GREIF INC-CL A (GEF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GEF - US3976241071 - Common Stock
70.1 USD
-2.36 (-3.26%)
70.1 USD
0 (0%)
Overall GEF gets a fundamental rating of 5 out of 10. We evaluated GEF against 22 industry peers in the Containers & Packaging industry. GEF has an average financial health and profitability rating. GEF is not valued too expensively and it also shows a decent growth rate. Finally 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.
- GEF had positive earnings in each of the past 5 years.
- In the past 5 years GEF always reported a positive cash flow from operatings.
1.2 Ratios
- GEF has a Return On Assets of 2.82%. This is comparable to the rest of the industry: GEF outperforms 50.00% of its industry peers.
- With a Return On Equity value of 8.66%, GEF perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- 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's Profit Margin of 3.65% is in line compared to the rest of the industry. GEF outperforms 54.55% of its industry peers.
- GEF's Profit Margin has improved in the last couple of years.
- The Operating Margin of GEF (8.77%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of GEF has declined.
- GEF's Gross Margin of 21.35% is in line compared to the rest of the industry. GEF outperforms 50.00% of its industry peers.
- 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
- The number of shares outstanding for GEF has been reduced compared to 5 years ago.
- The debt/assets ratio for GEF is higher compared to a year ago.
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 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.
- Looking at the Debt to FCF ratio, with a value of 8.24, GEF is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
- 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 | 2.08 |
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.
- With a Current ratio value of 1.41, GEF perfoms like the industry average, outperforming 59.09% of the companies in the same 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.
- GEF's Quick ratio of 1.18 is fine compared to the rest of the industry. GEF outperforms 72.73% of its industry peers.
| 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 -35.34%.
- 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 been growing slightly by 4.40% in the past 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
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.66, GEF is valued on the expensive side.
- 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 28.39, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 15.96, 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 25.72, GEF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
- GEF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GEF is 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 | 9.98 | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)349.97
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.
- Compared to an average S&P500 Dividend Yield of 1.82, GEF pays a better dividend.
| 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 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
- GEF pays out 65.79% of its income as dividend. 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 17.66 and the Price/Book (PB) ratio is 1.52.
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.