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Greystone Logistics Inc (GLGI)
OTHER OTC:GLGI
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Greystone Logistics
(OTC:GLGI)
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Rating:49Neutral
Price Target:
$0.31
▼(-68.38% Downside)
Action:ReiteratedDate:01/29/26
The score is driven primarily by weakened TTM profitability and margin compression, partially offset by still-positive operating/free cash flow. Technicals are notably bearish with price far below key moving averages, while valuation is constrained by negative earnings. Earnings-call guidance provides some support via near-term contracted revenue and lender concessions, but the iGPS loss keeps near-term uncertainty elevated.
Positive Factors
Cash generation
Positive operating cash flow (~$6.4M) and FCF (~$3.7M) provide durable operational resilience after the iGPS loss. Sustainable cash generation supports working capital, service of existing debt, selective reinvestment, and reduces immediate refinancing pressure while management rebuilds revenue.
Installed manufacturing capacity
A substantial installed asset base (~$60M) with ~$10M of recent equipment positions the company to scale without large near-term capex. Excess capacity allows rapid fulfillment of new contracts, lowers marginal cost of incremental volume, and supports service expansion as demand recovers.
Customer pipeline & product innovation
A visible sales pipeline and product diversification (closed‑loop leasing, non‑pallet work) plus successful Walmart pilots and track‑and‑trace testing imply durable revenue channels. Diversifying customers and services reduces concentration risk and supports recurring program-based revenues.
Negative Factors
Loss of major customer (iGPS)
The sudden loss of a long‑term customer removed a steady recycled‑pallet stream (management cited ~300–400k pallets/year), materially reducing utilization and recurring revenue. Replacing this structural volume is multi-quarter work and leaves recovery dependent on new contract wins.
Profitability deterioration
Material margin compression and a TTM net loss signal structural earnings pressure. Lower gross and net margins reduce retained cash for reinvestment, weaken ROE, and make the business more sensitive to volume swings—prolonged margin weakness could impair long‑term competitiveness.
Leverage tied to underused equipment
Mid‑level leverage (~D/E ~1.0) combined with debt linked to largely unused equipment raises fixed obligations without matching revenue. This reduces financial flexibility and increases execution risk if replacement volumes lag, potentially stressing liquidity despite lender concessions.
Greystone Logistics (GLGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.73M
Dividend YieldN/A
Average Volume (3M)46.65K
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth-4.65%
EPS Growth-78.80%
CountryUS
Employees181
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.08
Shares Outstanding27,270,271
10 Day Avg. Volume27,893
30 Day Avg. Volume46,645
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)1.85
Price to Sales (P/S)0.64
P/FCF Ratio8.11
Enterprise Value/Market Cap2.72
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit3.85
Enterprise Value/Ebitda3.65
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Greystone Logistics Business Overview & Revenue Model
Company DescriptionGreystone Logistics (GLGI) is a leading manufacturer and distributor of plastic products, primarily focusing on the production of sustainable, high-quality plastic pallets and containers. Operating in various sectors including logistics, agriculture, and retail, GLGI aims to provide innovative solutions that cater to the growing demand for environmentally friendly and cost-effective product offerings. The company emphasizes its commitment to resource efficiency and sustainability, thereby positioning itself as a key player in the circular economy.
How the Company Makes MoneyGreystone Logistics generates revenue primarily through the manufacturing and sale of its plastic pallets and containers. The company has established multiple revenue streams, including direct sales to end-users, distribution partnerships, and contracts with large retailers and logistics companies that require durable and reusable shipping solutions. Additionally, GLGI benefits from its focus on sustainability, which appeals to a growing market of environmentally conscious businesses. The company's strategic partnerships with various industries enhance its market reach and contribute to its earnings, while ongoing investments in production technology help to streamline operations and reduce costs, further boosting profitability.
Greystone Logistics Earnings Call Summary
Earnings Call Date:Jan 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 20, 2026
Earnings Call Sentiment Neutral
The call described a material negative event — the abrupt loss of long-time customer iGPS — that led to meaningful revenue disruption and the immediate layoff of ~140 employees, creating near-term uncertainty and unutilized equipment-related debt. Offsetting these negatives were several concrete mitigants and growth opportunities: an 8-month, 18M-pound resin processing contract starting immediately; promising Walmart trials and cellular track-and-trace technology with multi-year battery life; lender concessions to interest-only payments for 2026; a sizable installed equipment base (~$60M) and ~$10M of new capacity; and a visible sales pipeline (Toyota, Berry, Southwire) and product diversification. Management is optimistic about recovery within several quarters but acknowledges short-term financial and operational headwinds.Q2-2026 Updates
Positive Updates
Short-term contract secured for resin processing
Signed an 8-month contract to grind/granulate ~18 million pounds of plastic starting next week; will begin contributing revenue immediately after start.
Walmart traction and successful cellular-tracking trials
Walmart pallet design manufactured and delivered in December; successful testing at Mira Loma/Chicago import facilities; company cited ~ $30 million in revenue from Walmart over the past 5–6 years. Cellular track-and-trace tech (battery life ~7 years) being piloted, enabling location and temperature monitoring and opening closed-loop opportunities.
Bank support and near-term cashflow relief
Lender (IBC) agreed to interest-only payments for calendar 2026, providing significant cashflow relief (previous principal+interest payments were about $250,000/month); management expects revolver renewal to be completed.
Installed capacity and equipment investments
Company has substantial manufacturing capacity: ~ $60 million of equipment in place, including ~$10 million of recently installed equipment (largely unused), positioning Greystone to scale production as demand returns.
Pipeline of new customers and product diversification
Sales pipeline includes purchase orders / opportunities with Toyota (extruded pallets), discussions with Berry Plastics and Southwire, distributors committed to support, and expansion into non-pallet plastic products and outsourcing work — management expects to leverage excess capacity.
Management commitment and operational strengths
CEO Warren Kruger owns 8,884,354 shares and emphasized commitment to the business; management describes a lean organization with experienced operations and strong plant leadership, and expects to be back on track within ~6 months.
Negative Updates
Abrupt loss of long-term customer (iGPS)
An 11-year relationship with major customer iGPS ended abruptly, and the related revenue stream stopped immediately. Management called it a significant exogenous event that materially reduced sales.
Significant workforce reduction and operational impact
Laid off ~140 employees toward the end of November; current headcount reported in the '80s, down from as high as ~250 previously. Layoff-related costs will be reflected in the first half of the corporate year.
Near-term revenue and growth uncertainty
Loss of iGPS recycling volume (management noted recycling ~300k–400k pallets/year for iGPS and cited up to 800k pallets removed from the system annually) will slow growth; management expects it will take a couple of quarters to add meaningful revenue and about six months to get 'back on track.'
Unutilized equipment-related debt and short-term financial strain
Much of the company's debt is tied to new equipment (~$10 million recently installed) that has not been fully leveraged; short-term cash pressure prompted borrowing adjustments and may limit flexibility until revenue recovers.
Market reaction and share-price weakness
Management noted a recent significant sell-off (example cited ~335,000 shares traded and share price decline) following the iGPS announcement, reflecting investor concern and valuation pressure.
Company Guidance
Management gave near‑term, metric‑driven guidance: an 8‑month contract beginning next week to grind/granulate ~18 million pounds of plastic will start generating revenue shortly; they laid off ~140 people in late November (current headcount now in the 80s, down from a peak near 250); the CEO holds 8,884,354 shares; the company has ~$10M of brand‑new equipment (part of roughly $60M of total equipment investment) largely unleveraged; bank loan payments of about $250K/month have been converted to interest‑only for calendar 2026 and the revolver extension is expected to be renewed; management expects to add meaningful revenue over a couple quarters and be “back on track” within ~6 months, is testing cellular track‑and‑trace pallets (battery life ~7 years) with Walmart (a ~5M sq ft import facility where Greystone delivered roughly $30M of revenue over the last 5–6 years), and plans to replace iGPS volume (they historically recycled ~300–400K pallets/year for iGPS, with industry displacement cited as ~800K pallets/year) by expanding closed‑loop leasing and recycling programs.Greystone Logistics Financial Statement Overview
Summary
TTM fundamentals weakened materially: revenue fell ~7.9%, gross margin compressed (~12.1%), and net income turned negative (~-1.9% margin) versus profitable FY2024–FY2025. Balance sheet leverage is moderate (debt-to-equity ~1.0) with reduced equity and negative ROE in TTM, but operating cash flow (~$6.4M) and free cash flow (~$3.7M) remain positive, providing near-term resilience despite volatility and a sharp FCF decline (~-48.6%).Income Statement
Profitability has weakened materially into TTM (Trailing-Twelve-Months): revenue fell ~7.9% and net income turned negative (about -1.9% net margin), versus solid profitability in FY2024–FY2025 (net margins ~8.1% and ~4.1%). Gross margin also compressed in TTM (~12.1%) from prior-year levels (~16.4% in FY2025 and ~19.0% in FY2024), pointing to pricing/cost pressure. A positive offset is that EBITDA margin remains relatively healthy in TTM (~12.8%), but the step-down from recent years signals a clear earnings reset that needs stabilization.42
Neutral
Balance Sheet
Leverage looks manageable but not light: TTM debt is ~$15.9M against ~$16.6M of equity (debt-to-equity ~1.0), improved from the more leveraged periods earlier in the series (e.g., ~2.0 in FY2021). However, equity has declined from FY2024–FY2025 levels, and return on equity is negative in TTM, reflecting the recent loss. Asset base remains substantial (~$40.4M total assets), but the combination of mid-level leverage and weakening profitability reduces balance-sheet flexibility versus prior years.55
Neutral
Cash Flow
Cash generation is the bright spot in TTM (Trailing-Twelve-Months): operating cash flow is positive (~$6.4M) and free cash flow is also positive (~$3.7M), showing the business is still generating cash despite the net loss. That said, free cash flow dropped sharply versus the prior annual period (about -48.6% growth), and the history is choppy (including negative free cash flow in FY2023). Overall, current cash flow supports resilience, but volatility and the recent decline are key watch items.62
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | May 2023 | May 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.78M | 57.87M | 61.78M | 60.76M | 74.17M | 64.93M |
| Gross Profit | 6.16M | 9.48M | 11.72M | 9.33M | 7.77M | 11.46M |
| EBITDA | 6.50M | 10.25M | 13.08M | 15.23M | 11.28M | 12.05M |
| Net Income | -942.85K | 2.35M | 5.03M | 6.34M | 4.27M | 3.35M |
Balance Sheet | ||||||
| Total Assets | 40.39M | 45.97M | 52.26M | 49.53M | 45.75M | 43.73M |
| Cash, Cash Equivalents and Short-Term Investments | 919.92K | 1.55M | 5.80M | 695.95K | 3.14M | 4.39M |
| Total Debt | 15.91M | 16.26M | 18.92M | 22.59M | 15.69M | 19.91M |
| Total Liabilities | 23.80M | 26.10M | 28.28M | 29.99M | 30.66M | 32.48M |
| Stockholders Equity | 16.59M | 19.88M | 23.98M | 19.54M | 13.70M | 10.02M |
Cash Flow | ||||||
| Free Cash Flow | 3.72M | 4.53M | 9.59M | -5.31M | 506.84K | 12.28M |
| Operating Cash Flow | 6.39M | 10.29M | 12.39M | 3.87M | 6.64M | 15.18M |
| Investing Cash Flow | -2.62M | -5.70M | -2.80M | -9.13M | -6.08M | -2.91M |
| Financing Cash Flow | -7.74M | -8.84M | -4.49M | 2.81M | -1.80M | -9.02M |
Greystone Logistics Technical Analysis
Negative
0.99
Price Trends
0.46
Negative
0.66
Negative
0.96
Negative
Market Momentum
-0.04
Negative
39.45
Neutral
71.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLGI, the sentiment is Negative. The current price of 0.99 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.46, and above the 200-day MA of 0.96, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 71.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLGI.
Greystone Logistics Risk Analysis
Greystone Logistics disclosed 23 risk factors in its most recent earnings report. Greystone Logistics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Greystone Logistics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $166.52M | 20.95 | 5.32% | ― | -16.59% | -47.02% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $68.03M | 37.00 | 5.08% | ― | 0.18% | -54.25% | |
57 Neutral | $85.33M | -273.59 | 0.02% | 1.33% | -0.97% | -99.67% | |
56 Neutral | $63.32M | -23.17 | ― | ― | 11013.00% | 39.85% | |
49 Neutral | $8.73M | -7.42 | 4.28% | ― | -4.65% | -78.80% | |
43 Neutral | $8.02M | -0.12 | -43.37% | ― | 61.85% | 49.02% |
* Basic Materials Sector Average
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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.