BLL  Ball Corporation

Exchange

NYSE

Sector

Consumer Durables

Industry

Containers/Packaging

Market Cap.

12.91B

Vuru Grade

30.42/100

Current Price

$73.73
-0.58 (-0.78%)

Company Metrics

  • P/E 45.23
  • P/S 1.44
  • P/B 3.78
  • EPS 1.63
  • Cash ROIC 6.58%
  • Cash Ratio 0.20
  • Dividend 0.52 / 0.7%
  • Avg. Vol. 1.22M
  • Shares 175.10M
  • Market Cap. 12.91B

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, Employees Give More Than $4 Million to Local Communities in 2016
PR Newswire (press release) - Mar 21, 2017
BROOMFIELD, Colo., March 21, 2017 /PRNewswire/ -- The Ball Foundation, Ball Corporation (NYSE: BLL) and its employees donated more than $4 million to charitable organizations in the communities where the company operates in 2016.
Why to Keeping Eye on Ball Corporation (BLL), VMware, Inc. (VMW)? - StockNewsJournal
Ball Corporation (BLL) Analyst Opinion And Outlook - Post Analyst
Ball Corporation (BLL) Ex-Dividend Date Scheduled for February 27, 2017
Nasdaq - Feb 24, 2017
Ball Corporation ( BLL ) will begin trading ex-dividend on February 27, 2017. A cash dividend payment of $0.13 per share is scheduled to be paid on March 15, 2017.
Ball Intends to Cease Production at its Beverage Packaging Facilities in ...
PR Newswire (press release) - Mar 2, 2017
BROOMFIELD, Colo., March 2, 2017 /PRNewswire/ -- Ball Corporation (NYSE: BLL) announced today that it intends to cease production at the company's Recklinghausen, Germany, facilities at the end of July 2017 and only after due negotiation and ...
Ball Corporation Risk Points versus Industrials
CML News - Mar 21, 2017
This is a scatter plot analysis of the critical risk points from the option market for Ball Corporation (NYSE:BLL) compared to its own past and the Industrials ETF.
Ball Corp. in Saratoga Springs
The Daily Gazette - Mar 7, 2017
Here's a look at the work Ball Corp. does at its sprawling manufacturing plant in the W.J. Grande Industrial Park in Saratoga Springs.
How Does the Chart Look for Ball Corporation (BLL) ?
The USA Commerce - Mar 24, 2017
We have gathered the technical data on Ball Corporation (BLL), and see some interesting trends in the stock's behavior of late.
Stock Alert: Ball Corporation Price Volatility Hits A Rock Bottom Low
CML News - Mar 19, 2017
Before we cover the full analysis we make a quick alert here that Ball Corporation (NYSE:BLL) has seen its stock price move at a collapsing low level.
Analyst Activity – Goldman Sachs Group Inc Initiates Coverage On Ball ...
Market Exclusive - Mar 2, 2017
Today, Goldman Sachs Group Inc initiated coverage on Ball Corporation (NYSE:BLL) with a Neutral with a price target of $80.00.
Earnings Clues on Concho Resources Inc. (CXO), Ball Corporation (BLL) Analyst ...
StockNewsJournal - Mar 17, 2017
Ball Corporation (NYSE:BLL), at its latest closing price of $74.75, it has a price-to-book ratio of 3.73, compared to an industry average at 1.66.
Analyst Views On Top Movers In Recent Trade: Ball Corporation (BLL), Williams ... - Post Analyst
If You Lack Direction On Ball Corporation (BLL), You Need to Read This - USA Commerce Daily
Why to Keeping Eye on Endologix, Inc. (ELGX), Ball Corporation (BLL)?
StockNewsJournal - Mar 23, 2017
Ball Corporation (NYSE:BLL), at its latest closing price of $74.36, it has a price-to-book ratio of 3.77, compared to an industry average at 1.68.
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.

$73.73 Current Price

$-0.61 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$110.30 Book Price

Undervalued by 49.60%


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 $6.58 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 548.20M 460.70M 621.70M 478.80M -412.00M
divided by
Invested Capital 5.65B 5.48B 5.37B 7.41B 12.61B
Cash ROIC 9.71% 8.41% 11.57% 6.46% -3.27%

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 $30.98 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 429.30M 434.60M 498.00M 302.90M 266.00M
divided by
Stockholders' Equity 1.11B 1.20B 1.03B 1.25B 3.44B
Return on Equity 38.52% 36.22% 48.20% 24.21% 7.74%

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
2007200820092010201120122013201420152016
Free Cash Flow 364.50M 320.70M 372.60M 265.00M 504.60M 548.20M 460.70M 621.70M 478.80M -412.00M

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
2007200820092010201120122013201420152016
Cash 151.60M 127.40M 310.70M 254.60M 165.80M 174.10M 416.00M 191.40M 224.00M 597.00M
Current Assets 1.84B 2.17B 1.92B 2.31B 2.32B 2.34B 2.47B 2.31B 2.18B 3.65B
Total Assets 6.02B 6.37B 6.49B 6.93B 7.28B 7.51B 7.82B 7.57B 9.78B 16.17B
Current Liabilities 1.51B 1.86B 1.43B 1.38B 1.86B 1.69B 1.93B 2.01B 2.14B 2.97B
Total Liabilities 4.68B 5.28B 4.91B 5.41B 6.07B 6.39B 6.62B 6.54B 8.53B 12.74B
Stockholder' Equity 1.34B 1.09B 1.58B 1.52B 1.22B 1.11B 1.20B 1.03B 1.25B 3.44B
Current Ratio 1.22 1.16 1.35 1.67 1.25 1.39 1.28 1.15 1.02 1.23
TL-to-TA 0.78 0.83 0.76 0.78 0.83 0.85 0.85 0.86 0.87 0.79

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
2007200820092010201120122013201420152016
Retained Earnings 1.77B 2.05B 2.40B 2.83B 3.23B 3.58B 3.91B 4.35B 4.56B 4.74B
Retained Earnings Growth - 15.98% 17.10% 18.05% 14.08% 10.92% 9.30% 11.07% 4.84% 3.98%

Highly Competitive Industry over the past 10 years

It's likely that BLL is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely BLL invests heavily in R&D and Sales, General & Administrative expenses.

Only $4.85 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 281.30M 319.50M 387.90M 548.60M 468.60M 429.30M 434.60M 498.00M 302.90M 266.00M
divided by
Revenue 7.39B 7.56B 7.35B 7.63B 8.63B 8.74B 8.47B 8.57B 8.00B 9.06B
Net Profit Margin 3.81% 4.23% 5.28% 7.19% 5.43% 4.91% 5.13% 5.81% 3.79% 2.94%

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.

$26.21 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
2007200820092010201120122013201420152016
Gross Profit 1.16B 1.22B 1.27B 1.38B 8.63B 1.56B 1.59B 1.67B 1.54B 1.77B
divided by
Revenue 7.39B 7.56B 7.35B 7.63B 8.63B 8.74B 8.47B 8.57B 8.00B 9.06B
Gross Margin 15.74% 16.15% 17.34% 18.03% 100.00% 17.88% 18.81% 19.45% 19.22% 19.48%

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.

103.29% 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
2007200820092010201120122013201420152016
Capital Expenditure 308.50M 306.90M 187.10M 250.20M 443.80M 305.00M 378.30M 390.80M 527.90M 606.00M
divided by
Net Income 281.30M 319.50M 387.90M 548.60M 468.60M 429.30M 434.60M 498.00M 302.90M 266.00M
Capital Expenditure Ratio 109.67% 96.06% 48.23% 45.61% 94.71% 71.05% 87.05% 78.47% 174.28% 227.82%

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
2007200820092010201120122013201420152016
Dividend Paid 40.60M 37.50M 37.40M 35.80M 45.70M 61.80M 75.20M 72.70M 71.80M 83.00M
divided by
Shares Outstanding 102.76M 97.02M 94.99M 183.54M 168.59M 158.08M 149.22M 142.43M 140.98M 161.44M
Dividend Paid Per Share 0.40 0.39 0.39 0.20 0.27 0.39 0.50 0.51 0.51 0.51
Price at Year End 21.95 20.03 25.75 34.33 35.71 44.29 51.79 69.49 73.33 75.07
Dividend Yield 1.80% 1.93% 1.53% 0.57% 0.76% 0.88% 0.97% 0.73% 0.69% 0.68%

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
2007200820092010201120122013201420152016
Shares Outstanding 102.76M 97.02M 94.99M 183.54M 168.59M 158.08M 149.22M 142.43M 140.98M 161.44M
Stock Bought Back - 5.92% 2.14% -48.25% 8.87% 6.65% 5.94% 4.77% 1.03% -12.67%
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