Greif, Inc. GEF has announced the launch of an innovative modular packaging solution, ModCan, which is currently available in North America. Greif expects ModCan to increase productivity and safety while shipping and storing dissimilar materials and waste.

Benefits of GEF’s ModCan

The ModCan system utilizes an innovative wedge-shaped design that enables modular components to fit perfectly within a standard 55-gallon drum. This unique design allows multiple materials, chemicals, or waste components to be safely transported together. This eliminates the risk of contamination or exposure.

ModCan’s design can reduce the number of shipments required by optimizing the available space inside a single drum. This boosts safety by limiting the need for material transfers or consolidations.

These features make ModCan particularly valuable for waste management applications in industries such as specialty manufacturing, semiconductor operations and pharmaceutical production.

Greif collaborated with a long-standing partner from the chemical industry to initially develop the concept and it was further refined with the support of an in-house innovation team. The launch was finally announced at the Pack-Expo conference in Chicago.

GEF believes ModCan will revolutionize industrial waste management and other applications where various materials benefit from being shipped together safely and securely.

Greif’s Other Recent Strategic Moves

Greif has completed its business model optimization project and will report through four new reportable segments beginning in the first quarter of 2025 — Customized Polymer Solutions, Durable Metal Solutions, Sustainable Fiber Solutions and Integrated Solutions.

Greif has also announced cost optimization efforts that will eliminate $100 million of structural costs from the business. This will be achieved through a combination of SG&A rationalization, network optimization and operating efficiency gain.

GEF’s Fiscal 2024 Performance

Adjusted EPS plunged 30% year over year to $4.31 in fiscal 2024 but beat the Zacks Consensus Estimate of $4.20. Including one-time items, EPS was $4.52 compared with $6.15 in the prior fiscal year.

Greif reported sales of $5.45 billion, which beat the consensus estimate of $5.44 billion. Sales were up 4.4% from the prior fiscal year.

Greif Stock Price Performance

The company’s shares have gained 10.7% in the past year compared with the industry’s 26% growth.

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GEF’s Zacks Rank & Stocks to Consider

GEF currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Graham Corporation GHM, Federal Signal Corporation FSS and RBC Bearings Incorporated RBC. While GHM sports Zacks Rank #1 (Strong Buy), FSS and RBC each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Graham has an average trailing four-quarter earnings surprise of 101.85%. The Zacks Consensus Estimate for GHM’s 2024 earnings is pinned at $1.03 per share, which indicates year-over-year growth of 145.2%. The company’s shares have gained 136.8% in a year.

Federal Signal has an average trailing four-quarter earnings surprise of 11.8%. The Zacks Consensus Estimate for FSS’ 2024 earnings is pinned at $3.34 per share, which indicates year-over-year growth of 29.5%. The company’s shares have gained 40% in a year.

The Zacks Consensus Estimate for RBC Bearings’ fiscal 2025 earnings is pegged at $9.80 per share. The company has a trailing four-quarter average earnings surprise of 2.5%. RBC shares have gained 37.5% in a year.

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