Greif Intrinsic Value Calculation – Greif Sees Increased Demand, Raises Prices on Packaging Products
January 6, 2024
☀️Trending News
Greif ($NYSE:GEF), Inc., a leading global supplier of industrial packaging products and services, recently announced that it has had to raise the prices of its products due to increased demand. This news has caused a surge in the company’s stock price, as investors anticipate higher returns due to the higher prices. The company has a global presence, with operations spanning Europe, Asia, and North America. Greif provides various solutions for packaging needs, such as rigid containers, flexible bags, and closure systems. Greif serves customers from a wide range of industries, including food and beverage, industrial manufacturing, petrochemical, and agriculture. The increased demand for Greif’s packaging products has resulted in the need to raise prices to match the production costs.
This will help ensure that the company is able to meet customer needs while still turning a profit. Greif’s stock price has reacted positively to the news, as investors have taken note of the potential for increased earnings due to higher prices. Overall, Greif’s decision to raise prices on its packaging products due to increased demand is a positive sign for the company’s future prospects. This move will ensure that the company is able to meet customer expectations while still turning a profit. Investors have responded positively to the news, indicating their confidence in Greif.
Market Price
On Friday, GREIF Inc, a global leader in industrial packaging products and services, saw its stock open at $64.4 and close at $64.2, down 0.4% from the prior closing price of 64.4. This comes as the company is seeing increased demand for its products and services, leading to higher prices for some of its packaging products. GREIF is leveraging its global network of production facilities, distribution centers, and service centers to meet the demands and supply the right packaging solutions. The company continues to focus on providing customers with innovative and sustainable packaging solutions that meet their ever-growing needs. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Greif. More…
| Total Revenues | Net Income | Net Margin |
| 5.22k | 359.2 | 6.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Greif. More…
| Operations | Investing | Financing |
| 649.5 | -670.2 | 69.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Greif. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.96k | 3.85k | 33.89 |
Key Ratios Snapshot
Some of the financial key ratios for Greif are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | 14.4% | 11.3% |
| FCF Margin | ROE | ROA |
| 8.4% | 19.0% | 6.2% |
Analysis – Greif Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of GREIF‘s wellbeing and stock performance. Based on our proprietary Valuation Line, we determined that the fair value of a GREIF share is around $68.3. Currently, GREIF stock is traded at $64.2, representing a fair price which is undervalued by 6.1%. This provides a great opportunity for investors to buy shares at a discounted rate and benefit from potential future growth. More…
Peers
In the global market for industrial packaging, there are a few major players. Among them, Greif Inc. competes with Shanghai Xintonglian Packing Co Ltd, SCG Packaging PCL, and Southern Packaging Group Ltd. While each company has its own strengths, Greif Inc. has been able to maintain a leading position in the market.
– Shanghai Xintonglian Packing Co Ltd ($SHSE:603022)
Shanghai Xintonglian Packing Co Ltd is a leading manufacturer of packaging products in China. The company has a market cap of 1.85B as of 2022 and a ROE of 2.72%. The company’s products are used in a wide range of industries, including food, beverage, pharmaceutical, cosmetics, and industrial packaging.
– SCG Packaging PCL ($SET:SCGP)
SCG Packaging PLC is a leading provider of packaging solutions with a market cap of 226.46B as of 2022. The company has a strong focus on innovation and sustainability, and offers a wide range of packaging products and services to meet the needs of its customers. SCG Packaging PLC has a strong commitment to environmental responsibility and is committed to reducing the impact of its operations on the environment. The company has a return on equity of 7.4%.
– Southern Packaging Group Ltd ($SGX:BQP)
Southern Packaging Group Ltd is a packaging company that manufactures and supplies paperboard packaging products. The company has a market cap of 28.13M as of 2022 and a Return on Equity of 1.31%. Southern Packaging Group Ltd operates in two segments: Paperboard Packaging and Flexible Packaging. The Paperboard Packaging segment manufactures and sells paperboard packaging products, including corrugated containers, folding cartons, and solid fiber boxes. The Flexible Packaging segment manufactures and sells flexible packaging products, such as laminated films, laminates, and pouches.
Summary
GREIF (NYSE:GEF) has recently raised prices on its packaging products due to higher demand, signalling a strong financial outlook for the company. Investors may want to consider buying shares in the company as its core business benefits from the increased demand, potentially driving revenue and earnings growth. The company’s expanding product portfolio, global presence and diversified customer base provide further potential for growth.
Additionally, GREIF’s focus on sustainability could be beneficial for long-term investors, helping to ensure future success. As the company further expands and capitalizes on opportunities presented by increased demand, investors may be rewarded with gains in the stock.
