Greif's (GEF, $34.48) $1.8 Billion Purchase of Caraustar Is Criticized By Analysts Over Leverage Concerns
Greif Inc.’s decision to acquire Caraustar Industries, Inc. for $1.8 billion in cash was met with discouraging outlook from several credit ratings companies and analysts.
On Thursday, Greif, a manufacturer of industrial packaging, revealed that it is buying Caraustar from an affiliate of private equity firm H.I.G. Capital. The announcement led to Moody’s Investors Service considering a downgrade on Greif. Moody's said its review for the downgrade is based on "the significant incremental debt, change in risk profile and the integration risk inherent in the transaction." Also, BMO Capital Markets lowered Greif's rating from "Outperform" to a "Underperform."
Greif, however, said that the acquisition is expected to boost its earnings, margins and free cash flow, and to create annual cost synergies of at least $45 million within 36 months. According to the company, the addition of Caraustar would increase Greif's U.S. sales to roughly two thirds of total consolidated sales, from about half for fiscal 2018. Caraustar’s leadership in uncoated and coated recycled paperboards would help Greif expand its market, according to Greif.
GEF in upward trend: price rose above 50-day moving average on June 11, 2026
GEF moved above its 50-day moving average on June 11, 2026 date and that indicates a change from a downward trend to an upward trend. In of 50 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 09, 2026. You may want to consider a long position or call options on GEF as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 10-day moving average for GEF crossed bullishly above the 50-day moving average on June 17, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GEF advanced for three days, in of 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 233 cases where GEF Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for GEF moved out of overbought territory on July 06, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 cases where GEF's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GEF turned negative on July 08, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GEF declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GEF broke above its upper Bollinger Band on June 11, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.383) is normal, around the industry mean (6.473). P/E Ratio (29.599) is within average values for comparable stocks, (31.056). GEF's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (0.933). Dividend Yield (0.032) settles around the average of (0.035) among similar stocks. P/S Ratio (0.767) is also within normal values, averaging (1.062).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GEF’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a provider of industrial packaging products and services
Industry ContainersPackaging
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