NYSE:BLL

Stock Analysis Report

Executive Summary

Ball Corporation supplies metal packaging products to the beverage, personal care, and household products industries.

Rewards

Earnings are forecast to grow 17.75% per year

Earnings grew by 20.6% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results



Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.8%

BLL

-1.2%

US Packaging

-2.7%

US Market


1 Year Return

45.6%

BLL

15.9%

US Packaging

21.2%

US Market

Return vs Industry: BLL exceeded the US Packaging industry which returned 18.8% over the past year.

Return vs Market: BLL exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

BLLIndustryMarket
7 Day6.8%-1.2%-2.7%
30 Day14.3%-0.04%0.09%
90 Day1.7%1.4%6.9%
1 Year46.8%45.6%18.7%15.9%23.8%21.2%
3 Year98.8%93.4%23.0%14.7%48.1%38.6%
5 Year139.6%129.8%45.8%26.9%72.5%53.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ball undervalued compared to its fair value and its price relative to the market?

44.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BLL ($66.55) is trading above our estimate of fair value ($65.87)

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


Price To Earnings Ratio

PE vs Industry: BLL is poor value based on its PE Ratio (39.9x) compared to the Packaging industry average (18.8x).

PE vs Market: BLL is poor value based on its PE Ratio (39.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BLL is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BLL is overvalued based on its PB Ratio (6.5x) compared to the US Packaging industry average (3.4x).


Next Steps

Future Growth

How is Ball forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLL's forecast earnings growth (17.8% per year) is above the savings rate (1.7%).

Earnings vs Market: BLL's earnings (17.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: BLL's revenue (4.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BLL's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BLL's Return on Equity is forecast to be high in 3 years time (36.3%)


Next Steps

Past Performance

How has Ball performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLL has a large one-off loss of $200.0M impacting its September 30 2019 financial results.

Growing Profit Margin: BLL's current net profit margins (4.8%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: BLL's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: BLL's earnings growth over the past year (20.6%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: BLL earnings growth over the past year (20.6%) exceeded the Packaging industry -18.3%.


Return on Equity

High ROE: BLL's Return on Equity (16%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ball's financial position?


Financial Position Analysis

Short Term Liabilities: BLL's short term assets ($3.8B) exceed its short term liabilities ($3.8B).

Long Term Liabilities: BLL's short term assets ($3.8B) do not cover its long term liabilities ($9.0B).


Debt to Equity History and Analysis

Debt Level: BLL's debt to equity ratio (201.6%) is considered high.

Reducing Debt: BLL's debt to equity ratio has reduced from 234.7% to 201.6% over the past 5 years.

Debt Coverage: BLL's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: BLL's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: BLL's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

0.81%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: BLL's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: BLL's dividend (0.9%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: BLL's dividend payments have been volatile in the past 10 years.

Growing Dividend: BLL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30%), BLL's dividend payments are well covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

John Hayes (54yo)

9yrs

Tenure

US$10,941,645

Compensation

Mr. John A. Hayes has been the Chief Executive Officer of Ball Corporation since January 26, 2011 and has been its President since January 1, 2010. Mr. Hayes served as the Chief Operating Officer of Ball C ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD10.94M) is about average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: BLL's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

60yo

Average Age

Experienced Board: BLL's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: BLL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,281,48822 Jan 20
John Hayes
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares17,920
Max PriceUS$71.74
SellUS$984,69119 Dec 19
John Hayes
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares15,411
Max PriceUS$64.65
SellUS$429,85106 Dec 19
Jeffrey Knobel
EntityIndividual
Shares6,782
Max PriceUS$63.38
SellUS$620,69505 Dec 19
John Hayes
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares9,382
Max PriceUS$66.53
SellUS$378,58805 Sep 19
Daniel Fisher
EntityIndividual
Role
Senior Key Executive
Senior VP & COO of Global Metal Beverage Packaging
Shares4,745
Max PriceUS$79.79
SellUS$211,30123 Aug 19
Nate Carey
EntityIndividual
Shares2,655
Max PriceUS$79.59
SellUS$3,907,17320 Aug 19
Charles Baker
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Corporate Secretary
Shares48,854
Max PriceUS$80.06
SellUS$3,715,64916 Aug 19
Stuart Taylor
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares48,000
Max PriceUS$77.77
SellUS$1,315,91413 Aug 19
Scott Morrison
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares17,224
Max PriceUS$76.40
SellUS$330,69411 Jun 19
Daniel Fisher
EntityIndividual
Role
Senior Key Executive
Senior VP & COO of Global Metal Beverage Packaging
Shares5,000
Max PriceUS$66.14
SellUS$416,83721 May 19
Robert Strain
EntityIndividual
Shares6,708
Max PriceUS$62.14
SellUS$392,34320 May 19
Jeffrey Knobel
EntityIndividual
Shares6,300
Max PriceUS$62.28
SellUS$45,78217 May 19
Scott Morrison
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares726
Max PriceUS$63.06
SellUS$105,61612 Mar 19
Nate Carey
EntityIndividual
Shares1,900
Max PriceUS$55.60
SellUS$5,061,48314 Feb 19
John Hayes
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares91,701
Max PriceUS$55.20
SellUS$371,88607 Feb 19
Daniel Fisher
EntityIndividual
Role
Senior Key Executive
Senior VP & COO of Global Metal Beverage Packaging
Shares7,000
Max PriceUS$53.13

Ownership Breakdown

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


Management Team

  • John Hayes (54yo)

    Chairman

    • Tenure: 9yrs
    • Compensation: US$10.94m
  • Scott Morrison (57yo)

    Senior VP & CFO

    • Tenure: 10yrs
    • Compensation: US$3.21m
  • Charles Baker (62yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 15.8yrs
    • Compensation: US$2.07m
  • Lisa Pauley (58yo)

    Senior Vice President of Human Resources & Administration

    • Tenure: 8.5yrs
    • Compensation: US$2.07m
  • Ann Scott (55yo)

    Vice President of Investor Relations

    • Colin Gillis (65yo)

      President of Beverage Packaging Europe

      • Tenure: 4yrs
    • Gihan Atapattu

      President of Beverage Packaging Asia Pacific

      • Tenure: 1yrs
    • Dan Fisher (46yo)

      Senior VP & COO of Global Metal Beverage Packaging

      • Tenure: 3.1yrs
      • Compensation: US$3.31m
    • Daniel Rabbitt

      Vice President of Corporate Planning & Development

      • Tenure: 3.5yrs
    • Kathleen Pitre

      Vice President of Communications & Corporate Relations

      • Tenure: 5yrs

    Board Members

    • John Hayes (54yo)

      Chairman

      • Tenure: 9yrs
      • Compensation: US$10.94m
    • Stuart Taylor (58yo)

      Lead Independent Director

      • Tenure: 0.8yrs
      • Compensation: US$283.33k
    • Dan Heinrich (63yo)

      Independent Director

      • Tenure: 3.4yrs
      • Compensation: US$259.69k
    • Georgia Nelson (69yo)

      Independent Director

      • Tenure: 13.5yrs
      • Compensation: US$254.08k
    • John Bryant (54yo)

      Non-Executive Director

      • Tenure: 1.3yrs
      • Compensation: US$196.26k
    • Cindy Niekamp (59yo)

      Independent Director

      • Tenure: 3.4yrs
      • Compensation: US$255.58k
    • Mike Cave (58yo)

      Independent Director

      • Tenure: 5.3yrs
      • Compensation: US$259.90k
    • Cathy Ross (61yo)

      Independent Director

      • Tenure: 2.3yrs
      • Compensation: US$267.58k
    • Pedro Mariani Bittencourt (66yo)

      Director

      • Tenure: 2.3yrs
      • Compensation: US$249.83k
    • Betty Sapp (73yo)

      Director

      • Tenure: 0.7yrs

    Company Information

    Ball Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Ball Corporation
    • Ticker: BLL
    • Exchange: NYSE
    • Founded: 1880
    • Industry: Metal and Glass Containers
    • Sector: Materials
    • Market Cap: US$24.194b
    • Shares outstanding: 327.13m
    • Website: https://www.ball.com

    Number of Employees


    Location

    • Ball Corporation
    • 10 Longs Peak Drive
    • PO Box 5000
    • Broomfield
    • Colorado
    • 80021
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BLLNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
    BL8DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
    0HL5LSE (London Stock Exchange)YesCommon StockGBUSDDec 1972

    Biography

    Ball Corporation supplies metal packaging products to the beverage, personal care, and household products industries. It operates in four segments: Beverage Packaging, North and Central America; Beverage Packaging, South America; Beverage Packaging, Europe; and Aerospace. The Beverage Packaging, North and Central America segment manufactures and sells metal beverage containers to fillers of carbonated soft drinks, beer, energy drinks, and other beverages. The Beverage Packaging, South America segment offers aluminum beverage containers. The Beverage Packaging, Europe segment manufactures and supplies aluminum beverage containers. The Aerospace segment develops spacecraft, sensors and instruments, radio frequency systems, and other technologies and products for the civil, commercial, and national security aerospace markets, as well as offers defense hardware, antenna and video tactical solutions, civil and operational space hardware, and systems engineering services. It also designs, manufactures, and tests satellites, remote sensors, and ground station control hardware and software; and provides launch vehicle integration and satellite operational services. In addition, this segment provides target identification, warning, and attitude control systems and components; cryogenic systems and associated sensor cooling devices; star trackers; and fast-steering mirrors, as well as technical services and products to the government agencies, prime contractors, and commercial organizations for a range of information and electronic warfare, avionics, intelligence, training, and space system needs. The company also manufactures and sells aerosol containers, extruded aluminum aerosol containers, and aluminum slugs. The company was founded in 1880 and is headquartered in Broomfield, Colorado. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 23:33
    End of Day Share Price2020/01/27 00:00
    Earnings2019/09/30
    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.