Earnings per share (EPS) of $0.85 was reported, missing the estimated $1.09 and marking a decrease from the previous year’s $1.56 EPS.
Revenue reached $1.42 billion, exceeding the estimated $1.31 billion and showcasing an 8.3% increase year-over-year.
Financial health indicators such as a P/E ratio of 15.51 and a debt-to-equity ratio of 1.41 highlight the company’s market valuation and leverage.
Greif, Inc. (NYSE:GEF) is a global leader in industrial packaging products and services. The company operates in the Containers – Paper and Packaging industry, providing a wide range of products such as steel, plastic, and fiber drums, as well as containerboard and corrugated products. Greif competes with other industry players like International Paper and WestRock.
On December 4, 2024, Greif reported earnings per share (EPS) of $0.85, which was below the estimated $1.09. This represents a significant decrease from the $1.56 EPS reported in the same quarter last year, resulting in a negative surprise of 21.3%. Over the past four quarters, Greif has exceeded consensus EPS estimates twice, indicating some inconsistency in meeting earnings expectations.
Despite the earnings miss, Greif’s revenue for the quarter ending October 2024 was $1.42 billion, surpassing the estimated $1.31 billion. This revenue figure marks an 8.3% increase compared to the same period last year and slightly exceeded the Zacks Consensus Estimate by 0.34%. Greif has consistently surpassed consensus revenue estimates in the last four quarters, showcasing its ability to generate strong sales growth.
Greif’s financial metrics provide insight into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 15.51, indicating how the market values its earnings. Its price-to-sales ratio is 0.65, suggesting investors pay 65 cents for every dollar of sales. The enterprise value to sales ratio is 1.22, reflecting the company’s total valuation relative to its sales.
The company’s debt-to-equity ratio stands at 1.41, indicating a moderate level of leverage. Greif’s current ratio of 1.70 suggests it has a good level of liquidity to cover short-term liabilities. Additionally, the enterprise value to operating cash flow ratio is 17.53, providing insight into the company’s cash flow generation relative to its valuation. The earnings yield of 6.45% offers a perspective on the return on investment from its earnings.
