Berry Global Group (BERY) AI Stock Analysis

• Market Cap: $7.83B
• Dividend Yield: 1.73%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.63
• Revenue Growth: -8.26%
• EPS Growth: 10.64%
• Country: US
• Employees: 42,000
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Packaging & Containers
• EPS (TTM): 1.55
• Shares Outstanding: 115,800,000
• 10 Day Avg. Volume: 2,127,861
• 30 Day Avg. Volume: 1,969,260
• PEG Ratio: 0.03
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.85
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 7.00
• Enterprise Value/Ebitda: 2.15
• 1Y Price Target: $72.67
• Price Target Upside: 7.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

Berry Global Group's stock score reflects stable financial performance with efficient cash management, though revenue contraction and high leverage present challenges. The technical analysis indicates a neutral trend with potential short-term caution. Valuation metrics show the stock is reasonably priced, with a modest dividend yield enhancing investor appeal. Overall, the stock presents a balanced risk-reward profile.

Positive Factors

Earnings

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

Market Expansion

Overall volume increased 2% year-over-year as market conditions improved, with notable growth in Consumer Packaging – North America led by food, beverage, and foodservice markets.

Merger and Acquisition

Berry has agreed to be acquired in an all-stock transaction by Amcor with Amcor owning 63% of the new entity and Berry 37%.

Negative Factors

Guidance

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%.

Stock Price Volatility

Berry Global's stock price will continue to fluctuate with Amcor’s stock price due to the all-stock deal.

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 stable profitability and efficient operations, though it faces challenges with revenue contraction and high leverage. The company effectively manages cash flows, which supports its operational needs despite the high debt levels. Future performance will depend on managing leverage and reigniting revenue growth.

Income Statement

Berry Global Group's income statement reveals moderate profitability and margin stability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 18.8%, while the net profit margin is 5.5%. The company experienced a revenue decline of 8.3% compared to the previous year, which could indicate demand fluctuations or competitive pressures. However, the EBIT and EBITDA margins are relatively healthy at 9.9% and 13.7%, respectively.

Balance Sheet

The balance sheet shows a high leverage with a debt-to-equity ratio of 3.0, reflecting significant debt levels. The return on equity (ROE) is a strong 24.8%, demonstrating effective use of equity to generate profit. The equity ratio is 19.2%, indicating lower reliance on equity financing, which could pose risks in volatile markets.

Cash Flow

The cash flow statement highlights a robust cash generation capability with an operating cash flow to net income ratio of 1.8 and a free cash flow to net income ratio of 1.0. The free cash flow decreased slightly compared to the previous period, but the company still maintains a solid cash position to support operations and investments.

Breakdown
TTM	Sep 2024	Sep 2023	Dec 2022	Dec 2021	Sep 2020
Income Statement		Total Revenue
11.23B	12.26B	12.66B	14.49B	13.85B	11.71B
	Gross Profit
2.11B	2.25B	2.31B	2.37B	2.50B	2.41B
	EBIT
1.11B	937.00M	1.08B	1.24B	1.29B	1.18B
	EBITDA
1.54B	937.00M	1.97B	2.02B	2.20B	2.12B
	Net Income Common Stockholders
615.00M	516.00M	609.00M	766.00M	733.00M	559.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
483.00M	1.09B	1.20B	1.41B	1.09B	750.00M
	Total Assets
12.88B	16.61B	16.59B	16.96B	17.88B	16.70B
	Total Debt
7.45B	8.85B	9.51B	9.26B	9.46B	10.70B
	Net Debt
6.96B	7.75B	8.30B	7.84B	8.37B	9.95B
	Total Liabilities
10.41B	13.01B	13.37B	13.76B	14.70B	14.61B
	Stockholders Equity
2.48B	3.61B	3.22B	3.20B	3.18B	2.09B
Cash Flow		Free Cash Flow
609.00M	854.00M	926.00M	876.00M	904.00M	947.00M
	Operating Cash Flow
1.08B	1.41B	1.61B	1.56B	1.58B	1.53B
	Investing Cash Flow
-157.00M	-572.00M	-776.00M	-483.00M	-511.00M	-316.00M
	Financing Cash Flow
-921.00M	-965.00M	-1.07B	-704.00M	-741.00M	-1.22B

Berry Global Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 67.58 is below the 20-day moving average (MA) of 67.93, below the 50-day MA of 68.73, and above the 200-day MA of 65.61, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 27.87 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
CCK	73 Outperform	$11.58B	21.37	21.30%	1.01%	0.90%	34.40%
SLGN	73 Outperform	$5.93B	20.55	14.52%	1.39%	1.99%	-5.30%
SON	71 Outperform	$4.57B	30.14	5.54%	4.48%	-4.58%	-61.14%
BERY	67 Neutral	$7.83B	14.54	21.42%	1.73%	-8.26%	10.64%
GPK	64 Neutral	$7.11B	11.54	20.62%	1.74%	-6.28%	-7.43%
Sector *	61 Neutral	$6.98B	11.35	2.88%	3.90%	2.65%	-21.84%
AMCR	56 Neutral	$21.76B	16.94	20.71%	5.35%	-2.29%	24.05%

Berry Global Group Corporate Events

Berry Global Group Completes Merger with Amcor

On the Closing Date, Berry Global Group, a company involved in the manufacturing sector, completed a merger with Amcor. As a result of this merger, each share of Berry common stock was converted into Amcor ordinary shares, and Berry’s stock was delisted from the New York Stock Exchange. The merger led to significant changes in Berry’s corporate structure, including the resignation of its board of directors and the appointment of new directors from Amcor. Additionally, Berry’s reporting obligations under the Securities Exchange Act were suspended.

Spark’s Take on BERY Stock

According to Spark, TipRanks’ AI Analyst, BERY is a Neutral.

Berry Global Group’s stock score is driven by its strong cash flow and operational efficiency, offset by high leverage and declining revenue. Technical indicators show mixed signals with no clear momentum, and valuation metrics suggest the stock is fairly priced with moderate income potential.

To see Spark’s full report on BERY stock, click here.

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.