17.60M |
| Financing Cash Flow | 488.00M | -85.50M | -98.70M | -81.50M | -69.40M | -58.10M |
Greencore Technical Analysis
Negative
257.40
Price Trends
242.25
Negative
255.99
Negative
247.48
Negative
Market Momentum
-7.75
Positive
26.23
Positive
3.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GNC, the sentiment is Negative. The current price of 257.4 is above the 20-day moving average (MA) of 233.07, above the 50-day MA of 242.25, and above the 200-day MA of 247.48, indicating a bearish trend. The MACD of -7.75 indicates Positive momentum. The RSI at 26.23 is Positive, neither overbought nor oversold. The STOCH value of 3.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GNC.
Greencore Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £1.74B | 7.89 | 15.61% | 1.62% | 2.31% | 8.35% | |
75 Outperform | £2.94B | 18.83 | 14.99% | 2.06% | 9.52% | 17.22% | |
69 Neutral | £1.61B | 164.76 | 0.73% | 0.79% | 25.76% | -73.03% | |
68 Neutral | £12.75B | 13.62 | 8.44% | 2.98% | -2.16% | -24.87% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | £462.06M | 9.66 | 14.17% | 7.01% | 5.67% | 22.05% |
* Consumer Defensive Sector Average
GB:GNC
Greencore
203.00
-18.64
-8.41%
GB:ABF
Associated British Foods
1,822.00
-182.54
-9.11%
GB:CWK
Cranswick
5,490.00
333.64
6.47%
GB:HFG
Hilton Food
514.50
-300.67
-36.88%
GB:PFD
Premier Foods
201.80
-2.30
-1.13%
Greencore Corporate Events
Other
Greencore Chair Boosts Stake with £68,000 Share Purchase
Positive
May 27, 2026
Greencore Group plc disclosed that its non-executive chair, Leslie Van de Walle, together with closely associated person Domitille Marie Renée Van de Walle, purchased 30,000 ordinary shares in the company. The shares, each with a nominal valu...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Greencore posts profit surge as Bakkavor integration drives UK growth
Positive
May 27, 2026
Greencore reported strong first-half results for the six months to 27 March 2026, its first period incorporating the recently acquired Bakkavor UK operations. Pro forma UK revenue rose 3.2% to £1.32bn and pro forma adjusted operating profit i...
Business Operations and StrategyRegulatory Filings and Compliance
Greencore Updates Share Capital After Share Save Issuance
Neutral
Apr 30, 2026
Greencore Group has issued and allotted 12,698 new ordinary shares of £0.01 each under its U.K. Share Save Scheme, with the shares admitted to trading on the London Stock Exchange’s Main Market under an existing block admission. Followi...
Business Operations and StrategyPrivate Placements and Financing
Greencore Expands Share Capacity to Fund Employee Option Schemes
Neutral
Apr 2, 2026
Greencore has issued and allotted 593,391 ordinary shares of £0.01 each between 28 September 2025 and 1 April 2026 to satisfy employee options under its UK Share Save Scheme, with these shares already covered by a prior block admission and fu...
Regulatory Filings and Compliance
Greencore updates market on current voting rights and share capital
Neutral
Mar 31, 2026
Greencore Group PLC has confirmed that its issued ordinary share capital currently stands at 803,533,795 ordinary shares, each carrying one vote, giving a total of 803,533,795 voting rights. This updated share and voting rights figure serves as th...
Other
Greencore Chair Increases Stake with £2.41 London Share Purchase
Positive
Mar 26, 2026
Greencore Group plc disclosed that its non-executive chair, Leslie Van de Walle, together with a closely associated person, purchased 43,000 ordinary shares of £0.01 each in the company. The transaction, executed in London on 26 March 2026 at...
Executive/Board Changes
Greencore Grants Long-Term Performance Share Awards to Executive Directors
Positive
Mar 19, 2026
Greencore Group plc has granted performance share awards to executive directors Dalton Philips and Catherine Gubbins under its updated 2023 Performance Share Plan, reinforcing the alignment of senior management incentives with long-term shareholde...
Business Operations and StrategyDelistings and Listing Changes
Greencore Seeks LSE Block Listing for 12 Million New Shares
Positive
Mar 5, 2026
Greencore Group plc has applied to the London Stock Exchange for a block listing of 12,000,000 new ordinary shares of £0.01 each, which will be admitted to trading and rank equally with its existing ordinary shares. The fully paid shares, exp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.