Greggs GRG.L
United KingdomConsumer Cyclical · RestaurantsLondon Stock Exchange · GBP
18.87 GBP (−9.2%)
16 analysts
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Greggs is a British bakery and fast-food chain, with over 2,500 shops in the UK, selling bakery products, sandwiches, and drinks at affordable prices, based on a retail and in-house production business model.
Listed on London Stock Exchange · Symbol GRG.L · LON: GRG · Currency GBP
Key points
from its scores- ✓Attractive valuation7.7
- ✓Attractive dividend7.7
- ✕Fragile balance sheet4.8
- !Weak share-price trend5.6
- !Risks to watch5.9
AI analysis
bottom line, main risk, context and newsThe combination of growth, quality, and reasonable valuation is attractive, but watch short-term liquidity.
Greggs presents solid fundamentals: 21.2% earnings growth, 21.95% ROE, and an attractive valuation (P/E 16.11, PEG 0.74), although its financial health is weighed down by a low liquidity ratio (0.52) and a tight operating margin (7.85%).
The main risk is pressure on the operating margin (7.85%) from rising labor and raw material costs in the UK, which could squeeze profitability if not passed through to prices.
Context and risks
No recent relevant news and no material exposure to current macro factors (rates, oil, tariffs). The quick-service restaurant business in the UK does not depend on affected commodities or shipping routes, and its moderate debt level (ND/EBITDA 1.43) means the rise in long-term rates does not pose a significant risk to its balance sheet.
Is Greggs stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 18% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 16.1 | 17.8 | −10% |
| EV / EBITDA | 8.3 | 11.2 | −26% |
| Price / book | 3.3 | 2.9 | +17% |
| Price / sales | 1.0 | 1.3 | −24% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.7 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 18.87 GBP, −9.2% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.8 (sector 5.7), Growth 6.8 (sector 5.9).
Classic formulas with standard assumptions (2.1% 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 Cyclical medianValuation
- P/E
- 16.1
- Forward P/E
- 15.8
- EV / EBITDA
- 8.3
- Price / book
- 3.3
- Price / sales
- 1.0
- PEG
- 0.74
- Market cap
- 2.1B GBP
- Enterprise value
- 2.6B GBP
Profitability
- ROE
- 22.0%
- ROA
- 9.3%
- ROIC (approx.)
- 15.9%
- Gross margin
- 61.7%
- Operating margin
- 7.9%
- Net margin
- 5.9%
- Free cash flow
- 101.2M GBP
- FCF yield
- 4.8%
- Cash conversion
- 33%
Solvency
- Total debt
- 469.2M GBP
- Net debt
- 438.3M GBP
- Cash
- 30.9M GBP
- EBITDA
- 307.1M GBP
- Net debt / EBITDA
- 1.43
- Debt / equity
- 74.16
- Current ratio
- 0.52
- Quick ratio
- 0.33
Growth
- Revenue growth
- +7.2%
- Earnings growth
- +21.2%
- EPS (TTM)
- 1.29 GBP
- EPS (forward)
- 1.32 GBP
Dividend
- Dividend yield
- 3.3%
- Payout
- 53.5%
Risk and market
- Beta
- 1.12
- Analyst consensus
- Hold (16)
- Target price
- 18.87 GBP
Recent news
All GRG.L news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Greggs
Is Greggs stock cheap or expensive?
On P/E and EV / EBITDA, it trades 18% below the Consumer Cyclical median on average. Valuation score: 7.7 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 18.87 GBP, −9.2% versus the price. This is not investment advice.
What score does Greggs get on MeridIAn Screener?
It scores 6.6 out of 10, rank 449 of 2,130 (better than 77% of the companies analysed). Its strongest category is Valuation (7.7) and its weakest, Financial health (4.8). Analysis of 08/10/2026.
What is Greggs's P/E ratio?
Its P/E is 16.1: the share price equals 16.1 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 15.8.
How much is Greggs worth on the stock market?
Its market capitalisation is 2.1B GBP and its enterprise value, debt included, is 2.6B GBP.
How much debt does Greggs have?
Its net debt (debt minus cash) is 438.3M GBP. That is 1.43 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Greggs pay a dividend?
Yes: its dividend yield is 3.32% and it pays out 54% of its earnings.
How has Greggs stock performed over the last year?
It has risen 26.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 20.68 GBP. Past performance does not guarantee future results.
What do analysts think of Greggs?
16 analysts cover it; their average recommendation is “Hold” and their average target is 18.87 GBP (−9.2% versus the price). It is an estimate, not market data.