LSE:GNC

Stock Analysis Report

Executive Summary

Greencore Group plc manufactures and sells various convenience food products primarily in the United Kingdom.

Snowflake

Fundamentals

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Greencore Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

GNC

1.2%

GB Food

0.2%

GB Market


1 Year Return

26.3%

GNC

-4.2%

GB Food

1.7%

GB Market

Return vs Industry: GNC exceeded the UK Food industry which returned -4.2% over the past year.

Return vs Market: GNC exceeded the UK Market which returned 1.7% over the past year.


Shareholder returns

GNCIndustryMarket
7 Day1.0%1.2%0.2%
30 Day4.6%-2.9%-1.7%
90 Day4.6%-4.2%-3.1%
1 Year30.1%26.3%-1.7%-4.2%6.7%1.7%
3 Year-1.6%-25.4%-1.9%-9.0%17.7%3.1%
5 Year29.0%-5.8%0.01%-9.6%36.1%5.5%

Price Volatility Vs. Market

How volatile is Greencore Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Greencore Group undervalued compared to its fair value and its price relative to the market?

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GNC (£2.37) is trading below our estimate of fair value (£2.97)

Significantly Below Fair Value: GNC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GNC is poor value based on its PE Ratio (241.7x) compared to the Food industry average (16.9x).

PE vs Market: GNC is poor value based on its PE Ratio (241.7x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: GNC is poor value based on its PEG Ratio (14.8x)


Price to Book Ratio

PB vs Industry: GNC is overvalued based on its PB Ratio (5.5x) compared to the GB Food industry average (1x).


Next Steps

Future Growth

How is Greencore Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNC's forecast earnings growth (16.4% per year) is above the savings rate (1.2%).

Earnings vs Market: GNC's earnings (16.4% per year) are forecast to grow faster than the UK market (12.4% per year).

High Growth Earnings: GNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: GNC's revenue (3.5% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: GNC's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GNC's Return on Equity is forecast to be high in 3 years time (26.4%)


Next Steps

Past Performance

How has Greencore Group performed over the past 5 years?

-32.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GNC's earnings have declined by -32% per year over the past 5 years.

Accelerating Growth: GNC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GNC had negative earnings growth (-20.2%) over the past year, making it difficult to compare to the Food industry average (6.5%).


Return on Equity

High ROE: GNC's Return on Equity (3.4%) is considered low.


Return on Assets

ROA vs Industry: GNC's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

ROCE Improving: GNC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Greencore Group's financial position?


Financial Position Analysis

Short Term Liabilities: GNC's short term assets (£243.1M) do not cover its short term liabilities (£350.5M)

Long Term Liabilities: GNC's short term assets (243.1M) do not cover its long term liabilities (430.4M)


Debt to Equity History and Analysis

Debt Level: GNC's debt to equity ratio (111.6%) is considered high

Reducing Debt: GNC's debt to equity ratio has increased from 106.1% to 111.6% over the past 5 years.

Debt Coverage: GNC's debt is well covered by operating cash flow (32.3%).

Interest Coverage: GNC's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: GNC has a high level of physical assets or inventory.

Debt Coverage by Assets: GNC's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Greencore Group's current dividend yield, its reliability and sustainability?

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GNC's dividend (2.35%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: GNC's dividend (2.35%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

Stable Dividend: GNC's dividend payments have been volatile in the past 10 years.

Growing Dividend: GNC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (593%), GNC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GNC's dividends in 3 years are forecast to be well covered by earnings (36.3% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Patrick Coveney (49yo)

11.6yrs

Tenure

UK£1,252,000

Compensation

Mr. Patrick F. Coveney, B.Comm, M.Phil, D.Phil, has been the Chief Executive Officer of Greencore Group Plc since March 2008 and serves as its Chairman of the Group Executive Board. Mr. Coveney serves as a ...


CEO Compensation Analysis

Compensation vs. Market: Patrick's total compensation ($USD1.62M) is about average for companies of similar size in the UK market ($USD1.75M).

Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.2yrs

Average Tenure

Experienced Management: GNC's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

57yo

Average Age

Experienced Board: GNC's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£47,03816 Jan 19
Helen Rose
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares25,000
Max PriceUK£1.88

Ownership Breakdown


Management Team

  • Patrick Coveney (49yo)

    Chairman of the Group Executive Board

    • Tenure: 11.6yrs
    • Compensation: UK£1.25m
  • Jack Gorman

    Head of Investor Relations

    • Tenure: 0yrs
  • Eoin Tonge (47yo)

    CFO, Member of the Group Executive Board & Executive Director

    • Tenure: 3yrs
    • Compensation: UK£653.00k
  • Michael Evans

    Group Communications Director

    • Tenure: 0yrs
  • Peter Haden

    COO, Member of Group Executive Board and CEO of Greencore UK & Executive Director

    • Tenure: 0.4yrs
  • Nigel Blakey

    Finance Director & Member of the Group Executive Board

    • Tenure: 3yrs
  • Tracy Costello

    CIO & Member of the Group Executive Board

    • Tenure: 1.8yrs
  • Alwen Hill

    Group Purchasing Director & Member of the Group Executive Board

    • Tenure: 1.8yrs
  • Emma Hynes

    Group Finance Director & Member of the Group Executive Board

    • Tenure: 1.8yrs
  • Martin Ford

    Technical Director

    • Tenure: 0.9yrs

Board Members

  • Sly Bailey (57yo)

    Senior Independent Director

    • Tenure: 1.8yrs
    • Compensation: UK£81.00k
  • Paul Kennedy (60yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: UK£288.00k
  • John Warren (66yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£84.00k
  • John Moloney (65yo)

    Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: UK£78.00k
  • Patrick Coveney (49yo)

    Chairman of the Group Executive Board

    • Tenure: 11.6yrs
    • Compensation: UK£1.25m
  • Heather McSharry (57yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£80.00k
  • Eoin Tonge (47yo)

    CFO, Member of the Group Executive Board & Executive Director

    • Tenure: 3yrs
    • Compensation: UK£653.00k
  • Helen Rose (53yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£33.00k
  • Peter Haden

    COO, Member of Group Executive Board and CEO of Greencore UK & Executive Director

    • Tenure: 0.4yrs

Company Information

Greencore Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Greencore Group plc
  • Ticker: GNC
  • Exchange: LSE
  • Founded: 1991
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£1.058b
  • Shares outstanding: 446.01m
  • Website: https://www.greencore.com

Number of Employees


Location

  • Greencore Group plc
  • No. 2 Northwood Avenue
  • Northwood Business Park
  • Dublin
  • Co. Dublin
  • D09 X5N9
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNCG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1991
GNCLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 1991
GCGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1991
GNCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 1991
GNCG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 1991
GNCG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMay 1999

Biography

Greencore Group plc manufactures and sells various convenience food products primarily in the United Kingdom. The company provides sandwiches, sushi, salads, chilled ready meals, chilled soups and sauces,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:33
End of Day Share Price2019/10/21 00:00
Earnings2019/03/29
Annual Earnings2018/09/28


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.