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Greif Class B (GEF.B)
NYSE:GEF.B
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Greif Class B
(NYSE:GEF.B)
65Neutral
Greif Class B (GEF.B) vs. S&P 500 (SPY)
Market Cap
$2.70B
Dividend Yield5.35%
Average Volume (3M)16.25K
Price to Earnings (P/E)16.9
Beta (1Y)0.94
Revenue Growth6.88%
EPS Growth-32.84%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength52
IndustryPackaging & Containers
Share Statistics
EPS (TTM)3.50
Shares Outstanding21,331,127
10 Day Avg. Volume20,853
30 Day Avg. Volume16,252
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.47
Price to Cash Flow (P/CF)-21.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Greif Class B Business Overview & Revenue Model
Company DescriptionGreif, Inc. Class B (GEF.B) is a global leader in industrial packaging products and services. The company operates in multiple sectors, including steel, plastic, and fiber packaging, providing comprehensive solutions for a wide array of industries such as food, agriculture, pharmaceutical, and chemical. Greif is known for its commitment to sustainability and innovation, offering a diverse portfolio of products including steel drums, plastic drums, intermediate bulk containers, containerboard, and other protective packaging solutions.
How the Company Makes MoneyGreif makes money primarily through the manufacturing and sale of industrial packaging products. Its revenue model is based on producing and distributing a wide range of packaging materials to various industries globally. Key revenue streams include the sale of rigid industrial packaging like steel and plastic drums, flexible products such as bulk bags, and paper-based packaging like containerboard and corrugated sheets. The company also generates income from services related to the collection and recycling of industrial packaging. Strategic partnerships and long-term contracts with major companies in sectors such as food and beverage, chemicals, and pharmaceuticals significantly contribute to its earnings. Additionally, Greif leverages its global presence to optimize supply chains and cater to a diverse customer base, ensuring steady revenue flow.
Greif Class B Financial Statement Overview
Summary
Greif Class B demonstrates solid operational efficiency and effective cash flow management, with a robust gross profit margin and strong operating cash flow. However, concerns arise from declining free cash flow growth, moderate leverage levels, and lower net profit margins, indicating room for improvement in financial stability and profitability.Income Statement
Greif Class B shows a robust gross profit margin of 19.9% for TTM, supported by consistent revenue growth, albeit at a slower rate, with a TTM revenue growth rate of 1.1%. The net profit margin is lower at 3.7%, indicating potential cost management issues affecting bottom-line profits. EBITDA margin stands at 11.9%, reflecting solid operational efficiency. However, EBIT margin has decreased slightly over time, which may require attention.72
Positive
Balance Sheet
The company maintains a debt-to-equity ratio of 1.39, indicating a moderate level of leverage. Return on equity (ROE) is relatively low at 10.0% in the TTM, suggesting limited return for shareholders. The equity ratio is 31.5%, reflecting a balanced asset financing structure, but there is room for improvement in reducing debt levels to enhance financial stability.65
Positive
Cash Flow
Free cash flow growth rate is negative, reflecting a decline in free cash flow compared to previous periods, yet the company maintains a strong operating cash flow to net income ratio of 1.58. This indicates effective cash generation from operations, though the free cash flow to net income ratio is less favorable at 0.75. Overall, cash flow management appears strong, albeit with challenges in sustaining free cash flow growth.77
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.51B | 5.45B | 5.22B | 6.35B | 5.56B | 4.51B | Gross Profit |
| 1.09B | 1.07B | 1.15B | 1.29B | 1.09B | 914.70M | EBIT |
| 460.40M | 464.60M | 605.50M | 621.20M | 585.20M | 304.90M | EBITDA |
| 657.10M | 464.60M | 824.50M | 839.20M | 845.70M | 601.70M | Net Income Common Stockholders |
| 203.50M | 262.10M | 359.20M | 376.70M | 390.70M | 108.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 89.40M | 197.70M | 180.90M | 147.10M | 124.60M | 105.90M | Total Assets |
| 2.83B | 6.65B | 5.96B | 5.46B | 5.82B | 5.51B | Total Debt |
| 941.60M | 3.03B | 2.54B | 2.17B | 2.52B | 2.80B | Net Debt |
| 852.20M | 2.83B | 2.36B | 2.03B | 2.39B | 2.69B | Total Liabilities |
| 1.76B | 4.40B | 3.85B | 3.65B | 4.22B | 4.29B | Stockholders Equity |
| 1.08B | 2.08B | 1.95B | 1.76B | 1.51B | 1.15B |
| Cash Flow | Free Cash Flow | ||||
| 153.60M | 169.50M | 435.90M | 474.50M | 248.70M | 317.90M | Operating Cash Flow |
| 320.70M | 356.00M | 649.50M | 657.50M | 396.00M | 454.70M | Investing Cash Flow |
| -623.70M | -658.30M | -670.20M | -28.20M | 46.80M | -25.20M | Financing Cash Flow |
| 350.70M | 324.30M | 69.70M | -531.00M | -422.90M | -405.30M |
Greif Class B Technical Analysis
Neutral
59.37
Price Trends
60.67
Negative
64.87
Negative
64.47
Negative
Market Momentum
-0.29
Negative
49.60
Neutral
68.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEF.B, the sentiment is Neutral. The current price of 59.37 is above the 20-day moving average (MA) of 58.55, below the 50-day MA of 60.67, and below the 200-day MA of 64.47, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 68.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GEF.B.
Greif Class B Risk Analysis
Greif Class B disclosed 24 risk factors in its most recent earnings report. Greif Class B reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Greif Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $17.78B | 22.17 | 19.03% | 2.52% | 7.45% | 5.26% | |
68 Neutral | $4.66B | 28.61 | 6.42% | 4.40% | -6.93% | -65.66% | |
67 Neutral | $4.21B | 15.66 | 45.91% | 2.77% | -1.75% | -21.15% | |
65 Neutral | $2.70B | 16.92 | 10.09% | 5.35% | 6.88% | -32.84% | |
59 Neutral | $12.17B | 11.04 | -1.10% | 3.77% | 1.26% | -19.70% | |
58 Neutral | $1.77B | ― | -7.89% | ― | -8.09% | -1.97% | |
43 Neutral | $14.70B | ― | 8.80% | 1.54% | -15.64% | -186.66% |
* Consumer Cyclical Sector Average
Performance Comparison
GEF.B
Greif Class B
59.37
-6.27
-9.55%
BALL
Ball
52.40
-13.47
-20.45%
OI
O-I Glass
11.64
-5.61
-32.52%
PKG
Packaging
199.93
15.87
8.62%
SEE
Sealed Air
29.05
-3.95
-11.97%
SON
Sonoco Products
47.93
-6.74
-12.33%
Greif Class B Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -4.38% | Next Earnings Date: Jun 4, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced sentiment with strategic initiatives underway to optimize costs and grow specific segments, such as polymers and integrated solutions. However, challenges persist with mill closures, exposure to a soft industrial economy, and weak demand in North America.Highlights
Strategic Cost Optimization
Greif has identified $5 million of savings on a run rate basis and reaffirms expectation to achieve at least $15 million to $25 million on a run rate basis by the end of the year as part of a $100 million cost optimization effort.
Positive EBITDA Growth
Adjusted EBITDA for the quarter was $145 million, an improvement of $7 million over the prior year quarter, demonstrating resilience despite challenging market conditions.
Polymer and Integrated Solutions Growth
Polymers were up 2.7%, driven by demand in the ag and food sectors, particularly in EMEA. Integrated solutions saw low double-digit growth in key product groups, including caps and closures and paints, linings, and adhesives.
Global Supply Chain Resilience
Greif's supply channels remain largely unaffected by tariffs due to a flexible and adaptable global supply chain, ensuring continued delivery of customer service and growth.
Lowlights
Mill Closures Impact
Planned closure of the A1 paperboard machine in Austell, Georgia, and containerboard and URB Flex machine in Pittsburgh, Massachusetts. The short-term impact includes an EBITDA headwind of $3 million in fiscal '25.
High Exposure to Soft Industrial Economy
Metals segment continues to be impacted by the soft industrial economy, particularly due to exposure to bulk chemicals, petrochemicals, and lubricant markets.
North America Demand Weakness
North America remains the most bearish region in terms of demand sentiment, impacting overall performance.
Company Guidance
During Greif's First Quarter 2025 Earnings Call, the company provided updated guidance, raising the low-end EBITDA forecast to $710 million and adjusted free cash flow guidance to $245 million for the fiscal year. This adjustment reflects a $27 million positive price-cost spread, driven primarily by a $40 per ton containerboard price increase and a revised OCC assumption. Additionally, the guidance incorporates $8 million in lower transport and manufacturing costs and $3 million from run-rate savings initiatives. The company also discussed a strategic decision to sell its timberland portfolio to reduce debt, enhancing financial flexibility. Despite challenging market conditions, Greif remains optimistic about its growth potential, focusing on end segments like agrochemicals, food, and pharma, while navigating current economic uncertainties with effective cost management.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.