NYSE:BERY

Stock Analysis Report

Executive Summary

Berry Global Group, Inc. manufactures and supplies non-woven, flexible, and rigid products.


Snowflake Analysis

Very undervalued with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.5%

BERY

-0.6%

US Packaging

0.06%

US Market


1 Year Return

-15.6%

BERY

10.8%

US Packaging

19.3%

US Market

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

Return vs Market: BERY underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

BERYIndustryMarket
7 Day5.5%-0.6%0.06%
30 Day-6.4%0.7%1.7%
90 Day-1.7%3.6%9.0%
1 Year-15.6%-15.6%13.4%10.8%21.8%19.3%
3 Year-11.4%-11.4%23.7%15.5%49.5%39.9%
5 Year28.9%28.9%32.8%16.2%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Berry Global Group undervalued compared to its fair value and its price relative to the market?

46.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BERY ($42.93) is trading below our estimate of fair value ($80.65)

Significantly Below Fair Value: BERY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BERY is good value based on its PE Ratio (15.6x) compared to the Packaging industry average (20.2x).

PE vs Market: BERY is good value based on its PE Ratio (15.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: BERY is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: BERY is good value based on its PB Ratio (3.2x) compared to the US Packaging industry average (3.2x).


Next Steps

Future Growth

How is Berry Global Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BERY's forecast earnings growth (19.7% per year) is above the savings rate (1.7%).

Earnings vs Market: BERY's earnings (19.7% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: BERY's earnings are forecast to grow, but not significantly.

Revenue vs Market: BERY's revenue (1.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BERY's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BERY's Return on Equity is forecast to be high in 3 years time (25%)


Next Steps

Past Performance

How has Berry Global Group performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BERY has high quality earnings.

Growing Profit Margin: BERY's current net profit margins (3.7%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: BERY's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: BERY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BERY had negative earnings growth (-13.9%) over the past year, making it difficult to compare to the Packaging industry average (-6.5%).


Return on Equity

High ROE: Whilst BERY's Return on Equity (20.32%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Berry Global Group's financial position?


Financial Position Analysis

Short Term Liabilities: BERY's short term assets ($3.7B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: BERY's short term assets ($3.7B) do not cover its long term liabilities ($13.2B).


Debt to Equity History and Analysis

Debt Level: BERY's debt to equity ratio (629.2%) is considered high.

Reducing Debt: BERY had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: BERY's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: BERY's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: BERY's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

0.81%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BERY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BERY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BERY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BERY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BERY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Tom Salmon (56yo)

3yrs

Tenure

US$5,590,944

Compensation

Mr. Thomas E. Salmon, also known as Tom, serves as Director of Old National Bancorp since April 27, 2018. He has been Chief Executive Officer at Berry Plastics Group, Inc., since February 03, 2017. Mr. Sal ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD5.59M) is about average for companies of similar size in the US market ($USD6.36M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Salmon
CEO & Chairman of the Board3yrsUS$5.59m0.023% $1.3m
Mark Miles
CFO & Treasurer6.1yrsUS$1.99m0.040% $2.3m
Jason Greene
Executive VP4yrsUS$1.41m0.00019% $11.1k
Curtis Begle
President of Health5.3yrsUS$1.79m0.022% $1.3m
Jean-Marc Galvez
President of Consumer Packaging - International Division3.1yrsUS$1.59mno data
Rodgers Greenawalt
Executive Vice President of Operations7.1yrsno datano data
Debbie Garrison
Executive VP & Chief Information Officer4.1yrsno datano data
Dustin Stilwell
Head of Investor Relations0yrsno datano data
Brett Bauer
Executive Vice President of Strategic Corporate Development0yrsno datano data
Edward Stratton
Executive Vice President of Human Resources9.1yrsno datano data

4.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: BERY's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Salmon
CEO & Chairman of the Board3yrsUS$5.59m0.023% $1.3m
Stephen Sterrett
Lead Independent Director1.8yrsUS$284.76kno data
Paula Sneed
Independent Director1.9yrsUS$234.76k0.0015% $90.8k
Carl Rickertsen
Independent Director7.1yrsUS$249.76kno data
Jonathan Foster
Independent Director5.8yrsUS$234.76kno data
B. Bayh
Independent Director8.3yrsUS$234.76k0.018% $1.1m
Robert Steele
Independent Director5.3yrsUS$234.76kno data
Ronald Rolfe
Independent Director6.3yrsUS$249.76k0.00079% $46.3k
Idalene Kesner
Independent Director5.8yrsUS$234.76k0.021% $1.2m
Scott Ullem
Independent Director3.6yrsUS$234.76kno data

5.6yrs

Average Tenure

62yo

Average Age

Experienced Board: BERY's board of directors are considered experienced (5.6 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

Berry Global Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Berry Global Group, Inc.
  • Ticker: BERY
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: US$5.857b
  • Shares outstanding: 132.40m
  • Website: https://www.berryglobal.com

Number of Employees


Location

  • Berry Global Group, Inc.
  • 101 Oakley Street
  • Evansville
  • Indiana
  • 47710
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BERYNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2012
BP0DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2012
0HN1LSE (London Stock Exchange)YesCommon StockGBUSDOct 2012

Biography

Berry Global Group, Inc. manufactures and supplies non-woven, flexible, and rigid products. Its Consumer Packaging International segment offers narrow neck blow molded and injection-stretch molded packaging solutions; injection molded and thermoformed pails, jars, and tubs; closures, dispensing systems, and applicators; inhalers and dose counters; polythene films; and molds and molded components, as well as recycles rigid and flexible end of life materials from industrial and consumer sources. Its Consumer Packaging North America segment provides containers for branded and private label customers; lightweight polypropylene cups and lids for hot and cold beverages; child-resistant, continuous-thread, and tamper closures, as well as aerosol overcaps; bottles and prescription vials; and extruded and laminate tubes. Its Engineered Materials segment offers engineered materials, including stretch and shrink films, and converter films; trash-can liners and food bags; cloth and foil, splicing and laminating, flame-retardant, flashing and seaming tapes, double-faced cloth, masking, mounting, OEM, and medical and specialty tapes; and food and consumer films, retail bags, and polyvinyl chloride films, and agriculture films. Its Health, Hygiene & Specialties segment provides medical garment materials, surgical drapes, household cleaning wipes, and face masks for infection prevention; components for baby diapers, adult incontinence, and other absorbent hygiene products, elastic films and laminates, and substrates for dryer sheets; and products and components of products for geosynthetics and filtration products. The company serves consumer and industrial end markets in North America, South America, Europe, the Middle East, India, Africa, and the Asia Pacific. The company was formerly known as Berry Plastics Group, Inc. and changed its name to Berry Global Group, Inc. in April 2017. Berry Global Group, Inc. was founded in 1967 and is headquartered in Evansville, Indiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 02:22
End of Day Share Price2020/02/21 00:00
Earnings2019/12/28
Annual Earnings2019/09/28


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.