GREIF INC-CL A (GEF)

US3976241071 - Common Stock

69.05  +0.51 (+0.74%)

After market: 67.7 -1.35 (-1.96%)

Fundamental Rating

6

GEF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 23 industry peers in the Containers & Packaging industry. While GEF has a great profitability rating, there are some minor concerns on its financial health. GEF is valued correctly, but it does not seem to be growing.



7

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 5.64%, GEF is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.89%, GEF is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
The Return On Invested Capital of GEF (8.24%) is comparable to the rest of the industry.
GEF had an Average Return On Invested Capital over the past 3 years of 9.85%. This is in line with the industry average of 8.25%.
Industry RankSector Rank
ROA 5.64%
ROE 16.89%
ROIC 8.24%
ROA(3y)6.54%
ROA(5y)4.95%
ROE(3y)21.88%
ROE(5y)18.03%
ROIC(3y)9.85%
ROIC(5y)8.7%

1.3 Margins

GEF has a better Profit Margin (6.53%) than 82.61% of its industry peers.
In the last couple of years the Profit Margin of GEF has grown nicely.
The Operating Margin of GEF (10.88%) is better than 69.57% of its industry peers.
GEF's Operating Margin has improved in the last couple of years.
GEF has a Gross Margin of 21.66%. This is in the better half of the industry: GEF outperforms 60.87% of its industry peers.
GEF's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 10.88%
PM (TTM) 6.53%
GM 21.66%
OM growth 3Y9.01%
OM growth 5Y2.54%
PM growth 3Y41.89%
PM growth 5Y4.95%
GM growth 3Y2.73%
GM growth 5Y1.52%

6

2. Health

2.1 Basic Checks

GEF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GEF has been reduced compared to 1 year ago.
Compared to 5 years ago, GEF has less shares outstanding
GEF has a worse debt/assets ratio than last year.

2.2 Solvency

GEF has an Altman-Z score of 2.32. This is not the best score and indicates that GEF is in the grey zone with still only limited risk for bankruptcy at the moment.
GEF has a better Altman-Z score (2.32) than 69.57% of its industry peers.
The Debt to FCF ratio of GEF is 5.88, which is a neutral value as it means it would take GEF, 5.88 years of fcf income to pay off all of its debts.
GEF has a Debt to FCF ratio of 5.88. This is amongst the best in the industry. GEF outperforms 82.61% of its industry peers.
GEF has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.12, GEF is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF 5.88
Altman-Z 2.32
ROIC/WACC1.15
WACC7.19%

2.3 Liquidity

GEF has a Current Ratio of 1.57. This is a normal value and indicates that GEF is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.57, GEF is doing good in the industry, outperforming 65.22% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that GEF should not have too much problems paying its short term obligations.
GEF's Quick ratio of 1.16 is fine compared to the rest of the industry. GEF outperforms 78.26% of its industry peers.
Industry RankSector Rank
Current Ratio 1.57
Quick Ratio 1.16

3

3. Growth

3.1 Past

GEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.99%.
GEF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.71% yearly.
The Revenue for GEF has decreased by -14.91% in the past year. This is quite bad
GEF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.14% yearly.
EPS 1Y (TTM)-16.99%
EPS 3Y24%
EPS 5Y11.71%
EPS growth Q2Q19.81%
Revenue 1Y (TTM)-14.91%
Revenue growth 3Y4.95%
Revenue growth 5Y6.14%
Revenue growth Q2Q-5.13%

3.2 Future

The Earnings Per Share is expected to decrease by -8.83% on average over the next years.
GEF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.38% yearly.
EPS Next Y-32.27%
EPS Next 2Y-8.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.66%
Revenue Next 2Y3.01%
Revenue Next 3Y5.79%
Revenue Next 5Y5.38%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.87, the valuation of GEF can be described as very reasonable.
GEF's Price/Earnings ratio is rather cheap when compared to the industry. GEF is cheaper than 86.96% of the companies in the same industry.
GEF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 13.53 indicates a correct valuation of GEF.
GEF's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, GEF is valued a bit cheaper.
Industry RankSector Rank
PE 10.87
Fwd PE 13.53

4.2 Price Multiples

GEF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GEF is cheaper than 91.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GEF is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.23
EV/EBITDA 6.75

4.3 Compensation for Growth

GEF has a very decent profitability rating, which may justify a higher PE ratio.
GEF's earnings are expected to decrease with -8.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-8.83%
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

GEF has a Yearly Dividend Yield of 3.16%.
Compared to an average industry Dividend Yield of 2.89, GEF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, GEF pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.16%

5.2 History

The dividend of GEF has a limited annual growth rate of 3.43%.
GEF has been paying a dividend for at least 10 years, so it has 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)3.43%
Div Incr Years3
Div Non Decr Years16

5.3 Sustainability

34.86% of the earnings are spent on dividend by GEF. This is a low number and sustainable payout ratio.
DP34.86%
EPS Next 2Y-8.83%
EPS Next 3YN/A

GREIF INC-CL A

NYSE:GEF (3/28/2024, 8:12:53 PM)

After market: 67.7 -1.35 (-1.96%)

69.05

+0.51 (+0.74%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.25B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.16%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.87
Fwd PE 13.53
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.93
Profitability
Industry RankSector Rank
ROA 5.64%
ROE 16.89%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.88%
PM (TTM) 6.53%
GM 21.66%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.57
Quick Ratio 1.16
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-16.99%
EPS 3Y24%
EPS 5Y
EPS growth Q2Q
EPS Next Y-32.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.91%
Revenue growth 3Y4.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y