GREIF INC-CL A (GEF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GEF - US3976241071 - Common Stock
72.46 USD
-0.64 (-0.88%)
72.46 USD
0 (0%)
GEF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. GEF has only an average score on both its financial health and profitability. GEF has a correct valuation and a medium growth rate. GEF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- GEF had positive earnings in the past year.
- In the past year GEF had a positive cash flow from operations.
- In the past 5 years GEF has always been profitable.
- 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 comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 8.66%, GEF is in line with its industry, outperforming 54.55% of the companies in the same industry.
- With a Return On Invested Capital value of 6.68%, 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 7.62%.
| 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 in line with its industry peers.
- GEF's Profit Margin has improved in the last couple of years.
- GEF's Operating Margin of 8.77% is in line compared to the rest of the industry. GEF outperforms 45.45% of its industry peers.
- GEF's Operating Margin has declined in the last couple of years.
- GEF has a Gross Margin (21.35%) which is in line with its industry peers.
- GEF's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GEF is still creating some value.
- GEF has more shares outstanding than it did 1 year ago.
- GEF has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GEF has a worse debt to assets ratio.
2.2 Solvency
- GEF has an Altman-Z score of 2.08. 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 (2.08) which is in line with its industry peers.
- 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's Debt to FCF ratio of 8.24 is fine compared to the rest of the industry. GEF outperforms 77.27% of its industry peers.
- A Debt/Equity ratio of 1.21 is on the high side and indicates that GEF has dependencies on debt financing.
- GEF has a Debt to Equity ratio (1.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 8.24 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.74
WACC8.97%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that GEF should not have too much problems paying its short term obligations.
- GEF has a Current ratio of 1.41. This is comparable to the rest of the industry: GEF outperforms 59.09% 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 is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The earnings per share for GEF have decreased strongly by -35.34% in the last year.
- 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.
- Looking at the last year, GEF shows a small growth in Revenue. The Revenue has grown by 4.40% in the last year.
- GEF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.46% yearly.
EPS 1Y (TTM)-35.34%
EPS 3Y-10.83%
EPS 5Y0.05%
EPS Q2Q%23.08%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y-0.65%
Revenue growth 5Y3.46%
Sales Q2Q%-21.41%
3.2 Future
- GEF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.26% yearly.
- GEF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
EPS Next Y-21.13%
EPS Next 2Y5.2%
EPS Next 3Y6.85%
EPS Next 5Y8.26%
Revenue Next Year-19.17%
Revenue Next 2Y-10.49%
Revenue Next 3Y-6.59%
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 18.25, which indicates a rather expensive current valuation of GEF.
- Compared to the rest of the industry, the Price/Earnings ratio of GEF is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of GEF to the average of the S&P500 Index (28.60), we can say GEF is valued slightly cheaper.
- The Price/Forward Earnings ratio is 16.49, which indicates a correct valuation of GEF.
- GEF's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, GEF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GEF is valued cheaper than 86.36% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GEF indicates a rather cheap valuation: GEF is cheaper than 95.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.31 | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)361.75
EPS Next 2Y5.2%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.06%, GEF has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.38, GEF pays a bit more dividend than its industry peers.
- GEF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.55%
Div Incr Years4
Div Non Decr Years28
5.3 Sustainability
- GEF pays out 65.79% of its income as dividend. 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 2Y5.2%
EPS Next 3Y6.85%
GREIF INC-CL A / GEF FAQ
Can you provide the ChartMill fundamental rating for GREIF INC-CL A?
ChartMill assigns a fundamental rating of 5 / 10 to GEF.
What is the valuation status for GEF stock?
ChartMill assigns a valuation rating of 4 / 10 to GREIF INC-CL A (GEF). This can be considered as Fairly Valued.
How profitable is GREIF INC-CL A (GEF) stock?
GREIF INC-CL A (GEF) has a profitability rating of 5 / 10.
What are the PE and PB ratios of GREIF INC-CL A (GEF) stock?
The Price/Earnings (PE) ratio for GREIF INC-CL A (GEF) is 18.25 and the Price/Book (PB) ratio is 1.57.
What is the financial health of GREIF INC-CL A (GEF) stock?
The financial health rating of GREIF INC-CL A (GEF) is 4 / 10.