Berry Global Group, Inc. Fundamental Analysis
Berry Global Group, Inc. (BERY) shows weak financial fundamentals with a PE ratio of 15.07, profit margin of 4.21%, and ROE of 15.12%. The company generates $12.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BERY's fundamental strength across five key dimensions:
Efficiency Score
WeakBERY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBERY trades at attractive valuation levels.
Growth Score
ModerateBERY shows steady but slowing expansion.
Financial Health Score
ModerateBERY shows balanced financial health with some risks.
Profitability Score
ModerateBERY maintains healthy but balanced margins.
Key Financial Metrics
Is BERY Expensive or Cheap?
P/E Ratio
BERY trades at 15.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BERY's PEG of -0.12 indicates potential undervaluation.
Price to Book
The market values Berry Global Group, Inc. at 2.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.08 times EBITDA. This is generally considered low.
How Well Does BERY Make Money?
Net Profit Margin
For every $100 in sales, Berry Global Group, Inc. keeps $4.21 as profit after all expenses.
Operating Margin
Core operations generate 7.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.12 in profit for every $100 of shareholder equity.
ROA
Berry Global Group, Inc. generates $3.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Berry Global Group, Inc. produces operating cash flow of $1.41B, showing steady but balanced cash generation.
Free Cash Flow
Berry Global Group, Inc. produces free cash flow of $859.19M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.42 in free cash annually.
FCF Yield
BERY converts 10.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How BERY Stacks Against Its Sector Peers
| Metric | BERY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.07 | 25.35 | Better (Cheaper) |
| ROE | 15.12% | 887.00% | Weak |
| Net Margin | 4.21% | -2710.00% (disorted) | Weak |
| Debt/Equity | 2.45 | 0.61 | Weak (High Leverage) |
| Current Ratio | 1.25 | 2.43 | Neutral |
| ROA | 3.11% | 298.00% | Weak |
BERY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Berry Global Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary