NYSE:GEF

Stock Analysis Report

Executive Summary

Greif, Inc. produces and sells industrial packaging products and services worldwide.

Snowflake

Fundamentals

Very undervalued 6 star dividend payer.


Similar Companies

Share Price & News

How has Greif's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.9%

NYSE:GEF

0.8%

US Packaging

0.8%

US Market


1 Year Return

-34.3%

NYSE:GEF

-1.0%

US Packaging

1.9%

US Market

GEF underperformed the Packaging industry which returned -0.6% over the past year.

GEF underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

GEFIndustryMarket
7 Day-2.9%0.8%0.8%
30 Day17.1%0.9%3.4%
90 Day13.8%1.3%2.1%
1 Year-31.3%-34.3%1.6%-1.0%4.2%1.9%
3 Year-13.4%-22.0%23.6%15.7%46.7%37.2%
5 Year2.8%-15.6%48.6%31.2%62.3%44.5%

Price Volatility Vs. Market

How volatile is Greif's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Greif undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Greif's share price is below the future cash flow value, and at a moderate discount (> 20%).

Greif's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Greif is good value based on earnings compared to the US Packaging industry average.

Greif is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Greif is good value based on expected growth next year.


Price Based on Value of Assets

Greif is good value based on assets compared to the US Packaging industry average.


Next Steps

Future Growth

How is Greif expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Greif's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Greif's earnings are expected to grow significantly at over 20% yearly.

Greif's revenue growth is positive but not above the United States of America market average.

Greif's earnings growth is expected to exceed the United States of America market average.

Greif's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Greif will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Greif performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Greif has delivered over 20% year on year earnings growth in the past 5 years.

Greif's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Greif's 1-year earnings growth is negative, it can't be compared to the US Packaging industry average.


Return on Equity

Greif has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Greif used its assets less efficiently than the US Packaging industry average last year based on Return on Assets.


Return on Capital Employed

Greif's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Greif's financial position?


Financial Position Analysis

Greif is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Greif's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Greif's level of debt (244.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (98.8% vs 244.6% today).

Debt is not well covered by operating cash flow (13.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

What is Greif's current dividend yield, its reliability and sustainability?

4.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Greif's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Greif's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of Greif's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Pete Watson (62yo)

3.8yrs

Tenure

US$10,187,093

Compensation

Mr. Peter G. Watson, also known as Pete, has been the Chief Executive Officer and President of Greif, Inc. since November 1, 2015. Mr. Watson served as the Chief Operating Officer at Greif, Inc. (Formerly, ...


CEO Compensation Analysis

Pete's remuneration is higher than average for companies of similar size in United States of America.

Pete's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

55yo

Average Age

The tenure for the Greif management team is about average.


Board Age and Tenure

13.6yrs

Average Tenure

66yo

Average Age

The average tenure for the Greif board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Greif individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$16,77512 Jul 19
Timothy Bergwall
EntityIndividual
Role
Senior Key Executive
Senior Vice President and Group President of Paper Packaging & Services and Soterra LLC
Shares500
Max PriceUS$33.55
BuyUS$123,87608 Jul 19
Lawrence Hilsheimer
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,668
Max PriceUS$33.97
BuyUS$38,96802 Jul 19
Mark Emkes
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,190
Max PriceUS$32.75
BuyUS$490,65002 Jul 19
Peter Watson
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceUS$32.71
BuyUS$174,95410 Jan 19
Hari Kumar
EntityIndividual
Shares4,501
Max PriceUS$38.87
BuyUS$108,33002 Jan 19
Ole Rosgaard
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Rigid Industrial Packaging & Services and Global Sustainability
Shares3,000
Max PriceUS$36.11
BuyUS$332,60028 Dec 18
Peter Watson
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$33.26

Ownership Breakdown


Management Team

  • Larry Hilsheimer (61yo)

    Executive VP & CFO

    • Tenure: 5.3yrs
    • Compensation: US$4.56m
  • Pete Watson (62yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$10.19m
  • Gary Martz (61yo)

    Executive VP

    • Tenure: 17.7yrs
    • Compensation: US$3.57m
  • Doug Lingrel (55yo)

    VP & Chief Administrative Officer

    • Tenure: 3.3yrs
  • David Lloyd (49yo)

    Chief Accounting Officer

    • Tenure: 5.4yrs
  • Tim Bergwall (54yo)

    Senior Vice President and Group President of Paper Packaging & Services and Soterra LLC

    • Tenure: 0.5yrs
  • Michael Cronin (61yo)

    Senior Vice President of Enterprise Strategy

    • Tenure: 4.3yrs
    • Compensation: US$2.54m
  • Ole Rosgaard (55yo)

    Senior Vice President of Rigid Industrial Packaging & Services and Global Sustainability

    • Tenure: 2.3yrs
    • Compensation: US$1.89m
  • Matt Eichmann

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 3.8yrs
  • Bala Sathyanarayanan (48yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.8yrs

Board Members

  • Bruce Edwards (64yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$237.50k
  • Mike Gasser (68yo)

    Chairman

    • Tenure: 25.7yrs
    • Compensation: US$366.25k
  • Pete Watson (62yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$10.19m
  • John Finn (72yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$227.50k
  • Vicki Avril (65yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$224.00k
  • Daniel Gunsett (70yo)

    Independent Director

    • Tenure: 23.7yrs
    • Compensation: US$247.00k
  • Judith Hook (66yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$239.00k
  • Mark Emkes (66yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$224.00k
  • John McNamara (54yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$222.50k

Company Information

Greif, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Greif, Inc.
  • Ticker: GEF
  • Exchange: NYSE
  • Founded: 1877
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: US$2.041b
  • Shares outstanding: 48.27m
  • Website: https://www.greif.com

Number of Employees


Location

  • Greif, Inc.
  • 425 Winter Road
  • Delaware
  • Ohio
  • 43015
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GEFNYSE (New York Stock Exchange)YesClass A Common StockUSUSDDec 1972
GR3DB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 1972
GEF.BNYSE (New York Stock Exchange)Class B Common StockUSUSDMar 1996

Biography

Greif, Inc. produces and sells industrial packaging products and services worldwide. It operates through four segments: Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 00:08
End of Day Share Price2019/09/17 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.