Last Updated: 19 Sep 2024
Executive Summary
Berry Global Group Inc. (BERY) is a leading manufacturer of rigid, flexible, and nonwoven products for consumer and industrial end markets. The company has a strong financial position with a market capitalization of $7.74 billion, EBITDA of $1.97 billion, and EPS of $4.59. BERY has a moderate valuation with a trailing PE ratio of 14.71 and a forward PE ratio of 8.24. The stock is trading below its 52-week high of $69.01 and above its 52-week low of $52.98. Analysts are generally bullish on BERY, with 7 analysts rating it a "Hold" and 5 rating it a "Buy." The average analyst target price is $72.51, implying a potential upside of 5.9%.
Company Overview
Berry Global Group Inc. is headquartered in Evansville, Indiana. The company has a global presence with operations in over 90 countries. BERY's products are used in a wide range of applications, including packaging, construction, healthcare, and automotive. The company's customers include major consumer and industrial companies such as Procter & Gamble, Walmart, and Ford Motor Company.
Fundamental Analysis
BERY has a strong financial position. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.2% over the past five years. BERY's EBITDA margin has also expanded over the past five years, from 10.1% in 2017 to 16.2% in 2022. The company's EPS has grown at a CAGR of 12.3% over the past five years.
BERY's valuation is moderate. The company's trailing PE ratio of 14.71 is below the industry average of 16.25. BERY's forward PE ratio of 8.24 is also below the industry average of 9.58.
Technical Analysis
BERY's stock price has been trading in a range between $52.98 and $69.01 over the past year. The stock is currently trading above its 50-day moving average of $64.72 and its 200-day moving average of $62.22. The relative strength index (RSI) is currently at 56.74, indicating that the stock is not overbought or oversold.
Short Term Outlook
The short-term outlook for BERY is mixed. The company's financial performance has been strong, but the stock price has been range-bound over the past year. The stock is currently trading above its moving averages, which is a positive sign. However, the RSI is not overbought, which suggests that there is room for the stock to move higher.
Long Term Outlook
The long-term outlook for BERY is positive. The company's strong financial position and its exposure to growing end markets should drive long-term growth. The stock is currently trading at a moderate valuation, which provides investors with a margin of safety.
Analyst Recommendations
Analysts are generally bullish on BERY. The average analyst target price is $72.51, implying a potential upside of 5.9%. Two analysts rate the stock a "Strong Buy," five analysts rate it a "Buy," and seven analysts rate it a "Hold." No analysts rate the stock a "Sell" or "Strong Sell."
