Greif Class A (GEF) AI Stock Analysis

• Market Cap: $3.28B
• Dividend Yield: 3.98%
• Average Volume (3M): 229.77K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.80
• Revenue Growth: 5.89%
• EPS Growth: -23.91%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Packaging & Containers
• EPS (TTM): 1.19
• Shares Outstanding: 26,129,970
• 10 Day Avg. Volume: 185,085
• 30 Day Avg. Volume: 229,774
• PEG Ratio: -5.40
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.94
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 2.08
• 1Y Price Target: $72.00
• Price Target Upside: 7.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $78.00 ▲(16.40%Upside)

Greif Class A's solid financial performance, strategic divestiture, and positive earnings call outlook contribute to a favorable stock score. Despite challenges in some segments, the company's strategic focus on high-margin growth areas and cost optimization efforts bolster its investment appeal.

Positive Factors

Debt Reduction

The sale of timberland has attracted more buyer interest than initially expected, potentially fetching a higher price and contributing to debt reduction.

Financial Performance

GEF showed a strong performance in fiscal quarter two against a challenging macroeconomic environment, with shares demonstrating considerable strength since the report.

Strategic Initiatives

GEF is focused on shifting its portfolio to less cyclical verticals, which is seen as a strategic move for future stability.

Negative Factors

Demand Trends

Management has provided low-end guidance due to the continuation of sluggish demand trends and current price/cost factors.

Demand Weakness

Overall volumes are a bit soft because of continued housing- and auto-related demand weakness impacting domestic Metal.

End Market Challenges

Expect FQ2 results to reflect challenging macro conditions, particularly affecting GEF's industrial end markets.

Greif Class A Business Overview & Revenue Model

Company Description

Greif, 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 Money

Greif makes money primarily through the sale of its industrial packaging products and related services. Its revenue model is based on manufacturing and distributing a wide array of packaging solutions, including steel and plastic drums, IBCs, and paper-based packaging products. Key revenue streams for the company include direct sales to businesses across various industries requiring robust packaging solutions for transportation and storage of goods. Additionally, Greif benefits from strategic partnerships and long-term contracts with major corporations, which ensure a steady demand for its products. The company also generates income from its paper and recycling operations, which involve the production and sale of containerboard and corrugated products.

Greif Class A Financial Statement Overview

Summary

Greif Class A exhibits consistent revenue growth and efficient cash flow management. However, high leverage poses potential risks, and there's room for improvement in profitability margins by optimizing costs.

Income Statement

Greif Class A demonstrates stable revenue growth, with a 1.37% increase in TTM revenue compared to the previous year. The gross profit margin is healthy at 20.71%, while the net profit margin is moderate at 3.86%. Although the EBIT and EBITDA margins are satisfactory at 8.62% and 13.44% respectively, there's room for improvement in cost management to enhance profitability further.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.44, indicating significant leverage, which could pose risks in volatile markets. However, the return on equity is decent at 9.99%, and the equity ratio stands at 31.60%, reflecting a balanced approach to asset management. Strengthening equity and reducing debt would improve financial stability.

Cash Flow

Greif Class A shows a strong cash flow position with a free cash flow growth rate of 25.56% in the latest period. The operating cash flow to net income ratio is robust at 1.73, demonstrating efficient cash generation. The free cash flow to net income ratio is also solid at 1.00, suggesting good cash conversion from earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.45B	5.22B	6.35B	5.56B	4.51B
Gross Profit	1.07B	1.15B	1.29B	1.09B	914.70M
EBITDA	715.80M	824.50M	839.20M	845.70M	601.70M
Net Income	268.80M	359.20M	376.70M	390.70M	108.80M
Balance Sheet
Total Assets	6.65B	5.96B	5.46B	5.82B	5.51B
Cash, Cash Equivalents and Short-Term Investments	197.70M	180.90M	147.10M	124.60M	105.90M
Total Debt	3.07B	2.54B	2.17B	2.52B	2.80B
Total Liabilities	4.40B	3.85B	3.65B	4.22B	4.29B
Stockholders Equity	2.08B	1.95B	1.76B	1.51B	1.15B
Cash Flow
Free Cash Flow	169.50M	435.90M	474.50M	248.70M	317.90M
Operating Cash Flow	356.00M	649.50M	657.50M	396.00M	454.70M
Investing Cash Flow	-658.30M	-670.20M	-28.20M	46.80M	-25.20M
Financing Cash Flow	324.30M	69.70M	-531.00M	-422.90M	-405.30M

Greif Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEF, the sentiment is Positive. The current price of 67.01 is below the 20-day moving average (MA) of 67.02, above the 50-day MA of 62.50, and above the 200-day MA of 60.10, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 75.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEF.

Greif Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEF	74 Outperform	$3.28B	19.00	9.96%	3.98%	5.89%	-23.91%
SON	70 Outperform	$4.80B	30.97	3.97%	4.30%	0.92%	―
MYE	66 Neutral	$558.49M	54.95	3.69%	3.61%	3.92%	-73.64%
SEE	66 Neutral	$4.63B	15.21	43.40%	2.58%	-2.45%	-16.55%
OI	65 Neutral	$2.27B	―	-13.85%	―	-5.29%	18.22%
Sector *	63 Neutral	$17.10B	10.79	-8.01%	2.94%	1.62%	-25.73%
AMBP	52 Neutral	$2.32B	―	-69.06%	10.31%	8.39%	72.18%

Greif Class A Corporate Events

Greif Class A Divests Containerboard Business for $1.8 Billion

On July 1, 2025, Greif, Inc. announced the divestiture of its Containerboard Business for $1.8 billion, marking a significant step in its strategic transformation. This move is part of Greif’s ‘Build to Last’ strategy, aimed at sharpening its portfolio and enhancing capital efficiency. The divestiture includes the company’s Containerboard Mills, CorrChoice sheet feeder network, and a box plant in North Carolina, but excludes its URB network and converting facilities. The transaction is expected to close by the end of the fiscal year, with proceeds used to reduce debt and position the company for future growth in high-margin packaging solutions. This strategic shift is intended to reduce exposure to low-growth markets and focus on areas with greater stability and growth potential, ultimately aiming for $1 billion EBITDA and $500 million Free Cash Flow by 2027.

The most recent analyst rating on (GEF) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Greif Class A stock, see the GEF Stock Forecast page.

Greif Class A Sells Containerboard Business for $1.8B

On June 30, 2025, Greif, Inc. announced a definitive agreement to sell its Containerboard business, including Greif Containerboard Solutions, LLC and Box-Board Holding Corporation, to Packaging Corporation of America for $1.8 billion. This divestiture, which is expected to close by the end of fiscal year 2025, is part of Greif’s strategy to enhance its portfolio, improve capital utilization, and focus on growth priorities. The proceeds from the sale will be used to reduce debt, aiming for a leverage ratio below 2.0x, and will support strategic growth investments. This move is aligned with Greif’s ‘Build to Last’ strategy, aiming to deliver durable earnings and unlock value-creation opportunities.

The most recent analyst rating on (GEF) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Greif Class A stock, see the GEF Stock Forecast page.

Greif Class A Reports Strong Q2 2025 Financial Results

On June 5, 2025, Greif, Inc. reported its fiscal second quarter 2025 results, showcasing a 6.5% increase in net income and a 26.0% rise in adjusted EBITDA compared to the previous year. The company continues to make strategic progress, including the sale of its timberland business and cost optimization initiatives, positioning itself for future success and value creation.

The most recent analyst rating on (GEF) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Greif Class A stock, see the GEF Stock Forecast page.