NYSE:ARD

Stock Analysis Report

Executive Summary

Ardagh Group S.A. manufactures and supplies rigid packaging solutions primarily for the food and beverage markets worldwide.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Ardagh Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

NYSE:ARD

2.4%

US Packaging

2.9%

US Market


1 Year Return

8.3%

NYSE:ARD

4.2%

US Packaging

0.2%

US Market

ARD outperformed the Packaging industry which returned 2.8% over the past year.

ARD outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

ARDIndustryMarket
7 Day1.6%2.4%2.9%
30 Day-2.1%-2.3%-2.3%
90 Day16.4%4.9%3.1%
1 Year12.7%8.3%7.0%4.2%2.4%0.2%
3 Yearn/a24.2%16.4%41.7%32.4%
5 Yearn/a44.7%27.9%55.1%37.9%

Price Volatility Vs. Market

How volatile is Ardagh Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ardagh Group undervalued based on future cash flows and its price relative to the stock market?

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ardagh Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Ardagh Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Ardagh Group is loss making, we can't compare its value to the US Packaging industry average.

Ardagh Group is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Ardagh Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Ardagh Group has negative assets, we can't compare the value of its assets to the US Packaging industry average.


Next Steps

Future Growth

How is Ardagh Group expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

40.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ardagh Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Ardagh Group's earnings are expected to grow significantly at over 20% yearly.

Ardagh Group's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Ardagh Group's earnings growth is expected to exceed the United States of America market average.

Ardagh Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ardagh Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Ardagh Group performed over the past 5 years?

74.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ardagh Group does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Ardagh Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Ardagh Group's 1-year growth to the US Packaging industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Ardagh Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Ardagh Group used its assets less efficiently than the US Packaging industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Ardagh Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Ardagh Group's financial position?


Financial Position Analysis

Ardagh Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ardagh Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ardagh Group has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Ardagh Group's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Ardagh Group has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Ardagh Group has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Ardagh Group has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by % per year.


Next Steps

Dividend

What is Ardagh Group's current dividend yield, its reliability and sustainability?

3.30%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ardagh Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Ardagh Group's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Whilst dividend payments have been stable, Ardagh Group has been paying a dividend for less than 10 years.

Ardagh Group has only been paying a dividend for 2 years, and since then there has been no growth.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


Next Steps

Management

What is the CEO of Ardagh Group's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Paul Coulson (66yo)

1.7yrs

Tenure

0

Mr. Paul R. Coulson founded Yeoman International Group Limited in 1980 and serves as its Chief Executive Officer. Mr. Coulson founded Yeoman International Group Limited in 1982. He served as an Executive O ...


Management Age and Tenure

6.5yrs

Average Tenure

58yo

Average Age

The average tenure for the Ardagh Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.3yrs

Average Tenure

64yo

Average Age

The average tenure for the Ardagh Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Paul Coulson (66yo)

    Executive Chairman & CEO

    • Tenure: 1.7yrs
  • John Sheehan (53yo)

    Group Investor Relations Director

    • Tenure: 7.6yrs
  • David Wall (50yo)

    CEO of Global Metal Business & Director

    • Tenure: 0.0yrs
  • Alex Robertson (58yo)

    Chief Commercial Officer of Glass Americas

    • Tenure: 0.0yrs
  • Johan Gorter (60yo)

    Chief Executive of Global Glass Business & Director

    • Tenure: 3.6yrs
  • Alex Jonker (61yo)

    Managing Director of Operations Metal - Europe

    • Tenure: 8.6yrs
  • David Matthews (55yo)

    Group CFO & Director

    • Tenure: 5.4yrs
  • Donald Puglisi

    Managing Director

    • Tenure: 0.0yrs
  • Martin Petersson

    Chief Executive of the European Glass Division

    • Tenure: 0.0yrs
  • Bertrand Paulet

    Chief Executive of North American Glass Unit

    • Tenure: 0.0yrs

Board Members

  • Ed White (72yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Paul Coulson (66yo)

    Executive Chairman & CEO

    • Tenure: 1.7yrs
  • Houghton Fry (72yo)

    Director

    • Tenure: 15.3yrs
  • Brendan Dowling (71yo)

    Director

    • Tenure: 21.6yrs
  • Herman Troskie (49yo)

    Non-Executive Director

    • Tenure: 0.0yrs
  • Wolfgang Baertz (78yo)

    Non-Executive Director

    • Tenure: 17.6yrs
  • David Wall (50yo)

    CEO of Global Metal Business & Director

    • Tenure: 0.0yrs
  • Johan Gorter (60yo)

    Chief Executive of Global Glass Business & Director

    • Tenure: 3.6yrs
  • David Matthews (55yo)

    Group CFO & Director

    • Tenure: 5.4yrs
  • Gerald Moloney (62yo)

    Non-Executive Director

    • Tenure: 3.6yrs

Company Information

Ardagh Group S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ardagh Group S.A.
  • Ticker: ARD
  • Exchange: NYSE
  • Founded: 1932
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: US$4.065b
  • Shares outstanding: 236.36m
  • Website: https://www.ardaghgroup.com

Number of Employees


Location

  • Ardagh Group S.A.
  • 56, rue Charles Martel
  • Luxembourg City
  • 2134
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARDNYSE (New York Stock Exchange)YesClass A SharesUSUSDMar 2017
UKYEDB (Deutsche Boerse AG)YesClass A SharesDEEURMar 2017

Biography

Ardagh Group S.A. manufactures and supplies rigid packaging solutions primarily for the food and beverage markets worldwide. The company operates in four segments: Metal Packaging Europe, Metal Packaging A ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:52
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.