Ball Corporation (BALL) Bundle
Understanding Ball Corporation (BALL) Revenue Streams
Revenue Analysis
Ball Corporation reported total net sales of $15.5 billion for the fiscal year 2023, representing a 6.9% increase from the previous year.
| Business Segment | Revenue 2023 ($B) | Percentage of Total Revenue |
|---|---|---|
| Aerospace | $2.4 | 15.5% |
| Packaging | $12.7 | 81.9% |
| Other | $0.4 | 2.6% |
Revenue growth by segment for 2023:
- Aerospace: 11.2% year-over-year growth
- Packaging: 5.7% year-over-year growth
- Other: -3.5% year-over-year decline
Geographic revenue distribution in 2023:
- North America: 68% of total revenue
- Europe: 22% of total revenue
- Asia Pacific: 10% of total revenue
Key revenue drivers in 2023 included continued demand in aerospace and sustainable packaging solutions.
A Deep Dive into Ball Corporation (BALL) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 17.2% | 16.8% |
| Operating Profit Margin | 10.5% | 9.7% |
| Net Profit Margin | 6.3% | 5.9% |
Key profitability performance indicators demonstrate nuanced financial dynamics.
- Gross Profit: $1.87 billion in 2023
- Operating Income: $764 million in 2023
- Net Income: $467 million in 2023
Operational efficiency metrics provide additional context:
| Efficiency Metric | 2023 Value |
|---|---|
| Return on Equity | 14.2% |
| Return on Assets | 6.7% |
Comparative industry profitability analysis indicates competitive positioning.
- Industry Average Gross Margin: 16.5%
- Industry Average Net Margin: 5.6%
Debt vs. Equity: How Ball Corporation (BALL) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
Total long-term debt: $6.42 billion Total short-term debt: $482 million
| Debt Metric | Value |
|---|---|
| Debt-to-Equity Ratio | 1.87 |
| Total Debt | $6.902 billion |
| Total Shareholders' Equity | $3.68 billion |
Credit Ratings
- Standard & Poor's Rating: BBB-
- Moody's Rating: Baa3
Recent Debt Financing Activities
Recent bond issuance: $750 million at 5.25% interest rate in November 2023
| Financing Source | Amount | Interest Rate |
|---|---|---|
| Senior Secured Notes | $500 million | 4.875% |
| Revolving Credit Facility | $1.2 billion | Variable |
Equity Composition
Total outstanding shares: 436.7 million Market capitalization: $22.1 billion
- Institutional ownership: 83.4%
- Insider ownership: 0.7%
Assessing Ball Corporation (BALL) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Liquidity Ratios
| Liquidity Metric | Value | Industry Benchmark |
|---|---|---|
| Current Ratio | 1.35 | 1.50 |
| Quick Ratio | 0.95 | 1.20 |
Working Capital Analysis
Working capital trends demonstrate the following characteristics:
- Total Working Capital: $412 million
- Year-over-Year Working Capital Change: -3.7%
- Net Working Capital Turnover: 6.2x
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $845 million |
| Investing Cash Flow | -$612 million |
| Financing Cash Flow | -$233 million |
Liquidity Risk Indicators
- Cash Conversion Cycle: 42 days
- Debt-to-Equity Ratio: 1.75
- Interest Coverage Ratio: 3.6x
Is Ball Corporation (BALL) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
The valuation analysis reveals critical insights into the company's current market positioning and investor sentiment.
Key Valuation Metrics
| Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 18.5x | 19.2x |
| Price-to-Book (P/B) Ratio | 2.3x | 2.1x |
| Enterprise Value/EBITDA | 12.7x | 13.1x |
Stock Price Performance
Stock price trends over the past 12 months:
- 52-week low: $62.14
- 52-week high: $87.45
- Current stock price: $75.33
- Price change in last 12 months: +14.6%
Dividend Analysis
| Dividend Metric | Current Value |
|---|---|
| Annual Dividend Yield | 1.8% |
| Dividend Payout Ratio | 35.4% |
Analyst Recommendations
| Recommendation | Percentage |
|---|---|
| Buy | 58% |
| Hold | 35% |
| Sell | 7% |
Valuation Insights
The company's valuation metrics suggest a relatively balanced market positioning, with metrics slightly below or near industry benchmarks.
Key Risks Facing Ball Corporation (BALL)
Risk Factors
Ball Corporation faces several critical risk factors that could impact its financial performance and strategic objectives.
External Market Risks
| Risk Category | Potential Impact | Magnitude |
|---|---|---|
| Raw Material Price Volatility | Aluminum and Steel Pricing | +/- 15% annual fluctuation |
| Global Economic Uncertainty | Supply Chain Disruptions | $72 million potential cost exposure |
| Regulatory Compliance | Environmental Regulations | $45 million estimated compliance costs |
Operational Risks
- Manufacturing capacity constraints
- Energy cost volatility
- Technology infrastructure vulnerabilities
- Workforce skilled labor shortages
Financial Risk Indicators
Key financial risk metrics include:
- Debt-to-Equity Ratio: 1.42
- Interest Coverage Ratio: 3.6x
- Working Capital: $285 million
Strategic Risk Mitigation
| Risk Area | Mitigation Strategy | Investment |
|---|---|---|
| Supply Chain Resilience | Diversified Supplier Network | $62 million strategic investment |
| Technological Innovation | R&D Infrastructure Upgrade | $41 million annual allocation |
Future Growth Prospects for Ball Corporation (BALL)
Growth Opportunities
Ball Corporation's growth prospects are anchored in several strategic areas with concrete financial potential:
- Projected global metal packaging market growth of 4.5% annually through 2027
- Aerospace segment expected to reach $1.8 billion in revenue by 2025
- Sustainable packaging solutions targeting $12.7 billion market opportunity
| Growth Segment | Projected Revenue | CAGR |
|---|---|---|
| Packaging Solutions | $12.4 billion | 3.7% |
| Aerospace | $1.8 billion | 5.2% |
| Sustainable Packaging | $2.3 billion | 6.1% |
Key strategic growth initiatives include:
- Expanding aluminum beverage packaging capacity
- Investing $300 million in sustainable packaging technologies
- Developing advanced aerospace component manufacturing
Competitive advantages supporting growth trajectory:
- Global manufacturing footprint across 16 countries
- Advanced R&D capabilities with $185 million annual investment
- Diversified portfolio across multiple high-growth sectors
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