Yahoo Finance Why Greif Inc (NYSE:GEF) Is An Attractive Investment
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Greif Inc (NYSE:GEF) due to its excellent fundamentals in more than one area. GEF is a financially-healthy , dividend-paying company with a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Greif here.
Established dividend payer with proven track record
GEF delivered a bottom-line expansion of 86.3% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did GEF outperformed its past performance, its growth also surpassed the Packaging industry expansion, which generated a 22.6% earnings growth. This is an optimistic signal for the future. GEF’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. GEF’s has produced operating cash levels of 0.27x total debt over the past year, which implies that GEF’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that GEF is a great dividend company, with a current yield standing at 3.1%. GEF has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Greif, I’ve put together three relevant aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for GEF’s future growth? Take a look at our free research report of analyst consensus for GEF’s outlook.
Valuation: What is GEF worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GEF is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GEF? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
