Greif Story

GEF -  USA Stock  

USD 60.03  1.34  2.18%

Greif Bros Corp is scheduled to announce its earnings today. The next earnings report is expected on the 25th of August 2021. Greif Bros Revenue Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 323,628. The current year Earnings before Tax is expected to grow to about 168.1 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 613.3 M. As many of us are excited about consumer cyclical space, it is fair to digest Greif Bros Corp as a unique alternative.
Published over a week ago
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You think Greif Bros (NYSE:GEF) debt is an issue for shareholders?
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.

Understanding Greif Total Liabilities

Greif Bros Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Greif Bros Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Greif Bros balance sheet include debt obligations and money owed to different Greif Bros vendors, workers, and loan providers. Below is the chart of Greif short long-term liabilities accounts currently reported on its balance sheet.
You can use Greif Bros Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Greif Bros's Liquidity

Greif Bros financial leverage refers to using borrowed capital as a funding source to finance Greif Bros Corp 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. 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

4.2 B
Assets Non Current
2.1 B
Goodwill
1.1 B
Current Assets
Total Assets5.59 Billion
Current Assets1.08 Billion
Assets Non Current4.17 Billion
Goodwill2.07 Billion
Tax Assets10.44 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.

About Contributor

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 Achuva Shats do not own shares of Greif Bros Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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