BALL CORP (BALL) Stock Fundamental Analysis
NYSE:BALL - New York Stock Exchange, Inc. - US0584981064 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BALL. BALL was compared to 22 industry peers in the Containers & Packaging industry. BALL has only an average score on both its financial health and profitability. 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.
In the past 5 years BALL has always been profitable.
BALL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.78%, BALL perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.13%, BALL is in line with its industry, outperforming 54.55% of the companies in the same industry.
BALL's Return On Invested Capital of 7.34% is fine compared to the rest of the industry. BALL outperforms 68.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BALL is in line with the industry average of 7.58%.
The last Return On Invested Capital (7.34%) for BALL is above the 3 year average (6.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 9.13% | ||
| ROIC | 7.34% |
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 4.18%. This is in the better half of the industry: BALL outperforms 63.64% of its industry peers.
In the last couple of years the Profit Margin of BALL has grown nicely.
BALL has a better Operating Margin (10.75%) than 72.73% of its industry peers.
In the last couple of years the Operating Margin of BALL has grown nicely.
With a Gross Margin value of 20.42%, BALL is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
BALL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.75% | ||
| PM (TTM) | 4.18% | ||
| GM | 20.42% |
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.
BALL has less shares outstanding than it did 5 years ago.
BALL has a better debt/assets ratio than last year.
2.2 Solvency
BALL has an Altman-Z score of 2.59. 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 2.59 is amongst the best of the industry. BALL outperforms 86.36% of its industry peers.
BALL has a debt to FCF ratio of 23.49. This is a negative value and a sign of low solvency as BALL would need 23.49 years to pay back of all of its debts.
BALL has a Debt to FCF ratio (23.49) which is in line with its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that BALL has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.14, BALL is doing good in the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 23.49 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.99
WACC7.39%
2.3 Liquidity
BALL has a Current Ratio of 1.04. This is a normal value and indicates that BALL is financially healthy and should not expect problems in meeting its short term obligations.
BALL's Current ratio of 1.04 is on the low side compared to the rest of the industry. BALL is outperformed by 72.73% of its industry peers.
A Quick Ratio of 0.70 indicates that BALL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, BALL is doing worse than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
BALL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.07%, which is quite good.
Measured over the past 5 years, BALL shows a small growth in Earnings Per Share. The EPS has been growing by 4.53% on average per year.
Looking at the last year, BALL shows a very negative growth in Revenue. The Revenue has decreased by -10.41% in the last year.
The Revenue has been growing slightly by 0.55% on average over the past years.
EPS 1Y (TTM)12.07%
EPS 3Y-3.15%
EPS 5Y4.53%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-10.41%
Revenue growth 3Y-5.12%
Revenue growth 5Y0.55%
Sales Q2Q%7.76%
3.2 Future
BALL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.22% yearly.
BALL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y14.04%
EPS Next 2Y13.52%
EPS Next 3Y12.31%
EPS Next 5Y11.22%
Revenue Next Year5.16%
Revenue Next 2Y3.96%
Revenue Next 3Y3.8%
Revenue Next 5Y4.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 17.94, the valuation of BALL can be described as rather expensive.
BALL's Price/Earnings is on the same level as the industry average.
BALL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 14.27, the valuation of BALL can be described as correct.
BALL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BALL to the average of the S&P500 Index (21.76), we can say BALL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 14.27 |
4.2 Price Multiples
BALL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BALL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.56 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
The 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 12.31% in the coming years.
PEG (NY)1.28
PEG (5Y)3.96
EPS Next 2Y13.52%
EPS Next 3Y12.31%
5. Dividend
5.1 Amount
BALL has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.88, BALL has a dividend in line with its industry peers.
With a Dividend Yield of 1.37, BALL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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 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
47.41% of the earnings are spent on dividend by BALL. This is a bit on the high side, but may be sustainable.
The dividend of BALL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.41%
EPS Next 2Y13.52%
EPS Next 3Y12.31%
58.31
-0.09 (-0.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners87.83%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner Change4.22%
Market Cap16.18B
Analysts77.27
Price Target62.86 (7.8%)
Short Float %3.09%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend0.81
Dividend Growth(5Y)7.9%
DP47.41%
Div Incr Years0
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.8%
Min EPS beat(2)2.94%
Max EPS beat(2)6.66%
EPS beat(4)4
Avg EPS beat(4)4.39%
Min EPS beat(4)2.94%
Max EPS beat(4)6.66%
EPS beat(8)7
Avg EPS beat(8)4.55%
EPS beat(12)8
Avg EPS beat(12)2.57%
EPS beat(16)10
Avg EPS beat(16)1.44%
Revenue beat(2)1
Avg Revenue beat(2)0.92%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)4.91%
Revenue beat(4)1
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-6.36%
Max Revenue beat(4)4.91%
Revenue beat(8)1
Avg Revenue beat(8)-5.52%
Revenue beat(12)2
Avg Revenue beat(12)-4.11%
Revenue beat(16)5
Avg Revenue beat(16)-2.5%
PT rev (1m)0.54%
PT rev (3m)-2.33%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)1.79%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)2.39%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 14.27 | ||
| P/S | 1.35 | ||
| P/FCF | 56.56 | ||
| P/OCF | 23.21 | ||
| P/B | 2.94 | ||
| P/tB | 81.7 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)3.25
EY5.57%
EPS(NY)4.09
Fwd EY7.01%
FCF(TTM)1.03
FCFY1.77%
OCF(TTM)2.51
OCFY4.31%
SpS43.32
BVpS19.83
TBVpS0.71
PEG (NY)1.28
PEG (5Y)3.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 9.13% | ||
| ROCE | 9.79% | ||
| ROIC | 7.34% | ||
| ROICexc | 7.59% | ||
| ROICexgc | 12.91% | ||
| OM | 10.75% | ||
| PM (TTM) | 4.18% | ||
| GM | 20.42% | ||
| FCFM | 2.38% |
ROA(3y)10%
ROA(5y)7.53%
ROE(3y)35.97%
ROE(5y)30%
ROIC(3y)6.96%
ROIC(5y)7.14%
ROICexc(3y)7.36%
ROICexc(5y)7.59%
ROICexgc(3y)13.16%
ROICexgc(5y)14.08%
ROCE(3y)9.38%
ROCE(5y)9.54%
ROICexcg growth 3Y-4.58%
ROICexcg growth 5Y-9.26%
ROICexc growth 3Y-3.25%
ROICexc growth 5Y-0.66%
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%
F-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 23.49 | ||
| Debt/EBITDA | 3.31 | ||
| Cap/Depr | 68.16% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 36.78% | ||
| Profit Quality | 56.97% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.59 |
F-Score5
WACC7.39%
ROIC/WACC0.99
Cap/Depr(3y)158.69%
Cap/Depr(5y)177.85%
Cap/Sales(3y)7.84%
Cap/Sales(5y)9.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.07%
EPS 3Y-3.15%
EPS 5Y4.53%
EPS Q2Q%11.76%
EPS Next Y14.04%
EPS Next 2Y13.52%
EPS Next 3Y12.31%
EPS Next 5Y11.22%
Revenue 1Y (TTM)-10.41%
Revenue growth 3Y-5.12%
Revenue growth 5Y0.55%
Sales Q2Q%7.76%
Revenue Next Year5.16%
Revenue Next 2Y3.96%
Revenue Next 3Y3.8%
Revenue Next 5Y4.48%
EBIT growth 1Y-0.69%
EBIT growth 3Y-6.19%
EBIT growth 5Y3.07%
EBIT Next Year38.5%
EBIT Next 3Y15.02%
EBIT Next 5Y11.22%
FCF growth 1Y135.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.02%
OCF growth 3Y-59.72%
OCF growth 5Y-40.55%