BERRY GLOBAL GROUP INC (BERY) Stock Fundamental Analysis
NYSE:BERY - New York Stock Exchange, Inc. - US08579W1036 - Common Stock - Currency: USD
BERY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 cheap, but on the other hand it scores bad on growth. These ratings would make BERY suitable 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.
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
With a decent Return On Assets value of 3.47%, BERY is doing good in the industry, outperforming 69.57% of the companies in the same industry.
BERY's Return On Equity of 21.35% is amongst the best of the industry. BERY outperforms 91.30% of its industry peers.
BERY has a Return On Invested Capital of 8.57%. This is in the better half of the industry: BERY outperforms 78.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BERY is in line with the industry average of 7.52%.
The last Return On Invested Capital (8.57%) for BERY is above the 3 year average (7.27%), which is a sign of increasing profitability.
| 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.
With a Operating Margin value of 9.63%, BERY perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
BERY's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 18.96%, BERY is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BERY is still creating some value.
BERY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BERY has been reduced compared to 5 years ago.
BERY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.81, we must say that BERY is in the distress zone and has some risk of bankruptcy.
BERY's Altman-Z score of 1.81 is in line compared to the rest of the industry. BERY outperforms 52.17% of its industry peers.
The Debt to FCF ratio of BERY is 13.03, which is on the high side as it means it would take BERY, 13.03 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 13.03, BERY is doing good in the industry, outperforming 69.57% of the companies in the same industry.
BERY has a Debt/Equity ratio of 3.35. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BERY (3.35) is worse 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
A Current Ratio of 1.61 indicates that BERY should not have too much problems paying 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.
With a decent Quick ratio value of 1.09, BERY is doing good in 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.
The Revenue has decreased by -5.35% in the past year.
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
BERY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.06% yearly.
The Revenue is expected to decrease by -4.03% on average over the next years.
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
With a Price/Earnings ratio of 9.02, the valuation of BERY can be described as very reasonable.
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.
BERY is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.56, the valuation of BERY can be described as very reasonable.
BERY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BERY is cheaper than 78.26% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. BERY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
BERY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BERY is cheaper than 82.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BERY is valued 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
BERY has a Yearly Dividend Yield of 1.83%.
BERY's Dividend Yield is comparable with the industry average which is at 3.19.
BERY's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| 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
BERY pays out 29.51% of its income as dividend. This is a 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 %0%
Short Ratio0
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%