GREIF INC-CL A (GEF) Stock Fundamental Analysis
NYSE:GEF - New York Stock Exchange, Inc. - US3976241071 - Common Stock - Currency: USD
GEF gets a fundamental rating of 5 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 get a neutral evaluation. Nothing too spectacular is happening here. GEF is not valued too expensively and it also shows a decent growth rate. GEF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year GEF was profitable.
In the past year GEF had a positive cash flow from operations.
Each year in the past 5 years GEF has been profitable.
GEF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.15%, GEF is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
GEF has a Return On Equity of 9.99%. This is in the better half of the industry: GEF outperforms 63.64% of its industry peers.
With a Return On Invested Capital value of 7.02%, GEF perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
GEF had an Average Return On Invested Capital over the past 3 years of 9.92%. This is above the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 9.99% | ||
| ROIC | 7.02% |
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
GEF's Profit Margin of 3.86% is in line compared to the rest of the industry. GEF outperforms 59.09% of its industry peers.
In the last couple of years the Profit Margin of GEF has grown nicely.
GEF has a Operating Margin (8.73%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GEF has declined.
GEF's Gross Margin of 20.72% is in line compared to the rest of the industry. GEF outperforms 45.45% of its industry peers.
GEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.73% | ||
| PM (TTM) | 3.86% | ||
| GM | 20.72% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GEF is creating some value.
Compared to 1 year ago, GEF has more shares outstanding
Compared to 5 years ago, GEF has less shares outstanding
Compared to 1 year ago, GEF has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.02 indicates that GEF is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GEF (2.02) is comparable to the rest of the industry.
The Debt to FCF ratio of GEF is 13.47, which is on the high side as it means it would take GEF, 13.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GEF (13.47) is better than 68.18% of its industry peers.
GEF has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GEF (1.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 13.47 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.81
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.27 indicates that GEF should not have too much problems paying its short term obligations.
GEF has a Current ratio (1.27) which is in line with its industry peers.
GEF has a Quick Ratio of 1.27. This is a bad value and indicates that GEF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, GEF is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for GEF have decreased strongly by -35.93% in the last year.
The Earnings Per Share has been growing slightly by 0.05% on average over the past years.
GEF shows a small growth in Revenue. In the last year, the Revenue has grown by 5.89%.
GEF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.46% yearly.
EPS 1Y (TTM)-35.93%
EPS 3Y-10.83%
EPS 5Y0.05%
EPS Q2Q%45.12%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y-0.65%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
3.2 Future
The Earnings Per Share is expected to grow by 13.79% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y-1.04%
EPS Next 2Y12.65%
EPS Next 3Y11.51%
EPS Next 5Y13.79%
Revenue Next Year-4.9%
Revenue Next 2Y3.22%
Revenue Next 3Y3.52%
Revenue Next 5Y3.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.13, which indicates a rather expensive current valuation of GEF.
The rest of the industry has a similar Price/Earnings ratio as GEF.
When comparing the Price/Earnings ratio of GEF to the average of the S&P500 Index (26.35), we can say GEF is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.45 indicates a correct valuation of GEF.
Based on the Price/Forward Earnings ratio, GEF is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GEF to the average of the S&P500 Index (22.19), we can say GEF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEF is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GEF is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.25 | ||
| EV/EBITDA | 6.88 |
4.3 Compensation for Growth
GEF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)359.39
EPS Next 2Y12.65%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
GEF has a Yearly Dividend Yield of 3.33%.
GEF's Dividend Yield is a higher than the industry average which is at 3.07.
GEF's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of GEF has a limited annual growth rate of 3.55%.
GEF has paid a dividend for at least 10 years, which is a reliable track record.
GEF 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
58.05% of the earnings are spent on dividend by GEF. This is a bit on the high side, but may be sustainable.
The dividend of GEF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.05%
EPS Next 2Y12.65%
EPS Next 3Y11.51%
62.74
-0.3 (-0.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change0.89%
Ins Owners3.79%
Ins Owner Change3.29%
Market Cap2.98B
Analysts78
Price Target72.83 (16.08%)
Short Float %2.06%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend2.57
Dividend Growth(5Y)3.55%
DP58.05%
Div Incr Years4
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-20.69%
Min EPS beat(2)-47.21%
Max EPS beat(2)5.83%
EPS beat(4)1
Avg EPS beat(4)-18.72%
Min EPS beat(4)-47.21%
Max EPS beat(4)5.83%
EPS beat(8)4
Avg EPS beat(8)15.1%
EPS beat(12)6
Avg EPS beat(12)12.28%
EPS beat(16)10
Avg EPS beat(16)15.38%
Revenue beat(2)0
Avg Revenue beat(2)-1.88%
Min Revenue beat(2)-2.96%
Max Revenue beat(2)-0.8%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-2.96%
Max Revenue beat(4)1.13%
Revenue beat(8)2
Avg Revenue beat(8)-1.61%
Revenue beat(12)3
Avg Revenue beat(12)-3.15%
Revenue beat(16)7
Avg Revenue beat(16)-0.66%
PT rev (1m)0%
PT rev (3m)-6.67%
EPS NQ rev (1m)3.6%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.53%
Revenue NQ rev (1m)-1.38%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 12.45 | ||
| P/S | 0.54 | ||
| P/FCF | 14.25 | ||
| P/OCF | 8.05 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.88 |
EPS(TTM)3.46
EY5.51%
EPS(NY)5.04
Fwd EY8.03%
FCF(TTM)4.4
FCFY7.02%
OCF(TTM)7.79
OCFY12.42%
SpS116.42
BVpS44.99
TBVpS-15.49
PEG (NY)N/A
PEG (5Y)359.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 9.99% | ||
| ROCE | 8.98% | ||
| ROIC | 7.02% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 15.34% | ||
| OM | 8.73% | ||
| PM (TTM) | 3.86% | ||
| GM | 20.72% | ||
| FCFM | 3.78% |
ROA(3y)5.65%
ROA(5y)5.13%
ROE(3y)17.58%
ROE(5y)17.6%
ROIC(3y)9.92%
ROIC(5y)9.37%
ROICexc(3y)10.28%
ROICexc(5y)9.67%
ROICexgc(3y)20.61%
ROICexgc(5y)19.31%
ROCE(3y)11.85%
ROCE(5y)11.22%
ROICexcg growth 3Y-9.92%
ROICexcg growth 5Y-3.38%
ROICexc growth 3Y-12.41%
ROICexc growth 5Y-4.33%
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%
F-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 13.47 | ||
| Debt/EBITDA | 3.61 | ||
| Cap/Depr | 60% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.26% | ||
| Profit Quality | 97.98% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.02 |
F-Score6
WACC8.67%
ROIC/WACC0.81
Cap/Depr(3y)84.36%
Cap/Depr(5y)74.47%
Cap/Sales(3y)3.54%
Cap/Sales(5y)3.26%
Profit Quality(3y)102.26%
Profit Quality(5y)132.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-35.93%
EPS 3Y-10.83%
EPS 5Y0.05%
EPS Q2Q%45.12%
EPS Next Y-1.04%
EPS Next 2Y12.65%
EPS Next 3Y11.51%
EPS Next 5Y13.79%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y-0.65%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
Revenue Next Year-4.9%
Revenue Next 2Y3.22%
Revenue Next 3Y3.52%
Revenue Next 5Y3.39%
EBIT growth 1Y-1.35%
EBIT growth 3Y-6.11%
EBIT growth 5Y-0.73%
EBIT Next Year61.61%
EBIT Next 3Y25.41%
EBIT Next 5Y19.41%
FCF growth 1Y-61.73%
FCF growth 3Y-12.96%
FCF growth 5Y-6.29%
OCF growth 1Y-50.03%
OCF growth 3Y-3.53%
OCF growth 5Y-1.78%