Berry Stock Story

BERY -  USA Stock  

USD 54.65  0.06  0.11%

As many rational traders are trying to avoid consumer cyclical space, it makes sense to break down Berry Global Group a little further and understand how it stands against Ball Corp and other similar entities. We are going to inspect some of the competitive aspects of both Berry and Ball Corp.
Published over six months ago
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Will Ball Corp investors switch to Berry (NYSE:BERY)?
By analyzing existing basic indicators between Berry Global and Ball Corp, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Ball Corp with a short position in Berry Global. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Berry Global has an asset utilization ratio of 162.29 percent. This suggests that the company is making $1.62 for each dollar of assets. An increasing asset utilization means that Berry Global Group is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Berry Global's Liquidity

Berry Global financial leverage refers to using borrowed capital as a funding source to finance Berry Global Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Berry Global financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Berry Global's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Berry Global, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Begle Curt of 14000 shares of Berry Global subject to Rule 16b-3

Legal trades by Berry Global insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Berry insider trading alert for exercise of employee stock option (right to buy) by Begle Curt, President, on 9th of December 2021. This event was filed by Berry Global Group Inc with SEC on 2021-12-09. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Berry Global revenue. Based on the latest financial disclosure, Berry Global Group reported 12.42 B of revenue. This is 74.2% higher than that of the Consumer Cyclical sector and 101.47% higher than that of the Packaging & Containers industry. The revenue for all United States stocks is 31.64% lower than that of Berry Global. As for Ball Corp we see revenue of 12.78 B, which is 107.31% higher than that of the Packaging & Containers

Berry12.42 Billion
Sector6.16 Billion
Ball Corp12.78 Billion
12.4 B
Berry
6.2 B
Sector
12.8 B
Ball Corp

Berry is expecting lower volatility in December

The semi variance is down to 1.58 as of today. Berry Global Group has relatively low volatility with skewness of 0.01 and kurtosis of 1.09. However, we advise all investors to independently investigate Berry Global Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Berry Global's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Berry Global's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Berry Global Implied Volatility

Berry Global's implied volatility exposes the market's sentiment of Berry Global Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Berry Global's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Berry Global stock will not fluctuate a lot when Berry Global's options are near their expiration.

Our Final Takeaway

While few other entities under the packaging & containers industry are still a bit expensive, Berry Global may offer a potential longer-term growth to investors. To conclude, as of the 18th of November 2021, we believe Berry Global is currently undervalued. It almost mirrors the market and projects below average probability of distress in the next two years. Our primary 90 days buy-hold-sell recommendation on the company is Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Berry Global Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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