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Barclays Rates Ball Corporation as ‘Equal Weight’



Price movement 

Ball Corporation (BLL) has a market cap of $10.0 billion. It fell by 0.04% to close at $71.30 per share on July 14, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.68%, -0.88%, and -1.6%, respectively, on the same day.

BLL is trading 0.00% at its 20-day moving average, 0.94% below its 50-day moving average, and 2.8% above its 200-day moving average.

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Related ETF and peers

The Vanguard Mid-Cap ETF (VO) invests 0.28% of its holdings in Ball Corporation. The ETF tracks the CRSP US Mid-Cap Index, a diversified index of mid-cap US companies. The YTD price movement of VO was 7.0% on July 14.

The market cap of Ball’s competitors are as follows:

  • Boeing (BA) — $87.6 billion
  • Alcoa (AA) — $14.1 billion
  • Crown Holdings (CCK) — $7.2 billion

Ball’s rating

Barclays rated Ball Corporation as “equal weight” and set the price target at $75.00 per share. TheStreet Ratings rated the stock as “hold” with a score of “C.”

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Ball’s performance in fiscal 1Q16

Ball (BLL) reported fiscal 1Q16 net sales of ~$1.8 billion, a fall of 8.7% compared to net sales of ~$1.9 billion in fiscal 1Q15. When compared with fiscal 1Q15, the company’s 1Q16 sales of metal beverage packaging in the Americas and Asia, metal beverage packaging in Europe, metal food and household products packaging, and aerospace and technologies fell by 8.4%, 6.1%, 7.8%, and 16.3%, respectively.

The company reported business consolidation and other activities expenses of $267.0 million, compared to $52.0 million in fiscal 1Q15. Its net income and EPS (earnings per share) fell to -$127.0 million and -$0.90, respectively, in fiscal 1Q16 from $28.0 million and $0.15, respectively, in fiscal 1Q15.

In fiscal 1Q16, Ball’s cash and cash equivalents and inventories fell by 10.5% and 7.5%, respectively, compared to fiscal 1Q15. Its current ratio fell to 1.0x, and its long-term DE (debt-to-equity) ratio rose to 5.0x, compared to current and long-term DE ratios of 1.2x and 2.7x, respectively, in fiscal 1Q15.

In the next part, we’ll take a look at PepsiCo.


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