GREIF, INC (GEF) Stock Analysis
GREIF, INC (GEF) Stock Analysis
Overall Grade: F (Concerning)
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GREIF, INC faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 5.8% | Healthy cash flow |
| Debt/Equity | 0.3x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is GREIF, INC's Profitability and ROIC?
GREIF, INC's return on invested capital of N/A is below the typical cost of capital. Gross margin of 21.4% with operating margin at 21.4% reflects the company's moderate market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below cost of capital |
| Gross Margin | 21.4% | Adequate | Competitive pricing environment |
| Operating Margin | 21.4% | Excellent | Efficient operations |
How Strong is GREIF, INC's Cash Flow Quality?
GREIF, INC generated $278.9M in free cash flow over the trailing twelve months, representing a 5.8% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 5.8% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $278.9M | Good | Positive cash generation |
| OCF/Net Income | 0.9x | Good | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is GREIF, INC's Financial Health?
GREIF, INC's debt-to-equity ratio of 0.3x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.3x | Good | Conservative capital structure |
| Net Cash Position | $-700.5M | Adequate | Net debt position |
Is GREIF, INC Stock Overvalued or Undervalued?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| EV/Sales | 0.0x | Excellent | Attractive revenue multiple |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 5.8% | Top 50% | 1.1x above |
| Gross Margin | 21.4% | Bottom 50% | 0.6x below |
| Operating Margin | 21.4% | Top 25% | 2.6x above |
Rating Thresholds
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 5.8% (Adequate - Top 50% of sector (median: 5.4%))
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 21.4% (Adequate - Bottom 50% of sector (median: 33.4%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 32.1% (Good)
Frequently Asked Questions
Q: What is GREIF, INC's Return on Invested Capital (ROIC)?
GREIF, INC (GEF) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 8.0%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is GREIF, INC's Free Cash Flow Margin?
GREIF, INC (GEF) has a free cash flow margin of 5.8%, generating $278.9 million in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is GREIF, INC stock overvalued or undervalued?
GREIF, INC (GEF) The EV/Sales multiple is 0.0x.
Q: What is GREIF, INC's revenue and earnings growth?
GREIF, INC (GEF) declined revenue by 16.9% year-over-year. Net income grew by 31.7% year-over-year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does GREIF, INC compare to competitors in Industrials?
Compared to other companies in Industrials, GREIF, INC (GEF) shows: ROIC of N/A is below the sector median of 8.0% (NaNx median). FCF margin of 5.8% exceeds the sector median of 5.4% (Top 48% of sector). Gross margin at 21.4% is 11.9 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with GREIF, INC?
GREIF, INC (GEF) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-08-28. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.