A lesser-known but all the more interesting company from a promising sector
The industrial packaging and containers market has high growth potential as it is a key element of global trade and industry, which plays into the hands of this lesser-known player, which has a wide range of products and a large global footprint.

Greif $GEF is an American company specializing in the manufacture and distribution of industrial packaging. The company produces a wide range of packaging, including metal and plastic drums, paper packaging, bags and packaging materials for industrial and commercial customers. Greif also offers services such as customized design and production of specific packaging, recycled packaging manufacturing, and more.
In addition to packaging production, Greif is focused on sustainability and reducing environmental impact. The company uses recycled materials and minimizes waste production. Greif has offices and customers around the world and is one of the largest manufacturers of industrial packaging in the world.
For an idea of the basic range 👇

The company produces for example:
Paper and Cardboard Packaging - Greif manufactures paper andcardboard packaging for various industries such as food, pharmaceutical, cosmetics and others.
Metal containers - Greif manufactures metal containers for various purposes such as containers for oil, paint, chemicals and more.
Plastic Packaging - Greif offers a wide range of plastic packaging such as plastic bottles, bags and sacks.
Wooden Packaging - Greif also manufactures wooden packaging such as pallets and boxes that are designed for various industries.
Textile packaging - Greif also offers textile packaging such as coffee bags, flour sacks and more.
Specialty Packaging - Greif also manufactures specialty packaging for special purposes such as packaging for pharmaceutical products, packaging for long shelf life food and more.
Greif has several competitive advantages that allow it to be successful in the industrial packaging market:
First of all, they have a really wide product range, which means they reach a lot of clients and many sectors.
Specialisation in sustainability: Greif focuses on sustainability and reducing environmental impact. The company uses recycled materials and minimises waste production, which is increasingly important to customers and investors these days.
Innovation. The company invests in research and development to provide innovative and efficient solutions for its customers.
Global reach: Greif has offices and customers all over the world, enabling it to be competitive in the global industrial packaging market. This also allows it to provide local support and service to customers.
What are the prospects for the sector?
The industrial packaging and containers market has high growth potential as it is a key element in global trade and industry. It is currently expected that the industrial packaging and containers market could grow at an average of 4-5% per annum and reach a value of approximately $70 billion by 2025.
Reasons for the growth of this market include the increasing demand for industrial packaging and containers due to the growth of global industry and trade, growing awareness of sustainability, and the need to reduce costs in the supply chain.
The growth prospects for this sector are therefore positive and companies such as Greif have the opportunity to take advantage of the growing market and offer innovative products and services to meet customer needs.
Where does the company operate everywhere?

Finance

Revenue

Average annual revenue growth rate is 6.8% over the last 5 years, with total revenue growing over 100% from 2009 to date.
Net Profit
Since 2017, net profit has grown from $135m to $413m (2021), averaging 25.4% over this period.
Assets x Liabilities

View of margins


Although Greif is one of the industry leaders, we see better numbers than its peers on the core metrics that I rate positively, both P/E, P/S, P/B, and P/FCF. Then the D/E is slightly worse, but it's only slightly above 1, so not bad at all for me.
Plus, the company pays a dividend as well. The dividend yield is 3.26% and the payout ratio is 26.11% based on recent data. Greif has been paying a dividend since 1994 and has increased it for 9 consecutive years.
Analyst Predictions

From what I have found, not too many analysts are covering the company, however, when looking at those who give a rating, most of them rate the company as a BUY with a target price of $80-94.
Actually, it's not surprising, the company is presenting us with solid results, plus it looks like it will continue its strong performance.
CEO's comments on the latest quarter:
"I am extremely proud of the results we achieved in 2022. This year was the most successful in Greif's history from a financial perspective, underscored by our free cash flow generation of over $500 million, which serves as a testament to our strong value creation engine through the execution of our Build to Last strategy. We believe these outstanding results are driven by the high engagement of our teams, our focus on delivering legendary customer service and our consistent commitment to a value-over-volume approach," commented Ole Rosgaard, Greif's President and CEO.
"In addition, the pending acquisition of Lee Container will help further drive margin expansion. I am excited about this new opportunity and look forward to the year ahead with our new Lee colleagues following the closing in December."
- What do you think of the company? 🤔
Please note that this is not a financial advisory service. Every investment must go through a thorough analysis.