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 an average financial health and profitability rating. BERY is valued quite cheap, but it does not seem to be growing. This makes BERY very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year BERY was profitable.
In the past year BERY had a positive cash flow from operations.
BERY had positive earnings in each of the past 5 years.
BERY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BERY (3.47%) is better than 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.
With a decent Return On Invested Capital value of 8.57%, BERY is doing good in the industry, outperforming 78.26% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BERY is in line with the industry average of 7.48%.
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.
BERY's Operating Margin of 9.63% is in line compared to the rest of the industry. BERY outperforms 56.52% of its industry peers.
BERY's Operating Margin has been stable in the last couple of years.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BERY is still creating some value.
The number of shares outstanding for BERY has been reduced compared to 1 year ago.
BERY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BERY has been reduced compared to a year ago.
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.
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.
BERY has a Debt to FCF ratio of 13.03. This is in the better half of the industry: BERY outperforms 69.57% of its industry peers.
BERY has a Debt/Equity ratio of 3.35. This is a high value indicating a heavy dependency on external financing.
BERY's Debt to Equity ratio of 3.35 is on the low side compared to the rest of the industry. BERY is outperformed by 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.
BERY's Current ratio of 1.61 is fine compared to the rest of the industry. BERY outperforms 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.
BERY's Quick ratio of 1.09 is fine compared to the rest 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
The Earnings Per Share has been growing slightly by 1.77% over the past year.
The Earnings Per Share has been growing by 17.45% on average over the past years. This is quite good.
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.
BERY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.03% yearly.
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
Based on the Price/Earnings ratio of 9.02, the valuation of BERY can be described as reasonable.
95.65% of the companies in the same industry are more expensive than BERY, based on the Price/Earnings ratio.
BERY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.73.
A Price/Forward Earnings ratio of 9.56 indicates a reasonable valuation of BERY.
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.
BERY is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BERY indicates a rather cheap valuation: BERY is cheaper than 82.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BERY is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
| 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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.13, BERY has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, 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 Change-12.51%
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%