$Berry Global Group (BERY.US)$ 🎯 2023.12.19 The current pri...

New data: 23Q3, 23Q4, continuous contraction

In 2023, revenue shrank by 12.6%, operating profit shrank by only 6.4% due to cost reductions, net profit shrank sharply by 20.5% due to restructuring and acquisition expenses, return on net assets fell to 19%, and interest expenses reached 26% of operating profit, which was a heavy burden. The average growth rate of net profit for 5 years fell to 4.2%.

The balance ratio did not change much, from 81.1% to 80.6%. Both accounts receivable and inventory declined, and the ratio was normal.

Goodwill and other intangible assets of $6.684 billion, more than 2 times the net assets of $3,216 billion, and long-term loans of $8.97 billion. The leverage ratio is very high.

The net cash flow operating amount was significantly higher than the net investment amount, generating a certain amount of shareholder surplus, but the five-year cumulative net operating amount was still slightly lower than the net investment amount, and no shareholder surplus was generated.

Currently, the price-earnings ratio is 13.9, and the dividend rate is 1.45%. The valuation is still within a reasonable range, so there is no need for adjustments for the time being.