Ball Corporation
Ball Corporation Fundamental Analysis
Ball Corporation (BALL) shows weak financial fundamentals with a PE ratio of 19.39, profit margin of 6.93%, and ROE of 16.89%. The company generates $13.2B in annual revenue with weak year-over-year growth of -2.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BALL's fundamental strength across five key dimensions:
Efficiency Score
WeakBALL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBALL trades at attractive valuation levels.
Growth Score
WeakBALL faces weak or negative growth trends.
Financial Health Score
ModerateBALL shows balanced financial health with some risks.
Profitability Score
ModerateBALL maintains healthy but balanced margins.
Key Financial Metrics
Is BALL Expensive or Cheap?
P/E Ratio
BALL trades at 19.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BALL's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Ball Corporation at 3.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.76 times EBITDA. This is generally considered low.
How Well Does BALL Make Money?
Net Profit Margin
For every $100 in sales, Ball Corporation keeps $6.93 as profit after all expenses.
Operating Margin
Core operations generate 9.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.89 in profit for every $100 of shareholder equity.
ROA
Ball Corporation generates $4.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ball Corporation generates limited operating cash flow of $1.27B, signaling weaker underlying cash strength.
Free Cash Flow
Ball Corporation produces free cash flow of $791.54M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.95 in free cash annually.
FCF Yield
BALL converts 4.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How BALL Stacks Against Its Sector Peers
| Metric | BALL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.39 | 25.25 | Better (Cheaper) |
| ROE | 16.89% | 1170.00% | Weak |
| Net Margin | 6.93% | 742.00% | Weak |
| Debt/Equity | 1.29 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.11 | 9.19 | Neutral |
| ROA | 4.67% | -6467.00% (disorted) | Weak |
BALL outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ball Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.43%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
667.57%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-91.95%
Industry Style: Cyclical, Growth, Discretionary
Declining