Greif Inc. Class A
Find Ratings ReportsGREIF INC's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. GREIF INC has weak liquidity. Currently, the Quick Ratio is 0.93 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.97% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 1205.8 | 1271.0 |
EBITDA ($mil) | 136.2 | 167.3 |
EBIT ($mil) | 75.8 | 112.2 |
Net Income ($mil) | 67.2 | 89.9 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 179.3 | 161.0 |
Total Assets ($mil) | 5969.1 | 5690.6 |
Total Debt ($mil) | 2625.4 | 2507.7 |
Equity ($mil) | 1992.5 | 1845.4 |
Profitability | Q1 FY24 | Q1 FY23 |
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Gross Profit Margin | 23.39 | 24.13 |
EBITDA Margin | 11.29 | 13.16 |
Operating Margin | 6.29 | 8.83 |
Sales Turnover | 0.86 | 1.06 |
Return on Assets | 5.63 | 8.01 |
Return on Equity | 16.89 | 24.73 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 1.57 | 1.67 |
Debt/Capital | 0.57 | 0.58 |
Interest Expense | 24.2 | 22.8 |
Interest Coverage | 3.13 | 4.92 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 47.12 | 47.54 |
Div / share | 0.52 | 0.5 |
EPS | 1.43 | 1.89 |
Book value / share | 42.28 | 38.82 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 152374.0 | 128972.0 |
BUY. GREIF INC's P/E ratio indicates a significant discount compared to an average of 21.79 for the Paper Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.50 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.21. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, GREIF INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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GEF 8.95 | Peers 21.79 | GEF 4.79 | Peers 10.09 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. GEF is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. GEF is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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GEF 12.33 | Peers 15.35 | GEF NM | Peers 1.39 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. GEF is trading at a valuation on par with its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. GEF's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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GEF 1.50 | Peers 15.21 | GEF -24.71 | Peers -42.40 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. GEF is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. GEF is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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GEF 0.58 | Peers 1.45 | GEF -14.91 | Peers -3.50 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. GEF is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. GEF significantly trails its peers on the basis of sales growth. |
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