GREIF INC-CL A (GEF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GEF - US3976241071 - Common Stock
72.2 USD
+0.17 (+0.24%)
72.2 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 decent growth rate and is not valued too expensively. Finally GEF also has an excellent dividend rating.
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.
- Each year in the past 5 years GEF has been profitable.
- Each year in the past 5 years GEF had a positive operating cash flow.
1.2 Ratios
- GEF's Return On Assets of 2.82% is in line compared to the rest of the industry. GEF outperforms 50.00% of its industry peers.
- GEF has a Return On Equity (8.66%) which is in line with its industry peers.
- GEF has a Return On Invested Capital of 6.68%. This is comparable to the rest of the industry: GEF outperforms 59.09% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GEF 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 comparable to the rest of the industry.
- In the last couple of years the Profit Margin of GEF has grown nicely.
- With a Operating Margin value of 8.77%, GEF perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- In the last couple of years the Operating Margin of GEF has declined.
- The Gross Margin of GEF (21.35%) is comparable to the rest of the industry.
- 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.
- Compared to 1 year ago, GEF has more shares outstanding
- 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 2.07. 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 (2.07) which is comparable to the rest of the industry.
- The Debt to FCF ratio of GEF is 8.24, which is on the high side as it means it would take GEF, 8.24 years of fcf income to pay off 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.
- 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 | 2.07 |
ROIC/WACC0.74
WACC8.97%
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 comparable to the rest of the industry.
- GEF has a Quick Ratio of 1.18. 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 Quick ratio value of 1.18, GEF is doing good in 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 -26.07% in the last year.
- 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 decrease in Revenue. The Revenue has decreased by -2.55% in the last year.
- Measured over the past years, GEF shows a small growth in Revenue. The Revenue has been growing by 3.46% on average per year.
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
- The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
- 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 20.87, which indicates a rather expensive current valuation of GEF.
- The rest of the industry has a similar Price/Earnings ratio as GEF.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, GEF is valued a bit cheaper.
- The Price/Forward Earnings ratio is 16.43, which indicates a correct valuation of GEF.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GEF is on the same level as its industry peers.
- GEF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GEF is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, GEF is valued cheaper than 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)413.58
EPS Next 2Y5.2%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
- GEF has a Yearly Dividend Yield of 3.11%.
- Compared to an average industry Dividend Yield of 2.38, GEF pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, GEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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
- 65.79% of the earnings are spent on dividend by GEF. This is not a sustainable payout ratio.
- GEF's earnings are growing more than its dividend. This makes the dividend growth 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 20.87 and the Price/Book (PB) ratio is 1.56.
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.