We assign a fundamental rating of 6 out of 10 to BWAY. BWAY was compared to 186 industry peers in the Health Care Equipment & Supplies industry. While BWAY has a great health rating, its profitability is only average at the moment. BWAY is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make BWAY suitable for value and growth investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

BWAY had positive earnings in the past year.
In the past year BWAY had a positive cash flow from operations.
In the past 5 years BWAY reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: BWAY reported negative operating cash flow in multiple years.

1.2 Ratios

BWAY has a Return On Assets of 5.53%. This is amongst the best in the industry. BWAY outperforms 82.80% of its industry peers.
BWAY's Return On Equity of 8.92% is amongst the best of the industry. BWAY outperforms 83.33% of its industry peers.
The Return On Invested Capital of BWAY (2.75%) is better than 69.89% of its industry peers.

		Industry Rank	Sector Rank
ROA	5.53%
ROE	8.92%
ROIC	2.75%

ROA(3y)-8.09%

ROA(5y)-9.73%

ROE(3y)-11.6%

ROE(5y)-14.71%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin of BWAY (12.73%) is better than 89.25% of its industry peers.
BWAY's Operating Margin of 5.78% is fine compared to the rest of the industry. BWAY outperforms 70.97% of its industry peers.
BWAY's Gross Margin of 74.92% is amongst the best of the industry. BWAY outperforms 85.48% of its industry peers.
BWAY's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	5.78%
PM (TTM)	12.73%
GM	74.92%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.39%

GM growth 5Y-0.85%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BWAY is destroying value.
Compared to 1 year ago, BWAY has more shares outstanding
Compared to 5 years ago, BWAY has more shares outstanding
BWAY has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 6.63 indicates that BWAY is not in any danger for bankruptcy at the moment.
BWAY has a Altman-Z score of 6.63. This is amongst the best in the industry. BWAY outperforms 82.26% of its industry peers.
The Debt to FCF ratio of BWAY is 0.37, which is an excellent value as it means it would take BWAY, only 0.37 years of fcf income to pay off all of its debts.
BWAY has a Debt to FCF ratio of 0.37. This is amongst the best in the industry. BWAY outperforms 91.94% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that BWAY is not too dependend on debt financing.
BWAY's Debt to Equity ratio of 0.08 is fine compared to the rest of the industry. BWAY outperforms 65.59% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.08
Debt/FCF	0.37
Altman-Z	6.63

ROIC/WACC0.32

WACC8.69%

2.3 Liquidity

BWAY has a Current Ratio of 3.19. This indicates that BWAY is financially healthy and has no problem in meeting its short term obligations.
BWAY has a Current ratio (3.19) which is in line with its industry peers.
A Quick Ratio of 3.02 indicates that BWAY has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.02, BWAY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.19
Quick Ratio	3.02

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

BWAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 260.14%, which is quite impressive.
BWAY shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.08%.
BWAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.17% yearly.

EPS 1Y (TTM)260.14%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%81.08%

Revenue 1Y (TTM)27.08%

Revenue growth 3Y11.41%

Revenue growth 5Y12.17%

Sales Q2Q%16.38%

3.2 Future

The Earnings Per Share is expected to grow by 54.11% on average over the next years. This is a very strong growth
Based on estimates for the next years, BWAY will show a quite strong growth in Revenue. The Revenue will grow by 18.80% on average per year.

EPS Next Y68.53%

EPS Next 2Y55.05%

EPS Next 3Y54.11%

EPS Next 5YN/A

Revenue Next Year13.72%

Revenue Next 2Y17.9%

Revenue Next 3Y18.8%

Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 21.53 indicates a rather expensive valuation of BWAY.
Based on the Price/Earnings ratio, BWAY is valued cheaper than 80.65% of the companies in the same industry.
BWAY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
BWAY is valuated correctly with a Price/Forward Earnings ratio of 16.18.
85.48% of the companies in the same industry are more expensive than BWAY, based on the Price/Forward Earnings ratio.
BWAY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	21.53
Fwd PE	16.18

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BWAY is valued a bit cheaper than 64.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BWAY is valued cheaper than 83.87% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	24.57
EV/EBITDA	86.08

4.3 Compensation for Growth

BWAY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BWAY's earnings are expected to grow with 54.11% in the coming years. This may justify a more expensive valuation.