BALL CORP (BALL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BALL - US0584981064 - Common Stock
56.29 USD
+0.37 (+0.66%)
56.29 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 scores excellent on profitability, 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.
- Each year in the past 5 years BALL had a positive operating cash flow.
1.2 Ratios
- BALL has a Return On Assets of 3.63%. This is in the better half of the industry: BALL outperforms 68.18% of its industry peers.
- BALL's Return On Equity of 12.49% is fine compared to the rest of the industry. BALL outperforms 63.64% of its industry peers.
- BALL has a Return On Invested Capital of 7.38%. This is in the better half of the industry: BALL outperforms 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's Profit Margin of 5.36% is fine compared to the rest of the industry. BALL outperforms 68.18% of its industry peers.
- In the last couple of years the Profit Margin of BALL has grown nicely.
- With a decent Operating Margin value of 10.73%, BALL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- BALL's Operating Margin has improved in the last couple of years.
- The Gross Margin of BALL (19.86%) is worse than 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
- BALL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, BALL has less shares outstanding
- BALL has less shares outstanding than it did 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 2.53. 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 2.53 is fine compared to the rest of the industry. BALL outperforms 77.27% 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 has a Debt to FCF ratio (51.49) which is in line with its industry peers.
- BALL has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
- BALL has a Debt to Equity ratio of 1.28. This is in the lower half of the industry: BALL underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 51.49 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.89
WACC8.25%
2.3 Liquidity
- BALL has a Current Ratio of 1.10. This is a normal value and indicates that BALL is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of BALL (1.10) is worse than 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
- The Earnings Per Share has grown by an nice 13.18% over the past year.
- The Earnings Per Share has been growing slightly by 4.53% on average over the past years.
- The Revenue has been growing slightly by 3.05% in the past year.
- 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
- Based on estimates for the next years, BALL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.97% on average per year.
- BALL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.26% yearly.
EPS Next Y14.89%
EPS Next 2Y13.36%
EPS Next 3Y12.8%
EPS Next 5Y10.97%
Revenue Next Year9.02%
Revenue Next 2Y6.72%
Revenue Next 3Y5.57%
Revenue Next 5Y5.26%
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
- BALL is valuated correctly with a Price/Earnings ratio of 15.99.
- 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.
- BALL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- BALL is valuated correctly with a Price/Forward Earnings ratio of 13.82.
- 68.18% of the companies in the same industry are more expensive than BALL, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, BALL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BALL.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BALL indicates a slightly more expensive valuation: BALL is more expensive than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 107.75 | ||
| EV/EBITDA | 10.9 |
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 12.80% in the coming years.
PEG (NY)1.07
PEG (5Y)3.53
EPS Next 2Y13.36%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
- BALL has a Yearly Dividend Yield of 1.43%.
- Compared to an average industry Dividend Yield of 2.35, BALL is paying slightly less dividend.
- Compared to the average S&P500 Dividend Yield of 1.83, BALL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
- 33.09% of the earnings are spent on dividend by BALL. This is a low number and sustainable payout ratio.
- The dividend of BALL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.09%
EPS Next 2Y13.36%
EPS Next 3Y12.8%
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 15.99 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.