GREIF INC-CL B (GEF.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GEF.B - US3976242061 - Common Stock
83.15 USD
-0.36 (-0.43%)
GEF.B gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. Both the profitability and the financial health of GEF.B get a neutral evaluation. Nothing too spectacular is happening here. GEF.B is valied quite expensively at the moment, while it does show a decent growth rate. Finally GEF.B also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year GEF.B was profitable.
- GEF.B had a positive operating cash flow in the past year.
- In the past 5 years GEF.B has always been profitable.
- In the past 5 years GEF.B always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of GEF.B (2.82%) is comparable to the rest of the industry.
- The Return On Equity of GEF.B (8.66%) is comparable to the rest of the industry.
- GEF.B has a Return On Invested Capital (6.68%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GEF.B is above the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 8.66% | ||
| ROIC | 6.68% |
ROA(3y)5.65%
ROA(5y)5.13%
ROE(3y)17.58%
ROE(5y)17.6%
ROIC(3y)9.92%
ROIC(5y)9.37%
1.3 Margins
- With a Profit Margin value of 3.65%, GEF.B perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- GEF.B's Profit Margin has improved in the last couple of years.
- GEF.B has a Operating Margin (8.77%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of GEF.B has declined.
- GEF.B's Gross Margin of 21.35% is in line compared to the rest of the industry. GEF.B outperforms 45.45% of its industry peers.
- GEF.B's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.77% | ||
| PM (TTM) | 3.65% | ||
| GM | 21.35% |
OM growth 3Y-5.49%
OM growth 5Y-4.05%
PM growth 3Y-11.14%
PM growth 5Y5.8%
GM growth 3Y-0.03%
GM growth 5Y-1.21%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GEF.B is still creating some value.
- The number of shares outstanding for GEF.B has been increased compared to 1 year ago.
- Compared to 5 years ago, GEF.B has less shares outstanding
- Compared to 1 year ago, GEF.B has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.14 indicates that GEF.B is not a great score, but indicates only limited risk for bankruptcy at the moment.
- GEF.B has a Altman-Z score of 2.14. This is comparable to the rest of the industry: GEF.B outperforms 59.09% of its industry peers.
- GEF.B has a debt to FCF ratio of 8.24. This is a slightly negative value and a sign of low solvency as GEF.B would need 8.24 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 8.24, GEF.B is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- GEF.B has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
- GEF.B has a Debt to Equity ratio of 1.21. This is comparable to the rest of the industry: GEF.B outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 8.24 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.75
WACC8.96%
2.3 Liquidity
- GEF.B has a Current Ratio of 1.41. This is a normal value and indicates that GEF.B is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.41, GEF.B perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- GEF.B has a Quick Ratio of 1.18. This is a normal value and indicates that GEF.B is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of GEF.B (1.18) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- GEF.B shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.07%.
- GEF.B shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.05% yearly.
- Looking at the last year, GEF.B shows a decrease in Revenue. The Revenue has decreased by -2.55% in the last year.
- The Revenue has been growing slightly by 3.46% on average over the past years.
EPS 1Y (TTM)-26.07%
EPS 3Y-10.83%
EPS 5Y0.05%
EPS Q2Q%0%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y-0.65%
Revenue growth 5Y3.46%
Sales Q2Q%-21.97%
3.2 Future
- Based on estimates for the next years, GEF.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.26% on average per year.
- The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y-21.13%
EPS Next 2Y5.2%
EPS Next 3Y6.85%
EPS Next 5Y8.26%
Revenue Next Year-19.17%
Revenue Next 2Y-10.49%
Revenue Next 3Y-6.59%
Revenue Next 5Y3.39%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.03 indicates a rather expensive valuation of GEF.B.
- Based on the Price/Earnings ratio, GEF.B is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, GEF.B is valued at the same level.
- GEF.B is valuated rather expensively with a Price/Forward Earnings ratio of 18.93.
- GEF.B's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. GEF.B is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 18.93 |
4.2 Price Multiples
- 72.73% of the companies in the same industry are more expensive than GEF.B, based on the Enterprise Value to EBITDA ratio.
- 86.36% of the companies in the same industry are more expensive than GEF.B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.84 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)476.31
EPS Next 2Y5.2%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
- GEF.B has a Yearly Dividend Yield of 3.11%.
- Compared to an average industry Dividend Yield of 2.38, GEF.B pays a bit more dividend than its industry peers.
- GEF.B's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
- The dividend of GEF.B has a limited annual growth rate of 3.55%.
- GEF.B has been paying a dividend for at least 10 years, so it has a reliable track record.
- GEF.B has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.55%
Div Incr Years4
Div Non Decr Years28
5.3 Sustainability
- 65.79% of the earnings are spent on dividend by GEF.B. This is not a sustainable payout ratio.
- GEF.B's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.79%
EPS Next 2Y5.2%
EPS Next 3Y6.85%
GREIF INC-CL B / GEF.B FAQ
What is the fundamental rating for GEF.B stock?
ChartMill assigns a fundamental rating of 4 / 10 to GEF.B.
What is the valuation status of GREIF INC-CL B (GEF.B) stock?
ChartMill assigns a valuation rating of 3 / 10 to GREIF INC-CL B (GEF.B). This can be considered as Overvalued.
How profitable is GREIF INC-CL B (GEF.B) stock?
GREIF INC-CL B (GEF.B) has a profitability rating of 5 / 10.
What is the expected EPS growth for GREIF INC-CL B (GEF.B) stock?
The Earnings per Share (EPS) of GREIF INC-CL B (GEF.B) is expected to decline by -21.13% in the next year.
How sustainable is the dividend of GREIF INC-CL B (GEF.B) stock?
The dividend rating of GREIF INC-CL B (GEF.B) is 7 / 10 and the dividend payout ratio is 65.79%.