BALL CORP (BALL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BALL - US0584981064 - Common Stock
57.36 USD
+1.07 (+1.9%)
57.36 USD
0 (0%)
BALL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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
- BALL had positive earnings in the past year.
- In the past year BALL had a positive cash flow from operations.
- BALL had positive earnings in each of the past 5 years.
- BALL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of BALL (3.63%) is better than 68.18% of its industry peers.
- Looking at the Return On Equity, with a value of 12.49%, BALL is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- The Return On Invested Capital of BALL (7.38%) is better than 72.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BALL is in line with the industry average of 7.62%.
- The 3 year average ROIC (6.96%) for BALL is below the current ROIC(7.38%), indicating increased profibility in the last year.
| 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 Profit Margin of 5.36%. This is in the better half of the industry: BALL outperforms 68.18% of its industry peers.
- BALL's Profit Margin has improved in the last couple of years.
- BALL has a Operating Margin of 10.73%. This is in the better half of the industry: BALL outperforms 72.73% of its industry peers.
- BALL's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 19.86%, BALL is doing worse than 63.64% of the companies in the same industry.
- In the last couple of years the Gross Margin of BALL has remained more or less at the same level.
| 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.
- The number of shares outstanding for BALL has been reduced compared to 1 year ago.
- The number of shares outstanding for BALL has been reduced compared to 5 years ago.
- The debt/assets ratio for BALL has been reduced compared to a year ago.
2.2 Solvency
- BALL has an Altman-Z score of 2.55. This is not the best score and indicates that BALL is in the grey zone with still only limited risk for bankruptcy at the moment.
- BALL's Altman-Z score of 2.55 is fine compared to the rest of the industry. BALL outperforms 72.73% of its industry peers.
- 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.
- BALL's Debt to FCF ratio of 51.49 is in line compared to the rest of the industry. BALL outperforms 40.91% of its industry peers.
- A Debt/Equity ratio of 1.28 is on the high side and indicates that BALL has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.28, BALL is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 51.49 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.89
WACC8.25%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that BALL should not have too much problems paying its short term obligations.
- BALL has a Current ratio of 1.10. This is amonst the worse of the industry: BALL underperforms 86.36% of its industry peers.
- A Quick Ratio of 0.72 indicates that BALL may have some problems paying its short term obligations.
- The Quick ratio of BALL (0.72) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.18% over the past year.
- BALL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.53% yearly.
- BALL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.05%.
- The Revenue has been growing slightly by 0.55% on average over the past years.
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
- The Price/Earnings ratio is 16.30, which indicates a correct valuation of BALL.
- Compared to the rest of the industry, the Price/Earnings ratio of BALL indicates a somewhat cheap valuation: BALL is cheaper than 68.18% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BALL to the average of the S&P500 Index (27.21), we can say BALL is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.13, which indicates a correct valuation of BALL.
- The rest of the industry has a similar Price/Forward Earnings ratio as BALL.
- When comparing the Price/Forward Earnings ratio of BALL to the average of the S&P500 Index (25.98), we can say BALL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BALL.
- Based on the Price/Free Cash Flow ratio, BALL is valued a bit more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.8 | ||
| EV/EBITDA | 11.1 |
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.
- BALL's earnings are expected to grow with 12.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)3.6
EPS Next 2Y13.17%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.42%, BALL has a reasonable but not impressive dividend return.
- BALL's Dividend Yield is slightly below the industry average, which is at 2.38.
- Compared to the average S&P500 Dividend Yield of 1.81, BALL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
- On average, the dividend of BALL grows each year by 7.90%, which is quite nice.
- BALL has paid a dividend for at least 10 years, which is a reliable track record.
- BALL has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
- The dividend of BALL is growing, but earnings are growing more, so the dividend growth is 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 16.3 and the Price/Book (PB) ratio is 2.82.
What is the financial health of BALL CORP (BALL) stock?
The financial health rating of BALL CORP (BALL) is 3 / 10.