Berry Global Group Inc (BERY, Financial), a prominent player in the Packaging & Containers industry, is currently trading at $63.59 with a market capitalization of $7.58 billion. The company's stock price has seen a gain of 3.33% today, despite a slight dip of -1.83% over the past four weeks. In this article, we will delve into Berry Global Group's GF Score of 91/100, which indicates the highest outperformance potential according to GuruFocus' ranking system.
Financial Strength Analysis
The Financial Strength of Berry Global Group is ranked at 4/10. This score is derived from several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. Berry Global Group's interest coverage is 4.19, indicating its ability to cover interest expenses with its operating profit. The company's debt to revenue ratio is 0.72, suggesting a moderate level of debt relative to its revenue. Lastly, the Altman Z-Score of 1.73 indicates a potential risk of financial distress.
Profitability Rank Analysis
Berry Global Group's Profitability Rank is an impressive 9/10. This high score is driven by a robust operating margin of 9.13%, a Piotroski F-Score of 6, and a consistent profitability record over the past 10 years. However, the company's operating margin has seen a slight downtrend over the past five years, with a 5-year average of -2.80%. Despite this, the company's Predictability Rank of 4 suggests a strong likelihood of continued profitability.
Growth Rank Analysis
The company's Growth Rank stands at a perfect 10/10, indicating strong growth in terms of revenue and profitability. This is reflected in the company's 5-year revenue growth rate of 16.90%, 3-year revenue growth rate of 18.30%, and 5-year EBITDA growth rate of 12.90%.
GF Value Rank Analysis
The GF Value Rank of Berry Global Group is 5/10, suggesting a fair valuation of the company's stock. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
Berry Global Group's Momentum Rank is 10/10, indicating strong momentum in the company's stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its main competitors in the Packaging & Containers industry, Berry Global Group holds its ground. Graphic Packaging Holding Co (GPK, Financial) has a similar GF Score of 91, while Sealed Air Corp (SEE, Financial) and Reynolds Consumer Products Inc (REYN, Financial) have GF Scores of 82 and 79, respectively. More details about these competitors can be found here.
Conclusion
In conclusion, Berry Global Group's overall GF Score of 91/100 suggests a high potential for outperformance. Despite some financial risks, the company's strong profitability, growth, and momentum ranks make it an attractive investment option. However, potential investors should also consider the company's fair valuation and the competitive landscape of the Packaging & Containers industry.
