December 14, 2025 a 11:31 am
BALL: Dividend Analysis - Ball Corporation
Ball Corporation, a stalwart in the packaging sector, stands with a solid dividend profile marked by a long history of payouts. With a sustainable dividend yield and a robust growth history stretching over four decades, it demonstrates both consistency and moderate expansion in shareholder returns. While its payout ratio reflects a potential warning on free cash flow, the overall strategic direction remains pointed towards maintaining shareholder value through dividends.
📊 Overview
Ball Corporation operates within the packaging sector, a domain known for stable cash flows and recurring demand. The current dividend yield of 1.63% is coupled with a dividend payment of 0.80 USD per share, speaking volumes of a maintained tradition of 41 years of uninterrupted dividend payments. The resilience shown since its last dividend cut in 1994 is a testament to its fiscal prudence.
| Detail | Data |
|---|---|
| Sector | Packaging |
| Dividend Yield | 1.63 % |
| Current Dividend per Share | 0.80 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | 1994 |
📈 Dividend History
The unparalleled 41-year history of dividend payments by Ball Corporation is a display of financial stability and dedication to returning value to shareholders. These long-standing payments have shielded investors from inflation and market volatility through consistent income.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.80 |
| 2024 | 0.80 |
| 2023 | 0.80 |
| 2022 | 0.80 |
| 2021 | 0.70 |
📈 Dividend Growth
Dividend growth rates provide vital insights into a company's commitment to enhancing shareholder value. In Ball Corporation’s case, the recent growth levels indicate careful financial stewardship in promoting long-term returns without overextending payout capabilities.
| 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 reflect the proportion of earnings a company pays its shareholders in dividends. They are crucial indicators of sustainability in dividend payments, providing insights into operational efficiency and fiscal health.
| Key Figure | Ratio |
|---|---|
| EPS-based | 31.96 % |
| Free cash flow-based | 152.91 % |
The EPS payout ratio of 31.96% indicates a conservative approach to maintaining dividends through operational earnings. However, the high free cash flow payout ratio of 152.91% may signal cash flow challenges ahead, urging the need for strategic financial adjustments.
💰 Cashflow & Capital Efficiency
Analyzing cash flow metrics reveals how a company generates and uses cash, vital for meeting its short-term liabilities and investing in future growth. Capital efficiency metrics further detail the effectiveness of investments made by the company.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | -2.19 % | 4.52 % | -8.45 % |
| Earnings Yield | 23.80 % | 3.90 % | 4.44 % |
| CAPEX to Operating Cash Flow | 420.87 % | 56.09 % | 583.39 % |
| Stock-based Compensation to Revenue | 0.00 % | 0.00 % | 0.26 % |
| Free Cash Flow / Operating Cash Flow Ratio | -320.87 % | 43.91 % | -483.39 % |
The fluctuating free cash flow yield and high CAPEX to operating cash flow ratio suggest that investments may not be yielding expected returns, thus highlighting areas for potential optimization.
🧾 Balance Sheet & Leverage Analysis
Evaluating a company's balance sheet and leverage helps in understanding its financial stability and capacity to manage liabilities efficiently, which directly impacts long-term sustainability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.03 | 2.27 | 2.72 |
| Debt-to-Assets | 0.34 | 0.44 | 0.47 |
| Debt-to-Capital | 0.51 | 0.69 | 0.73 |
| Net Debt to EBITDA | 3.51 | 4.47 | 4.71 |
| Current Ratio | 0.99 | 0.79 | 0.78 |
| Quick Ratio | 0.69 | 0.54 | 0.47 |
| Financial Leverage | 3.01 | 5.12 | 5.75 |
Ball Corporation faces substantial leverage, with high debt levels putting pressure on its financial structure. Improvements in the current and quick ratios are crucial for elevating liquidity and financial stability.
🏢 Fundamental Strength & Profitability
Profitability ratios are essential indicators of a company's ability to generate earnings relative to its revenues, operating costs, and shareholder equity, thus measuring efficiency.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 68.37 % | 18.76 % | 20.77 % |
| Return on Assets | 22.74 % | 3.66 % | 3.61 % |
| Net Margin | 33.97 % | 5.88 % | 4.70 % |
| EBIT Margin | 7.11 % | 8.94 % | 7.91 % |
| EBITDA Margin | 12.37 % | 14.64 % | 12.30 % |
| Gross Margin | 15.59 % | 14.28 % | 11.48 % |
| R&D to Revenue | 0.00 % | 0.46 % | 0.36 % |
The notable returns on equity and assets underline efficient management and utilization of resources, although a boost in net and EBIT margins would further bolster profitability endeavors.
📈 Price Development
✅ Dividend Scoring System
| Criteria | Score (out of 5) | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 2 | |
| Financial Stability | 2 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 2 |
Total Score: 26 / 40
🏆 Rating
Ball Corporation presents an intriguing dividend proposition with a blend of consistency and moderate growth. However, its high free cash flow payout rate suggests scrutiny is needed on cash flow sustainability. Additionally, leverage metrics indicate potential risks ahead. Investors should weigh these factors carefully before considering engagement.