Momentum stock Watch: Greif, Inc. (GEF)

Company Profile:

Greif, Inc. is a producer of industrial packaging products and services. The Company’s products include steel, fiber and plastic drums, rigid intermediate bulk containers, closure systems, transit protection products, water bottles and reconditioned industrial containers, and offers services, such as container life cycle management, blending, filling, logistics, warehousing and other packaging services. The Company operates in four business segments: Rigid Industrial Packaging & Services; Flexible Products & Services; Paper Packaging, and Land Management. The Company sells its rigid industrial packaging products to customers in industries. The Company has manufacturing facilities located in over 50 countries. Greif, Inc. was founded in 1877 and is headquartered in Delaware, Ohio.

Recent News:

Greif, Inc. reported fourth quarter 2015 net income attributable to the corporation totaling $12.4 million or $0.21 per diluted Class A share on sales of $868.5 million compared with net income of $8.7 million or $0.15 per diluted Class A share on sales of $1,048.1 million in the fourth quarter of 2014.

Its Board of Directors has declared quarterly cash dividends of $0.42 per share on its Class A Common Stock, and $0.62 per share on its Class B Common Stock.

On Ocyonrt 13, 2015, Greif, Inc. announced that David Fischer will step down as President and Chief Executive Officer and as a member of the Board of Directors of the company effective October 31, 2015. The company also announced that the Board has elected Pete Watson to succeed him as President and Chief Executive Officer effective November 1, 2015, and Fischer will remain with the company through December 31, 2015 to assist with the transition process.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

@@@@@

Profitability – Measures the historical price movement of the stock.

@@@@@

Solvency – Measures the solvency of the company based on several ratios.

@@@@@

Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

@@@@@

Conclusion:

GEF’s strengths can be seen in its better profitability. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI is increasing to 55.11. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Greif, Inc. (GEF) a BUY.