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Greif Class B (GEF.B)
NYSE:GEF.B
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Greif Class B
(NYSE:GEF.B)
Rating:75Outperform
Price Target:
$79.00
▲(11.47%Upside)
Greif Class B (GEF.B) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.29B
Dividend Yield4.57%
Average Volume (3M)14.63K
Price to Earnings (P/E)20.2
Beta (1Y)0.84
Revenue Growth5.89%
EPS Growth-22.99%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength64
IndustryPackaging & Containers
Share Statistics
EPS (TTM)1.19
Shares Outstanding21,331,127
10 Day Avg. Volume10,800
30 Day Avg. Volume14,635
Financial Highlights & Ratios
PEG Ratio12.46
Price to Book (P/B)1.77
Price to Sales (P/S)0.00
P/FCF Ratio14.85
Enterprise Value/Market Cap1.82
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit5.23
Enterprise Value/Ebitda2.08
Forecast
1Y Price Target
$76.00Price Target Upside7.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Greif Class B Business Overview & Revenue Model
Company DescriptionGreif, Inc. engages in the production and sale of industrial packaging products and services worldwide. It operates in three segments: Global Industrial Packaging; Paper Packaging & Services; and Land Management. The Global Industrial Packaging segment produces and sells industrial packaging products, including steel, fiber, and plastic drums; rigid and flexible intermediate bulk containers; closure systems for industrial packaging products; transit protection products; water bottles, and remanufactured and reconditioned industrial containers; and various services, such as container life cycle management, filling, logistics, warehousing, and other packaging services to chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agriculture, pharmaceuticals, mineral product, and other industries. This segment also offers flexible intermediate bulk containers and related services to the agriculture, construction, and food industries. The Paper Packaging & Services segment produces and sells containerboards, corrugated sheets and containers, and other corrugated and specialty products to customers in the packaging, automotive, food, and building products markets; and produces and sells coated and uncoated recycled paperboard, and recycled fiber. 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 Land Management segment engages in harvesting and regeneration of timber properties; and sale of timberland and special use properties. As of October 31, 2021, this segment owned approximately 175,000 acres of timber properties 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.
How the Company Makes MoneyGreif, Inc. generates revenue through the sale of its diverse range of industrial packaging products and services. The Global Industrial Packaging segment is a key revenue stream, offering comprehensive packaging solutions to various industries such as chemicals, food and beverage, and pharmaceuticals. The Paper Packaging & Services segment contributes significantly to the company's income by delivering containerboard and other corrugated products. Greif maintains strategic partnerships and long-term contracts with major industrial and commercial clients, ensuring stable and recurring revenue. Additionally, the company focuses on innovation and efficiency to enhance its product offerings and operational performance, further driving profitability.
Greif Class B Earnings Call Summary
Earnings Call Date:Jun 04, 2025
(Q2-2025)
| % Change Since: 21.56%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in guidance, employee engagement, cost optimization, and polymer segment performance. However, challenges remain in the metals segment, fiber solutions, and North American markets. The strategic closure of the L.A. paperboard mill also marked a lowlight. Overall, the positive aspects slightly outweigh the negative, indicating strong operational progress despite market challenges.Q2-2025 Updates
Positive Updates
Increased Full Year Guidance
Greif raised its full year guidance due to strong performance, reflecting confidence in their business strategy.
Accolades and Employee Engagement
Greif was named one of Newsweek's Top 100 Most Loved Workplaces for the third year in a row and received Gallup's Exceptional Workplace Award. The company achieved an 86th percentile colleague engagement score with a 94% participation rate.
Cost Optimization Progress
The company has achieved $10 million in run rate savings towards the full year commitment of $15 million to $25 million and a total of $100 million compared to the 2024 baseline.
Strong Performance in Polymers
Polymer Solutions volumes improved year-over-year, with small containers and IBC both up, driven by growth in agrochemicals, food and beverage, pharma, and flavors and fragrances.
Adjusted EBITDA and Margin Improvement
Adjusted EBITDA increased by $44 million year-over-year to $214 million, with a margin increase of 300 basis points to 15.4%.
Strong Cash Flow Generation
Generated $110 million of adjusted free cash flow, up from $59 million in Q2 of '24.
Negative Updates
Challenges in Metals Segment
Sales were lower year-over-year due to softness in the industrial end markets, particularly in North America, impacting the metals segment.
Fiber Solutions Volume Decline
Fiber Solutions volumes were down slightly compared to last year, despite improvement through the quarter.
Impact of L.A. Paperboard Mill Closure
The strategic decision to close the L.A. paperboard mill removed 72,000 tons of capacity, which, while improving long-term performance, was a difficult decision.
Sustained Softness in North America
Softness persisted in North America due to greater exposure to industrial end markets, impacting overall demand.
Company Guidance
During the Greif Second Quarter 2025 Earnings Call, the company raised its full-year guidance, reflecting a strong belief in its strategic direction despite ongoing macroeconomic challenges. The company achieved $214 million in adjusted EBITDA for the quarter, a $44 million increase year-over-year, and improved its adjusted EBITDA margin by 300 basis points to 15.4%. Adjusted free cash flow was reported at $110 million, up from $59 million in Q2 2024, while adjusted EPS rose to $1.19 from $0.83. Greif also updated its fiscal 2025 guidance, increasing the low end of adjusted EBITDA to at least $725 million and adjusted free cash flow to $280 million, underpinned by better price/cost performance and improved working capital management. Key highlights include $10 million in run rate savings achieved towards a $15 million to $25 million full-year cost optimization goal and strong performance in the Polymer Solutions segment with a $19 million increase in adjusted EBITDA. The company emphasized its commitment to achieving $1 billion in EBITDA and $500 million in free cash flow by 2027.Greif Class B Financial Statement Overview
Summary
Greif Class B demonstrates strong financial health with consistent revenue growth and profitability, despite slight declines in net income. The balance sheet shows moderate leverage, and cash flows are robust, supporting ongoing operations and potential investments.Income Statement
Greif Class B shows solid financial performance in the TTM with a gross profit margin of 20.72% and a stable EBIT margin of 8.62%. However, net profit margin decreased to 3.86% from the previous period. Revenue growth is modest at 1.37% compared to last year. The company maintains a strong EBITDA margin of 13.44%, demonstrating operational efficiency.78
Positive
Balance Sheet
The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 1.44, indicating moderate leverage. With a return on equity of 9.99% in the TTM, the company is generating reasonable returns for shareholders. An equity ratio of 31.60% supports financial stability, though slightly impacted by increased liabilities.72
Positive
Cash Flow
The company's free cash flow growth of 25.52% is a positive indicator, and the operating cash flow to net income ratio of 1.73 demonstrates strong cash generation from operations. The free cash flow to net income ratio stands at 1.00, indicating efficient cash management.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.52B | 5.45B | 5.22B | 6.35B | 5.56B | 4.51B |
| Gross Profit | 1.14B | 1.07B | 1.15B | 1.29B | 1.09B | 914.70M |
| EBITDA | 742.50M | 715.80M | 824.50M | 839.20M | 845.70M | 601.70M |
| Net Income | 213.10M | 268.80M | 359.20M | 376.70M | 390.70M | 108.80M |
Balance Sheet | ||||||
| Total Assets | 6.75B | 6.65B | 5.96B | 5.46B | 5.82B | 5.51B |
| Cash, Cash Equivalents and Short-Term Investments | 252.70M | 197.70M | 180.90M | 147.10M | 124.60M | 105.90M |
| Total Debt | 3.07B | 3.07B | 2.54B | 2.17B | 2.52B | 2.80B |
| Total Liabilities | 4.45B | 4.40B | 3.85B | 3.65B | 4.22B | 4.29B |
| Stockholders Equity | 2.13B | 2.08B | 1.95B | 1.76B | 1.51B | 1.15B |
Cash Flow | ||||||
| Free Cash Flow | 212.80M | 169.50M | 435.90M | 474.50M | 248.70M | 317.90M |
| Operating Cash Flow | 369.60M | 356.00M | 649.50M | 657.50M | 396.00M | 454.70M |
| Investing Cash Flow | -27.40M | -658.30M | -670.20M | -28.20M | 46.80M | -25.20M |
| Financing Cash Flow | -314.30M | 324.30M | 69.70M | -531.00M | -422.90M | -405.30M |
Greif Class B Technical Analysis
Positive
70.87
Price Trends
63.41
Positive
60.51
Positive
63.47
Positive
Market Momentum
2.62
Positive
64.35
Neutral
63.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEF.B, the sentiment is Positive. The current price of 70.87 is above the 20-day moving average (MA) of 69.36, above the 50-day MA of 63.41, and above the 200-day MA of 63.47, indicating a bullish trend. The MACD of 2.62 indicates Positive momentum. The RSI at 64.35 is Neutral, neither overbought nor oversold. The STOCH value of 63.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEF.B.
Greif Class B Risk Analysis
Greif Class B disclosed 25 risk factors in its most recent earnings report. Greif Class B reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Greif Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.29B | 20.20 | 9.96% | 4.57% | 5.89% | -22.99% | |
74 Outperform | $3.29B | 19.02 | 9.96% | 3.23% | 5.89% | -23.91% | |
71 Outperform | $4.64B | 30.55 | 5.54% | 4.58% | -4.58% | -61.14% | |
70 Outperform | $2.83B | ― | -69.06% | 8.44% | 4.42% | 70.21% | |
68 Neutral | $4.81B | 15.79 | 43.40% | 2.50% | -2.45% | -16.55% | |
65 Neutral | $2.40B | ― | -13.85% | ― | -5.29% | 18.22% | |
63 Neutral | $16.82B | 11.32 | -7.02% | 2.91% | 1.72% | -24.85% |
* Consumer Cyclical Sector Average
Performance Comparison
GEF.B
Greif Class B
70.87
8.53
13.68%
GEF
Greif Class A
66.90
8.72
14.99%
OI
O-I Glass
15.41
4.13
36.61%
SEE
Sealed Air
32.01
-2.72
-7.83%
SON
Sonoco Products
46.27
-2.13
-4.40%
AMBP
Ardagh Metal Packaging
4.74
1.47
44.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.