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 Analysis

Moderate growth potential with imperfect 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

Stable Share Price: ARD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

ARD

-0.6%

US Packaging

0.06%

US Market


1 Year Return

63.0%

ARD

10.8%

US Packaging

19.3%

US Market

Return vs Industry: ARD exceeded the US Packaging industry which returned 10.8% over the past year.

Return vs Market: ARD exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

ARDIndustryMarket
7 Day-0.2%-0.6%0.06%
30 Day-2.1%0.7%1.7%
90 Day8.7%3.6%9.0%
1 Year68.9%63.0%13.4%10.8%21.8%19.3%
3 Yearn/a23.7%15.5%49.5%39.9%
5 Yearn/a32.8%16.2%73.1%54.1%

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 compared to its fair value and its price relative to the market?

16.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARD ($19.81) is trading above our estimate of fair value ($19.03)

Significantly Below Fair Value: ARD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ARD is unprofitable, so we can't compare its PE Ratio to the Packaging industry average.

PE vs Market: ARD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARD has negative assets, so we can't compare its PB Ratio to the US Packaging industry average.


Next Steps

Future Growth

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

71.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ARD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ARD's is expected to become profitable in the next 3 years.

Revenue vs Market: ARD's revenue is expected to decline over the next 3 years (-7.1% per year).

High Growth Revenue: ARD's revenue is forecast to decline over the next 3 years (-7.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ARD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ardagh Group performed over the past 5 years?

40.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARD is currently unprofitable.

Growing Profit Margin: ARD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARD is unprofitable, but has reduced losses over the past 5 years at a rate of 63% per year.

Accelerating Growth: Unable to compare ARD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARD is unprofitable, making it difficult to compare its past year earnings growth to the Packaging industry (-6.5%).


Return on Equity

High ROE: ARD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ardagh Group's financial position?


Financial Position Analysis

Short Term Liabilities: ARD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ARD has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ARD has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ARD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: ARD has a high level of physical assets or inventory.

Debt Coverage by Assets: ARD 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.

Stable Cash Runway: Whilst unprofitable ARD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ARD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 17.8% per year.


Next Steps

Dividend

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

2.75%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: ARD's dividend (2.83%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ARD's dividend (2.83%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ARD has been paying a dividend for less than 10 years.

Growing Dividend: ARD has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: ARD is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ARD's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Paul Coulson (66yo)

2.2yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Paul Coulson
Executive Chairman & CEO2.2yrsno datano data
David Matthews
Group CFO & Director5.9yrsno datano data
Shaun Murphy
COO & Executive Director0.3yrsno datano data
John Sheehan
Group Investor Relations Director8.1yrsno datano data
Donald Puglisi
Managing Director0yrsno datano data
Alex Jonker
Managing Director of Operations Metal - Europe9.1yrsno datano data
Alex Robertson
Chief Commercial Officer of Glass Americas0yrsno datano data
John Sadlier
Chief Sustainability Officer0.2yrsno datano data
Martin Petersson
Chief Executive of the European Glass Division0yrsno datano data
Bertrand Paulet
Chief Executive of North American Glass Unit0yrsno datano data

4.0yrs

Average Tenure

55yo

Average Age

Experienced Management: ARD's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Coulson
Executive Chairman & CEO2.2yrsno datano data
David Matthews
Group CFO & Director5.9yrsno datano data
Shaun Murphy
COO & Executive Director0.3yrsno datano data
Edward White
Non-Executive Director3.1yrsno datano data
Houghton Fry
Independent Director15.8yrsno datano data
Brendan Dowling
Independent Director22.1yrsno datano data
Hermanus Roelof Troskie
Non-Executive Director0yrsno datano data
Johan Gorter
Director4.1yrsno datano data
Gerald Moloney
Non-Executive Director4.1yrsno datano data
Damien O'Brien
Non-Executive DIrector3.1yrsno datano data

4.1yrs

Average Tenure

62yo

Average Age

Experienced Board: ARD's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$4.815b
  • 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 Americas, Glass Packaging Europe, and Glass Packaging North America. Its metal packaging products include aluminum and steel beverage cans; two-piece aluminum, two-piece tinplate, and three-piece tinplate food and specialty cans; and a range of can ends, including easy-open and peelable ends. The company also offers proprietary and non-proprietary glass containers for various end-use categories, primarily food and beverage. In addition, it is involved in glass engineering, and mold manufacturing and repair activities. The company was formerly known as Ardagh Finance Holdings S.A. and changed its name to Ardagh Group S.A. in February 2017. The company was founded in 1932 and is based in Luxembourg City, Luxembourg. Ardagh Group S.A. is a subsidiary of ARD Finance S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 02:18
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.