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Greencore Group (GNCGY)
OTHER OTC:GNCGY
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Greencore Group
(OTC:GNCGY)
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Rating:67Neutral
Price Target:
$14.00
▲(12.99% Upside)
Greencore Group's strong financial performance is the most significant factor, supported by effective profitability and cash flow management. Technical analysis indicates a neutral trend with mild bullish momentum. The valuation is reasonable, though the dividend yield is modest.
Greencore Group (GNCGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.32B
Dividend Yield0.82%
Average Volume (3M)0.00
Price to Earnings (P/E)19.6
Beta (1Y)0.59
Revenue Growth2.02%
EPS Growth15.90%
CountryUS
Employees13,300
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.23
Shares Outstanding110,713,950
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.66
Price to Sales (P/S)0.41
P/FCF Ratio9.39
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit2.06
Enterprise Value/Ebitda7.74
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Greencore Group Business Overview & Revenue Model
Company DescriptionGreencore Group plc, together with its subsidiaries, engages in the manufacture and sale of convenience food products primarily in the United Kingdom and Ireland. It 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. The company is also involved in the trading of Irish ingredients; finance activities; and property business. It supplies its products to supermarkets, convenience and travel retail outlets, discounters, coffee shops, foodservice, and other retailers. The company was incorporated in 1991 and is headquartered in Dublin, Ireland.
How the Company Makes MoneyGreencore generates revenue primarily through the sale of its convenience food products to major retailers, foodservice operators, and convenience stores. Key revenue streams include ready-to-eat meals, sandwiches, and salads, which are sold under both Greencore's own brands and private label for retailers. The company benefits from long-term contracts with significant partners in the grocery and foodservice sectors, ensuring a steady demand for its products. Additionally, Greencore's focus on innovation allows it to introduce new products that cater to changing consumer preferences, further enhancing its revenue potential. Operational efficiencies and strategic partnerships also contribute to its profitability, as the company aims to optimize its supply chain and reduce costs.
Greencore Group Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and operational improvements, with significant growth in profitability and shareholder returns. However, revenue decline, sustainability challenges, and upcoming cost headwinds present areas of concern.Q4-2024 Updates
Positive Updates
Exceeded Market Expectations
Greencore exceeded market expectations in profitability, with adjusted operating profit increasing by 28% to £97.5 million.
Strong Financial Metrics
Adjusted earnings per share grew 37% to 12.7p, and free cash inflow increased by 23% to £70.1 million.
Capital Return and Dividend Policy
Completed a £50 million capital return to shareholders, reinstated a progressive dividend policy, and announced a further £10 million share buyback.
Operational Excellence
Successful execution of operational excellence programs resulted in a 0.7% improvement in service levels and a gross margin improvement of 310 basis points since 2022.
Outperformance in Key Markets
Outperformed the overall grocery market, with like-for-like volume growth of 0.5% driven by the sandwich and ready meals categories.
Negative Updates
Reported Revenue Decline
Reported revenue declined by 5.6% due to contract exits and the disposal of Trilby Trading.
Challenges in Sustainability
Mixed performance in sustainability targets, with carbon emissions and water usage needing significant improvement to meet 2030 targets.
New Labor Cost Headwinds
Facing new labor cost headwinds, including national insurance and living wage increases, which present significant financial challenges.
Company Guidance
In the FY '24 results call, Greencore reported exceeding market expectations with a like-for-like revenue growth of 3.4% and a volume growth of 0.5%, resulting in an adjusted operating profit of £97.5 million, a 28% increase year-over-year. The company successfully completed a £50 million capital return to shareholders, including a £40 million buyback and the reintroduction of a 2p per share dividend. With leverage at 1x net debt to EBITDA, Greencore is positioned for wider capital allocation options. The company anticipates an adjusted operating profit within the top half of market expectations for FY '25, despite new labor cost headwinds. Additionally, Greencore is committing a further £10 million to share buybacks, highlighting its confidence in future cash flow and financial strength.Greencore Group Financial Statement Overview
Summary
Greencore Group exhibits strong financial performance with effective profitability, stable balance sheet metrics, and excellent cash flow management. The company shows consistent improvement in profitability metrics and robust cash generation, though there is room for improvement in reducing liabilities.Income Statement
Greencore Group has shown a consistent improvement in its profitability metrics. The gross profit margin has increased over the years, indicating effective cost management. The net profit margin has also improved, showcasing better overall profitability. Revenue growth has been steady, although there was a slight decline in the most recent year. The EBIT and EBITDA margins are strong, reflecting good operating efficiency.78
Positive
Balance Sheet
The company has a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. Return on equity is reasonable, indicating efficient use of shareholder funds to generate profit. The equity ratio is moderate, pointing to a stable financial position, although there's room for improvement in reducing liabilities.65
Positive
Cash Flow
Greencore Group has demonstrated strong cash flow management. The operating cash flow to net income ratio indicates robust cash generation from operations. The free cash flow growth rate is positive, showing effective capital expenditure management and improved liquidity. The free cash flow to net income ratio is healthy, reflecting solid cash conversion efficiency.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.86B | 1.81B | 1.91B | 1.74B | 1.32B | 1.26B |
| Gross Profit | 619.80M | 599.60M | 568.80M | 523.00M | 422.90M | 405.20M |
| EBITDA | 164.80M | 147.80M | 128.40M | 108.00M | 82.30M | 63.60M |
| Net Income | 54.60M | 46.30M | 35.90M | 32.30M | 25.40M | -11.50M |
Balance Sheet | ||||||
| Total Assets | 1.23B | 1.20B | 1.30B | 1.34B | 1.29B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 87.90M | 57.30M | 117.00M | 99.60M | 119.10M | 267.00M |
| Total Debt | 275.80M | 250.30M | 315.50M | 327.60M | 361.80M | 678.20M |
| Total Liabilities | 772.80M | 754.50M | 837.90M | 873.10M | 868.30M | 1.14B |
| Stockholders Equity | 452.30M | 450.20M | 459.80M | 465.60M | 423.20M | 276.50M |
Cash Flow | ||||||
| Free Cash Flow | 138.50M | 79.60M | 61.60M | 42.90M | 62.50M | -29.40M |
| Operating Cash Flow | 176.80M | 112.00M | 99.00M | 92.90M | 102.70M | 2.50M |
| Investing Cash Flow | -37.50M | -31.70M | -31.30M | -50.00M | -17.60M | -31.60M |
| Financing Cash Flow | -138.30M | -98.70M | -81.50M | -69.40M | -58.10M | 34.60M |
Greencore Group Technical Analysis
Negative
12.39
Price Trends
12.90
Negative
13.03
Negative
11.52
Positive
Market Momentum
-0.03
Positive
43.44
Neutral
2.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNCGY, the sentiment is Negative. The current price of 12.39 is below the 20-day moving average (MA) of 12.82, below the 50-day MA of 12.90, and above the 200-day MA of 11.52, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 2.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNCGY.
Greencore Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.32B | 19.63 | 12.12% | 0.82% | 2.02% | 15.90% | |
67 Neutral | $1.64B | 19.68 | 8.79% | 3.68% | 0.50% | -4.46% | |
66 Neutral | $948.90M | 48.02 | 1.34% | ― | -1.52% | ― | |
65 Neutral | $1.71B | 7.57 | 7.88% | 5.84% | 0.87% | 8.59% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $708.39M | 16.23 | 7.04% | ― | 7.30% | -13.73% | |
56 Neutral | $822.78M | 2.59 | ― | ― | -2.25% | 288.79% |
* Consumer Defensive Sector Average
GNCGY
Greencore Group
12.39
1.74
16.34%
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THS
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NOMD
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11.35
-5.30
-31.83%
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.