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. Both the profitability and the financial health of BERY get a neutral evaluation. Nothing too spectacular is happening here. BERY is valued quite cheap, but it does not seem to be growing. With these ratings, BERY could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
BERY had positive earnings in the past year.
In the past year BERY had a positive cash flow from operations.
In the past 5 years BERY has always been profitable.
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.
With an excellent Return On Equity value of 21.35%, BERY belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
BERY's Return On Invested Capital of 8.57% is fine compared to the rest of the industry. BERY outperforms 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
Looking at the Profit Margin, with a value of 3.99%, BERY is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
BERY's Profit Margin has declined in the last couple of years.
BERY has a Operating Margin (9.63%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of BERY has remained more or less at the same level.
BERY has a Gross Margin of 18.96%. This is in the lower half of the industry: BERY underperforms 73.91% of its industry peers.
In the last couple of years the Gross Margin of BERY has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BERY is creating some value.
Compared to 1 year ago, BERY has less shares outstanding
The number of shares outstanding for BERY has been reduced compared to 5 years ago.
The debt/assets ratio for BERY has been reduced compared to a year ago.
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 (1.81) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 13.03, BERY is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
A Debt/Equity ratio of 3.35 is on the high side and indicates that BERY has dependencies on debt financing.
With a Debt to Equity ratio value of 3.35, BERY is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
| 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.
The Current ratio of BERY (1.61) is better than 65.22% of its industry peers.
A Quick Ratio of 1.09 indicates that BERY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, BERY is in the better half of the industry, outperforming 69.57% 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%.
The Revenue has been growing slightly by 6.66% on average over the past years.
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 -0.06% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
Compared to the rest of the industry, the Price/Earnings ratio of BERY indicates a rather cheap valuation: BERY is cheaper than 95.65% of the companies listed in the same industry.
BERY is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.56 indicates a reasonable valuation of BERY.
Based on the Price/Forward Earnings ratio, BERY is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BERY to the average of the S&P500 Index (36.44), we can say 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 2.93.
BERY's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| 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 Change-0.43%
Ins Owners0.43%
Ins Owner Change-104.9%
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%