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Ball (BALL)
NYSE:BALL
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Ball
(NYSE:BALL)43Neutral
Positive Factors
Long-term contracts
BALL has renegotiated and extended a long-term contract with a large CSD customer, ensuring stability in pricing and future growth.
Share repurchase
The company announced a $4 billion share repurchase authorization, which signals confidence in its long-term outlook.
Negative Factors
Tariffs impact
A 25% potential tariff on Canada and Mexico exports is likely to result in higher beer prices and could negatively impact consumption for major brands.
Ball (BALL) vs. S&P 500 (SPY)
Market Cap
$14.90B
Dividend Yield1.53%
Average Volume (3M)2.84M
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth-15.64%
EPS Growth-186.66%
CountryUS
Employees21,000
SectorConsumer Cyclical
Sector Strength53
IndustryContainers & Packaging
Share Statistics
EPS (TTM)-1.96
Shares Outstanding282,822,880
10 Day Avg. Volume2,782,447
30 Day Avg. Volume2,840,058
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.26
Price to Cash Flow (P/CF)7.50
P/FCF Ratio38.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$61.60Price Target Upside20.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Ball Business Overview & Revenue Model
Company DescriptionColorado-based Ball Corp. was founded in 1880 and provides aluminum packaging products to the beverage, personal care, automotive, paint, healthcare, and household products industries. It operates in four segments: Beverage Packaging, North and Central America; Beverage Packaging, South America; Beverage Packaging, Europe; and Aerospace.
How the Company Makes MoneyBall Corporation generates revenue primarily through the sale of aluminum packaging products for beverages, personal care, and household goods. The company operates manufacturing facilities worldwide, producing billions of cans annually for leading brands in the beverage industry. Additionally, Ball's aerospace segment contributes to its earnings by providing advanced systems and components for defense, civil, and commercial space applications. Key revenue streams include long-term contracts with customers, strategic partnerships with leading brands, and government contracts in the aerospace sector. The company's focus on sustainability and innovation also helps maintain competitive advantages and customer loyalty.
Ball Financial Statement Overview
Summary
Ball's financial performance shows a concerning trend with declining revenues, negative EBITDA, and weakened cash flows, indicating potential issues with cost control and operational efficiency. The balance sheet remains relatively stable, with a solid equity base despite high leverage. Overall, the company needs to address its cash flow generation and improve operational performance to sustain its financial health.Income Statement
Ball's revenue has decreased significantly over the past year, with a revenue growth rate of -15.88% from 2023 to 2024. The gross profit margin stands at 20.70% for 2024, indicating a moderate level of profitability. However, the net profit margin of 33.97% is unusually high, driven by a one-off gain or accounting adjustment rather than operational efficiency. The EBIT margin has decreased to 3.65%, and EBITDA has turned negative, indicating declining operational performance and potential issues with cost management.45
Neutral
Balance Sheet
Ball has a debt-to-equity ratio of 0.96, reflecting a leveraged position typical for the industry, though slightly risky if interest rates rise. The return on equity (ROE) has improved to 67.56% in 2024, driven by the high net income, but this could be volatile if net income normalizes. The equity ratio remains stable at 33.63%, indicating a solid capital structure with a healthy proportion of assets funded by equity.60
Neutral
Cash Flow
Ball's cash flow situation has weakened significantly, with a free cash flow decline, reaching -$369 million in 2024. The operating cash flow to net income ratio is notably low at 0.03, suggesting issues in converting profits into cash. The free cash flow to net income ratio is negative, highlighting potential liquidity concerns and the need to manage costs or improve operational cash generation.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.79B | 14.03B | 15.35B | 13.81B | 11.78B | Gross Profit |
| 2.44B | 2.67B | 2.58B | 2.73B | 2.46B | EBIT |
| 430.00M | 1.43B | 1.27B | 1.42B | 1.22B | EBITDA |
| -369.00M | 1.96B | 1.88B | 1.98B | 1.62B | Net Income Common Stockholders |
| 4.01B | 707.00M | 719.00M | 878.00M | 585.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 885.00M | 695.00M | 548.00M | 563.00M | 1.37B | Total Assets |
| 17.63B | 19.30B | 19.91B | 19.71B | 18.25B | Total Debt |
| 5.67B | 8.57B | 8.95B | 7.74B | 7.80B | Net Debt |
| 4.79B | 7.87B | 8.40B | 7.17B | 6.43B | Total Liabilities |
| 11.70B | 15.47B | 16.38B | 16.03B | 14.91B | Stockholders Equity |
| 5.93B | 3.77B | 3.53B | 3.69B | 3.34B |
| Cash Flow | Free Cash Flow | |||
| -369.00M | 818.00M | -1.37B | 34.00M | 319.00M | Operating Cash Flow |
| 115.00M | 1.86B | 283.00M | 1.76B | 1.43B | Investing Cash Flow |
| 5.00B | -1.05B | -768.00M | -1.64B | -1.18B | Financing Cash Flow |
| -4.79B | -662.00M | 485.00M | -894.00M | -602.00M |
Ball Technical Analysis
Negative
51.03
Price Trends
53.10
Negative
57.27
Negative
60.62
Negative
Market Momentum
-0.51
Negative
44.59
Neutral
69.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BALL, the sentiment is Negative. The current price of 51.03 is above the 20-day moving average (MA) of 50.69, below the 50-day MA of 53.10, and below the 200-day MA of 60.62, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 69.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BALL.
Ball Risk Analysis
Ball disclosed 29 risk factors in its most recent earnings report. Ball reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ball Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $14.32B | 20.76 | 31.70% | 1.85% | 4.68% | ― | |
71 Outperform | $19.14B | 23.85 | 18.28% | 2.39% | 7.45% | 5.43% | |
68 Neutral | $4.70B | 28.96 | 7.22% | 4.40% | -6.93% | -65.66% | |
67 Neutral | $4.98B | 18.52 | 42.39% | 2.45% | -1.75% | -21.15% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
52 Neutral | $1.77B | ― | -42.06% | ― | -8.09% | -1.97% | |
43 Neutral | $14.90B | ― | 67.59% | 1.53% | -15.64% | -186.66% |
* Consumer Cyclical Sector Average
Performance Comparison
BALL
Ball
51.03
-12.20
-19.29%
AVY
Avery Dennison
181.33
-30.10
-14.24%
OI
O-I Glass
10.63
-5.57
-34.38%
PKG
Packaging
202.27
23.47
13.13%
SEE
Sealed Air
31.03
-3.74
-10.76%
SON
Sonoco Products
46.27
-8.03
-14.79%
Ball Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -8.00% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with significant achievements in EPS growth, community initiatives, and strategic acquisitions, but faced challenges in volume performance in North America and supply-demand issues in South America. The company's proactive approach to shareholder returns and future growth plans provides a positive outlook.Highlights
Strong Shareholder Returns
Ball Corporation returned $1.96 billion to shareholders via share repurchases and dividends in 2024, with plans to repurchase at least $3 billion of shares between 2024 and 2025.
EPS Growth Achievement
The company reported full year comparable diluted earnings per share of $3.17 in 2024, a 9.3% increase from $2.90 in 2023.
Positive Community and Safety Initiatives
Ball Corporation's employees volunteered more than 23,000 hours and invested over $4 million into local causes and disaster relief efforts in 2024 while improving safety performance by decreasing incident rates versus 2023.
Growth in EMEA Region
Fourth quarter segment volumes in EMEA were strong, with an increase in operating earnings by 12.5%, and expectations for significant year-over-year growth in 2025.
Strategic Acquisitions and Expansions
Ball Corporation acquired a Florida can manufacturing facility for $160 million, expanding its capacity and positioning for growth in North America.
Lowlights
Volume Challenges in North America
The North American segment faced softer-than-expected volume due to economic pressures and exposure to the US domestic beer market.
Supply-Demand Imbalance in South America
South America volumes declined due to weakness in Argentina and supply-demand tightness in Brazil, although growth was observed in Chile and Paraguay.
Interest Income Reduction
A reduction in interest income is expected in 2025 due to lower cash proceeds from the Aerospace sale, impacting overall financial performance.
Company Guidance
During Ball Corporation's fourth-quarter 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics and strategic initiatives. The CEO, Dan Fisher, expressed confidence in achieving 11% to 14% comparable diluted EPS growth, driven by global volume growth anticipated in the 2% to 3% range. The company aims to exceed 10% EPS growth beyond 2025. Ball Corporation plans to repurchase at least $3 billion in shares between 2024 and 2025, with $290 million already repurchased year-to-date in 2025. Capital expenditures for 2025 are expected to be below depreciation and amortization, within a range of $600 million. The company also announced the acquisition of a can manufacturing facility in Florida for $160 million, which closed on the day of the call. The effective tax rate for 2025 is anticipated to be slightly above 22%, and full-year interest expenses are projected to be around $270 million. These efforts are part of Ball Corporation's strategy to enhance operational performance and shareholder value through dividends and share repurchases, aligning with its long-term growth objectives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.