Greggs plc (GRG.L) stock analysis

In our weekly check, Greggs plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 7, red flags: 1.

About Greggs plc

Greggs plc is a Consumer Defensive company (Grocery Stores) based in the United Kingdom, listed on LSE as GRG.L.

What our checks show for GRG.L

Red flags

• The net margin fell by 3.9 points over 5 years, to 5.7%: the company keeps less of each sale as profit.

Warning signs

• The gross margin fell by 2.1 points, to 61.5%: costs are rising faster than prices.
• Margins expected to shrink
• The net margin is only 5.7%: little room if costs rise.
• Free cash flow is only 3.4% of revenue.
• The stock has fallen as much as 58% from a peak. Would you have held through that?
• The stock is still below its previous peak.
• Thinly traded (about 462 thousand shares a day): buying and selling can move the price.

Strengths

• Operating profit covers interest 13.6 times over.
• Operating cash flow is 2.76x net profit: the profit arrives as real cash.
• Return on capital (ROCE) is 17.3%: the business earns well on the money put into it.
• Pay in shares is only 2% of free cash flow.

Similar companies

CHA · SHAK · CBRL · WEN · WING · BJRI

Questions

What grade does Greggs plc (GRG.L) have?

In our weekly check, Greggs plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 7, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of GRG.L stock?

This week's biggest flags for Greggs plc: Margins falling, Gross margin falling, Margins expected to shrink. In total 8 of 25 checks show a warning or a red flag.

What does Greggs plc do?

Greggs plc is a Consumer Defensive company (Grocery Stores) based in the United Kingdom, listed on LSE as GRG.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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