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Greene King

LSE:GNK
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GNK
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

Greene King plc operates as a pub retailer and brewer in the United Kingdom. The last earnings update was 177 days ago. More info.


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GNK Share Price and Events
7 Day Returns
2%
LSE:GNK
-0.6%
GB Hospitality
-0.6%
GB Market
1 Year Returns
8.7%
LSE:GNK
-9.6%
GB Hospitality
-5.8%
GB Market
GNK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Greene King (GNK) 2% -6.9% -5.4% 8.7% -28.8% -25.7%
GB Hospitality -0.6% -0.7% -2.8% -9.6% 10.2% 28.1%
GB Market -0.6% -2.4% 1.4% -5.8% 13.1% 1.3%
1 Year Return vs Industry and Market
  • GNK outperformed the Hospitality industry which returned -9.6% over the past year.
  • GNK outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.
Price Volatility
GNK
Industry
5yr Volatility vs Market

GNK Value

 Is Greene King undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Greene King to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Greene King.

LSE:GNK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:GNK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.913 (1 + (1- 19%) (119.23%))
1.532
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.53
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.532 * 6.65%)
11.42%

Discounted Cash Flow Calculation for LSE:GNK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Greene King is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:GNK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 11.42%)
2019 175.75 Analyst x8 157.74
2020 174.16 Analyst x8 140.30
2021 168.69 Analyst x7 121.97
2022 165.54 Est @ -1.87% 107.43
2023 163.99 Est @ -0.94% 95.52
2024 163.51 Est @ -0.29% 85.48
2025 163.78 Est @ 0.17% 76.85
2026 164.58 Est @ 0.48% 69.31
2027 165.74 Est @ 0.71% 62.65
2028 167.17 Est @ 0.86% 56.71
Present value of next 10 years cash flows £973.95
LSE:GNK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £167.17 × (1 + 1.23%) ÷ (11.42% – 1.23%)
£1,660.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,660.82 ÷ (1 + 11.42%)10
£563.44
LSE:GNK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £973.95 + £563.44
£1,537.39
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,537.39 / 309.90
£4.96
LSE:GNK Discount to Share Price
Calculation Result
Value per share (GBP) From above. £4.96
Current discount Discount to share price of £6.35
= -1 x (£6.35 - £4.96) / £4.96
-28.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Greene King is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Greene King's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Greene King's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:GNK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-10-14) in GBP £0.50
LSE:GNK Share Price ** LSE (2019-05-24) in GBP £6.35
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 18.2x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Greene King.

LSE:GNK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:GNK Share Price ÷ EPS (both in GBP)

= 6.35 ÷ 0.50

12.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Greene King is good value based on earnings compared to the GB Hospitality industry average.
  • Greene King is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Greene King's expected growth come at a high price?
Raw Data
LSE:GNK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
3.9%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.25x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:GNK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.59x ÷ 3.9%

3.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Greene King is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Greene King's assets?
Raw Data
LSE:GNK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-10-14) in GBP £6.88
LSE:GNK Share Price * LSE (2019-05-24) in GBP £6.35
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.34x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.49x
LSE:GNK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:GNK Share Price ÷ Book Value per Share (both in GBP)

= 6.35 ÷ 6.88

0.92x

* Primary Listing of Greene King.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Greene King is good value based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Greene King's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Greene King has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GNK Future Performance

 How is Greene King expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Greene King expected to grow at an attractive rate?
  • Greene King's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Greene King's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Greene King's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:GNK Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:GNK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 3.9%
LSE:GNK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 1.2%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:GNK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:GNK Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-04-30
2023-04-30
2022-04-30 2,316 1
2021-04-30 2,265 305 199 13
2020-04-30 2,229 298 194 13
2019-04-30 2,213 296 192 12
LSE:GNK Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-10-14 2,197 322 156
2018-07-14 2,187 294 159
2018-04-29 2,177 266 163
2018-01-29 2,190 268 181
2017-10-15 2,204 270 187
2017-07-15 2,210 285 169
2017-04-30 2,217 299 152
2017-01-31 2,208 275 173
2016-10-16 2,200 251 195
2016-07-16 2,136 248 193
2016-05-01 2,073 245 191
2016-02-01 1,846 223 143
2015-10-18 1,618 202 95

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Greene King's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
  • Greene King's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:GNK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Greene King Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GNK Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-04-30
2023-04-30
2022-04-30
2021-04-30 0.66 0.70 0.59 7.00
2020-04-30 0.64 0.66 0.60 6.00
2019-04-30 0.63 0.64 0.63 6.00
LSE:GNK Past Financials Data
Date (Data in GBP Millions) EPS *
2018-10-14 0.50
2018-07-14 0.51
2018-04-29 0.52
2018-01-29 0.58
2017-10-15 0.60
2017-07-15 0.55
2017-04-30 0.49
2017-01-31 0.56
2016-10-16 0.63
2016-07-16 0.64
2016-05-01 0.64
2016-02-01 0.52
2015-10-18 0.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Greene King is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Greene King's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Greene King has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GNK Past Performance

  How has Greene King performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Greene King's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Greene King's year on year earnings growth rate has been positive over the past 5 years.
  • Greene King's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Greene King's 1-year earnings growth is negative, it can't be compared to the GB Hospitality industry average.
Earnings and Revenue History
Greene King's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Greene King Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GNK Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-10-14 2,196.50 156.40
2018-07-14 2,186.60 159.45
2018-04-29 2,176.70 162.50
2018-01-29 2,190.15 180.65
2017-10-15 2,203.60 186.70
2017-07-15 2,210.05 169.20
2017-04-30 2,216.50 151.70
2017-01-31 2,208.05 173.20
2016-10-16 2,199.60 194.70
2016-07-16 2,136.30 192.80
2016-05-01 2,073.00 190.90
2016-02-01 1,845.55 142.95
2015-10-18 1,618.10 95.00
2015-07-18 1,466.70 92.15
2015-05-03 1,315.30 89.30
2015-02-03 1,318.20 90.55
2014-10-19 1,321.10 91.80
2014-07-19 1,311.35 93.95
2014-05-04 1,301.60 96.10
2014-02-04 1,262.75 93.60
2013-10-13 1,223.90 91.10
2013-07-13 1,209.30 93.25
2013-04-28 1,194.70 95.40
2013-01-28 1,186.90 111.30
2012-10-14 1,179.10 127.20
2012-07-14 1,159.75 114.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Greene King has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Greene King used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • Greene King has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Greene King's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Greene King has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GNK Health

 How is Greene King's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Greene King's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Greene King's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Greene King's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Greene King's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Greene King Company Filings, last reported 7 months ago.

LSE:GNK Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-10-14 2,132.00 2,347.70 120.40
2018-07-14 2,132.00 2,347.70 120.40
2018-04-29 2,056.90 2,443.40 168.50
2018-01-29 2,056.90 2,443.40 168.50
2017-10-15 2,003.70 2,818.00 391.10
2017-07-15 2,003.70 2,818.00 391.10
2017-04-30 1,944.20 2,862.30 443.00
2017-01-31 1,944.20 2,862.30 443.00
2016-10-16 1,796.00 2,940.50 369.60
2016-07-16 1,796.00 2,940.50 369.60
2016-05-01 1,873.60 2,871.00 381.70
2016-02-01 1,873.60 2,871.00 381.70
2015-10-18 1,801.80 2,808.70 315.10
2015-07-18 1,801.80 2,808.70 315.10
2015-05-03 1,028.90 1,815.90 210.30
2015-02-03 1,028.90 1,815.90 210.30
2014-10-19 1,023.60 1,772.80 201.20
2014-07-19 1,023.60 1,772.80 201.20
2014-05-04 1,062.70 1,824.20 216.20
2014-02-04 1,062.70 1,824.20 216.20
2013-10-13 1,048.90 1,680.00 70.10
2013-07-13 1,048.90 1,680.00 70.10
2013-04-28 971.50 1,720.60 31.00
2013-01-28 971.50 1,720.60 31.00
2012-10-14 947.00 1,748.70 46.10
2012-07-14 947.00 1,748.70 46.10
  • Greene King's level of debt (110.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (160.4% vs 110.1% today).
  • Debt is not well covered by operating cash flow (13.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).
X
Financial health checks
We assess Greene King's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Greene King has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GNK Dividends

 What is Greene King's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.23%
Current annual income from Greene King dividends. Estimated to be 5.26% next year.
If you bought £2,000 of Greene King shares you are expected to receive £105 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Greene King's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.04%).
  • Greene King's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.32%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:GNK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:GNK Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-04-30 0.33 1.00
2023-04-30 0.33 1.00
2022-04-30 0.33 2.00
2021-04-30 0.34 14.00
2020-04-30 0.33 15.00
2019-04-30 0.33 15.00
LSE:GNK Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-08-08 0.332 5.958
2018-06-28 0.332 6.212
2017-06-29 0.332 5.946
2016-08-05 0.321 4.416
2016-06-29 0.321 4.114
2015-08-07 0.298 3.497
2015-07-01 0.298 3.470
2014-08-06 0.284 3.523
2014-07-03 0.284 3.424
2013-06-27 0.266 3.115
2013-06-26 0.266 3.517
2012-07-27 0.248 3.806
2012-06-28 0.248 4.311
2011-06-30 0.231 4.837
2011-06-29 0.231 4.599
2010-06-30 0.215 4.762
2009-08-03 0.224 5.247
2009-07-02 0.224 5.314

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Greene King's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Greene King's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Greene King afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Greene King has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GNK Management

 What is the CEO of Greene King's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Mackenzie
AGE 50
TENURE AS CEO 0 years
CEO Bio

Mr. Nicholas Stephen Mackenzie, BSc also known as Nick, has been Chief Executive Officer and Director of Greene King plc since May 1, 2019. He has been a Member of Executive Board at Merlin Entertainments plc since June 15, 2015. Mr. Mackenzie has been Managing Director of Midway Attractions of Merlin Entertainments Group Limited and Merlin Entertainments plc since June 15, 2015. He served as the Managing Director of Merlin's Property & Development Group, following the acquisition of The Tussauds Group in 2007. Mr. Mackenzie served as Managing Director of Resort Theme Parks at Merlin Entertainments Group Limited from 2011 to June 15, 2015 and subsequently moving across to Midway in 2015. He served as a Managing Director of Resort Theme Parks at Merlin Entertainments plc., since 2011. He was responsible for Merlin’s Resort Theme Parks: the UK’s no.1 theme park, Alton Towers; Chessington World of Adventures; Thorpe Park and Warwick Castle; Italy’s no.1 park, Gardaland; and Heide Park in Germany. He served with brewer Bass PLC and then with Allied Domecq as their Acquisitions Director. This was followed by three years at Diageo as the Development Director for Burger King. Mr. Mackenzie joined The Tussauds Group in 2002 and served as Property & Business Services Director of London Eye Company. He served as Non-Executive Director at Daniel Thwaites plc since October 2016 until March 31, 2019. He served as a Board Member of London Eye Company. He is a qualified chartered surveyor.

CEO Compensation
  • Insufficient data for Nick to compare compensation growth.
  • Insufficient data for Nick to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Greene King management team in years:

1.3
Average Tenure
50
Average Age
  • The average tenure for the Greene King management team is less than 2 years, this suggests a new team.
Management Team

Richard Smothers

TITLE
CFO & Director
COMPENSATION
£304K
AGE
50
TENURE
1.3 yrs

Rooney Anand

TITLE
Executive Officer
COMPENSATION
£1M
AGE
54

Nick Mackenzie

TITLE
CEO & Director
AGE
50

Richard Lewis

TITLE
Chief Operating Officer
AGE
47
TENURE
2.3 yrs

Mark Blythman

TITLE
IR Director

Andrew Bush

TITLE
Group HR Director
TENURE
1.3 yrs

Phil Thomas

TITLE
Chief Commercial Officer
TENURE
1.8 yrs

Matt Starbuck

TITLE
Managing Director of Brewing & Brands
TENURE
0.8 yrs

Wayne Shurvinton

TITLE
Managing Director of Pub Partners
TENURE
0.7 yrs

Lindsay Keswick

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the Greene King board of directors in years:

3.5
Average Tenure
60.5
Average Age
  • The tenure for the Greene King board of directors is about average.
Board of Directors

Phil Yea

TITLE
Chairman
COMPENSATION
£250K
AGE
64
TENURE
3 yrs

Richard Smothers

TITLE
CFO & Director
COMPENSATION
£304K
AGE
50
TENURE
1.3 yrs

Nick Mackenzie

TITLE
CEO & Director
AGE
50

Lynne Weedall

TITLE
Independent Non-Executive Director
COMPENSATION
£60K
AGE
51
TENURE
6.6 yrs

Rob Rowley

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£60K
AGE
68
TENURE
4 yrs

Mike Coupe

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
AGE
57
TENURE
7.8 yrs

Gordon Fryett

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
AGE
64
TENURE
2.4 yrs

Sandra Turner

TITLE
Non-Executive Director
AGE
66
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Greene King insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
08. Mar 19 Buy Richard Smothers Individual 07. Mar 19 07. Mar 19 5,770 £6.55 £37,793
15. Feb 19 Buy Richard Smothers Individual 14. Feb 19 14. Feb 19 4,000 £5.99 £23,967
X
Management checks
We assess Greene King's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Greene King has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GNK News

Simply Wall St News

Is Greene King plc's (LON:GNK) Capital Allocation Ability Worth Your Time?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Greene King: 0.079 = UK£366m ÷ (UK£5.2b - UK£546m) (Based on the trailing twelve months to October 2018.) So, Greene King has an ROCE of 7.9%. … Greene King's Current Liabilities And Their Impact On Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

With A 7.3% Return On Equity, Is Greene King plc (LON:GNK) A Quality Stock?

To keep the lesson grounded in practicality, we'll use ROE to better understand Greene King plc (LON:GNK). … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.073 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Greene King plc's (LON:GNK) Interest Costs Too High?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Understanding the company's financial health becomes. … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Investors Who Bought Greene King (LON:GNK) Shares Five Years Ago Are Now Down 26%

So we wouldn't blame long term Greene King plc (LON:GNK) shareholders for doubting their decision to hold, with the stock down 26% over a half decade. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During the unfortunate half decade during which the share price slipped, Greene King actually saw its earnings per share (EPS) improve by 3.7% per year.

Simply Wall St -

Greene King plc (LON:GNK): What’s In It For The Shareholders?

I will take you through Greene King’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Greene King generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … I will be analysing Greene King’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

Is Greene King plc's (LON:GNK) Balance Sheet A Threat To Its Future?

Let’s take a look at GNK’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … See our latest analysis for Greene King

Simply Wall St -

Here's What Greene King plc's (LON:GNK) P/E Ratio Is Telling Us

To keep it practical, we'll show how Greene King plc's (LON:GNK) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Greene King's P/E ratio is 12.72. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Calculating The Fair Value Of Greene King plc (LON:GNK)

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

How Do Analysts See Greene King plc (LON:GNK) Performing Over The Next Year?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In April 2018, Greene King plc (LON:GNK) announced its earnings update.

Simply Wall St -

Are Greene King plc’s (LON:GNK) Returns Worth Your While?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

GNK Company Info

Description

Greene King plc operates as a pub retailer and brewer in the United Kingdom. The company operates through three segments: Pub Company, Pub Partners, and Brewing & Brands. Its brands include Greene King Local Pubs, Hungry Horse, Flaming Grill, Farmhouse Inns, and Chef & Brewer. The company is also involved in brewing, marketing, and selling beer under the Greene King IPA, Old Speckled Hen, Abbot Ale, and Belhaven Best brands. In addition, Greene King plc engages in the employment, financing, pension trustee, and property businesses. As of April 30, 2018, it operated 2,855 managed, tenanted, leased, and franchised pubs, restaurants, and hotels. Greene King plc was founded in 1799 and is headquartered in Bury St Edmunds, the United Kingdom.

Details
Name: Greene King plc
GNK
Exchange: LSE
Founded: 1799
£1,969,128,910
309,903,826
Website: http://www.greeneking.co.uk
Address: Greene King plc
Westgate Brewery,
Bury St Edmunds,
Suffolk, IP33 1QT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE GNK Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK GRKG.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB 3GK Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE GNKL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK GKNG.Y SPONSORED ADR Pink Sheets LLC US USD 12. Feb 2009
Number of employees
Current staff
Staff numbers
39,000
Greene King employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 20:54
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/09
Last earnings filing: 2018/11/29
Last earnings reported: 2018/10/14
Last annual earnings reported: 2018/04/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.