GREIF INC-CL A (GEF) Stock Fundamental Analysis
USA - NYSE:GEF - US3976241071 - Common Stock
60.46 USD
+1.12 (+1.89%)
60.46 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GEF. GEF was compared to 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. Finally GEF also has an excellent dividend rating. These ratings would make GEF suitable for dividend investing!
1. Profitability
1.1 Basic Checks
GEF had positive earnings in the past year.
GEF had a positive operating cash flow in the past year.
GEF had positive earnings in each of the past 5 years.
GEF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GEF has a Return On Assets (2.82%) which is in line with its industry peers.
With a Return On Equity value of 8.66%, GEF perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
GEF has a Return On Invested Capital (6.68%) which is in line with its industry peers.
GEF had an Average Return On Invested Capital over the past 3 years of 9.92%. This is above the industry average of 7.27%.
| 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
GEF has a Profit Margin (3.65%) which is comparable to the rest of the industry.
GEF's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.77%, GEF perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
GEF's Operating Margin has declined in the last couple of years.
The Gross Margin of GEF (21.35%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GEF has remained more or less at the same level.
| 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
GEF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GEF has more shares outstanding
Compared to 5 years ago, GEF has less shares outstanding
The debt/assets ratio for GEF is higher compared to a year ago.
2.2 Solvency
GEF has an Altman-Z score of 2.00. 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 Altman-Z score (2.00) which is comparable to the rest of the industry.
GEF has a debt to FCF ratio of 8.24. This is a slightly negative value and a sign of low solvency as GEF would need 8.24 years to pay back of all of its debts.
GEF has a Debt to FCF ratio of 8.24. This is in the better half of the industry: GEF outperforms 77.27% of its industry peers.
GEF has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
GEF has a Debt to Equity ratio (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 8.24 | ||
| Altman-Z | 2 |
ROIC/WACC0.75
WACC8.92%
2.3 Liquidity
GEF has a Current Ratio of 1.41. This is a normal value and indicates that GEF is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GEF (1.41) is better than 68.18% of its industry peers.
A Quick Ratio of 1.18 indicates that GEF should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, GEF belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
GEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.07%.
Measured over the past 5 years, GEF shows a small growth in Earnings Per Share. The EPS has been growing by 0.05% on average per year.
The Revenue has decreased by -2.55% in the past 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 will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.79% on average per year.
Based on estimates for the next years, GEF will show a small growth in Revenue. The Revenue will grow by 3.39% on average per year.
EPS Next Y-17.7%
EPS Next 2Y2.69%
EPS Next 3Y5.19%
EPS Next 5Y13.79%
Revenue Next Year-17.24%
Revenue Next 2Y-9.77%
Revenue Next 3Y-5.82%
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
GEF is valuated rather expensively with a Price/Earnings ratio of 17.47.
GEF's Price/Earnings ratio is in line with the industry average.
GEF is valuated rather cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.44, GEF is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as GEF.
GEF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 14.44 |
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.
95.45% of the companies in the same industry are more expensive than GEF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.61 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)346.33
EPS Next 2Y2.69%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
GEF has a Yearly Dividend Yield of 3.78%.
GEF's Dividend Yield is a higher than the industry average which is at 3.36.
Compared to an average S&P500 Dividend Yield of 2.36, GEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 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. This is not a sustainable payout ratio.
The dividend of GEF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.79%
EPS Next 2Y2.69%
EPS Next 3Y5.19%
60.46
+1.12 (+1.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners90.97%
Inst Owner Change-0.2%
Ins Owners3.04%
Ins Owner Change-2.33%
Market Cap2.87B
Analysts74
Price Target77.93 (28.9%)
Short Float %2.83%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend2.57
Dividend Growth(5Y)3.55%
DP65.79%
Div Incr Years4
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.35%
Min EPS beat(2)-18.52%
Max EPS beat(2)5.83%
EPS beat(4)1
Avg EPS beat(4)-20.77%
Min EPS beat(4)-47.21%
Max EPS beat(4)5.83%
EPS beat(8)3
Avg EPS beat(8)11.21%
EPS beat(12)5
Avg EPS beat(12)9.38%
EPS beat(16)9
Avg EPS beat(16)12.69%
Revenue beat(2)0
Avg Revenue beat(2)-7.94%
Min Revenue beat(2)-12.92%
Max Revenue beat(2)-2.96%
Revenue beat(4)0
Avg Revenue beat(4)-4.26%
Min Revenue beat(4)-12.92%
Max Revenue beat(4)-0.34%
Revenue beat(8)2
Avg Revenue beat(8)-2.55%
Revenue beat(12)2
Avg Revenue beat(12)-4.28%
Revenue beat(16)6
Avg Revenue beat(16)-1.87%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)4.04%
EPS NQ rev (3m)-32.46%
EPS NY rev (1m)-20.94%
EPS NY rev (3m)-20.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-27.93%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-12.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 14.44 | ||
| P/S | 0.55 | ||
| P/FCF | 8.61 | ||
| P/OCF | 5.85 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.84 |
EPS(TTM)3.46
EY5.72%
EPS(NY)4.19
Fwd EY6.92%
FCF(TTM)7.03
FCFY11.62%
OCF(TTM)10.33
OCFY17.08%
SpS109.54
BVpS46.19
TBVpS-7.47
PEG (NY)N/A
PEG (5Y)346.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 8.66% | ||
| ROCE | 8.57% | ||
| ROIC | 6.68% | ||
| ROICexc | 7.03% | ||
| ROICexgc | 13.23% | ||
| OM | 8.77% | ||
| PM (TTM) | 3.65% | ||
| GM | 21.35% | ||
| FCFM | 6.41% |
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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 8.24 | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 59.04% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.96% | ||
| Profit Quality | 175.63% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2 |
F-Score5
WACC8.92%
ROIC/WACC0.75
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)-26.07%
EPS 3Y-10.83%
EPS 5Y0.05%
EPS Q2Q%0%
EPS Next Y-17.7%
EPS Next 2Y2.69%
EPS Next 3Y5.19%
EPS Next 5Y13.79%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y-0.65%
Revenue growth 5Y3.46%
Sales Q2Q%-21.97%
Revenue Next Year-17.24%
Revenue Next 2Y-9.77%
Revenue Next 3Y-5.82%
Revenue Next 5Y3.39%
EBIT growth 1Y2.75%
EBIT growth 3Y-6.11%
EBIT growth 5Y-0.73%
EBIT Next Year42.67%
EBIT Next 3Y14.2%
EBIT Next 5Y19.41%
FCF growth 1Y-37.04%
FCF growth 3Y-12.96%
FCF growth 5Y-6.29%
OCF growth 1Y-33.05%
OCF growth 3Y-3.53%
OCF growth 5Y-1.78%