Greggs plc
Greggs plc Fundamental Analysis
Greggs plc (GGGSF) shows strong financial fundamentals with a PE ratio of 11.46, profit margin of 6.96%, and ROE of 25.41%. The company generates $2.1B in annual revenue with strong year-over-year growth of 11.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GGGSF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGGGSF demonstrates superior asset utilization.
Valuation Score
ExcellentGGGSF trades at attractive valuation levels.
Growth Score
ModerateGGGSF shows steady but slowing expansion.
Financial Health Score
ModerateGGGSF shows balanced financial health with some risks.
Profitability Score
WeakGGGSF struggles to sustain strong margins.
Key Financial Metrics
Is GGGSF Expensive or Cheap?
P/E Ratio
GGGSF trades at 11.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GGGSF's PEG of -2.90 indicates potential undervaluation.
Price to Book
The market values Greggs plc at 2.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.29 times EBITDA. This is generally considered low.
How Well Does GGGSF Make Money?
Net Profit Margin
For every $100 in sales, Greggs plc keeps $6.96 as profit after all expenses.
Operating Margin
Core operations generate 9.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.41 in profit for every $100 of shareholder equity.
ROA
Greggs plc generates $10.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Greggs plc produces operating cash flow of $287.41M, showing steady but balanced cash generation.
Free Cash Flow
Greggs plc generates weak or negative free cash flow of $-16.67M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.16 in free cash annually.
FCF Yield
GGGSF converts -1.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How GGGSF Stacks Against Its Sector Peers
| Metric | GGGSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.46 | 23.13 | Better (Cheaper) |
| ROE | 25.41% | 1246.00% | Weak |
| Net Margin | 6.96% | -6035.00% (disorted) | Weak |
| Debt/Equity | 0.79 | 0.80 | Neutral |
| Current Ratio | 0.49 | 2.42 | Weak Liquidity |
| ROA | 10.79% | -199791.00% (disorted) | Strong |
GGGSF outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Greggs plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.85%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
74.65%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
40.36%
Industry Style: Defensive, Dividend, Low Volatility
High Growth