The company has 2.85
B in debt with debt to equity (D/E) ratio of 2.22, meaning that the firm heavily relies on borrowing funds for operations.
Our investment recommendation module provides unbiased trade recommendations that can be used to complement current
average analyst sentiment on Greif Bros Corp. Our investment recommendation engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon.
Greif Bros financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Greif Bros, including all of Greif Bros's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Greif Bros assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Greif Bros debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
How important is Greif Bros's Liquidity
Greif Bros
financial leverage refers to using borrowed capital as a funding source to finance Greif Bros ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Greif Bros financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Greif Bros' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Greif Bros' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Greif Bros's total debt and its cash.
What is driving Greif Bros Investor Appetite?
The latest indifference towards the small price fluctuations of Greif Bros may raise some interest from shareholders. The stock closed today at a share price of
59.96 on
179,140 in trading volume. The company directors and management did not add any value to Greif Bros Corp investors in
May. However, most investors can still diversify their portfolios with Greif Bros to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.9. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Asset Breakdown
| Total Assets | 5.59 Billion |
| Current Assets | 1.08 Billion |
| Assets Non Current | 4.17 Billion |
| Goodwill | 2.07 Billion |
| Tax Assets | 10.44 Million |
Greif Bros has 63 percent chance to dip under $61 in the coming weeks
Latest Jensen Alpha is up to 0.1. Price may dip again. Greif Bros Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.1. However, we advise investors to further question Greif Bros Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Greif Bros' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Greif Bros' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Current Takeaway on Greif Bros Investment
Although many other companies under the packaging & containers industry are still a bit expensive, Greif Bros may offer a potential longer-term growth to shareholders. While some shareholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Greif Bros.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Greif Bros. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
