Berry Global Group (BERY) AI Stock Analysis

• Market Cap: $7.42B
• Dividend Yield: 1.83%
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.71
• Revenue Growth: -5.35%
• EPS Growth: -13.51%
• Country: US
• Employees: 34,000
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Packaging & Containers
• EPS (TTM): 4.01
• Shares Outstanding: 115,800,000
• 10 Day Avg. Volume: 1,898,542
• 30 Day Avg. Volume: 2,100,436
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.67
• Price to Cash Flow (P/CF): -4.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $73.20
• Price Target Upside: 12.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Berry Global's overall score reflects its strong operational efficiency and cash flow generation, offset by high financial leverage and declining revenue. The stock's technical indicators are favorable, suggesting potential for continued upward momentum. The valuation is fair, with a moderate P/E ratio and dividend yield. Corporate events, including a strategic merger and an exchange offer, positively impact the score by enhancing growth prospects and financial flexibility.

Positive Factors

Earnings

Berry Global reported F1Q25 results that were modestly above estimates, with adjusted EBITDA of $378M beating consensus expectations.

Merger and Acquisition

The Amcor/Berry transaction almost doubles the size of the combined packaging company, and the looked for $530m in cost synergies are 2.2% of pro forma sales.

Negative Factors

Guidance Revision

Despite the 1Q upside, Berry Global trimmed their FY25 EBITDA guidance to $1.73B-$1.79B from prior $1.77- $1.83B.

Segment Performance

The Flexibles segment reported a modest decline in EBITDA year-over-year, falling short by $2M or approximately 2%.

Berry Global Group Business Overview & Revenue Model

Company Description

Berry Global Group, Inc. (NYSE: BERY) is a global manufacturer and marketer specializing in plastic packaging products. Headquartered in Evansville, Indiana, Berry Global operates in the Consumer Packaging, Engineered Materials, and Health, Hygiene & Specialties sectors. The company offers a diverse range of products, including containers, closures, films, tapes, and nonwoven specialty materials, serving industries such as healthcare, personal care, food and beverage, and industrial applications.

How the Company Makes Money

Berry Global Group generates revenue primarily through the manufacturing and sale of its extensive array of plastic packaging products and engineered materials. The company operates through three main segments: Consumer Packaging, Engineered Materials, and Health, Hygiene & Specialties. In the Consumer Packaging segment, Berry Global provides products such as containers, closures, and dispensing systems, which are critical to the food, beverage, and personal care industries. The Engineered Materials segment focuses on the production of specialty films and tapes used in a variety of industrial applications. Meanwhile, the Health, Hygiene & Specialties segment delivers nonwoven specialty materials catering to personal care, healthcare, and filtration markets. Berry Global's revenue is bolstered by its global footprint and strategic partnerships with major consumer goods companies, which provide stability and growth opportunities in various market conditions. Additionally, the company's focus on sustainability and innovation in product design and materials enhances its competitive edge and market appeal.

Berry Global Group Financial Statement Overview

Summary

Berry Global Group demonstrates strong operational efficiency and cash flow generation, but faces challenges with declining revenue and high financial leverage. The balance sheet's high debt levels pose potential risks, which might impact future investment and financing capabilities. Overall, the company shows resilience in cash flow but needs to address revenue growth and leverage concerns to strengthen its financial position.

Income Statement

Berry Global Group shows a declining revenue trend over the past few years. The Gross Profit Margin for the TTM (Trailing-Twelve-Months) is 34.31%, indicating efficient production cost management. However, the Net Profit Margin is only 4.56%, which suggests limited profitability after accounting for all expenses. The EBIT Margin is 8.64% and the EBITDA Margin is 12.47%, showing moderate operational efficiency.

Balance Sheet

The company's balance sheet reflects high leverage with a Debt-to-Equity Ratio that cannot be calculated for TTM due to zero equity, indicating potential financial risk. The Equity Ratio for the previous annual period was 21.71%, showing that a significant portion of assets are financed by debt, which could be concerning in a volatile market environment.

Cash Flow

The Free Cash Flow to Net Income Ratio for the TTM is 1.16, indicating strong cash generation relative to net income. While there has been a decline in free cash flow from the previous period, the Operating Cash Flow to Net Income Ratio is 2.09, which suggests robust cash flow from operations, supporting the company's liquidity position.

Breakdown
TTM	Sep 2024	Sep 2023	Dec 2022	Dec 2021	Sep 2020
Income Statement		Total Revenue
11.79B	12.26B	12.66B	14.49B	13.85B	11.71B
	Gross Profit
2.12B	2.25B	2.31B	2.37B	2.50B	2.41B
	EBIT
1.02B	937.00M	1.08B	1.24B	1.29B	1.18B
	EBITDA
1.66B	937.00M	1.97B	2.02B	2.20B	2.12B
	Net Income Common Stockholders
538.00M	516.00M	609.00M	766.00M	733.00M	559.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.00M	1.09B	1.20B	1.41B	1.09B	750.00M
	Total Assets
5.00B	16.61B	16.59B	16.96B	17.88B	16.70B
	Total Debt
4.56B	8.85B	9.51B	9.26B	9.46B	10.70B
	Net Debt
4.53B	7.75B	8.30B	7.84B	8.37B	9.95B
	Total Liabilities
5.50B	13.01B	13.37B	13.76B	14.70B	14.61B
	Stockholders Equity
-499.00M	3.61B	3.22B	3.20B	3.18B	2.09B
Cash Flow		Free Cash Flow
624.00M	854.00M	926.00M	876.00M	904.00M	947.00M
	Operating Cash Flow
1.13B	1.41B	1.61B	1.56B	1.58B	1.53B
	Investing Cash Flow
-580.00M	-572.00M	-776.00M	-483.00M	-511.00M	-316.00M
	Financing Cash Flow
175.00M	-965.00M	-1.07B	-704.00M	-741.00M	-1.22B

Berry Global Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BERY, the sentiment is Negative. The current price of 65 is below the 20-day moving average (MA) of 68.90, below the 50-day MA of 69.88, and above the 200-day MA of 64.18, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BERY.

Berry Global Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BERY	68 Neutral	$7.42B	15.95	19.44%	1.83%	-5.35%	-13.51%
SON	68 Neutral	$4.12B	25.31	6.42%	4.98%	-6.93%	-65.66%
CCK	65 Neutral	$9.48B	22.82	16.41%	1.29%	-1.53%	-5.16%
GPK	65 Neutral	$7.34B	11.28	22.72%	1.69%	-6.59%	-7.81%
SLGN	64 Neutral	$4.91B	17.83	14.25%	1.67%	-2.23%	-13.56%
Sector *	59 Neutral	$11.74B	10.16	-1.06%	4.15%	1.27%	-16.61%
AMCR	54 Neutral	$12.89B	16.19	20.60%	5.66%	-3.54%	25.25%

Berry Global Group Corporate Events

Berry Global and Amcor Announce Consent Solicitations

On February 26, 2025, Berry Global Group, Inc. and Amcor plc announced the commencement of consent solicitations related to Berry’s outstanding notes, aiming to amend certain indenture provisions. This move is part of their merger plan, allowing Berry’s notes to have identical credit support to Amcor’s existing senior notes, which could impact the company’s financial structure and stakeholder interests.

Berry Global and Amcor Announce Definitive Merger Steps

On January 23, 2025, Berry Global Group and Amcor announced the filing of a definitive joint proxy statement with the SEC, marking a significant step towards completing their all-stock transaction. The merger aims to create a global leader in consumer and healthcare packaging solutions, promising substantial value creation through cost, growth, and financial synergies, and is expected to accelerate growth, enhance shareholder value, and strengthen their market position by the middle of 2025.

Berry Global Launches $800 Million Exchange Offer

On January 14, 2025, Berry Global Group, Inc. announced an exchange offer by its subsidiary for up to $800 million of new 5.650% and 5.800% First Priority Senior Secured Notes for an equivalent amount of its outstanding unregistered notes, registered under the Securities Act of 1933. The exchange notes differ from the outstanding notes in terms of transfer restrictions and registration rights, aiming to provide greater flexibility for note holders. This move is significant as it enhances Berry’s financial operations by potentially improving liquidity and investor confidence.