BERRY GLOBAL GROUP INC (BERY) Stock Fundamental Analysis
NYSE:BERY - New York Stock Exchange, Inc. - US08579W1036 - Common Stock - Currency: USD
BERY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 23 industry peers in the Containers & Packaging industry. Both the profitability and the financial health of BERY get a neutral evaluation. Nothing too spectacular is happening here. BERY has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BERY was profitable.
BERY had a positive operating cash flow in the past year.
Each year in the past 5 years BERY has been profitable.
Each year in the past 5 years BERY had a positive operating cash flow.
1.2 Ratios
BERY has a better Return On Assets (3.47%) than 69.57% of its industry peers.
BERY's Return On Equity of 21.35% is amongst the best of the industry. BERY outperforms 82.61% of its industry peers.
With a decent Return On Invested Capital value of 8.57%, BERY is doing good in the industry, outperforming 69.57% of the companies in the same industry.
BERY had an Average Return On Invested Capital over the past 3 years of 7.27%. This is in line with the industry average of 7.71%.
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
BERY has a better Profit Margin (3.99%) than 65.22% of its industry peers.
BERY's Profit Margin has declined in the last couple of years.
BERY has a Operating Margin (9.63%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BERY has remained more or less at the same level.
BERY has a Gross Margin of 18.96%. This is in the lower half of the industry: BERY underperforms 73.91% of its industry peers.
In the last couple of years the Gross Margin of BERY has remained more or less at the same level.
| 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
BERY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BERY has been reduced compared to 1 year ago.
Compared to 5 years ago, BERY has less shares outstanding
Compared to 1 year ago, BERY has an improved debt to assets ratio.
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 worse than 60.87% of its industry peers.
BERY has a debt to FCF ratio of 13.03. This is a negative value and a sign of low solvency as BERY would need 13.03 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 13.03, BERY is doing good in the industry, outperforming 60.87% of the companies in the same industry.
BERY has a Debt/Equity ratio of 3.35. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BERY (3.35) is worse than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.23
WACC6.95%
2.3 Liquidity
A Current Ratio of 1.61 indicates that BERY should not have too much problems paying its short term obligations.
BERY has a better Current ratio (1.61) than 73.91% of its industry peers.
A Quick Ratio of 1.09 indicates that BERY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, BERY is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.77% over the past year.
The Earnings Per Share has been growing by 17.45% on average over the past years. This is quite good.
BERY shows a decrease in Revenue. In the last year, the revenue decreased by -5.35%.
Measured over the past years, BERY shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
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
The Earnings Per Share is expected to decrease by -0.06% on average over the next years.
BERY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.03% yearly.
EPS Next Y-13.87%
EPS Next 2Y-3.71%
EPS Next 3Y-0.06%
EPS Next 5YN/A
Revenue Next Year-16.14%
Revenue Next 2Y-7.68%
Revenue Next 3Y-4.03%
Revenue Next 5YN/A
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 decreasing.
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
With a Price/Earnings ratio of 8.95, the valuation of BERY can be described as very reasonable.
91.30% of the companies in the same industry are more expensive than BERY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.63. BERY is valued rather cheaply when compared to this.
BERY is valuated reasonably with a Price/Forward Earnings ratio of 9.49.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BERY indicates a rather cheap valuation: BERY is cheaper than 82.61% of the companies listed in the same industry.
BERY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BERY is valued a bit cheaper than 69.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BERY indicates a somewhat cheap valuation: BERY is cheaper than 78.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
The decent profitability rating of BERY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
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 3.58.
Compared to the average S&P500 Dividend Yield of 2.51, BERY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
BERY has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
BERY pays out 29.51% of its income as dividend. This is a sustainable payout ratio.
DP29.51%
EPS Next 2Y-3.71%
EPS Next 3Y-0.06%
67.03
-0.57 (-0.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change0.32%
Ins Owners0.43%
Ins Owner Change3.49%
Market Cap7.76B
Analysts71.43
Price Target76.8 (14.58%)
Short Float %3.69%
Short Ratio2.51
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%
PT rev (3m)0.82%
EPS NQ rev (1m)-1.29%
EPS NQ rev (3m)-11.69%
EPS NY rev (1m)2.43%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-7.84%
Revenue NY rev (1m)2.37%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 9.49 | ||
| P/S | 0.66 | ||
| P/FCF | 12.44 | ||
| P/OCF | 6.89 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.59 |
EPS(TTM)7.49
EY11.17%
EPS(NY)7.07
Fwd EY10.54%
FCF(TTM)5.39
FCFY8.04%
OCF(TTM)9.72
OCFY14.51%
SpS101.81
BVpS19.05
TBVpS-26.78
PEG (NY)N/A
PEG (5Y)0.51
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
WACC6.95%
ROIC/WACC1.23
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-16.14%
Revenue Next 2Y-7.68%
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%