BERRY GLOBAL GROUP INC (BERY) Stock Fundamental Analysis
NYSE:BERY - New York Stock Exchange, Inc. - US08579W1036 - Common Stock - Currency: USD
Overall BERY gets a fundamental rating of 5 out of 10. We evaluated BERY against 22 industry peers in the Containers & Packaging industry. BERY has only an average score on both its financial health and profitability. BERY has a bad growth rate and is valued cheaply. These ratings could make BERY a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year BERY was profitable.
BERY had a positive operating cash flow in the past year.
In the past 5 years BERY has always been profitable.
Each year in the past 5 years BERY had a positive operating cash flow.
1.2 Ratios
BERY has a Return On Assets of 3.47%. This is in the better half of the industry: BERY outperforms 69.57% of its industry peers.
BERY's Return On Equity of 21.35% is amongst the best of the industry. BERY outperforms 91.30% of its industry peers.
BERY has a better Return On Invested Capital (8.57%) than 78.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BERY is in line with the industry average of 7.58%.
The last Return On Invested Capital (8.57%) for BERY is above the 3 year average (7.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 21.35% | ||
| ROIC | 8.57% |
ROA(3y)3.77%
ROA(5y)3.75%
ROE(3y)19.07%
ROE(5y)21.4%
ROIC(3y)7.27%
ROIC(5y)7.33%
1.3 Margins
With a decent Profit Margin value of 3.99%, BERY is doing good in the industry, outperforming 60.87% of the companies in the same industry.
BERY's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 9.63%, BERY perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
In the last couple of years the Operating Margin of BERY has remained more or less at the same level.
BERY's Gross Margin of 18.96% is on the low side compared to the rest of the industry. BERY is outperformed by 73.91% of its industry peers.
BERY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.63% | ||
| PM (TTM) | 3.99% | ||
| GM | 18.96% |
OM growth 3Y-1.76%
OM growth 5Y-0.62%
PM growth 3Y-7.35%
PM growth 5Y-1.55%
GM growth 3Y0.63%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BERY is creating some value.
Compared to 1 year ago, BERY has less shares outstanding
The number of shares outstanding for BERY has been reduced compared to 5 years ago.
The debt/assets ratio for BERY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.81, we must say that BERY is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BERY (1.81) is comparable to the rest of the industry.
The Debt to FCF ratio of BERY is 13.03, which is on the high side as it means it would take BERY, 13.03 years of fcf income to pay off all of its debts.
BERY's Debt to FCF ratio of 13.03 is fine compared to the rest of the industry. BERY outperforms 69.57% of its industry peers.
BERY has a Debt/Equity ratio of 3.35. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.35, BERY is doing worse than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.26
WACC6.81%
2.3 Liquidity
A Current Ratio of 1.61 indicates that BERY should not have too much problems paying its short term obligations.
BERY's Current ratio of 1.61 is fine compared to the rest of the industry. BERY outperforms 65.22% of its industry peers.
BERY has a Quick Ratio of 1.09. This is a normal value and indicates that BERY is financially healthy and should not expect problems in meeting its short term obligations.
BERY's Quick ratio of 1.09 is fine compared to the rest of the industry. BERY outperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
BERY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.77%.
BERY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.45% yearly.
The Revenue has decreased by -5.35% in the past year.
BERY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
EPS 1Y (TTM)1.77%
EPS 3Y9.59%
EPS 5Y17.45%
EPS Q2Q%-10.66%
Revenue 1Y (TTM)-5.35%
Revenue growth 3Y-3.99%
Revenue growth 5Y6.66%
Sales Q2Q%-16.4%
3.2 Future
Based on estimates for the next years, BERY will show a decrease in Earnings Per Share. The EPS will decrease by -0.06% on average per year.
The Revenue is expected to decrease by -4.03% on average over the next years.
EPS Next Y-13.87%
EPS Next 2Y-3.71%
EPS Next 3Y-0.06%
EPS Next 5YN/A
Revenue Next Year-16.2%
Revenue Next 2Y-7.82%
Revenue Next 3Y-4.03%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.02 indicates a reasonable valuation of BERY.
Based on the Price/Earnings ratio, BERY is valued cheaper than 95.65% of the companies in the same industry.
BERY is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.56, the valuation of BERY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BERY is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
BERY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BERY indicates a rather cheap valuation: BERY is cheaper than 82.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BERY is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.54 | ||
| EV/EBITDA | 7.58 |
4.3 Compensation for Growth
BERY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-3.71%
EPS Next 3Y-0.06%
5. Dividend
5.1 Amount
BERY has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
BERY's Dividend Yield is comparable with the industry average which is at 2.90.
Compared to the average S&P500 Dividend Yield of 2.37, BERY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
BERY has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
29.51% of the earnings are spent on dividend by BERY. This is a low number and sustainable payout ratio.
DP29.51%
EPS Next 2Y-3.71%
EPS Next 3Y-0.06%
67.58
-2.04 (-2.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change0%
Ins Owners0.43%
Ins Owner Change-104.9%
Market Cap7.83B
Analysts71.43
Price Target76.41 (13.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend1.2
Dividend Growth(5Y)N/A
DP29.51%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.32%
Min EPS beat(2)-0.97%
Max EPS beat(2)9.61%
EPS beat(4)3
Avg EPS beat(4)3.18%
Min EPS beat(4)-0.97%
Max EPS beat(4)9.61%
EPS beat(8)5
Avg EPS beat(8)0.9%
EPS beat(12)8
Avg EPS beat(12)1.47%
EPS beat(16)9
Avg EPS beat(16)1.74%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)-0.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.52%
Min Revenue beat(4)-4.79%
Max Revenue beat(4)-0.29%
Revenue beat(8)0
Avg Revenue beat(8)-4.36%
Revenue beat(12)1
Avg Revenue beat(12)-4.63%
Revenue beat(16)5
Avg Revenue beat(16)-2.07%
PT rev (1m)-0.51%
PT rev (3m)0.41%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)-0.79%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.56 | ||
| P/S | 0.66 | ||
| P/FCF | 12.54 | ||
| P/OCF | 6.95 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.58 |
EPS(TTM)7.49
EY11.08%
EPS(NY)7.07
Fwd EY10.46%
FCF(TTM)5.39
FCFY7.97%
OCF(TTM)9.72
OCFY14.39%
SpS101.81
BVpS19.05
TBVpS-26.78
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 21.35% | ||
| ROCE | 10.29% | ||
| ROIC | 8.57% | ||
| ROICexc | 9.6% | ||
| ROICexgc | 20.82% | ||
| OM | 9.63% | ||
| PM (TTM) | 3.99% | ||
| GM | 18.96% | ||
| FCFM | 5.29% |
ROA(3y)3.77%
ROA(5y)3.75%
ROE(3y)19.07%
ROE(5y)21.4%
ROIC(3y)7.27%
ROIC(5y)7.33%
ROICexc(3y)7.99%
ROICexc(5y)7.96%
ROICexgc(3y)17.3%
ROICexgc(5y)36.65%
ROCE(3y)8.73%
ROCE(5y)8.8%
ROICexcg growth 3Y-0.28%
ROICexcg growth 5Y8.44%
ROICexc growth 3Y-1.22%
ROICexc growth 5Y9.1%
OM growth 3Y-1.76%
OM growth 5Y-0.62%
PM growth 3Y-7.35%
PM growth 5Y-1.55%
GM growth 3Y0.63%
GM growth 5Y0.16%
F-Score6
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 13.03 | ||
| Debt/EBITDA | 3.79 | ||
| Cap/Depr | 61.75% | ||
| Cap/Sales | 4.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.8% | ||
| Profit Quality | 132.48% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.81 |
F-Score6
WACC6.81%
ROIC/WACC1.26
Cap/Depr(3y)77.47%
Cap/Depr(5y)76.11%
Cap/Sales(3y)4.89%
Cap/Sales(5y)4.91%
Profit Quality(3y)143.97%
Profit Quality(5y)144.93%
High Growth Momentum
Growth
EPS 1Y (TTM)1.77%
EPS 3Y9.59%
EPS 5Y17.45%
EPS Q2Q%-10.66%
EPS Next Y-13.87%
EPS Next 2Y-3.71%
EPS Next 3Y-0.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.35%
Revenue growth 3Y-3.99%
Revenue growth 5Y6.66%
Sales Q2Q%-16.4%
Revenue Next Year-16.2%
Revenue Next 2Y-7.82%
Revenue Next 3Y-4.03%
Revenue Next 5YN/A
EBIT growth 1Y-0.26%
EBIT growth 3Y-5.68%
EBIT growth 5Y6%
EBIT Next Year41.64%
EBIT Next 3Y15.1%
EBIT Next 5YN/A
FCF growth 1Y-30.51%
FCF growth 3Y-1.88%
FCF growth 5Y1.26%
OCF growth 1Y-31.09%
OCF growth 3Y-3.84%
OCF growth 5Y3.19%