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1. Company Snapshot

1.a. Company Description

Greif, Inc.engages in the production and sale of industrial packaging products and services worldwide.It operates in three segments: Global Industrial Packaging; Paper Packaging & Services; and Land Management.


The Global Industrial Packaging segment produces and sells industrial packaging products, including steel, fiber, and plastic drums; rigid and flexible intermediate bulk containers; closure systems for industrial packaging products; transit protection products; water bottles, and remanufactured and reconditioned industrial containers; and various services, such as container life cycle management, filling, logistics, warehousing, and other packaging services to chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agriculture, pharmaceuticals, mineral product, and other industries.This segment also offers flexible intermediate bulk containers and related services to the agriculture, construction, and food industries.The Paper Packaging & Services segment produces and sells containerboards, corrugated sheets and containers, and other corrugated and specialty products to customers in the packaging, automotive, food, and building products markets; and produces and sells coated and uncoated recycled paperboard, and recycled fiber.


This segment's corrugated container products are used to ship various products, such as home appliances, small machinery, grocery products, automotive components, books, and furniture, as well as various other applications.The Land Management segment engages in harvesting and regeneration of timber properties; and sale of timberland and special use properties.As of October 31, 2021, this segment owned approximately 175,000 acres of timber properties in the southeastern United States.


The company was formerly known as Greif Bros.Corporation and changed its name to Greif, Inc.in 2001.


Greif, Inc.was founded in 1877 and is headquartered in Delaware, Ohio.

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1.b. Last Insights on GEF

Greif, Inc.'s recent performance was driven by margin improvement, structural cost actions, and a significant step-up in shareholder returns through share repurchases. The company's fiscal first-quarter 2026 results were consistent with expectations, despite continued softness in industrial demand. Additionally, Thrivent Financial for Lutherans increased its position in Greif, Inc. by 6.5% during the third quarter, indicating growing investor confidence.

1.c. Company Highlights

2. Greif's Q1 Earnings: A Mixed Bag with Margin Expansion

Greif's financial performance in Q1 was marked by a 24% increase in adjusted EBITDA to $12.3% margin, driven by improved price/cost and structural cost optimization. However, EPS came in at $0.48, below estimates of $0.69. Revenue was approximately flat due to strong price/mix, despite soft demand conditions. The company's leverage is historically low, enabling significant capital flexibility to create shareholder value.

Publication Date: Feb -16

📋 Highlights

Operational Performance

The company's end market performance reflects the reality of broader economic conditions remaining soft. Customized Polymer Solutions demand was essentially flat overall, Durable Metal Solutions remained under pressure, and Sustainable Fiber solutions saw volume declines in converting. However, the commercial teams are executing with intent to drive growth externally, and the company is accelerating internal transformation, with a run rate cost optimization of $65 million.

Outlook and Guidance

Greif is reaffirming its low-end 2026 guidance of $630 million in adjusted EBITDA and $315 million in adjusted free cash flow. The company expects volume normalization across the year, rather than Q1 performance, to drive EBITDA growth. Lawrence Hilsheimer stated that the company is still impacted by the $40 a ton in URB and the OCC price, which will be fully in place in the second half of the year.

Valuation and Capital Allocation

With a P/E Ratio of 4.4 and EV/EBITDA of 7.81, the market appears to be pricing in modest growth expectations. Analysts estimate next year's revenue growth at 1.5%. Greif has completed $130 million of the $150 million share repurchase program and will execute on the remaining authorization in a disciplined manner. The company's ROE is high at 39.51%, indicating efficient use of shareholder capital.

Key Takeaways

The company's focus on cost optimization, capital allocation, and commercial execution is expected to drive growth. While demand conditions remain muted, the company is seeing some strength in small plastics starting in Q2. The new SIOC technology is expected to provide a competitive advantage and has already received orders.

3. NewsRoom

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Greif, Inc. $GEF Shares Bought by Thrivent Financial for Lutherans

Feb -02

Source: defenseworld.net

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Greif Q1 Earnings Call Highlights

Jan -30

Source: defenseworld.net

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Greif, Inc. (GEF) Q1 2026 Earnings Call Transcript

Jan -28

Source: seekingalpha.com

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Greif Reports Fiscal First Quarter 2026 Results

Jan -27

Source: globenewswire.com

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CORRECTION: Greif, Inc. Announces 2026 First Quarter Earnings Release and Conference Call Dates

Jan -05

Source: globenewswire.com

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Greif, Inc. Announces 2026 First Quarter Earnings Release and Conference Call Dates

Jan -05

Source: globenewswire.com

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Deprince Race & Zollo Inc. Has $45.29 Million Holdings in Greif, Inc. $GEF

Dec -28

Source: defenseworld.net

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Ole Rosgaard Sells 9,733 Shares of Greif (NYSE:GEF) Stock

Dec -19

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.37%)

6. Segments

Global Industrial Packaging

Expected Growth: 4.5%

Greif's Global Industrial Packaging segment growth of 4.5% is driven by increasing demand for sustainable packaging solutions, expansion in emerging markets, and strategic acquisitions. Additionally, growth in e-commerce and the need for protective packaging for fragile goods also contribute to the segment's growth.

Paper Packaging & Services

Expected Growth: 4.2%

Greif's Paper Packaging & Services segment growth of 4.2% is driven by increasing demand for sustainable packaging, e-commerce growth, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings initiatives, and investments in new products and technologies have contributed to the segment's growth.

Land Management

Expected Growth: 3.8%

Greif's Land Management segment growth of 3.8% is driven by increasing demand for sustainable forestry practices, strategic acquisitions, and effective cost management. Additionally, the company's focus on reforestation and habitat conservation efforts has led to increased revenue from carbon credits and ecosystem services.

7. Detailed Products

Rigid Industrial Packaging

Greif offers a wide range of rigid industrial packaging products, including steel, fibre, and plastic drums, as well as intermediate bulk containers (IBCs) and totes.

Flexible Industrial Packaging

Greif's flexible industrial packaging products include multiwall bags, container liners, and other flexible packaging solutions.

Intermediate Bulk Containers (IBCs)

Greif's IBCs are used for the safe and efficient storage and transportation of liquids, pastes, and powders.

Drums and Containers

Greif offers a range of drums and containers, including steel, fibre, and plastic drums, as well as totes and other containers.

Land Management Services

Greif's land management services include land acquisition, permitting, and management of landfills and other waste management facilities.

Environmental Services

Greif's environmental services include environmental consulting, remediation, and waste management services.

8. Greif, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Greif, Inc. operates in a industry with moderate threat of substitutes. The company's products are not easily substitutable, but there are some alternatives available in the market.

Bargaining Power Of Customers

Greif, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. The company's products are also customized to meet specific customer needs, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Greif, Inc. has a moderate level of bargaining power over its suppliers. The company sources its raw materials from a diverse range of suppliers, which reduces its dependence on any one supplier.

Threat Of New Entrants

The threat of new entrants in the industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles. Greif, Inc. has a strong brand presence and established customer relationships, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The industry in which Greif, Inc. operates is highly competitive, with several established players competing for market share. The company must continually innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.30%
Debt Cost 5.04%
Equity Weight 43.70%
Equity Cost 8.54%
WACC 6.57%
Leverage 128.81%

11. Quality Control: Greif, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Sonoco

A-Score: 6.1/10

Value: 7.3

Growth: 5.0

Quality: 5.6

Yield: 8.0

Momentum: 2.0

Volatility: 8.7

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Reynolds Consumer Products

A-Score: 6.0/10

Value: 5.6

Growth: 4.9

Quality: 5.6

Yield: 7.0

Momentum: 3.5

Volatility: 9.3

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Greif

A-Score: 6.0/10

Value: 8.2

Growth: 4.0

Quality: 5.8

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

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PCA

A-Score: 5.2/10

Value: 3.9

Growth: 4.7

Quality: 5.6

Yield: 6.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Graphic Packaging

A-Score: 5.0/10

Value: 7.8

Growth: 6.4

Quality: 4.3

Yield: 4.0

Momentum: 0.5

Volatility: 7.0

1-Year Total Return ->

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WestRock

A-Score: 3.9/10

Value: 7.3

Growth: 2.7

Quality: 2.3

Yield: 2.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

76.82$

Current Price

76.82$

Potential

-0.00%

Expected Cash-Flows