Greif Inc.’s GEF performance continues to bear the impact of weak demand owing to the coronavirus crisis and weak industrial manufacturing environment. High debt levels also remain a concern.
The Zacks Rank #4 (Sell) company — with a market capitalization of $1.8 billion — is a leading global producer of industrial packaging products and services with manufacturing facilities located in over 40 countries. Shares the company have lost 2.9% against the industry’s growth of 2.8% in a year’s time. Meanwhile, the S&P 500 Index has rallied 12.8% in the same time frame.
Factors Hurting the Stock
Greif expects fourth-quarter fiscal 2020 earnings to be around 66 cents per share implying a decline of 47% and 22% on a year-over-year and sequential basis, respectively. Profits are anticipated to be lower sequentially in the quarter owing to normal business seasonality, higher SG&A expenses, less opportunistic sourcing cost benefits, reduced sales in