April 20, 2025 a 07:31 am
BALL: Dividend Analysis - Ball Corporation
The Ball Corporation exhibits a consistent commitment to shareholder returns through dividends, maintaining a payout streak of over four decades. However, the recent financial metrics introduce some cautionary elements that investors should be aware of.
📊 Overview
Ball Corporation operates within the packaging solutions sector, providing products that play crucial roles in consumer goods industries. The current dividend yield is 1.53%, with a dividend per share of 0.80 USD, sustained for 41 continuous years. Notably, the company has not experienced any recent cuts or suspensions.
| Sector | Dividend Yield (%) | Current Dividend/Share (USD) | Dividend History (Years) | Last Cut/Suspension |
|---|---|---|---|---|
| Packaging Solutions | 1.53 | 0.80 | 41 | None |
🗣️ Dividend History
The company's long-standing dividend history indicates a strong focus on rewarding shareholders. This historical consistency builds investor confidence and highlights the company's operational stability across different economic cycles.
| Year | Dividend/Share (USD) |
|---|---|
| 2025 | 0.20 |
| 2024 | 0.80 |
| 2023 | 0.80 |
| 2022 | 0.80 |
| 2021 | 0.70 |
📈 Dividend Growth
Tracking dividend growth is critical to assess a company’s long-term payout capacity and financial health. Ball Corporation demonstrates a 5-year dividend growth rate of 7.78%, indicating moderate yet steady increases which can positively influence future valuation metrics.
| Time | Growth (%) |
|---|---|
| 3 years | 4.55 |
| 5 years | 7.78 |
The average dividend growth is 7.78% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios indicate how much of a company's earnings are distributed as dividends. Negative EPS and FCF payout ratios pose concerns regarding the company's profitability and dividend sustainability in the long term.
| Key figure | Ratio |
|---|---|
| EPS-based | -366.32% |
| Free cash flow-based | -61.13% |
The negative EPS and FCF-based payout ratios suggest potential financial distress, calling into question the sustainability of the current dividend policy.
💸 Cashflow & Capital Efficiency
A comprehensive view of cash flow and capital efficiency reveals the ability to support ongoing operations and investments. While historical data shows fluctuations, these metrices are crucial for evaluating Ball Corporation's operational sustainability and profitability.
| Year | Free Cash Flow Yield | Earnings Yield | CAPEX/Ope. Cash Flow | Stock-based Compensation/Revenue | FCF/Ope. Cash Flow Ratio | Return on Invested Capital |
|---|---|---|---|---|---|---|
| 2024 | -2.19% | 23.80% | 420.87% | 0% | -320.87% | 6.76% |
| 2023 | 4.52% | 3.90% | 56.09% | 0% | 43.91% | 8.53% |
| 2022 | -8.45% | 4.44% | 583.39% | 0.25% | -483.39% | 7.22% |
The inconsistent free cash flow and high CAPEX ratios highlight inefficiencies that need to be addressed, impacting overall financial stability.
💪 Balance Sheet & Leverage Analysis
A thorough analysis of leverage ratios and liquidity metrics provides insights into the company's financial stability and ability to meet its obligations. These figures are essential for understanding Ball Corporation’s financial robustness.
| Year | Debt/Equity | Debt/Assets | Debt/Capital | Net Debt/EBITDA | Current Ratio | Quick Ratio | Financial Leverage |
|---|---|---|---|---|---|---|---|
| 2024 | 0.96 | 0.32 | 0.49 | 3.29 | 1.00 | 0.69 | 2.97 |
| 2023 | 2.27 | 0.44 | 0.69 | 4.02 | 0.79 | 0.54 | 5.12 |
| 2022 | 2.54 | 0.45 | 0.72 | 4.47 | 0.78 | 0.47 | 5.64 |
High debt levels relative to equity may expose the corporation to risk, calling for cautious assessment of its financial leverage strategies.
️📈 Fundamental Strength & Profitability
Profitability and fundamental strength metrics offer important insights into Ball Corporation's efficiency and core business health, shaping its capacity for value creation and shareholder returns.
| Year | ROE | ROA | Net Margin | EBIT Margin | EBITDA Margin | Gross Margin | R&D/Revenue |
|---|---|---|---|---|---|---|---|
| 2024 | 67.59% | 22.74% | 33.98% | 7.02% | 12.28% | 20.70% | 0% |
| 2023 | 18.76% | 3.66% | 5.04% | 9.07% | 13.96% | 19.03% | 0.39% |
| 2022 | 20.39% | 3.61% | 4.68% | 7.79% | 12.25% | 16.83% | 0.36% |
The robust ROE in 2024 underscores effective capital deployment, yet diminishing margins warrant focused operational improvements.
🔍 Price Development
📉 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 1 | |
| Financial stability | 2 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 2 |
Total Score: 22/40
🗳️ Rating
Overall, Ball Corporation showcases a respectable dividend history and growth, though current financial stresses may hinder near-term dividend performance. Investors should approach with caution, balancing the assurance of historical payouts against emerging financial pressures.