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 5 out of 10 in our fundamental rating. BERY was compared to 22 industry peers in the Containers & Packaging industry. BERY has only an average score on both its financial health and profitability. BERY has a bad growth rate and is valued cheaply. These ratings could make BERY a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year BERY was profitable.
BERY had a positive operating cash flow in the past year.
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
BERY has a Return On Assets of 3.47%. This is in the better half of the industry: BERY outperforms 69.57% of its industry peers.
Looking at the Return On Equity, with a value of 21.35%, BERY belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
The Return On Invested Capital of BERY (8.57%) is better than 78.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BERY is in line with the industry average of 7.58%.
The 3 year average ROIC (7.27%) for BERY is below the current ROIC(8.57%), indicating increased profibility in the last year.
| 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 better Profit Margin (3.99%) than 60.87% of its industry peers.
BERY's Profit Margin has declined in the last couple of years.
BERY has a Operating Margin (9.63%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BERY has remained more or less at the same level.
BERY has a worse Gross Margin (18.96%) than 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.
The number of shares outstanding for BERY has been reduced compared to 1 year ago.
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 1.81. This is a bad value and indicates that BERY is not financially healthy and even has some risk of bankruptcy.
BERY has a Altman-Z score of 1.81. This is comparable to the rest of the industry: BERY outperforms 52.17% of its industry peers.
BERY has a debt to FCF ratio of 13.03. This is a negative value and a sign of low solvency as BERY would need 13.03 years to pay back of all of its debts.
The Debt to FCF ratio of BERY (13.03) is better than 69.57% of its industry peers.
A Debt/Equity ratio of 3.35 is on the high side and indicates that BERY has dependencies on debt financing.
BERY has a worse Debt to Equity ratio (3.35) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.26
WACC6.81%
2.3 Liquidity
BERY has a Current Ratio of 1.61. This is a normal value and indicates that BERY is financially healthy and should not expect problems in meeting 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.
BERY has a Quick ratio of 1.09. This is in the better half of the industry: BERY outperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
BERY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.77%.
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%.
BERY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
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
BERY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.06% yearly.
Based on estimates for the next years, BERY will show a decrease in Revenue. The Revenue will decrease by -4.03% on average per year.
EPS Next Y-13.87%
EPS Next 2Y-3.71%
EPS Next 3Y-0.06%
EPS Next 5YN/A
Revenue Next Year-16.2%
Revenue Next 2Y-7.82%
Revenue Next 3Y-4.03%
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
A Price/Earnings ratio of 9.02 indicates a reasonable valuation of BERY.
BERY's Price/Earnings ratio is rather cheap when compared to the industry. BERY is cheaper than 95.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of BERY to the average of the S&P500 Index (26.35), we can say BERY is valued rather cheaply.
The Price/Forward Earnings ratio is 9.56, which indicates a very decent valuation of BERY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BERY indicates a somewhat cheap valuation: BERY is cheaper than 78.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, BERY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BERY is valued cheaper than 82.61% of the companies in the same industry.
BERY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BERY is cheaper than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.54 | ||
| EV/EBITDA | 7.58 |
4.3 Compensation for Growth
The decent profitability rating of BERY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-3.71%
EPS Next 3Y-0.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, BERY has a reasonable but not impressive dividend return.
BERY's Dividend Yield is comparable with the industry average which is at 3.13.
Compared to the average S&P500 Dividend Yield of 2.42, BERY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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-3.71%
EPS Next 3Y-0.06%
67.58
-2.04 (-2.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change1.71%
Ins Owners0.43%
Ins Owner Change-104.49%
Market Cap7.83B
Analysts71.43
Price Target76.41 (13.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)-0.51%
PT rev (3m)0.41%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)-0.79%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.56 | ||
| P/S | 0.66 | ||
| P/FCF | 12.54 | ||
| P/OCF | 6.95 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.58 |
EPS(TTM)7.49
EY11.08%
EPS(NY)7.07
Fwd EY10.46%
FCF(TTM)5.39
FCFY7.97%
OCF(TTM)9.72
OCFY14.39%
SpS101.81
BVpS19.05
TBVpS-26.78
PEG (NY)N/A
PEG (5Y)0.52
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 | 1.81 |
F-Score6
WACC6.81%
ROIC/WACC1.26
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-13.87%
EPS Next 2Y-3.71%
EPS Next 3Y-0.06%
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-16.2%
Revenue Next 2Y-7.82%
Revenue Next 3Y-4.03%
Revenue Next 5YN/A
EBIT growth 1Y-0.26%
EBIT growth 3Y-5.68%
EBIT growth 5Y6%
EBIT Next Year41.64%
EBIT Next 3Y15.1%
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%