Introduction:
Welcome back to my weekly stock analysis.
Ball Corporation (NYSE: BLL) Sector: Packaging & containers (Consumer Cyclical)
Company Strengths & Risks:
BLL is a Colorado based company. It started as a jar, lid and canning company. Some notable acquisitions in recent years from BLL were Rexam (UK based), and Tubex Industria (Brazil). BLL focuses on Aluminum packaging as well as having an aerospace branch. They designed and built the camera for the Kepler mission, and built 7 instruments for Hubble.
Strengths:
- 10 year dividend growth
- healthy payout ratio
- Nice historical price appreciation
- High dividend growth
Risks:
- high debt
- low yield (I know some of you care more for income than growth)
- Highly leveraged
- Acquisition every 3 years (ensures high debt)
Financial History and numbers
BLL: Numbers from Seeking Alpha and Macrotrends as of April 25 2021
| Stock | BLL |
|---|---|
| P/E Ratio | 27.33 |
| Stock price | $93.98 |
| Current Annual Payout/Share | $0.60 |
| Yield | 0.64% |
| 5 Yr Div Growth Rate | 18.20% |
| 3 Yr Div Growth Rate | 14.47% |
| 1 Yr Div Growth Rate | 9.09% |
| Years Of Growth | 10 |
| Current Payout Ratio | 17.45% |
| Free Cash Flow / Share | -1.8346 |
| Revenue (ttm) | 11.781B |
| Debt / Equity Ratio | 2.33 |
| Debt / EBITDA | 4.66 |
| EPS | 1.76 |
| ROE | 20.30% |
| ROA | 3.40% |
BLL is highly leveraged. This is my biggest red flag. The debt seems to hold which matches historical trends. The equity took a dip in 2019. The ebitda is holding constant. The dividend growth is outstanding. The PE ratio is high, but not too outrageous. I am not worried about the free cash flow per share. It shows a cyclical pattern, as consumer stocks have. The payout ratio of 20% has me thinking that BLL is going to continue thriving. With its products geared towards the US government, I do not need to fear for financial security. With that established, let me use the 3 year dividend growth rate to project dividends forward.
| Year | BLL |
|---|---|
| 2022 | 0.69 |
| 2023 | 0.79 |
| 2024 | 0.90 |
2025
... keep reading on reddit ➡Cawthorn interview (Rep)
Davis interview (Dem)
Not one tough question for Cawthorn. Entirely antagonistic for Moe.
It could basically force them into virtually any concession they want. What are shareholders-CEO's going to do? Threaten to move their bankrupt companies overseas lol
CNBC‘s Jim Cramer examined this anomaly earlier a few days ago, his verdict:
> “we're looking at a V-shaped recovery in the stock market, and that has almost nothing to do with a V-shaped recovery in the economy. What is going on is one of the greatest wealth transfers in history.”
How can the market rebound when the economy has not? Cramer’s answer is so simple.
>***“Because the market doesn’t represent the economy; it represents the future of big business.”***
Federal data shows that the nation faces a 13.3 percent unemployment rate. The fortunes of U.S. billionaires increased by $565 billion between March 18 and June 4 while the same 11-week period also saw 42.6 million Americans filing jobless claims.
I can't be the only one. Especially worth thinking about nowadays imo
Ball Corporation is searching for a Engineer I - Machine Learning in Fairborn, OH with the following skills: Machine Learning, Deep Learning , more information here: https://www.datayoshi.com/offer/739656/engineer-i---machine-learning-ball-corporation
A multi-million dollar company can just straight up refuse to help shitty customers that are constantly returning things, coupon haggling with multiple accounts, being rude to employees, etc. But CVS and all these other companies won't, because they have no balls.
There is this theater chain in Texas called Alamo Drafthouse. They don't put up with any bullshit. You start making noise during a movie, busting out your bright ass phone screen, any type of shit and you are escorted out, zero tolerance. And people LOVE Alamo Drafthouse for this reason.
Someday when I'm CEO of Cee Deez Nuts (CVS) I'm going to issue a decree that all managers are to immediately create a list of their top 5 problem customers and then refuse to serve them anymore. When the customers complain, they can call my specially designated phone number where I will personally argue with them and tell them they are permanently banned.
Ball Corporation is searching for a Engineer I - Machine Learning in Fairborn, OH with the following skills: Machine Learning, Deep Learning , more information here: https://www.datayoshi.com/offer/739656/engineer-i---machine-learning-ball-corporation
