Greencore Group GNC.L
IrelandConsumer Defensive · Packaged FoodsLondon Stock Exchange · GBP
3.25 GBP (+30.8%)
8 analysts
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Greencore Group is a leading manufacturer of prepared foods and sandwiches in the UK, producing and distributing grab-and-go food products to retailers and foodservice companies.
Listed on London Stock Exchange · Symbol GNC.L · LON: GNC · Currency GBP
Key points
from its scores- ✓Strong growth9.7
- ✕Little or no dividend1.7
- ✕Fragile balance sheet2.9
- ✕Little competitive advantage3.7
AI analysis
bottom line, main risk, context and newsThe recovery potential is high, but the high leverage and unsustainable payout are significant risks that limit the stock's appeal.
Greencore shows exceptional revenue growth (43%), but its financial health is fragile: net debt is 4.76 times its EBITDA and its operating margin is only 4.80%. Although the valuation is demanding on a P/E basis (124.3), it is supported by a forward P/E of 10.56 and an FCF yield of 6.73%, suggesting the market expects a strong recovery in profitability.
The main risk is the high financial leverage (Net Debt/EBITDA of 4.76) in a rising interest rate environment, which could squeeze the operating margin and force a dividend cut.
Context and risks
Greencore operates in Ireland, a country with moderate governance risk. Its high leverage (Net Debt/EBITDA of 4.76) and low operating margin (4.80%) make it vulnerable to a rising interest rate environment in Europe, where the ECB is hiking rates, making its refinancing more expensive. However, as a defensive consumer company, its exposure to commodities and shipping routes is limited.
Is Greencore Group stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 269% above the Consumer Defensive median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 124.3 | 19.8 | +529% |
| EV / EBITDA | 11.8 | 10.8 | +9% |
| Price / book | 1.0 | 2.7 | −64% |
| Price / sales | 0.8 | 1.2 | −31% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.3 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 3.25 GBP, +30.8% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.7 (sector 5.7), Growth 9.7 (sector 5.3).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- P/E
- 124.3
- Forward P/E
- 10.6
- EV / EBITDA
- 11.8
- Price / book
- 1.0
- Price / sales
- 0.8
- Market cap
- 2.0B GBP
- Enterprise value
- 2.4B GBP
Profitability
- ROE
- 0.3%
- ROA
- 3.7%
- ROIC (approx.)
- 3.5%
- Gross margin
- 32.3%
- Operating margin
- 4.8%
- Net margin
- 0.3%
- Free cash flow
- 133.8M GBP
- FCF yield
- 6.7%
- Cash conversion
- 67%
Solvency
- Total debt
- 1.1B GBP
- Net debt
- 949.9M GBP
- Cash
- 197.7M GBP
- EBITDA
- 199.5M GBP
- Net debt / EBITDA
- 4.76
- Debt / equity
- 80.03
- Current ratio
- 0.74
- Quick ratio
- 0.50
Growth
- Revenue growth
- +43.0%
- EPS (TTM)
- 0.02 GBP
- EPS (forward)
- 0.24 GBP
Dividend
- Dividend yield
- 1.2%
- Payout
- 123.8%
Risk and market
- Beta
- 0.85
- Analyst consensus
- Buy (8)
- Target price
- 3.25 GBP
Recent news
All GNC.L news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about Greencore Group
Is Greencore Group stock cheap or expensive?
On P/E and EV / EBITDA, it trades 269% above the Consumer Defensive median on average. Valuation score: 5.3 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 3.25 GBP, +30.8% versus the price. This is not investment advice.
What score does Greencore Group get on MeridIAn Screener?
It scores 4.9 out of 10, rank 1,749 of 2,130 (better than 17% of the companies analysed). Its strongest category is Growth (9.7) and its weakest, Dividend (1.7). Analysis of 08/10/2026.
What is Greencore Group's P/E ratio?
Its P/E is 124.3: the share price equals 124.3 times earnings per share over the last 12 months. The Consumer Defensive median is 19.8. Based on the earnings analysts expect, the forward P/E is 10.6.
How much is Greencore Group worth on the stock market?
Its market capitalisation is 2.0B GBP and its enterprise value, debt included, is 2.4B GBP.
How much debt does Greencore Group have?
Its net debt (debt minus cash) is 949.9M GBP. That is 4.76 times its EBITDA; the Consumer Defensive median is 2.38.
Does Greencore Group pay a dividend?
Yes: its dividend yield is 1.21% and it pays out 124% of its earnings.
How has Greencore Group stock performed over the last year?
It has risen 5.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 3.08 GBP. Past performance does not guarantee future results.
What do analysts think of Greencore Group?
8 analysts cover it; their average recommendation is “Buy” and their average target is 3.25 GBP (+30.8% versus the price). It is an estimate, not market data.