Stock in Wall Street Spotlight: Greif, Inc. Class A (NYSE: GEF)

On Wednesday, Greif, Inc. Class A (NYSE: GEF) stock recorded daily change of 1.28% to close at $37.94 with the total traded volume of 167,807 shares along average volume of 179211 shares. 52-week range of the stock remained $ 23.65 – 50.37 while its day low price was $37.18 and its hit its day high price at $38.03. Its previous closing value stands at $37.46. GEF total market capitalization is $1.86B.

Greif, Inc. (GEF) recently reported third quarter 2020 results. The Company also reintroduced guidance for the fiscal year ending October 31, 2020.

Third Quarter Highlights include (all results contrast to the third quarter of 2019 unless otherwise noted):

Net income of $20.7M or $0.35 per diluted Class A share reduced contrast to net income of $62.7M or $1.06 per diluted Class A share. Net income, not including the impact of adjustments (1), of $50.1M or $0.85 per diluted Class A share reduced contrast to net income, not including the impact of adjustments, of $74.7M or $1.26 per diluted Class A share. Adjusted EBITDA (2) reduced by $44.4M to $159.4M.

Net cash provided by operating activities reduced by $6.5M to $135.0M. Adjusted free cash flow (3) reduced by $0.5M to $106.6M.

Total debt reduced by $240.9M to $2,637.6M. Net debt (4) reduced by $263.6M to $2,539.1M and reduced $70.8M sequentially from the second quarter of 2020.

Consumer Service

The Company’s consolidated CSI (5) score was 92.8 during the fiscal third quarter 2020 and reached a record high of 92.4 on a trailing four quarter basis. Our long-term objective is for each business section to achieve a CSI score of 95.0 or greater.

CSI for the Rigid Industrial Packaging & Services section was 94.6, which was about 5 percent higher contrast to the previous year quarter. CSI for the Flexible Products & Services section was 84.2, which was about 10 percent lower contrast to the previous year quarter as a result of COVID-19 related delays to product shipments. CSI for the Paper Packaging & Services section was 92.2, which was about 4 percent higher contrast to the previous year quarter.

Liquidity and Balance Sheet

As of July 31, 2020, the Company had $523.3M of accessible borrowing capacity (6) under its $800.0M revolving credit facility. The Company’s Euro €200M notes are due in July of 2021, but otherwise the Company has no other sizable debt maturities due until 2024.

Dividend Summary

On August 25, 2020, the Board of Directors reported quarterly cash dividends of $0.44 per share of Class A Ordinary Stock and $0.66 per share of Class B Ordinary Stock. Dividends are payable on October 1, 2020, to stockholders of record at the close of business on September 17, 2020.

GEF has a gross margin of 20.50% and an operating margin of 8.50% while its profit margin remained 3.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained -9.30% for this year while earning per share for the next 5-years is expected to reach at          10.00%.

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