BALL CORP (BALL) Stock Fundamental Analysis
NYSE:BALL - New York Stock Exchange, Inc. - US0584981064 - Common Stock - Currency: USD
Overall BALL gets a fundamental rating of 5 out of 10. We evaluated BALL against 22 industry peers in the Containers & Packaging industry. Both the profitability and the financial health of BALL get a neutral evaluation. Nothing too spectacular is happening here. BALL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
BALL had positive earnings in the past year.
BALL had a positive operating cash flow in the past year.
BALL had positive earnings in each of the past 5 years.
BALL 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 2.78%, BALL is in line with its industry, outperforming 54.55% of the companies in the same industry.
BALL has a Return On Equity (9.13%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.34%, BALL is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
BALL had an Average Return On Invested Capital over the past 3 years of 6.96%. This is in line with the industry average of 7.58%.
The 3 year average ROIC (6.96%) for BALL is below the current ROIC(7.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 9.13% | ||
| ROIC | 7.34% |
ROA(3y)10%
ROA(5y)7.53%
ROE(3y)35.97%
ROE(5y)30%
ROIC(3y)6.96%
ROIC(5y)7.14%
1.3 Margins
BALL has a better Profit Margin (4.18%) than 63.64% of its industry peers.
In the last couple of years the Profit Margin of BALL has grown nicely.
Looking at the Operating Margin, with a value of 10.75%, BALL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of BALL has grown nicely.
With a Gross Margin value of 20.42%, BALL is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
BALL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.75% | ||
| PM (TTM) | 4.18% | ||
| GM | 20.42% |
OM growth 3Y-1.12%
OM growth 5Y2.5%
PM growth 3Y74.85%
PM growth 5Y47.1%
GM growth 3Y1.59%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BALL is destroying value.
The number of shares outstanding for BALL has been reduced compared to 1 year ago.
The number of shares outstanding for BALL has been reduced compared to 5 years ago.
BALL has a better debt/assets ratio than last year.
2.2 Solvency
BALL has an Altman-Z score of 2.55. This is not the best score and indicates that BALL is in the grey zone with still only limited risk for bankruptcy at the moment.
BALL's Altman-Z score of 2.55 is amongst the best of the industry. BALL outperforms 86.36% of its industry peers.
The Debt to FCF ratio of BALL is 23.49, which is on the high side as it means it would take BALL, 23.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BALL (23.49) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that BALL has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.14, BALL is doing good in the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 23.49 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.92
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.04 indicates that BALL should not have too much problems paying its short term obligations.
BALL's Current ratio of 1.04 is on the low side compared to the rest of the industry. BALL is outperformed by 72.73% of its industry peers.
A Quick Ratio of 0.70 indicates that BALL may have some problems paying its short term obligations.
The Quick ratio of BALL (0.70) is worse than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.07% over the past year.
Measured over the past 5 years, BALL shows a small growth in Earnings Per Share. The EPS has been growing by 4.53% on average per year.
The Revenue for BALL has decreased by -10.41% in the past year. This is quite bad
BALL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.55% yearly.
EPS 1Y (TTM)12.07%
EPS 3Y-3.15%
EPS 5Y4.53%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-10.41%
Revenue growth 3Y-5.12%
Revenue growth 5Y0.55%
Sales Q2Q%7.76%
3.2 Future
BALL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.22% yearly.
The Revenue is expected to grow by 4.48% on average over the next years.
EPS Next Y13.94%
EPS Next 2Y13.32%
EPS Next 3Y12.31%
EPS Next 5Y11.22%
Revenue Next Year4.79%
Revenue Next 2Y3.8%
Revenue Next 3Y3.62%
Revenue Next 5Y4.48%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.73, which indicates a correct valuation of BALL.
Compared to the rest of the industry, the Price/Earnings ratio of BALL is on the same level as its industry peers.
BALL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.36, the valuation of BALL can be described as correct.
BALL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. BALL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.73 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BALL.
The rest of the industry has a similar Price/Free Cash Flow ratio as BALL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.74 | ||
| EV/EBITDA | 11.31 |
4.3 Compensation for Growth
BALL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BALL has a very decent profitability rating, which may justify a higher PE ratio.
BALL's earnings are expected to grow with 12.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)3.69
EPS Next 2Y13.32%
EPS Next 3Y12.31%
5. Dividend
5.1 Amount
BALL has a Yearly Dividend Yield of 1.45%.
BALL's Dividend Yield is comparable with the industry average which is at 3.07.
BALL's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
On average, the dividend of BALL grows each year by 7.90%, which is quite nice.
BALL has paid a dividend for at least 10 years, which is a reliable track record.
BALL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.9%
Div Incr Years0
Div Non Decr Years29
5.3 Sustainability
BALL pays out 47.41% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BALL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.41%
EPS Next 2Y13.32%
EPS Next 3Y12.31%
54.37
-0.78 (-1.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners87.83%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner Change5.19%
Market Cap15.08B
Analysts76.52
Price Target62.52 (14.99%)
Short Float %1.82%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend0.81
Dividend Growth(5Y)7.9%
DP47.41%
Div Incr Years0
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.8%
Min EPS beat(2)2.94%
Max EPS beat(2)6.66%
EPS beat(4)4
Avg EPS beat(4)4.39%
Min EPS beat(4)2.94%
Max EPS beat(4)6.66%
EPS beat(8)7
Avg EPS beat(8)4.55%
EPS beat(12)8
Avg EPS beat(12)2.57%
EPS beat(16)10
Avg EPS beat(16)1.44%
Revenue beat(2)1
Avg Revenue beat(2)0.92%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)4.91%
Revenue beat(4)1
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-6.36%
Max Revenue beat(4)4.91%
Revenue beat(8)1
Avg Revenue beat(8)-5.52%
Revenue beat(12)2
Avg Revenue beat(12)-4.11%
Revenue beat(16)5
Avg Revenue beat(16)-2.5%
PT rev (1m)1.63%
PT rev (3m)-3.05%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)1.13%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)2.1%
Revenue NQ rev (3m)2.03%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.73 | ||
| Fwd PE | 13.36 | ||
| P/S | 1.26 | ||
| P/FCF | 52.74 | ||
| P/OCF | 21.64 | ||
| P/B | 2.74 | ||
| P/tB | 76.18 | ||
| EV/EBITDA | 11.31 |
EPS(TTM)3.25
EY5.98%
EPS(NY)4.07
Fwd EY7.49%
FCF(TTM)1.03
FCFY1.9%
OCF(TTM)2.51
OCFY4.62%
SpS43.32
BVpS19.83
TBVpS0.71
PEG (NY)1.2
PEG (5Y)3.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 9.13% | ||
| ROCE | 9.79% | ||
| ROIC | 7.34% | ||
| ROICexc | 7.59% | ||
| ROICexgc | 12.91% | ||
| OM | 10.75% | ||
| PM (TTM) | 4.18% | ||
| GM | 20.42% | ||
| FCFM | 2.38% |
ROA(3y)10%
ROA(5y)7.53%
ROE(3y)35.97%
ROE(5y)30%
ROIC(3y)6.96%
ROIC(5y)7.14%
ROICexc(3y)7.36%
ROICexc(5y)7.59%
ROICexgc(3y)13.16%
ROICexgc(5y)14.08%
ROCE(3y)9.38%
ROCE(5y)9.54%
ROICexcg growth 3Y-4.58%
ROICexcg growth 5Y-9.26%
ROICexc growth 3Y-3.25%
ROICexc growth 5Y-0.66%
OM growth 3Y-1.12%
OM growth 5Y2.5%
PM growth 3Y74.85%
PM growth 5Y47.1%
GM growth 3Y1.59%
GM growth 5Y0.91%
F-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 23.49 | ||
| Debt/EBITDA | 3.31 | ||
| Cap/Depr | 68.16% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 36.78% | ||
| Profit Quality | 56.97% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.55 |
F-Score5
WACC7.94%
ROIC/WACC0.92
Cap/Depr(3y)158.69%
Cap/Depr(5y)177.85%
Cap/Sales(3y)7.84%
Cap/Sales(5y)9.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.07%
EPS 3Y-3.15%
EPS 5Y4.53%
EPS Q2Q%11.76%
EPS Next Y13.94%
EPS Next 2Y13.32%
EPS Next 3Y12.31%
EPS Next 5Y11.22%
Revenue 1Y (TTM)-10.41%
Revenue growth 3Y-5.12%
Revenue growth 5Y0.55%
Sales Q2Q%7.76%
Revenue Next Year4.79%
Revenue Next 2Y3.8%
Revenue Next 3Y3.62%
Revenue Next 5Y4.48%
EBIT growth 1Y-0.69%
EBIT growth 3Y-6.19%
EBIT growth 5Y3.07%
EBIT Next Year38.5%
EBIT Next 3Y15.02%
EBIT Next 5Y11.22%
FCF growth 1Y135.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.02%
OCF growth 3Y-59.72%
OCF growth 5Y-40.55%