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 24 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.
In the past year BERY had a positive cash flow from operations.
BERY had positive earnings in each of the past 5 years.
In the past 5 years BERY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BERY (3.47%) is better than 60.87% of its industry peers.
The Return On Equity of BERY (21.35%) is better than 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.
The Average Return On Invested Capital over the past 3 years for BERY is in line with the industry average of 7.64%.
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 Profit Margin of 3.99%. This is comparable to the rest of the industry: BERY outperforms 56.52% of its industry peers.
BERY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.63%, BERY is in the better half of the industry, outperforming 60.87% 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 18.96% 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
BERY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BERY has less shares outstanding
Compared to 5 years ago, BERY has less shares outstanding
BERY has a better debt/assets ratio than last year.
2.2 Solvency
BERY has an Altman-Z score of 1.84. This is not the best score and indicates that BERY is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of BERY (1.84) 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.
The Debt to FCF ratio of BERY (13.03) is better than 60.87% 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.
BERY has a Debt to Equity ratio of 3.35. This is amonst the worse of the industry: BERY underperforms 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.24
WACC6.91%
2.3 Liquidity
A Current Ratio of 1.61 indicates that BERY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.61, BERY is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that BERY should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.09, BERY is doing good in the industry, outperforming 60.87% 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.
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.
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
Based on estimates for the next years, BERY will show a decrease in Earnings Per Share. The EPS will decrease by -1.42% on average per year.
BERY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.95% yearly.
EPS Next Y-15.92%
EPS Next 2Y-5.09%
EPS Next 3Y-1.42%
EPS Next 5YN/A
Revenue Next Year-18.09%
Revenue Next 2Y-8.88%
Revenue Next 3Y-5.95%
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
With a Price/Earnings ratio of 9.59, the valuation of BERY can be described as very reasonable.
Based on the Price/Earnings ratio, BERY is valued cheaper than 95.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. BERY is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.47, the valuation of BERY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BERY indicates a somewhat cheap valuation: BERY is cheaper than 73.91% of the companies listed in the same industry.
BERY is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
BERY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BERY is cheaper than 78.26% of the companies in the same industry.
78.26% of the companies in the same industry are more expensive than BERY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.33 | ||
| EV/EBITDA | 7.86 |
4.3 Compensation for Growth
The decent profitability rating of BERY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-5.09%
EPS Next 3Y-1.42%
5. Dividend
5.1 Amount
BERY has a Yearly Dividend Yield of 1.73%. Purely for dividend investing, there may be better candidates out there.
BERY's Dividend Yield is comparable with the industry average which is at 3.19.
Compared to the average S&P500 Dividend Yield of 2.30, BERY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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
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-5.09%
EPS Next 3Y-1.42%
71.84
-0.33 (-0.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change-4.51%
Ins Owners0.43%
Ins Owner Change10.43%
Market Cap8.32B
Analysts70.48
Price Target76.8 (6.9%)
Short Float %3.43%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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)0.93%
PT rev (3m)1.8%
EPS NQ rev (1m)-5.35%
EPS NQ rev (3m)-10.53%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-13.82%
Revenue NQ rev (1m)-1.72%
Revenue NQ rev (3m)-7.63%
Revenue NY rev (1m)-1.96%
Revenue NY rev (3m)-12.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 10.47 | ||
| P/S | 0.71 | ||
| P/FCF | 13.33 | ||
| P/OCF | 7.39 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.86 |
EPS(TTM)7.49
EY10.43%
EPS(NY)6.86
Fwd EY9.55%
FCF(TTM)5.39
FCFY7.5%
OCF(TTM)9.72
OCFY13.54%
SpS101.81
BVpS19.05
TBVpS-26.78
PEG (NY)N/A
PEG (5Y)0.55
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 | 1.84 |
F-Score6
WACC6.91%
ROIC/WACC1.24
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-15.92%
EPS Next 2Y-5.09%
EPS Next 3Y-1.42%
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-18.09%
Revenue Next 2Y-8.88%
Revenue Next 3Y-5.95%
Revenue Next 5YN/A
EBIT growth 1Y-0.26%
EBIT growth 3Y-5.68%
EBIT growth 5Y6%
EBIT Next Year41.41%
EBIT Next 3Y14.59%
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%