BALL CORP (BALL) Stock Fundamental Analysis
NYSE:BALL - New York Stock Exchange, Inc. - US0584981064 - Common Stock - Currency: USD
BALL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. BALL has only an average score on both its financial health and profitability. BALL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BALL was profitable.
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
BALL has a Return On Assets (2.78%) which is comparable to the rest of the industry.
BALL has a Return On Equity of 9.13%. This is comparable to the rest of the industry: BALL outperforms 54.55% of its industry peers.
The Return On Invested Capital of BALL (7.34%) is better than 68.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BALL is in line with the industry average of 7.58%.
The last Return On Invested Capital (7.34%) for BALL is above the 3 year average (6.96%), which is a sign of increasing profitability.
| 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
The Profit Margin of BALL (4.18%) is better than 63.64% of its industry peers.
In the last couple of years the Profit Margin of BALL has grown nicely.
BALL has a Operating Margin of 10.75%. This is in the better half of the industry: BALL outperforms 72.73% of its industry peers.
BALL's Operating Margin has improved in the last couple of years.
BALL has a worse Gross Margin (20.42%) than 63.64% of its industry peers.
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.
BALL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BALL has less shares outstanding
Compared to 1 year ago, BALL has an improved debt to assets ratio.
2.2 Solvency
BALL has an Altman-Z score of 2.59. 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 has a better Altman-Z score (2.59) than 86.36% of its industry peers.
BALL has a debt to FCF ratio of 23.49. This is a negative value and a sign of low solvency as BALL would need 23.49 years to pay back of all of its debts.
BALL has a Debt to FCF ratio (23.49) which 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.
BALL's Debt to Equity ratio of 1.14 is fine compared to the rest of the industry. BALL outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 23.49 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.99
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.04 indicates that BALL should not have too much problems paying its short term obligations.
BALL has a worse Current ratio (1.04) than 72.73% of its industry peers.
A Quick Ratio of 0.70 indicates that BALL may have some problems paying its short term obligations.
BALL has a Quick ratio of 0.70. This is in the lower half of the industry: BALL underperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
BALL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.07%, which is quite good.
BALL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.53% yearly.
BALL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.41%.
Measured over the past years, BALL shows a small growth in Revenue. The Revenue has been growing by 0.55% on average per year.
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
Based on estimates for the next years, BALL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.22% on average per year.
BALL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y14.04%
EPS Next 2Y13.52%
EPS Next 3Y12.31%
EPS Next 5Y11.22%
Revenue Next Year5.16%
Revenue Next 2Y3.96%
Revenue Next 3Y3.8%
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
BALL is valuated rather expensively with a Price/Earnings ratio of 17.91.
BALL's Price/Earnings is on the same level as the industry average.
BALL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.51.
BALL is valuated correctly with a Price/Forward Earnings ratio of 14.25.
BALL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BALL to the average of the S&P500 Index (35.58), we can say BALL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
BALL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BALL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.45 | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
BALL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BALL 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)1.28
PEG (5Y)3.95
EPS Next 2Y13.52%
EPS Next 3Y12.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, BALL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.87, BALL has a dividend in line with its industry peers.
With a Dividend Yield of 1.37, BALL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of BALL is nicely growing with an annual growth rate of 7.90%!
BALL has been paying a dividend for at least 10 years, so it has 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
47.41% of the earnings are spent on dividend by BALL. This is a bit on the high side, but may be sustainable.
BALL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP47.41%
EPS Next 2Y13.52%
EPS Next 3Y12.31%
58.2
-0.11 (-0.19%)
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 Change4.22%
Market Cap16.15B
Analysts77.27
Price Target62.86 (8.01%)
Short Float %2.38%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)0.54%
PT rev (3m)-2.33%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)1.79%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)2.39%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 14.25 | ||
| P/S | 1.34 | ||
| P/FCF | 56.45 | ||
| P/OCF | 23.16 | ||
| P/B | 2.94 | ||
| P/tB | 81.54 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)3.25
EY5.58%
EPS(NY)4.09
Fwd EY7.02%
FCF(TTM)1.03
FCFY1.77%
OCF(TTM)2.51
OCFY4.32%
SpS43.32
BVpS19.83
TBVpS0.71
PEG (NY)1.28
PEG (5Y)3.95
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 | 2.59 |
F-Score5
WACC7.39%
ROIC/WACC0.99
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 Y14.04%
EPS Next 2Y13.52%
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 Year5.16%
Revenue Next 2Y3.96%
Revenue Next 3Y3.8%
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%