GREIF INC-CL B (GEF.B) Stock Fundamental Analysis
NYSE:GEF.B - New York Stock Exchange, Inc. - US3976242061 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GEF.B. GEF.B was compared to 24 industry peers in the Containers & Packaging industry. GEF.B has an average financial health and profitability rating. GEF.B is not valued too expensively and it also shows a decent growth rate. Finally GEF.B also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GEF.B had positive earnings in the past year.
GEF.B had a positive operating cash flow in the past year.
GEF.B had positive earnings in each of the past 5 years.
Each year in the past 5 years GEF.B had a positive operating cash flow.
1.2 Ratios
GEF.B has a better Return On Assets (4.04%) than 69.57% of its industry peers.
GEF.B has a Return On Equity (12.91%) which is in line with its industry peers.
GEF.B has a Return On Invested Capital (6.47%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GEF.B is above the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 12.91% | ||
| ROIC | 6.47% |
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 decent Profit Margin value of 4.93%, GEF.B is doing good in the industry, outperforming 69.57% of the companies in the same industry.
In the last couple of years the Profit Margin of GEF.B has grown nicely.
GEF.B has a Operating Margin of 8.01%. This is in the lower half of the industry: GEF.B underperforms 60.87% of its industry peers.
In the last couple of years the Operating Margin of GEF.B has declined.
GEF.B's Gross Margin of 19.65% is on the low side compared to the rest of the industry. GEF.B is outperformed by 69.57% of its industry peers.
In the last couple of years the Gross Margin of GEF.B has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.01% | ||
| PM (TTM) | 4.93% | ||
| GM | 19.65% |
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.B is 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 2.03 indicates that GEF.B is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.03, GEF.B is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
The Debt to FCF ratio of GEF.B is 16.92, which is on the high side as it means it would take GEF.B, 16.92 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GEF.B (16.92) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.29 is on the high side and indicates that GEF.B has dependencies on debt financing.
GEF.B has a Debt to Equity ratio (1.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 16.92 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.86
WACC7.49%
2.3 Liquidity
A Current Ratio of 1.53 indicates that GEF.B should not have too much problems paying its short term obligations.
With a Current ratio value of 1.53, GEF.B perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
GEF.B has a Quick Ratio of 1.13. This is a normal value and indicates that GEF.B is financially healthy and should not expect problems in meeting its short term obligations.
GEF.B has a Quick ratio of 1.13. This is in the better half of the industry: GEF.B outperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for GEF.B have decreased strongly by -51.34% in the last year.
GEF.B shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.05% yearly.
The Revenue has been growing slightly by 4.40% in the past 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)4.4%
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.
GEF.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y8.19%
EPS Next 2Y17.55%
EPS Next 3Y15.46%
EPS Next 5Y13.79%
Revenue Next Year-5.22%
Revenue Next 2Y3.03%
Revenue Next 3Y3.42%
Revenue Next 5Y4.41%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.22, the valuation of GEF.B can be described as rather expensive.
GEF.B's Price/Earnings ratio is a bit more expensive when compared to the industry. GEF.B is more expensive than 60.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of GEF.B to the average of the S&P500 Index (29.75), we can say GEF.B is valued slightly cheaper.
GEF.B is valuated reasonably with a Price/Forward Earnings ratio of 10.83.
65.22% of the companies in the same industry are more expensive than GEF.B, based on the Price/Forward Earnings ratio.
GEF.B is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GEF.B indicates a rather cheap valuation: GEF.B is cheaper than 82.61% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GEF.B indicates a somewhat cheap valuation: GEF.B is cheaper than 65.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.05 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GEF.B's earnings are expected to grow with 15.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.35
PEG (5Y)380.94
EPS Next 2Y17.55%
EPS Next 3Y15.46%
5. Dividend
5.1 Amount
GEF.B has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
The stock price of GEF.B dropped by -20.04% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
GEF.B's Dividend Yield is rather good when compared to the industry average which is at 3.19. GEF.B pays more dividend than 82.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, GEF.B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
The dividend of GEF.B has a limited annual growth rate of 3.55%.
GEF.B has paid a dividend for at least 10 years, which is 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 Years3
Div Non Decr Years27
5.3 Sustainability
GEF.B pays out 45.01% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GEF.B is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.01%
EPS Next 2Y17.55%
EPS Next 3Y15.46%
59.39
-1.22 (-2.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners88.51%
Inst Owner Change14.73%
Ins Owners3.73%
Ins Owner ChangeN/A
Market Cap2.80B
Analysts80
Price Target84.29 (41.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend2.57
Dividend Growth(5Y)3.55%
DP45.01%
Div Incr Years3
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.75%
Min EPS beat(2)-23.19%
Max EPS beat(2)-10.31%
EPS beat(4)1
Avg EPS beat(4)32.75%
Min EPS beat(4)-23.19%
Max EPS beat(4)168.97%
EPS beat(8)4
Avg EPS beat(8)22.35%
EPS beat(12)7
Avg EPS beat(12)19.53%
EPS beat(16)11
Avg EPS beat(16)19.13%
Revenue beat(2)1
Avg Revenue beat(2)0.39%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)1.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-5.35%
Max Revenue beat(4)4.42%
Revenue beat(8)2
Avg Revenue beat(8)-3.55%
Revenue beat(12)5
Avg Revenue beat(12)-1.54%
Revenue beat(16)9
Avg Revenue beat(16)-0.06%
PT rev (1m)0%
PT rev (3m)-0.31%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)-9.48%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-11.93%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-3.26%
Revenue NY rev (1m)-1.62%
Revenue NY rev (3m)-9.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 10.83 | ||
| P/S | 0.51 | ||
| P/FCF | 17.05 | ||
| P/OCF | 7.87 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.77 |
EPS(TTM)3.09
EY5.2%
EPS(NY)5.49
Fwd EY9.24%
FCF(TTM)3.48
FCFY5.86%
OCF(TTM)7.55
OCFY12.71%
SpS115.47
BVpS44.14
TBVpS-17.13
PEG (NY)2.35
PEG (5Y)380.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 12.91% | ||
| ROCE | 7.75% | ||
| ROIC | 6.47% | ||
| ROICexc | 6.71% | ||
| ROICexgc | 14.27% | ||
| OM | 8.01% | ||
| PM (TTM) | 4.93% | ||
| GM | 19.65% | ||
| FCFM | 3.02% |
ROA(3y)5.65%
ROA(5y)5.13%
ROE(3y)17.58%
ROE(5y)17.6%
ROIC(3y)9.92%
ROIC(5y)9.37%
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-Score4
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 16.92 | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | 73.36% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 51.03% | ||
| Profit Quality | 61.12% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.03 |
F-Score4
WACC7.49%
ROIC/WACC0.86
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 Y8.19%
EPS Next 2Y17.55%
EPS Next 3Y15.46%
EPS Next 5Y13.79%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y-0.65%
Revenue growth 5Y3.46%
Sales Q2Q%4.98%
Revenue Next Year-5.22%
Revenue Next 2Y3.03%
Revenue Next 3Y3.42%
Revenue Next 5Y4.41%
EBIT growth 1Y-26.92%
EBIT growth 3Y-6.11%
EBIT growth 5Y-0.73%
EBIT Next Year68.61%
EBIT Next 3Y26.86%
EBIT Next 5Y20.55%
FCF growth 1Y-61.78%
FCF growth 3Y-12.96%
FCF growth 5Y-6.29%
OCF growth 1Y-45.19%
OCF growth 3Y-3.53%
OCF growth 5Y-1.78%