With A Return On Equity Of 13%, Has Greif, Inc.'s (NYSE:GEF) Management Done Well?

Simply Wall St.09-11

Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the ...

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To keep the ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-gef/greif/news/with-a-return-on-equity-of-13-has-greif-incs-nysegef-managem\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>With A Return On Equity Of 13%, Has Greif, Inc.'s (NYSE:GEF) Management Done Well?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWith A Return On Equity Of 13%, Has Greif, Inc.'s (NYSE:GEF) Management Done Well?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-11 19:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/materials/nyse-gef/greif/news/with-a-return-on-equity-of-13-has-greif-incs-nysegef-managem><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  To keep the ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-gef/greif/news/with-a-return-on-equity-of-13-has-greif-incs-nysegef-managem\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NYSE","symbol_name":"纽交所","start_time":0,"source_url":"https://simplywall.st/stocks/us/materials/nyse-gef/greif/news/with-a-return-on-equity-of-13-has-greif-incs-nysegef-managem","article_id":"2466730231","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2041000-choice2-main-header/1585186810333"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2466730231","pubTimestamp":1726052560,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"NYSE":"纽交所","BK4585":"ETF&股票定投概念","BK4588":"碎股","BK4126":"金属与玻璃容器","EQR":"资产住宅公司","ROE":"ASTORIA US QUALITY KINGS ETF","BK4215":"住宅房地产投资信托","GEF":"格瑞夫"},"translate_title":"凭借13%的股本回报率，Greif，Inc.（纽约证券交易所代码：GEF）的管理层做得好吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EQR":1,"GEF":1,"NYSE":1,"ROE":1},"content_text":"Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  To keep the lesson grounded in practicality, we'll use ROE to better understand Greif, Inc. (NYSE:GEF).  Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity.  See our latest analysis for Greif  How Is ROE Calculated?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Greif is:13% = US$293m ÷ US$2.2b (Based on the trailing twelve months to July 2024). The 'return' is the yearly profit.  Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.13 in profit.   Does Greif Have A Good Return On Equity?  By comparing a company's ROE with its industry average, we can get a quick measure of how good it is.  However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification.   You can see in the graphic below that Greif has an ROE that is fairly close to the average for the Packaging industry (16%).  NYSE:GEF Return on Equity September 11th 2024 So while the ROE is not exceptional, at least its acceptable.    Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels.  If true, then it is more an indication of risk than the potential.   To know the 2 risks we have identified for Greif visit our risks dashboard for free.  How Does Debt Impact ROE?  Companies usually need to invest money to grow their profits.  That cash can come from issuing shares, retained earnings, or debt.  In the first and second cases, the ROE will reflect this use of cash for investment in the business.  In the latter case, the use of debt will improve the returns, but will not change the equity.  That will make the ROE look better than if no debt was used.  Combining Greif's Debt And Its 13% Return On Equity  Greif clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.31.   While its ROE is respectable, it is worth keeping in mind that there is usually a limit as to how much debt a company can use.   Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.     Summary    Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders.  A company that can achieve a high return on equity without debt could be considered a high quality business.  All else being equal, a higher ROE is better.  Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock.  The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too.   So I think it may be worth checking this free report on analyst forecasts for the company.  But note: Greif may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2466730231"}