Greif Class A (GEF) AI Stock Analysis

• Market Cap: $2.89B
• Dividend Yield: 3.66%
• Average Volume (3M): 225.32K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.84
• Revenue Growth: -2.55%
• EPS Growth: -40.81%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 1.03
• Shares Outstanding: 26,169,945
• 10 Day Avg. Volume: 225,695
• 30 Day Avg. Volume: 225,325
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.25
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 5.84
• Enterprise Value/Ebitda: 10.13
• 1Y Price Target: $76.60
• Price Target Upside: 28.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $66.00 ▲(10.70% Upside)

Greif Class A's overall stock score is driven by strong earnings call outcomes and stable financial performance, despite technical weaknesses and valuation concerns. The company's strategic divestments and cost optimizations are positive, but challenges with revenue growth and market softness remain.

Positive Factors

Strategic Divestitures

The sale of Soterra timberland and Containerboard business aligns with Greif's focus on higher-margin markets, enhancing capital efficiency and reducing debt, which positions the company for long-term growth.

Cost Optimization

Greif's progress in cost optimization, with significant savings, indicates a strong focus on operational efficiency, which can lead to improved margins and profitability in the long term.

Cash Flow Generation

Strong cash flow generation reflects efficient operations and provides the company with the flexibility to invest in growth opportunities and reduce debt, supporting long-term financial stability.

Negative Factors

High Leverage

High leverage poses risks, especially in volatile markets, potentially limiting financial flexibility and increasing vulnerability to economic downturns, which could impact long-term stability.

North America Market Challenges

Continued challenges in the North American market, particularly in industrial sectors, could hinder revenue growth and profitability, affecting the company's market position and long-term prospects.

Softness in Metal Solutions

Declining sales in Metal Solutions indicate potential structural issues in industrial markets, which could affect Greif's ability to maintain revenue growth and market share in this segment.

Greif Class A Business Overview & Revenue Model

Company Description

Greif Class A (GEF) is a global leader in industrial packaging solutions, specializing in the production of steel, plastic, and fiber drums, as well as intermediate bulk containers (IBCs) and other packaging products. The company serves a diverse range of sectors including chemicals, food, pharmaceuticals, and consumer goods, offering products that ensure the safe and efficient transport and storage of various materials. In addition to packaging, Greif provides services such as packaging design and logistics support, enhancing its value proposition to customers worldwide.

How the Company Makes Money

Greif generates revenue primarily through the sale of its packaging products, which include steel, plastic, and fiber containers. The company has a diversified revenue model, with key revenue streams coming from the sale of new containers, reconditioned containers, and the provision of packaging-related services. Greif also benefits from long-term partnerships with major customers in various industries, which provide a steady stream of orders and foster customer loyalty. Furthermore, the company strategically focuses on operational efficiency and innovation in product development, enabling it to maintain competitive pricing and enhance profitability.

Greif Class A Financial Statement Overview

Summary

Greif Class A exhibits solid financial performance with stable revenue growth and efficient cash flow management. However, high leverage poses a risk, and there is room for profitability improvement through cost optimization.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.20B	5.45B	5.22B	6.35B	5.56B	4.51B
Gross Profit	1.11B	1.07B	1.15B	1.29B	1.09B	914.70M
EBITDA	640.20M	715.80M	824.50M	839.20M	845.70M	601.70M
Net Income	190.00M	268.80M	359.20M	376.70M	390.70M	108.80M
Balance Sheet
Total Assets	6.74B	6.65B	5.96B	5.46B	5.82B	5.51B
Cash, Cash Equivalents and Short-Term Investments	285.20M	197.70M	180.90M	147.10M	124.60M	105.90M
Total Debt	2.94B	3.07B	2.54B	2.17B	2.52B	2.80B
Total Liabilities	4.41B	4.40B	3.85B	3.65B	4.22B	4.29B
Stockholders Equity	2.19B	2.08B	1.95B	1.76B	1.51B	1.15B
Cash Flow
Free Cash Flow	338.10M	169.50M	435.90M	474.50M	248.70M	317.90M
Operating Cash Flow	490.50M	356.00M	649.50M	657.50M	396.00M	454.70M
Investing Cash Flow	-24.70M	-658.30M	-670.20M	-28.20M	46.80M	-25.20M
Financing Cash Flow	-405.70M	324.30M	69.70M	-531.00M	-422.90M	-405.30M

Greif Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEF, the sentiment is Negative. The current price of 59.62 is below the 20-day moving average (MA) of 62.14, below the 50-day MA of 64.14, and below the 200-day MA of 59.64, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 19.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GEF.

Greif Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MYE	68 Neutral	619.13M	62.74	3.49%	3.26%	1.11%	-74.94%
SEE	65 Neutral	5.02B	16.72	30.65%	2.35%	-2.00%	-18.50%
SON	65 Neutral	4.57B	-65.14	17.10%	4.53%	0.90%	-118.86%
GEF	63 Neutral	$2.89B	21.89	7.46%	3.66%	-2.55%	-40.81%
AMBP	58 Neutral	2.31B	-135.92	-2.15%	10.36%	8.39%	72.18%
OI	57 Neutral	2.02B	-7.91	-11.70%	―	-3.36%	11.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Greif Class A Corporate Events

Greif Completes Sale of Containerboard Business

On September 2, 2025, Greif, Inc. announced the completion of the sale of its containerboard business to Packaging Corporation of America. This strategic divestment is expected to enhance Greif’s earnings power, capital efficiency, and accelerate debt reduction, while prompting an adjustment in its 2025 full-year guidance to reflect the exclusion of the containerboard business’s performance.

Greif Class A Divests Containerboard Business for $1.8B

On August 26, 2025, Greif announced the retirement of Gary R. Martz, Executive Vice President, General Counsel, and Secretary, effective October 1, 2025, with full retirement on November 30, 2025. Dennis Hoffman will succeed him. Additionally, Greif reported a 49.6% decrease in net income for the third quarter of 2025 compared to the previous year, primarily due to a prior gain from the divestiture of Delta Petroleum Company. The company is divesting its containerboard business for $1.8 billion, expected to close on August 31, 2025, and has signed an agreement to sell its timberlands business for $462 million. Greif continues to focus on cost optimization and shareholder returns, with a notable increase in adjusted free cash flow and a reduction in total debt.

Greif Class A Sells Soterra Timberland for $462 Million

On August 5, 2025, Greif, Inc. announced a definitive agreement to sell its Soterra timberland business to Molpus Woodlands Group for $462 million. This transaction, involving over 173,000 acres of timberlands in the Southeastern United States, aligns with Greif’s strategic focus on higher-margin, less cyclical markets and is expected to close around the company’s fiscal year-end. The sale will enable Greif to enhance its investment capabilities and position itself for long-term success, while Molpus aims to integrate these assets into its existing portfolio for sustainable forest management and competitive market positioning.

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.

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.

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.