• Earnings per share EPS of $0.85 fell short of the expected $1.09, down from last year’s EPS of $1.56.
• Revenue reached $1.42 billion, exceeding projections of $1.31 billion, marking an 8.3% year-over-year increase.
• Financial indicators reflect a P/E ratio of 15.51, and a debt-to-equity ratio of 1.41, showcasing the market valuation and leverage.

Greif Inc NYSE:GEF is a global player in industrial packaging products and services. Operating within the Containers – Paper and Packaging sector, Greif offers an array of products including steel, plastic, and fiber drums along with containerboard and corrugated items. The company faces competition from other leaders such as International Paper and WestRock.

On December 4, 2024, Greif published its earnings report indicating an EPS of $0.85, which was below the anticipated $1.09. This represents a significant drop from the $1.56 EPS noted in the same quarter of the previous year, equating to a negative surprise of 21.3%. Greif has displayed inconsistency in exceeding consensus EPS estimates, achieving this only in two of the last four quarters.

Notably, Greif reported $1.42 billion in revenue for the quarter ending October 2024, surpassing the expected $1.31 billion. This figure indicates an 8.3% increase year-over-year and barely nudged past the Zacks Consensus estimate by 0.34%. The company has notably exceeded consensus revenue estimates consistently over the past four quarters, signaling robust sales generation capabilities.

Financial metrics from Greif support further assessment of its valuation and financial status. The firm has a P/E ratio hovering around 15.51, emphasizing how the market values earnings. Its price-to-sales ratio stands at 0.65, meaning investors invest 65 cents per dollar of sales. The enterprise value to sales ratio is around 1.22, demonstrating the total market value relative to sales.

The debt-to-equity ratio sits at 1.41, pointing to a moderate use of leverage. The current ratio is a healthy 1.70, indicating sufficient liquidity to meet short-term liabilities. Additionally, its enterprise value to operating cash flow ratio reflects around 17.53 illustrating how well cash flows match the valuation, while the earnings yield indicates returns of approximately 6.45%.