BALL CORP (BALL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BALL - US0584981064 - Common Stock
56.26 USD
-0.75 (-1.32%)
56.2 USD
-0.06 (-0.11%)
Overall BALL gets a fundamental rating of 5 out of 10. We evaluated BALL against 22 industry peers in the Containers & Packaging industry. BALL has an excellent profitability rating, but there are concerns on its financial health. BALL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year BALL was profitable.
- In the past year BALL had a positive cash flow from operations.
- BALL had positive earnings in each of the past 5 years.
- In the past 5 years BALL always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.63%, BALL is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- BALL has a Return On Equity of 12.49%. This is in the better half of the industry: BALL outperforms 63.64% of its industry peers.
- With a decent Return On Invested Capital value of 7.38%, BALL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- BALL had an Average Return On Invested Capital over the past 3 years of 6.96%. This is in line with the industry average of 7.62%.
- The last Return On Invested Capital (7.38%) for BALL is above the 3 year average (6.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 12.49% | ||
| ROIC | 7.38% |
ROA(3y)10%
ROA(5y)7.53%
ROE(3y)35.97%
ROE(5y)30%
ROIC(3y)6.96%
ROIC(5y)7.14%
1.3 Margins
- BALL has a better Profit Margin (5.36%) than 68.18% of its industry peers.
- In the last couple of years the Profit Margin of BALL has grown nicely.
- BALL's Operating Margin of 10.73% is fine compared to the rest of the industry. BALL outperforms 72.73% of its industry peers.
- BALL's Operating Margin has improved in the last couple of years.
- BALL's Gross Margin of 19.86% is on the low side compared to the rest of the industry. BALL is outperformed by 63.64% of its industry peers.
- BALL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.73% | ||
| PM (TTM) | 5.36% | ||
| GM | 19.86% |
OM growth 3Y-1.12%
OM growth 5Y2.5%
PM growth 3Y74.85%
PM growth 5Y47.1%
GM growth 3Y1.59%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BALL is destroying value.
- BALL has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BALL has less shares outstanding
- BALL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.54 indicates that BALL is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.54, BALL is doing good in the industry, outperforming 77.27% of the companies in the same industry.
- BALL has a debt to FCF ratio of 51.49. This is a negative value and a sign of low solvency as BALL would need 51.49 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 51.49, BALL perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
- BALL has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
- BALL's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. BALL is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 51.49 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.89
WACC8.28%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that BALL should not have too much problems paying its short term obligations.
- BALL's Current ratio of 1.10 is on the low side compared to the rest of the industry. BALL is outperformed by 86.36% of its industry peers.
- A Quick Ratio of 0.72 indicates that BALL may have some problems paying its short term obligations.
- BALL has a worse Quick ratio (0.72) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- BALL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.18%, which is quite good.
- BALL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.53% yearly.
- The Revenue has been growing slightly by 3.05% in the past year.
- Measured over the past years, BALL shows a small growth in Revenue. The Revenue has been growing by 0.55% on average per year.
EPS 1Y (TTM)13.18%
EPS 3Y-3.15%
EPS 5Y4.53%
EPS Q2Q%12.09%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y-5.12%
Revenue growth 5Y0.55%
Sales Q2Q%9.64%
3.2 Future
- The Earnings Per Share is expected to grow by 10.97% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.26% on average over the next years.
EPS Next Y14.81%
EPS Next 2Y13.17%
EPS Next 3Y12.78%
EPS Next 5Y10.97%
Revenue Next Year8.98%
Revenue Next 2Y6.76%
Revenue Next 3Y5.62%
Revenue Next 5Y5.26%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- BALL is valuated correctly with a Price/Earnings ratio of 15.98.
- BALL's Price/Earnings ratio is a bit cheaper when compared to the industry. BALL is cheaper than 63.64% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. BALL is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 13.86, the valuation of BALL can be described as correct.
- BALL's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. BALL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BALL is on the same level as its industry peers.
- 63.64% of the companies in the same industry are cheaper than BALL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 107.69 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
- BALL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of BALL may justify a higher PE ratio.
- A more expensive valuation may be justified as BALL's earnings are expected to grow with 12.78% in the coming years.
PEG (NY)1.08
PEG (5Y)3.53
EPS Next 2Y13.17%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
- BALL has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.38, BALL is paying slightly less dividend.
- BALL's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
- The dividend of BALL is nicely growing with an annual growth rate of 7.90%!
- BALL has been paying a dividend for at least 10 years, so it has a reliable track record.
- BALL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.9%
Div Incr Years0
Div Non Decr Years29
5.3 Sustainability
- BALL pays out 33.09% of its income as dividend. This is a sustainable payout ratio.
- BALL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.09%
EPS Next 2Y13.17%
EPS Next 3Y12.78%
BALL CORP / BALL FAQ
Can you provide the ChartMill fundamental rating for BALL CORP?
ChartMill assigns a fundamental rating of 5 / 10 to BALL.
Can you provide the valuation status for BALL CORP?
ChartMill assigns a valuation rating of 4 / 10 to BALL CORP (BALL). This can be considered as Fairly Valued.
How profitable is BALL CORP (BALL) stock?
BALL CORP (BALL) has a profitability rating of 7 / 10.
What are the PE and PB ratios of BALL CORP (BALL) stock?
The Price/Earnings (PE) ratio for BALL CORP (BALL) is 15.98 and the Price/Book (PB) ratio is 2.77.
What is the financial health of BALL CORP (BALL) stock?
The financial health rating of BALL CORP (BALL) is 3 / 10.