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How Did Greif Perform in Fiscal 4Q16?

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Nov. 20 2020, Updated 1:20 p.m. ET

Price movement

Greif (GEF) rose 4.6% to close at $55.35 per share during the first week of December 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 4.6%, 12.7%, and 86.1%, respectively, on December 9, 2016.

GEF is trading 3.1% above its 20-day moving average, 10.7% above its 50-day moving average, and 37.4% above its 200-day moving average.

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Related ETF and peers

The Vanguard Small-Cap ETF (VB) invests 0.03% of its holdings in Greif. The YTD price movement of VB was 21.1% on December 9.

The market caps of Greif’s competitors are as follows:

  • International Paper (IP) — $22.1 billion
  • Sonoco Products (SON) — $5.5 billion
  • Silgan Holdings (SLGN) — $2.8 billion

Performance of Greif in fiscal 4Q16

Greif reported fiscal 4Q16 net sales of $867.6 million, a fall of 0.10% compared to its net sales of $868.5 million in fiscal 4Q15. The company’s gross profit margin and operating margin expanded 180 basis points and 250 basis points, respectively, in fiscal 4Q16 compared to fiscal 4Q15.

Its net income, the EPS (earnings per share) of its Class A shares, and the EPS of its Class B shares fell to $8.5 million, $0.14, and $0.22, respectively, in fiscal 4Q16, compared to $12.4 million, $0.21, and $0.32, respectively, in fiscal 4Q15.

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Fiscal 2016 results

In fiscal 2016, GEF reported net sales of $3.3 billion, a fall of 8.1% YoY (year-over-year). The company’s gross profit margin and operating margin expanded 210 basis points and 150 basis points, respectively, in fiscal 2016.

Its net income, the EPS of its Class A shares, and the EPS of its Class B shares rose to $74.9 million, $1.28, and $1.90, respectively, in fiscal 2016, compared to $71.9 million, $1.23, and $1.83, respectively, in fiscal 2015.

GEF’s cash and cash equivalents and inventories fell 2.4% and 6.6%, respectively, in fiscal 2016. Its current ratio fell to 1.4x in fiscal 2016, compared to 1.6x in fiscal 2015.

Greif expects the EPS of its Class A shares to be in the range of $2.78–$3.08 before special items in fiscal 2017.

Greif declares dividends

Greif has declared quarterly cash dividends of $0.42 per share and $0.62 per share on its Class A and Class B common stock, respectively. The dividends will be paid on January 1, 2017, to shareholders of record at the close of business on December 19, 2016.

For an ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.

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