BLL  Ball Corporation

Exchange

NYSE

Sector

Consumer Durables

Industry

Containers/Packaging

Market Cap.

12.80B

Vuru Grade

37.10/100

Current Price

$73.27
+0.29 (+0.40%)

Growth Price

$39.25
Overvalued by 46.43%

Stability Price

$10.24
Overvalued by 86.03%

Company Metrics

  • P/E 52.71
  • P/S 1.40
  • P/B 3.64
  • EPS 1.39
  • Cash ROIC 9.15%
  • Cash Ratio 0.10
  • Dividend 0.52 / 0.71 %
  • Avg. Vol. 1.23M
  • Shares 140.98M
  • Market Cap. 12.80B

Company Description

Ball Corporation, together with its subsidiaries, supplies metal packaging to the beverage, food, and household products industries worldwide. It offers aluminum and steel beverage containers for producers of beer, carbonated soft drinks, mineral water, fruit juices, energy drinks, and other beverages. The company also provides two-piece and three-piece steel food containers and ends for packaging... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Ball Corporation to Present at Barclays Industrial Select Conference
Yahoo Finance - Feb 16, 2017
16, 2017 /PRNewswire/ -- Ball Corporation (BLL), one of the world's leading suppliers of metal packaging and aerospace technologies, will speak to the investment community at the Barclays Industrial Select Conference in Miami on Thursday, Feb. 23.
$1.6 million loaned for development at Ball Corp. site
WTOV Steubenville - Feb 17, 2017
According to Pat Ford, executive director of the Business Development Corporation, the loan was granted to Jefferson County Commissioner Dave Maple, of Maple Manufacturing.
Ball Corporation (BLL) Q4 Earnings Beats By a Penny
Yahoo Finance - Feb 2, 2017
Ball Corporation BLL is one of the world's leading suppliers of metal packaging to the beverage, food, personal care and household products industries.
Ball Corporation (BLL) Announces Earnings Results - Sports Perspectives
Ball Corporation (BLL) Posts Quarterly Earnings Results - The Cerbat Gem
Ball Corporation (BLL) Moves Higher on Volume Spike for February 17
Equities.com - Feb 17, 2017
Ball Corporation (BLL) traded on unusually high volume on Feb. 17, as the stock gained 0.4% to close at $73.27. On the day, Ball Corporation saw 2.76 million shares trade hands on 14,018 trades. Considering that the stock averages only a daily volume ...
The Ball Corporation (BLL) Stock Rating Decreased by the Zacks Investment Research - DailyQuint
Why Investors remained confident on ServiceNow, Inc. (NOW), Ball Corporation ... - StockNewsJournal
Ball Corporation (BLL) Q4 Earnings: What's in the Cards?
Yahoo Finance - Jan 30, 2017
Beverage can maker, Ball Corporation BLL is scheduled to report fourth-quarter 2016 results before the opening bell on Feb 2. In the last-reported quarter, the company registered a year-over-year decline in earnings despite an increase in revenues.
Ball Aerocan India Wins Asia CanTech Award
PR Newswire (press release) - Feb 8, 2017
The 53-millimeter diameter ITC Engage cans were produced in Ball Aerocan's Ahmedabad facility, where an additional line will be added in the fourth quarter of 2017.
What do Analysts Say about: Ball Corporation (NYSE:BLL)
News Oracle - Feb 17, 2017
Ball Corporation (NYSE:BLL) will report its next earnings on Apr 26 - May 1 (Est.). The company reported the earnings of $0.87/Share in the last quarter where the estimated EPS by analysts was $0.84/share.
Ball Corporation (BLL) Rises 2.53% for February 08
Equities.com - Feb 8, 2017
Among the biggest risers on the S&P 500 on Wednesday February 08 was Ball Corporation ($BLL), popping some 2.53% to a price of $74.46 a share with some 2.1 million shares trading hands.
Ball Corporation (BLL) Given Consensus Rating of “Hold” by Analysts - Sports Perspectives
Why Investors remained confident on Ball Corporation (BLL), Agilent ... - StockNewsJournal
Dividend Growth of Ball Corporation(BLL)
Highland Mirror - Feb 17, 2017
Ball Corporation(BLL) is having a Dividend Yield of 0.71% with the Annual cash Dividend per share of $0.52. The last quarter cash dividend per share pay out was $0.13.
Ball Corporation Declared Dividend of $0.13 per Share
Market Realist - Jan 26, 2017
Ball Corporation (BLL) has a market cap of $13.5 billion. It rose 0.38% and closed at $76.75 per share on January 25, 2017.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BLL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BLL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$73.27 Current Price

$39.25 Growth Price (DCF)

Overvalued by 46.43%


Growth Rate Assumed by Market: 26.33%


Future Free Cash Flow Growth Rate: 8.3%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$10.24 Stability Price (EPV)

Overvalued by 86.03%


Discount Rate: 15.0%

$44.03 Book Price

Overvalued by 39.91%


Poor Cash Return on Invested Capital over the past 5 years

BLL has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

BLL has only created $9.15 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 504.60M 548.20M 460.70M 621.70M 478.80M
divided by
Invested Capital 5.26B 5.65B 5.48B 5.37B 7.41B
Cash ROIC 9.59% 9.71% 8.41% 11.57% 6.46%

Excellent Return on Equity over the past 5 years

Over the past 5 years, BLL has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

BLL has generated $37.12 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 468.60M 429.30M 434.60M 498.00M 302.90M
divided by
Stockholders' Equity 1.22B 1.11B 1.20B 1.03B 1.25B
Return on Equity 38.44% 38.52% 36.22% 48.20% 24.21%

Excellent Business Performance over the past 10 years

BLL has been able to maintain profitability in good times and bad. This could mean BLL has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

BLL has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 121.80M 364.50M 320.70M 372.60M 265.00M 504.60M 548.20M 460.70M 621.70M 478.80M

Weak Balance Sheet

BLL's financial position is not ideal. The key is to check whether BLL is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 151.50M 151.60M 127.40M 310.70M 254.60M 165.80M 174.10M 416.00M 191.40M 224.00M
Current Assets 1.76B 1.84B 2.17B 1.92B 2.31B 2.32B 2.34B 2.47B 2.31B 2.18B
Total Assets 5.84B 6.02B 6.37B 6.49B 6.93B 7.28B 7.51B 7.82B 7.57B 9.78B
Current Liabilities 1.45B 1.51B 1.86B 1.43B 1.38B 1.86B 1.69B 1.93B 2.01B 2.14B
Total Liabilities 4.68B 4.68B 5.28B 4.91B 5.41B 6.07B 6.39B 6.62B 6.54B 8.53B
Stockholder' Equity 1.17B 1.34B 1.09B 1.58B 1.52B 1.22B 1.11B 1.20B 1.03B 1.25B
Current Ratio 1.21 1.22 1.16 1.35 1.67 1.25 1.39 1.28 1.15 1.02
TL-to-TA 0.80 0.78 0.83 0.76 0.78 0.83 0.85 0.85 0.86 0.87

Consistent Reinvestment of Profits over the past 10 years

BLL has consistently retained profits. This may put BLL in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, BLL can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 1.54B 1.77B 2.05B 2.40B 2.83B 3.23B 3.58B 3.91B 4.35B 4.56B
Retained Earnings Growth - 14.96% 15.98% 17.10% 18.05% 14.08% 10.92% 9.30% 11.07% 4.84%

Competitive Industry over the past 10 years

BLL is likely operating in an industry with medium to low barriers to entry. This may mean that BLL doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that BLL invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.06 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 329.60M 281.30M 319.50M 387.90M 548.60M 468.60M 429.30M 434.60M 498.00M 302.90M
divided by
Revenue 6.62B 7.39B 7.56B 7.35B 7.63B 8.63B 8.74B 8.47B 8.57B 8.00B
Net Profit Margin 4.98% 3.81% 4.23% 5.28% 7.19% 5.43% 4.91% 5.13% 5.81% 3.79%

Inconsistent Gross Profit Margins over the past 10 years

BLL has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$25.89 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 1.08B 1.16B 1.22B 1.27B 1.38B 8.63B 1.56B 1.59B 1.67B 1.54B
divided by
Revenue 6.62B 7.39B 7.56B 7.35B 7.63B 8.63B 8.74B 8.47B 8.57B 8.00B
Gross Margin 16.33% 15.74% 16.15% 17.34% 18.03% 100.00% 17.88% 18.81% 19.45% 19.22%

High Capital Intensity over the past 10 years

BLL spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

89.00% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 279.60M 308.50M 306.90M 187.10M 250.20M 443.80M 305.00M 378.30M 390.80M 527.90M
divided by
Net Income 329.60M 281.30M 319.50M 387.90M 548.60M 468.60M 429.30M 434.60M 498.00M 302.90M
Capital Expenditure Ratio 84.83% 109.67% 96.06% 48.23% 45.61% 94.71% 71.05% 87.05% 78.47% 174.28%

Very Strong Dividend History over the past 10 years

BLL has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests BLL is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 41.00M 40.60M 37.50M 37.40M 35.80M 45.70M 61.80M 75.20M 72.70M 71.80M
divided by
Shares Outstanding 104.95M 102.76M 97.02M 94.99M 183.54M 168.59M 158.08M 149.22M 142.43M 140.98M
Dividend Paid Per Share 0.39 0.40 0.39 0.39 0.20 0.27 0.39 0.50 0.51 0.51
Price at Year End 20.98 21.95 20.03 25.75 34.33 35.71 44.29 51.79 69.49 73.33
Dividend Yield 1.86% 1.80% 1.93% 1.53% 0.57% 0.76% 0.88% 0.97% 0.73% 0.69%

Strong History of Stock Buybacks over the past 10 years

BLL has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 104.95M 102.76M 97.02M 94.99M 183.54M 168.59M 158.08M 149.22M 142.43M 140.98M
Stock Bought Back - 2.13% 5.92% 2.14% -48.25% 8.87% 6.65% 5.94% 4.77% 1.03%
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