Corporate Webpages Greif Corpporation
There has been a lot of consolidation in the paper, pulp and
container industries. Greif, Inc. (pronounced "GRIFE") is
somewhat in a separate niche because of its history making
barrels which gradually got converted into things like plastic
water bottles and similar containers among other specialized
things. Still, if we consider Greif part of a broad industry
group labeled "containers and packaging," just look at some of
the big names that have suddenly disappeared from listings
(largely because of mergers and acquisitions.) They include
names like Pactiv Corp., Smurfit-Stone (acquired by Rock-Tenn),
as well as spinoffs from Georgia Pacific and Weyerhauser.
That suggests the industry has been struggling, and Greif
earnings have been somewhat erratic causing some to wonder if
the over 3.0% dividend can be maintained (we think it will.)
Greif is actually a large $3 billion in sales Ohio-based company
which has a good slice of the container and plastic bottles
market both in the U.S. and in some foreign countries, where its
European products have a slightly different design to meet
standards there.
This company that started out making barrels, for which demand
greatly decreased, has learned to be innovative, especially with
respect to use of sustainable materials in making drums, and
barrel-like containers for the modern age. It continues to
invest in modernizing plants, and has had some plant closures
and layoffs in older ones.
Grief's acquisitions upon which much of its growth is based
remain pretty well focused on the container industry. These
acquisitions have maintained an eye on increasing business in
foreign countries, especially Europe.
We regard this as a relatively "safe" investment with a
reasonable dividend to attract buyers to the stock, especially
as a defensive play should there continue to be down markets.
The stock has already been pummeled to some extent by overall
market conditions, and analyst downgrades by those not seeing
earnings growing quite as fast as anticipated.
10-26-2011: Greif Corpporation (GEF): Focused on Containers
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
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Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Greif, Inc. (GEF ) Sector: Consumer Goods
425 Winter Road Industry: Packaging & Containers
Delaware, OH 43015 Exchange: NYSE
Greif, Inc. engages in the manufacture and sale of industrial packaging
products, and containerboard and corrugated products worldwide. The
company-Ęs Rigid Industrial Packaging and Services segment produces
industrial packaging products, including steel, fibre and plastic drums,
rigid intermediate bulk containers, transit protection products, water
bottles and reconditioned containers, and closure systems; and services,
such as container lifecycle management, blending, filling and other
packaging services, logistics, and warehousing. This segment sells its
products to customers in chemicals, paints and pigments, food and
beverage, petroleum, industrial coatings, agriculture, pharmaceutical, and
mineral industries. Its Flexible Products and Services segment provides
flexible intermediate bulk containers; and industrial and consumer
multiwall bag products, which are used to ship a range of industrial and
consumer products, such as seed, fertilizers, chemicals, concrete, flour,
sugar, feed, pet foods, popcorn, charcoal, and salt primarily for the
agricultural, chemical, building products, and food industries. The
company-Ęs Paper Packaging segment sells containerboards, corrugated
sheets, and other corrugated products to customers in industries, such as
home appliances, small machinery, grocery products, building products,
automotive components, books, and furniture. Its Land Management segment
involves in harvesting and regenerating timber properties. As of October
31, 2010, this segment owned approximately 267,150 acres of timber
property in the southeastern United States and approximately 24,700 acres
of timber property in Canada. 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.
Last Trade: 45.94 52-Week Range: 67.57 - 40.77
Trade Date: 10-25 Avg. Volume: 225,537 Shares
Index Membership: Employees: 12,250
Corporate Governance:
Audit (Low Concern), Board (Medium Concern), Compensation (Low
Concern), Shareholder Rights (Low Concern).
EPS: 4.89 Dividend Amount: $ 1.68 Yield: 3.70%
Ex-Dividend Date: Sep 16, 20 Mkt Cap: $ 2,180,000K
Payout Ratio: 43.00%
Last Split Factor (new for old): 2:1 Split Date: Apr 12, 20
Key Statistics:
Enterprise Value: $ 3,520,000K Revenue (ttm) : $ 4,110,000K
Gross Profit: $ 703,660K
Earnings before Income Tax, Depreciation and Amortization: $ 536,330K
Enterprise Value/Revenue (ttm): 0.86 Revenue per Share: $ 87.07
Enterprise Value/EBITDA (ttm): 6.56 Qtrly Rev Growth (y to y): 21.80%
P/E Ratio (fwd projected): 10.30 P/E Ratio (current): 9.40
P/E Growth Ratio (5 yr expected): 1.21 Operating Margin: 9.80%
Price/Sales Ratio: 0.54 Profit Margin: 5.64%
Price/Book Value: 1.61 Book Value: $ 28.82/sh.
Return on Assets: 6.97% Net Income Avl to Common: $ 231,820K
Return on Equity: 17.66% Diluted Earnings/Share: $ 4.89
Qrtly Earnings Growth (yoy): -4.60%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 109,090K Operating Cash Flow:$ 183,060K
Total Debt: $ 1,430,000K Lvgd Free Cash Flow:$ 35,250K
Total Debt/Equity: 97.06
Total Cash/Share: $ 2.31
Current Ratio: 1.58
Share Statistics: Stock Price History:
Shares Outstanding: 47,330K Stk 52-Week Change: -20.91%
Float: 29,630K S&P 500 52-Wk Chng: 5.78%
Sh. Short % of Float: 3.00% 50-Day Moving Avg: 46.06
Short Ratio: 2.30 200-Day Moving Avg: 57.66
% Held by Institutions: 85.70% Beta: 1.51
% Held by Insiders: 76.18%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Oct 11 Jan 12 Oct 11 Oct 12
Average Earnings Estimate 1.07 0.88 4.15 4.46
Average Revenue Estimate 0M 973M 4,230M 4,520M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 6.063 EPS Growth (Qrtly YoY): 2.256
PEG Ratio (ttm, 5 yr expected): 9.700 P/E Ratio (ttm): 10.315
Revenue Growth (Qrtly YoY): 5.105
Annual Income Statements: All numbers in thousands)
Period Ending Oct31,2010 Oct31,2009 Oct31,2008
Total Revenue 3,461,537 2,792,217 3,776,756
Cost of Revenue 2,757,875 2,292,573 3,083,985
Gross Profit 703,662 499,644 692,771
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 362,935 267,589 339,157
Non-Recurring Expenses 26,746 66,590 -16,672
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss 325,415 199,897 370,286
Income from Continuing Operations:
Total Other Income/Expenses Net 4,295 26,457 -8,751
Earnings Before Interest & Taxes 329,710 227,136 361,535
Interest Expense 65,787 53,593 49,628
Income Before Taxes 263,923 173,543 311,907
Income Tax Expense 40,571 24,061 73,610
Minority Interest -5,472 -3,186 0
Net Income from Continuing Op.s 221,419 145,078 234,354
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 209,985 110,646 234,354
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 209,985 110,646 234,354
Quarterly Income Statements: All numbers in thousands)
Period Ending Jul31,2011 Apr30,2011 Jan31,2011 Oct31,2010
Total Revenue 1,121,902 1,050,766 943,792 993,942
Cost of Revenue 910,571 843,412 767,707 787,547
Gross Profit 211,331 207,354 176,085 206,395
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 109,094 113,909 106,453 98,424
Non-Recurring Expenses 3,396 5,020 2,991 6,180
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss 108,046 91,282 68,720 106,321
Income from Continuing Operations:
Total Other Income/Expenses Net 4,710 -4,449 3,969 1,763
Earnings Before Int. & Taxes 94,321 68,248 55,892 155,666
Interest Expense 0 0 0 65,787
Income Before Taxes 94,321 68,248 55,892 89,879
Income Tax Expense 21,637 14,775 13,238 8,981
Minority Interest -2,034 293 344 -78
Net Income from Continuing Op.s 72,145 53,741 43,520 81,087
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 62,940 50,884 41,441 76,557
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 62,940 50,884 41,441 76,557
Annual Balance Sheets: All Numbers in Thousands
Period Ending Oct31,2010 Oct31,2009 Oct31,2008
Current Assets:
Cash & Cash Equivalents 106,957 111,896 77,627
Short Term Investments 0 0 0
Net Receivables 499,684 356,955 425,743
Inventory 396,572 238,851 325,315
Other Current Assets 162,676 137,478 93,965
Total Current Assets 1,165,889 845,180 922,650
Long-Term Investments 0 0 3,548
Property, Plant & Equipt 1,275,116 1,092,279 1,117,288
Goodwill 709,725 592,117 512,973
Intangible Assets 173,239 131,370 104,424
Accumulated Amortization 0 0 0
Other Assets 144,494 137,006 85,015
Deferred Long Term Asset Charges 29,982 25,977 0
Total Assets 3,498,445 2,823,929 2,745,898
Current Liabilities:
Accounts Payable 544,288 410,671 476,146
Short/Current Long Term Debt 73,431 37,084 44,281
Other Current Liabilities 144,092 114,342 151,374
Total Current Liabilities 761,811 562,097 671,801
Long Term Debt 953,066 721,108 673,171
Other Liabilities 247,650 272,980 158,365
Deferred LT Liability Charges 180,486 161,152 183,021
Minority Interest 76,711 6,997 3,729
Negative Goodwill 0 0 0
Total Liabilities 2,143,013 1,717,337 1,690,087
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 106,057 96,504 86,446
Retained Earnings 1,323,477 1,206,614 1,155,116
Treasury Stock -117,394 -115,277 -112,931
Capital Surplus 0 0 0
Other Stockholder Equity -33,419 -88,246 -72,820
Total Stockholder Equity 1,278,721 1,099,595 1,055,811
Net Tangible Assets 395,757 376,108 438,414
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Jul31,2011 Apr30,2011 Jan31,2011 Oct31,2010
Current Assets:
Cash & Cash Equivalents 109,086 95,548 117,736 106,957
Short Term Investments 0 0 0 0
Net Receivables 609,257 540,531 493,020 499,684
Inventory 484,777 456,105 414,794 396,572
Other Current Assets 172,028 169,125 163,110 162,676
Total Current Assets 1,375,148 1,261,309 1,188,660 1,165,889
Long-Term Investments 19,538 0 0 0
Property, Plant & Equipt 1,387,829 1,345,612 1,291,985 1,275,116
Goodwill 794,794 731,400 697,371 709,725
Intangible Assets 241,443 172,089 170,190 173,239
Accumulated Amortization 0 0 0 0
Other Assets 151,389 169,128 147,577 144,494
Deferred LT Asset Charges 33,751 33,981 31,987 29,982
Total Assets 4,003,892 3,713,519 3,527,770 3,498,445
Current Liabilities:
Accounts Payable 572,534 510,392 449,440 544,288
Current Portion LT Debt 129,912 118,198 100,073 73,431
Other Current Liabilities 169,685 154,408 139,900 144,092
Total Current Liabilities 872,131 782,998 689,413 761,811
Long Term Debt 1,255,823 1,088,215 1,065,572 953,066
Other Liabilities 222,625 233,321 242,042 247,650
Deferred LT Liab. Charges 180,283 181,341 183,967 180,486
Minority Interest 109,341 81,297 78,058 76,711
Negative Goodwill 0 0 0 0
Total Liabilities 2,530,862 2,285,875 2,180,994 2,143,013
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 111,354 109,469 108,659 106,057
Retained Earnings 1,405,346 1,366,972 1,340,604 1,323,477
Treasury Stock -120,043 -120,299 -117,280 -117,394
Capital Surplus 0 0 0 0
Other Stockholder Equity -32,968 -9,795 -63,265 -33,419
Total Stockholder Equity 1,363,689 1,346,347 1,268,718 1,278,721
Net Tangible Assets 327,452 442,858 401,157 395,757
Annual Cash Flow: All Numbers in Thousands
Period Ending Oct31,2010 Oct31,2009 Oct31,2008
Net Income 209,985 41,441 234,354
Operating Activites:
Depreciation 115,974 102,627 106,378
Adjustments to Net Income -7,460 -26,865 -25,368
Changes in Accounts Recv'bls -54,046 73,358 -65,877
Changes in Liabilities -45,530 -99,165 5,152
Changes in Inventories -87,832 109,146 -77,263
Changes in Other Op'ing Actv's 0 -6,409 -37,540
Total Cash Flow fr Operations 178,111 266,524 139,836
Investing Activities:
Capital Expenditures -144,137 -124,671 -145,577
Investments 0 0 33,178
Other Cash Flows fr Investing 0 -46,529 -48,918
Total Cash Flows fr Investing -327,267 -171,200 -161,317
Financing Acitivies:
Dividends Paid -93,122 -87,957 -76,524
Sale or Purchase of Stock -694 -1,130 -16,943
Net Borrowings 97,616 160,929 73,289
Other Cash Flows fr Financing 0 0 0
Total Cash Flows fr Financing 145,883 -65,320 -20,178
Effect of Exchange Rate Change -1,666 4,265 -4,413
Change in Cash & Cash Equiv.s -4,939 34,269 -46,072
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Jul31,2011 Apr30,2011 Jan31,2011 Oct31,2010
Net Income 50,884 41,441 76,557 65,975
Operating Activites:
Depreciation 34,594 33,108 31,047 27,748
Adjustments to Net Income -6,710 1,406 -1,957 -6,915
Changes in Accounts Recv'bls -30,355 5,936 29,667 -38,367
Changes in Liabilities 48,084 -116,733 -10,988 40,755
Changes in Inventories -26,573 -17,986 5,013 -46,393
Changes in Other Oper'g Acts 0 -14,988 30,919 29,410
Total Cash Flow f Operations 55,654 -68,160 160,336 73,997
Investing Activities:
Capital Expenditures -33,140 -40,536 -43,091 -36,488
Investments -21,817 0 0 0
Other Cash Flows fr Investing 0 1,717 -23,925 -32,382
Total Cash Flows fr Investing -81,194 -38,819 -67,016 -68,870
Financing Acitivies:
Dividends Paid -24,516 -24,314 -24,515 -24,507
Sale or Purchase of Stock -2,930 208 838 -1,896
Net Borrowings -8,769 177,841 -161,279 -9,275
Other Cash Flows fr Financing 0 0 0 0
Total Cash Flows fr Financing 585 116,935 -72,121 -6,430
Effect of Exchange Rate Chg 0 0 0 823
Change in Cash & Cash Equiv. -22,188 10,779 22,783 -859
GEF Greif, Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 2.9787 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 1.6300 Forward P/E Ratio < 28? 2.7184
Sales Tests:
Price/Sales Ratio < 2.3? 3.0000 Inventory/Sales < 5%? 0.4364
Sales < $1 billion? 0.2889 Operating Margin < 7.5%? 0.7653
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0041 Long-Term Debt Service: 1.4222
LTD Being Reduced? 0.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.7900 Working Capital >= 1.5? 1.2684
Leverage Ratio < 20%? 0.6282 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 0.8237 Inventory Turnover > 1? 3.0000
Shares Out Decreasing? 1.2000 Market Cap.> 1.5 Billion? 0.6881
Profit Margin > 7.5%? 0.7520
Income Tests:
Dividend Yield > 2.0%? 1.6216 EPS Annual Growth > 10%? -0.4600
Enterprise Value/Revenue: 0.5733 EPS 5-yr Growth > 20%? 1.7500
Enterprise Value/EBITDA: 0.9371 EPS Growth Consistent? 1.8000
EPS Qrtly Growth > 10%? -0.4600 Collection < 45 days? 0.8541
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? -0.4600 Borrowing Int. Rate< 6%? 2.0146
Stock Performance Tests:
Volatility > 25%? 1.9790 % Held by Insiders < 5%? 0.0656
Beta > 1.25? 1.2080 % Held by Institut. < 50? 0.5834
50 Da MA > 200 Da MA? -0.7575 % Held by Institut. > 30? 2.8567
52-Wk Change vs. S&P 500: 0.3854 Short Ratio > 5? 0.4600
Price/Book Value < 3? 2.3900 Short % of Float > 20? 0.1500
Return on Assets > 17%? 0.4100 Average Volume > 100,000? 2.2554
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 3.0000 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 3.0000
Cash Flow / Assets >.10? 0.0880
GEF Greif, Inc. Overall Zenith Index: 1.3106
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | - 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | - 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | - 1 |
| Standard & Poor's | + 1 |
| Moving Average | + 1 |
| Right Time Study | + 1 |
| Stock Fetcher | 0 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | + 1 |
| Stock Options | - 1 |
| Ultimate Trading Systems | - 1 |
| Total | + 10 |
Place 610 shares of Greif, Inc. (GEF) on the Active List.
