GREIF INC-CL A (GEF) Stock Fundamental Analysis
NYSE:GEF - New York Stock Exchange, Inc. - US3976241071 - Common Stock - Currency: USD
Taking everything into account, GEF scores 4 out of 10 in our fundamental rating. GEF was compared to 23 industry peers in the Containers & Packaging industry. There are concerns on the financial health of GEF while its profitability can be described as average. GEF has a correct valuation and a medium 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
GEF's Return On Assets of 3.19% is in line compared to the rest of the industry. GEF outperforms 56.52% of its industry peers.
GEF's Return On Equity of 10.30% is in line compared to the rest of the industry. GEF outperforms 56.52% of its industry peers.
With a Return On Invested Capital value of 6.46%, GEF perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GEF is above the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 10.3% | ||
| ROIC | 6.46% |
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 3.82% is in line compared to the rest of the industry. GEF outperforms 56.52% of its industry peers.
In the last couple of years the Profit Margin of GEF has grown nicely.
GEF's Operating Margin of 7.96% is in line compared to the rest of the industry. GEF outperforms 47.83% of its industry peers.
In the last couple of years the Operating Margin of GEF has declined.
GEF's Gross Margin of 19.87% is on the low side compared to the rest of the industry. GEF is outperformed by 65.22% of its industry peers.
GEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.96% | ||
| PM (TTM) | 3.82% | ||
| GM | 19.87% |
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
GEF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GEF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.99 indicates that GEF is not a great score, but indicates only limited risk for bankruptcy at the moment.
GEF has a better Altman-Z score (1.99) than 65.22% of its industry peers.
The Debt to FCF ratio of GEF is 19.32, which is on the high side as it means it would take GEF, 19.32 years of fcf income to pay off all of its debts.
GEF's Debt to FCF ratio of 19.32 is in line compared to the rest of the industry. GEF outperforms 52.17% of its industry peers.
A Debt/Equity ratio of 1.36 is on the high side and indicates that GEF has dependencies on debt financing.
GEF's Debt to Equity ratio of 1.36 is in line compared to the rest of the industry. GEF outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 19.32 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.87
WACC7.42%
2.3 Liquidity
GEF has a Current Ratio of 1.31. 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 Current ratio value of 1.31, GEF perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that GEF may have some problems paying its short term obligations.
GEF has a better Quick ratio (0.97) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
GEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.34%.
GEF 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 shows a small growth in Revenue. The Revenue has grown by 6.88% in the last year.
The Revenue has been growing slightly by 3.46% on average over the past years.
EPS 1Y (TTM)-51.34%
EPS 3Y-10.83%
EPS 5Y0.05%
EPS Q2Q%-69.29%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y-0.65%
Revenue growth 5Y3.46%
Sales Q2Q%4.98%
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
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.
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
Based on the Price/Earnings ratio of 17.38, the valuation of GEF can be described as rather expensive.
GEF's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of GEF to the average of the S&P500 Index (28.10), we can say GEF is valued slightly cheaper.
GEF is valuated reasonably with a Price/Forward Earnings ratio of 10.66.
GEF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GEF is cheaper than 73.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GEF to the average of the S&P500 Index (20.74), we can say GEF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GEF indicates a rather cheap valuation: GEF is cheaper than 95.65% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GEF is valued a bit cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.11 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)344.44
EPS Next 2Y12.65%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
GEF has a Yearly Dividend Yield of 4.12%, which is a nice return.
Compared to an average industry Dividend Yield of 3.27, GEF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, GEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
5.2 History
The dividend of GEF has a limited annual growth rate of 3.55%.
GEF has been paying a dividend for at least 10 years, so it has a reliable track record.
GEF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.55%
Div Incr Years3
Div Non Decr Years27
5.3 Sustainability
GEF pays out 58.18% of its income as dividend. This is a bit on the high side, but may be sustainable.
GEF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.18%
EPS Next 2Y12.65%
EPS Next 3Y11.51%
53.7
-0.62 (-1.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners88.51%
Inst Owner Change0.07%
Ins Owners3.73%
Ins Owner Change4%
Market Cap2.55B
Analysts78
Price Target72.83 (35.62%)
Short Float %2.16%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend2.57
Dividend Growth(5Y)3.55%
DP58.18%
Div Incr Years3
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.2%
Min EPS beat(2)-47.21%
Max EPS beat(2)-23.19%
EPS beat(4)0
Avg EPS beat(4)-21.3%
Min EPS beat(4)-47.21%
Max EPS beat(4)-4.48%
EPS beat(8)4
Avg EPS beat(8)18.44%
EPS beat(12)6
Avg EPS beat(12)15.07%
EPS beat(16)10
Avg EPS beat(16)15.33%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)-0.34%
Revenue beat(4)2
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)4.42%
Revenue beat(8)2
Avg Revenue beat(8)-2.35%
Revenue beat(12)4
Avg Revenue beat(12)-2.11%
Revenue beat(16)8
Avg Revenue beat(16)-0.13%
PT rev (1m)-7.07%
PT rev (3m)-9.43%
EPS NQ rev (1m)-3.21%
EPS NQ rev (3m)-7.25%
EPS NY rev (1m)-2.71%
EPS NY rev (3m)-8.87%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 10.66 | ||
| P/S | 0.46 | ||
| P/FCF | 17.11 | ||
| P/OCF | 7.94 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.99 |
EPS(TTM)3.09
EY5.75%
EPS(NY)5.04
Fwd EY9.38%
FCF(TTM)3.14
FCFY5.84%
OCF(TTM)6.76
OCFY12.59%
SpS116.11
BVpS43.01
TBVpS-17.06
PEG (NY)N/A
PEG (5Y)344.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 10.3% | ||
| ROCE | 8.17% | ||
| ROIC | 6.46% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 13.92% | ||
| OM | 7.96% | ||
| PM (TTM) | 3.82% | ||
| GM | 19.87% | ||
| FCFM | 2.7% |
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-Score3
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 19.32 | ||
| Debt/EBITDA | 3.93 | ||
| Cap/Depr | 64.22% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.44% | ||
| Profit Quality | 70.84% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 1.99 |
F-Score3
WACC7.42%
ROIC/WACC0.87
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)-51.34%
EPS 3Y-10.83%
EPS 5Y0.05%
EPS Q2Q%-69.29%
EPS Next Y-1.04%
EPS Next 2Y12.65%
EPS Next 3Y11.51%
EPS Next 5Y13.79%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y-0.65%
Revenue growth 5Y3.46%
Sales Q2Q%4.98%
Revenue Next Year-4.9%
Revenue Next 2Y3.22%
Revenue Next 3Y3.52%
Revenue Next 5Y3.39%
EBIT growth 1Y-21.82%
EBIT growth 3Y-6.11%
EBIT growth 5Y-0.73%
EBIT Next Year63.16%
EBIT Next 3Y25.41%
EBIT Next 5Y19.41%
FCF growth 1Y-69.3%
FCF growth 3Y-12.96%
FCF growth 5Y-6.29%
OCF growth 1Y-51.99%
OCF growth 3Y-3.53%
OCF growth 5Y-1.78%