BERRY GLOBAL GROUP INC (BERY) Stock Fundamental Analysis
NYSE:BERY - New York Stock Exchange, Inc. - US08579W1036 - Common Stock - Currency: USD
Taking everything into account, BERY scores 4 out of 10 in our fundamental rating. BERY was compared to 24 industry peers in the Containers & Packaging industry. While BERY is still in line with the averages on profitability rating, there are concerns on its financial health. BERY has a bad growth rate and is valued cheaply.
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.
BERY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.11%, BERY is in line with its industry, outperforming 47.83% of the companies in the same industry.
The Return On Equity of BERY (14.30%) is better than 69.57% of its industry peers.
The Return On Invested Capital of BERY (7.25%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BERY is in line with the industry average of 7.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 14.3% | ||
| ROIC | 7.25% |
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 Profit Margin value of 4.21%, BERY perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
In the last couple of years the Profit Margin of BERY has declined.
With a Operating Margin value of 9.19%, BERY perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
BERY's Operating Margin has been stable in the last couple of years.
BERY's Gross Margin of 18.38% is on the low side compared to the rest of the industry. BERY is outperformed by 78.26% of its industry peers.
BERY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.19% | ||
| PM (TTM) | 4.21% | ||
| GM | 18.38% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BERY is still creating some value.
Compared to 1 year ago, BERY has less shares outstanding
BERY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BERY has an improved debt to assets ratio.
2.2 Solvency
BERY has an Altman-Z score of 1.61. This is a bad value and indicates that BERY is not financially healthy and even has some risk of bankruptcy.
BERY has a worse Altman-Z score (1.61) than 78.26% of its industry peers.
BERY has a debt to FCF ratio of 9.74. This is a negative value and a sign of low solvency as BERY would need 9.74 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.74, BERY is doing good in the industry, outperforming 65.22% of the companies in the same industry.
A Debt/Equity ratio of 2.08 is on the high side and indicates that BERY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.08, BERY is doing worse than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 9.74 | ||
| Altman-Z | 1.61 |
ROIC/WACC1.11
WACC6.52%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BERY should not have too much problems paying its short term obligations.
BERY has a worse Current ratio (1.25) than 65.22% of its industry peers.
BERY has a Quick Ratio of 1.25. This is a bad value and indicates that BERY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BERY (0.80) is worse than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.42% over the past year.
Measured over the past years, BERY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.45% on average per year.
The Revenue has decreased by -3.21% in the past year.
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)2.42%
EPS 3Y9.59%
EPS 5Y17.45%
EPS Q2Q%-0.44%
Revenue 1Y (TTM)-3.21%
Revenue growth 3Y-3.99%
Revenue growth 5Y6.66%
Sales Q2Q%2.62%
3.2 Future
Based on estimates for the next years, BERY will show a decrease in Earnings Per Share. The EPS will decrease by -1.55% on average per year.
The Revenue is expected to decrease by -5.25% on average over the next years.
EPS Next Y-14.86%
EPS Next 2Y-3.63%
EPS Next 3Y-1.55%
EPS Next 5YN/A
Revenue Next Year-16.46%
Revenue Next 2Y-7.86%
Revenue Next 3Y-5.25%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.90, the valuation of BERY can be described as very reasonable.
Based on the Price/Earnings ratio, BERY is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of BERY to the average of the S&P500 Index (28.28), we can say BERY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.45, the valuation of BERY can be described as reasonable.
82.61% of the companies in the same industry are more expensive than BERY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 91.29. BERY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.9 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BERY is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BERY is valued cheaper than 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.15 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-3.63%
EPS Next 3Y-1.55%
5. Dividend
5.1 Amount
BERY has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.06, BERY has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.27, BERY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 26.94% of its income as dividend. This is a sustainable payout ratio.
DP26.94%
EPS Next 2Y-3.63%
EPS Next 3Y-1.55%
BERRY GLOBAL GROUP INC
NYSE:BERY (1/30/2025, 12:24:08 PM)
67.8
-0.46 (-0.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners101.14%
Inst Owner Change0.31%
Ins Owners0.31%
Ins Owner Change10.46%
Market Cap7.81B
Analysts70.48
Price Target76.17 (12.35%)
Short Float %3.16%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend1.2
Dividend Growth(5Y)N/A
DP26.94%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.41%
Min EPS beat(2)-0.97%
Max EPS beat(2)3.8%
EPS beat(4)2
Avg EPS beat(4)-1.05%
Min EPS beat(4)-7.3%
Max EPS beat(4)3.8%
EPS beat(8)4
Avg EPS beat(8)-0.32%
EPS beat(12)7
Avg EPS beat(12)-0.17%
EPS beat(16)9
Avg EPS beat(16)2.2%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-4.79%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-6.37%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-5.58%
Revenue beat(12)2
Avg Revenue beat(12)-4.3%
Revenue beat(16)6
Avg Revenue beat(16)-1.68%
PT rev (1m)0.13%
PT rev (3m)1.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.09%
Revenue NY rev (1m)-2.28%
Revenue NY rev (3m)-18.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.9 | ||
| Fwd PE | 10.45 | ||
| P/S | 0.64 | ||
| P/FCF | 9.15 | ||
| P/OCF | 5.56 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.6 |
EPS(TTM)7.62
EY11.24%
EPS(NY)6.49
Fwd EY9.57%
FCF(TTM)7.41
FCFY10.93%
OCF(TTM)12.2
OCFY17.99%
SpS106.41
BVpS31.32
TBVpS-26.18
PEG (NY)N/A
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 14.3% | ||
| ROCE | 8.71% | ||
| ROIC | 7.25% | ||
| ROICexc | 7.92% | ||
| ROICexgc | 17.97% | ||
| OM | 9.19% | ||
| PM (TTM) | 4.21% | ||
| GM | 18.38% | ||
| FCFM | 6.97% |
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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 9.74 | ||
| Debt/EBITDA | 3.78 | ||
| Cap/Depr | 64.29% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 70.82% | ||
| Profit Quality | 165.5% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.61 |
F-Score6
WACC6.52%
ROIC/WACC1.11
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)2.42%
EPS 3Y9.59%
EPS 5Y17.45%
EPS Q2Q%-0.44%
EPS Next Y-14.86%
EPS Next 2Y-3.63%
EPS Next 3Y-1.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.21%
Revenue growth 3Y-3.99%
Revenue growth 5Y6.66%
Sales Q2Q%2.62%
Revenue Next Year-16.46%
Revenue Next 2Y-7.86%
Revenue Next 3Y-5.25%
Revenue Next 5YN/A
EBIT growth 1Y-4.57%
EBIT growth 3Y-5.68%
EBIT growth 5Y6%
EBIT Next Year42.11%
EBIT Next 3Y14.59%
EBIT Next 5YN/A
FCF growth 1Y-7.78%
FCF growth 3Y-1.88%
FCF growth 5Y1.26%
OCF growth 1Y-13%
OCF growth 3Y-3.84%
OCF growth 5Y3.19%