NYSE:GEF

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: GEF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.1%

GEF

-7.3%

US Packaging

-7.4%

US Market


1 Year Return

-8.4%

GEF

3.1%

US Packaging

10.5%

US Market

Return vs Industry: GEF underperformed the US Packaging industry which returned 3.1% over the past year.

Return vs Market: GEF underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

GEFIndustryMarket
7 Day-12.1%-7.3%-7.4%
30 Day-13.9%-5.8%-3.6%
90 Day-14.6%-6.0%-0.6%
1 Year-4.2%-8.4%5.6%3.1%12.8%10.5%
3 Year-22.9%-30.8%13.2%5.7%37.4%28.6%
5 Year18.8%-2.5%24.7%9.3%61.3%43.6%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GEF ($37.42) is trading below our estimate of fair value ($86.63)

Significantly Below Fair Value: GEF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GEF is good value based on its PE Ratio (10.5x) compared to the Packaging industry average (18.7x).

PE vs Market: GEF is good value based on its PE Ratio (10.5x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: GEF is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: GEF is good value based on its PB Ratio (1.6x) compared to the US Packaging industry average (3.1x).


Next Steps

Future Growth

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

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GEF's forecast earnings growth (14.5% per year) is above the savings rate (1.7%).

Earnings vs Market: GEF's earnings (14.5% per year) are forecast to grow faster than the US market (13.2% per year).

High Growth Earnings: GEF's earnings are forecast to grow, but not significantly.

Revenue vs Market: GEF's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GEF's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GEF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Greif performed over the past 5 years?

23.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GEF has a large one-off loss of $79.6M impacting its October 31 2019 financial results.

Growing Profit Margin: GEF's current net profit margins (3.7%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: GEF's earnings have grown significantly by 23.8% per year over the past 5 years.

Accelerating Growth: GEF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GEF had negative earnings growth (-18.3%) over the past year, making it difficult to compare to the Packaging industry average (-6.5%).


Return on Equity

High ROE: GEF's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is Greif's financial position?


Financial Position Analysis

Short Term Liabilities: GEF's short term assets ($1.2B) exceed its short term liabilities ($825.4M).

Long Term Liabilities: GEF's short term assets ($1.2B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: GEF's debt to equity ratio (231.2%) is considered high.

Reducing Debt: GEF's debt to equity ratio has increased from 90.9% to 231.2% over the past 5 years.

Debt Coverage: GEF's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: GEF's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: GEF has a high level of physical assets or inventory.

Debt Coverage by Assets: GEF's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

4.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GEF's dividend (4.7%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: GEF's dividend (4.7%) is in the top 25% of dividend payers in the US market (3.9%)


Stability and Growth of Payments

Stable Dividend: GEF's dividends per share have been stable in the past 10 years.

Growing Dividend: GEF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.6%), GEF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GEF's dividends in 3 years are forecast to be well covered by earnings (40% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Pete Watson (62yo)

4.3yrs

Tenure

US$7,974,525

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

Compensation vs Market: Pete's total compensation ($USD7.97M) is above average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Pete's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Watson
President4.3yrsUS$7.97m0.30% $5.7m
Lawrence Hilsheimer
Executive VP & CFO5.8yrsUS$3.37m0.29% $5.6m
Gary Martz
Executive VP18.1yrsUS$3.44m0.15% $2.8m
Michael Cronin
Senior VP of Enterprise Strategy4.8yrsUS$1.97m0.043% $813.8k
Ole Rosgaard
Senior Vice President of Rigid Industrial Packaging & Services and Global Sustainability2.7yrsUS$1.64m0.044% $839.2k
David Lloyd
Chief Accounting Officer5.8yrsno data0.021% $401.4k
Douglas Lingrel
VP & Chief Administrative Officer3.7yrsno data0.040% $759.4k
Matt Eichmann
Vice President of Investor Relations & Corporate Communications4.3yrsno datano data
Bala Sathyanarayanan
Senior VP & Chief Human Resources Officer1.3yrsno data0.019% $353.5k
Timothy Bergwall
Senior VP and President of Paper Packaging & Services0.9yrsno data0.042% $796.6k

4.3yrs

Average Tenure

55yo

Average Age

Experienced Management: GEF's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Watson
President4.3yrsUS$7.97m0.30% $5.7m
Bruce Edwards
Independent Director14yrsUS$238.50k0.089% $1.7m
Michael Gasser
Independent Chairman26.1yrsUS$367.37k0.41% $7.9m
John Finn
Independent Director12.3yrsUS$228.50k0.061% $1.2m
Vicki Avril-Groves
Independent Director15.5yrsUS$235.00k0.070% $1.3m
Daniel Gunsett
Independent Director24.1yrsUS$250.80k0.067% $1.3m
Judith Hook
Independent Director16.7yrsUS$240.00k5.23% $99.1m
Mark Emkes
Independent Director12yrsUS$225.00k0.065% $1.2m
John McNamara
Independent Director10.5yrsUS$229.10k8.35% $158.2m

14.0yrs

Average Tenure

66yo

Average Age

Experienced Board: GEF's board of directors are seasoned and experienced ( 14 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GEF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.895b
  • 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 & Services; and Land Management. The Rigid Industrial Packaging & Services segment offers rigid industrial packaging products, including steel, fiber, and plastic drums; rigid intermediate bulk containers; closure systems for industrial packaging products; transit protection products; water bottles, and remanufactured and reconditioned industrial containers; and services, such as container life cycle management, filling, logistics, warehousing, and other packaging services. This segment sells its products to customers in the chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agricultural, pharmaceutical and mineral products, and others industries. The Paper Packaging & Services segment provides containerboards, corrugated sheets, corrugated containers, and other corrugated products to customers in the packaging, automotive, food, and building products industries. This segment’s corrugated container products are used to ship various products, such as home appliances, small machinery, grocery products, automotive components, books, and furniture, as well as various other applications. The Flexible Products & Services segment offers flexible intermediate bulk containers comprising polypropylene-based woven fabric, as well as related services to the agricultural, food, and other industries. The Land Management segment engages in harvesting and regeneration of timber properties; and sale of timberland and special use land. As of October 31, 2019, this segment owned approximately 251,000 acres of timber property in the southeastern United States. The company was formerly known as Greif Bros. Corporation and changed its name to Greif, Inc. in 2001. Greif, Inc. was founded in 1877 and is headquartered in Delaware, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:16
End of Day Share Price2020/02/26 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.