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Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
BALL — frequently asked questions
Is Ball Corporation overvalued?
In our latest published analysis dated 2026-10-12, BALL looks modestly undervalued. The price recorded at analysis is 59,3 USD versus our fair value of 66,7 USD; the high endpoint is presented separately as potential value of 73,9 USD. That implies roughly 12.5% upside to fair value at that date.
Our latest published report, analyzed 2026-10-12, gives BALL a fair value of 66,7 USD and a potential value of 73,9 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Ball Corporation's archetype; it is a dated research output, not a live price.
Should I buy BALL now?
Our latest published rating for BALL, analyzed 2026-10-12, is Buy. Ball Corporation looks modestly undervalued at the analysis-date price of 59,3 USD versus fair value of 66,7 USD; potential value is 73,9 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for BALL?
The dedicated bear-case section in our report analyzed 2026-10-12 documents Ball Corporation's material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is BALL's rating?
Our latest published rating for BALL, analyzed 2026-10-12, is Buy, with a published moat assessment of 7/10 (Narrow). It reflects our fair value of 66,7 USD, the potential value of 73,9 USD, and the price recorded at analysis (59,3 USD).
Ten raport nie został jeszcze przetłumaczony. Odśwież za kilka minut, gdy kolejka tłumaczeń go przetworzy.
§1 Podsumowanie wykonawczeEN
Odpowiedź w 30 sekundBuy
Cena a wartość
Cena
$59.32
Wartość godziwa
$66.71
Wartość potencjalna
$73.85
Stan na
2026-10-12
Dlaczego to może zadziałać
Substrate conversion from single-use plastics to infinitely recyclable aluminum cans accelerating across beverage categories, accompanied by specialty sleek can mix expansion and the roll-off of $35 million in plant start-up costs to expand operating margins toward 11.5%.
Co zmieniłoby naszą ocenę
Major North American brewing customer cuts can procurement volumes by 5% or more or transitions dedicated packaging lines to in-house manufacturing.
We rate Ball Corporation Buy with a Fair value of $66.71, representing 12.46% upside from the report-date price of $59.32 on October 12, 2026,.3
We rate Ball Corporation Buy. For investors, this recommendation signifies that the shares offer attractive risk-adjusted upside potential, underpinned by defensive beverage packaging volume, resilient contractual cash flow, and steady equity compounding through share repurchases.
The shares were evaluated at $59.32 on October 12, 2026. Against this level, our analysis establishes a Fair value of $66.71, implying 12.46% upside. If operational execution accelerates and substrate conversion expands, the high end of our valuation range indicates a Potential value of $73.85.
The primary risk to our thesis is customer concentration across top global beverage makers, where Anheuser-Busch InBev, Coca-Cola, and Red Bull account for 40.0% of consolidated sales,,. If a major customer were to reallocate canning volumes or in-source line manufacturing, fixed-cost deleverage on dedicated lines would compress segment operating profit, signaling thesis impairment through sustained North American volume declines below 0%.7
The strongest driver of value creation is Ball's network of regional packaging plants, which creates an effective 200-mile freight perimeter protecting local market share and pricing discipline. This localized density enables Ball to sustain operating margins of 10.56%, generate free cash flow exceeding $900 million, and retire at least $600 million of equity annually, driving per-share intrinsic value higher.3,4
Freight-Advantaged Plant Density and Logistics Moat
Because empty aluminum cans are uneconomic to ship over long distances, Ball's network of regional manufacturing facilities creates a captive 200-mile distribution perimeter. This structural footprint generates superior asset utilization and sustains operating margins of 10.56%, comfortably above packaging peers like Amcor at 9.69%.2,3,4
With major growth capital projects winding down and FY2026 capex guided in line with depreciation, free cash flow is projected to exceed $900 million. Management is channeling at least $600 million into annual share buybacks, providing reliable low-single-digit share count reduction and compounding EPS growth.4
Cost advantage from localized plant density and freight economics
Ball's network of regional canning facilities establishes a freight-protected perimeter where empty cans cannot be economically transported over roughly 200 miles. This scale and density advantage allows Ball to maintain an operating margin of 10.56%,, exceeding peer Amcor's 9.69%.2,3,4
Rekomendacja domu
We rate Ball Corporation Buy because its freight-advantaged plant density and embedded customer partnerships sustain durable cash flow compounding and 12.46% upside toward our $66.71 Fair value.
Przegląd spółki
Ball Corporation is a leading global supplier of aluminum packaging solutions primarily serving the beverage, personal care, and household products industries. The company specializes in the design and high-volume manufacture of recyclable aluminum cans, ends, and bottles for multinational beverage producers.
Operating across three core reporting divisions—Beverage Packaging North and Central America ($6,286 million in FY2025 revenue), Beverage Packaging Europe ($3,983 million), and Beverage Packaging South America ($2,162 million) —Ball provides co-located and regionally integrated manufacturing to serve leading brands such as Anheuser-Busch InBev, Coca-Cola, and Red Bull,,.
§2 Scenariusz negatywnyEN
Under a severe multi-factor stress scenario, fixed cost underabsorption in North America and prolonged commissioning drag at Millersburg compress consolidated operating income from $1,390 million toward Amcor's operating margin baseline of 9.69%. Free cash flow would decline from guided levels exceeding $900 million toward $500-$600 million, forcing management to curtail its >=$600 million share repurchase program to protect balance sheet solvency. However, contractual metal pass-through terms and minimum volume commitments provide an operational floor, preventing debt covenants from breaching the 3.5x danger threshold.
Persistent volume softness across North American brewing accounts
Delayed operational ramp at commercial facilities leading to extended overhead absorption
Contractual recovery lags during periods of volatile operating input costs
Curtailment of discretionary capital return to support debt servicing requirements
The downside scenario reflects a prolonged operational deceleration where consumer demand softness reduces beverage can shipments and customer volume commitments fall below expectations. Under this path, facility commissioning costs persist across multiple quarters, while timing lags in contractual inflation pass-through compress regional operating margins. Heavy debt service obligations would then constrain free cash flow, curtailing share repurchase activity and postponing balance sheet deleveraging. Confirmation of this trajectory would appear through consecutive quarterly segment volume declines and gross margin contraction relative to historical peer averages.
Jak ta teza może się załamać
Major North American brewer cuts can procurement volumes or shifts packaging lines to in-house manufacturing, precipitating severe regional plant de-utilization.
Anheuser-Busch InBev accounts for 15.0% of consolidated sales, while North and Central America represents $6,286 million in revenue. If contract volumes decline by 5% YoY or lines are shifted in-house, high operating leverage on dedicated can-making equipment triggers significant fixed-cost deleverage, reducing operating earnings and impairing capital returns.7
FV impact
-1.6%
Revenue and EPS growth 5 points lower for five years
Trigger
Within 12 months
Sygnały wczesnego ostrzegania do monitorowania
Pięć zdarzeń, które osłabiłyby naszą tezę inwestycyjną.
01
North America packaging volume growth
Contract volume decline or line de-utilization at dedicated brewer facilities impairs segment operating margins.
Obecnie:1.0% to 3.0% guidance range (tracking low end),
Alarm, jeśli< 0.0% YoY
02
§3 Przewaga konkurencyjnaEN
Narrow
Ball Corporation possesses a narrow economic moat grounded in two structural pillars: a freight-advantaged manufacturing plant network and embedded customer integration through co-located canning facilities. In the beverage packaging industry, empty aluminum cans possess an exceptionally low value-to-bulk ratio, making long-distance transport economically unviable beyond an approximate 200-mile radius. Ball's extensive plant density across North America ($6,286 million in FY2025 revenue), Europe ($3,983 million), and South America ($2,162 million) establishes a local logistics perimeter that shields regional market share from distant competitor capacity additions.
Furthermore, Ball reinforces this logistical perimeter through deep physical integration with tier-one beverage companies. Facilities that are directly connected via conveyers or co-located adjacent to customer filling lines create substantial operational friction against switching suppliers. Contractual agreements with core customers such as Anheuser-Busch InBev, Coca-Cola, and Red Bull—who collectively account for 40.0% of consolidated sales,, —incorporate formulaic raw material and utility pass-through provisions. These clauses insulate Ball's unit margins from volatile aluminum sheet prices and energy inflation over multi-year cycles.
The durability of this economic moat is demonstrated by Ball's financial performance. Operating profit reached $1,390 million in FY2025, delivering an operating margin of 10.56% that structurally exceeds diversified packaging peer Amcor's 9.69%. With returns on capital tracking above the moderate cost of equity of 9.35% and computed WACC of 7.87%, Ball sustains measurable economic profits supported by high barrier logistics and sticky customer integration.
Zysk ekonomiczny
Ball's capital productivity comfortably exceeds its cost of capital. With a moderate cost of equity of 9.35% and a computed WACC of 7.87%, Ball generated $1,390 million in operating income on $13,161 million in FY2025 revenue,. This spread between return on capital and capital costs confirms ongoing economic profit generation.1,3
7/ 10
Narrow
Sources of advantage
01Cost advantage from localized plant density and freight economics — Ball's network of regional canning facilities establishes a freight-protected perimeter where empty cans cannot be economically transported over roughly 200 miles. This scale and density advantage allows Ball to maintain an operating margin of 10.56%,, exceeding peer Amcor's 9.69%.Wide
02Switching costs from co-located customer packaging integration — Direct-line co-located plants and long-term supply agreements with major global beverage brand owners including Anheuser-Busch InBev (15% of revenue), The Coca-Cola Company (14% of revenue), and Red Bull (11% of revenue) embed Ball into customer packaging supply chains with formulaic cost pass-through terms.Moderate
Multi-year supply contracts with contractual pass-through provisions for metal and freight, coupled with co-located manufacturing infrastructure that creates substantial operational switching friction.
The highlighted cell is Fair value when every assumption sits at its base level ($66.71). Each row and column shows what Fair value becomes when one assumption moves.
The base case represents our modal expected path, underpinned by stable volume growth across core beverage packaging segments tracking management guidance corridors. Facility start-up expenses concentrate in the current fiscal year before running off as new manufacturing lines achieve normalized commercial throughput. Contractual metal pass-through clauses protect operating margins, while free cash flow supports targeted capital returns, yielding a Base target of $66.71 (Fair value $66.71) with an implied return of 12.5% from $59.32.
Substrate conversion accelerating across major beverage categories
Specialty can penetration expanding operating margins toward upper historical bounds
Commissioning expenses resolving cleanly without operational delays
§7 Drzewo decyzyjne wynikówEN
Powyżej
Maintain Buy; Maintain core portfolio allocation, monitor the sustainability of volume conversion across European and Americas operations, and verify that free cash generation continues to fund equity retirement.
Wyzwalacz: Consolidated volume growth tracking comfortably above annual guidance corridors accompanied by operating margin expansion and acceleration of share repurchases.
An operational beat driven by specialty container demand and rapid absorption of plant start-up expenses reinforces thesis durability and affirms our Buy rating toward Fair value of $66.71.
Zgodnie
Maintain Buy; Hold existing position weight while confirming that working capital conversion meets full-year targets and net debt reduction remains on schedule.
Wyzwalacz: Segment volumes tracking within announced guidance ranges with facility start-up costs moderating into the second half of the year as planned.
In-line financial execution validates base case compounding assumptions, confirming that contractual customer integration continues to protect dollar operating profitability.
Poniżej
Downgrade the rating; Halt incremental position accumulation, review customer contract renewal terms, and reassess terminal margin assumptions across valuation models.
Wyzwalacz: North American can shipment contraction combined with extended operational disruptions or persistent start-up drag that compresses operating margins.
A material operational miss indicating customer volume defection or unrecovered cost inflation would weaken intermediate cash flow generation, eroding the margin of safety and warranting a rating adjustment.
Jakość wyników
Earnings quality is anchored by strong cash conversion from operating income, backed by long-term customer agreements with formulaic metal and energy cost pass-through provisions. Working capital exhibits normal intra-year seasonality tied to summer beverage demand cycles but unwinds cleanly by fiscal year-end. Capital expenditures are disciplined and managed in line with depreciation charges, ensuring that reported operating earnings translate directly into distributable free cash flow.
Dynamika prognoz
Consensus forward estimates have remained steady following the latest operating results, with management reiterating full-year earnings guidance and sell-side analysts maintaining intermediate revenue and earnings projections without material revisions.
Metryki do obserwacji przed publikacją
01
Wskaźnik:
North American Beverage Can Volume Growth
BieżącyTracking the lower boundary of annual segment guidance corridors following earlier shipment timing constraints.
Dlaczego to ważne
North America represents the primary operating profit engine, and volume stability determines plant utilization and operating leverage across regional manufacturing lines.
In FY2025, operating cash flow stood at $1,262 million against capital expenditures of $474 million, resulting in reported free cash flow of $788 million. For FY2026, capex is guided in line with depreciation ($622 million), and free cash flow is projected to exceed $900 million. Cash conversion remains supported by formulaic contractual pass-throughs that protect working capital from raw material volatility over annual operating cycles.4,5,6
ROIC trajectory is poised to improve as past growth capital investments, notably the Millersburg commercialization, transition from non-recurring start-up expense drag ($35 million in FY2026) into productive, highly utilized canning capacity in FY2027.
Ball's return on capital comfortably exceeds both the moderate cost of equity of 9.35% and the computed WACC of 7.87%, creating substantial economic value per share.
Ball generated $1,262 million in operating cash flow in FY2025 with capex of $474 million, yielding $788 million in free cash flow, and guided FY2026 FCF to exceed $900 million.
Najnowsze wolne przepływy pieniężne788 mln USDFY2025
Dług netto5,8 mld USDFY2025
Struktura rachunku zysków i stratJak skala działalności przekłada się na raportowany zysk.30 cze 2026
StockMarketAgent.AI
Przychody4 mld USDKoszt sprzedaży−3,3 mld USDZysk brutto697 mln USDKoszty operacyjne−185 mln USDZysk operacyjny512 mln USDPozycje pozaoperacyjne i podatki−291 mln USDZysk netto221 mln USD
Dane historii finansowej
Przychody
3 997 000 000 USD
Koszt sprzedaży
3 300 000 000 USD
Zysk brutto
697 000 000 USD
Koszty operacyjne
185 000 000 USD
Zysk operacyjny
512 000 000 USD
Pozycje pozaoperacyjne i podatki
-291 000 000 USD
Zysk netto
221 000 000 USD
Podsumowanie bilansuJak wykazane aktywa są utrzymywane i finansowane w wybranym okresie.
Most przepływów pieniężnychJak przepływy operacyjne przełożyły się na wolne przepływy pieniężne w FY2025.
StockMarketAgent.AI
Uzgodnienie przepływów operacyjnych
Zysk netto912 mln USDAmortyzacja+622 mln USDPozostałe korekty operacyjne−272 mln USDOperacyjne przepływy pieniężne1,3 mld USD
Uzgodnienie środków na początek i koniec
Środki pieniężne na początek931 mln USDOperacyjne przepływy pieniężne+1,3 mld USDPrzepływy inwestycyjne−656 mln USDPrzepływy finansowe−344 mln USDWpływ kursów walutowych+28 mln USDŚrodki pieniężne na koniec1,2 mld USD
1,3 mld USD − 474 mln USDWolne przepływy pieniężne 788 mln USD
Dane mostu przepływów pieniężnych
Zysk netto
912 000 000 USD
Wpływy operacyjne
1 534 000 000 USD
Amortyzacja
622 000 000 USD
Operacyjne przepływy pieniężne
1 262 000 000 USD
Wydatki operacyjne
272 000 000 USD
Dostępne środki pieniężne
2 221 000 000 USD
Środki pieniężne na początek
931 000 000 USD
Wpływ kursów walutowych
28 000 000 USD
Wydatki inwestycyjne
656 000 000 USD
Capex
474 000 000 USD
Pozostała działalność inwestycyjna
182 000 000 USD
Wydatki finansowe
344 000 000 USD
Emisja długu netto
1 228 000 000 USD
Skup akcji
1 321 000 000 USD
Wypłacone dywidendy
220 000 000 USD
Pozostała działalność finansowa
31 000 000 USD
Środki pieniężne na koniec
1 221 000 000 USD
Przepływy inwestycyjne
-656 000 000 USD
Przepływy finansowe
-344 000 000 USD
Przychody według kategorii działalnościUdział w łącznych przychodach za 2026-06-30.
4 mldŁączne przychody
Przychody według kategorii działalnościUdział
Cost of3,3 mld82,6%
Pozostałe697 mln17,4%
Dane o strukturze przychodów: Przychody według kategorii działalności
Przychody według kategorii działalności
Przychody
Udział
r/r
Cost of
3,3 mld
82,6%
—
Other
697 mln
17,4%
—
Przychody według regionuUdział w łącznych przychodach za 2025-12-31.
13,2 mld USDŁączne przychody
Przychody według regionuUdział
United States6,2 mld USD46,8%+12,5% r/r
Other Geographic Group5,5 mld USD41,8%+12,3% r/r
Brazil1,5 mld USD11,4%+5,4% r/r
Źródło: SEC EDGAR · Złożono 2026-02-19 · SEC EDGAR
Dane o strukturze przychodów: Przychody według regionu
Przychody według regionu
Przychody
Udział
r/r
United States
6,2 mld USD
46,8%
12,5%
Other Geographic Group
5,5 mld USD
41,8%
12,3%
Brazil
1,5 mld USD
11,4%
5,4%
Przychody i wynikiJak skala działalności przekłada się na raportowany zysk.
Gotówka i zadłużenieDostępna płynność wobec całkowitego zadłużenia.
Generowanie gotówkiPrzepływy operacyjne w porównaniu z wolnymi przepływami pieniężnymi.
RentownośćZmiany marży brutto, operacyjnej i netto.
Dane finansowe na określony moment użyte w analizie z 2026-10-12.
Dane historii finansowej
Okres
Przychody
EBITDA
Zysk netto
Operacyjne przepływy pieniężne
Wolne przepływy pieniężne
Capex
Amortyzacja
Wynagrodzenie w akcjach
Skup akcji
Wypłacone dywidendy
Emisja długu netto
Przepływy inwestycyjne
Przepływy finansowe
Środki pieniężne na początek
Środki pieniężne na koniec
Gotówka i inwestycje
Zadłużenie ogółem
Marża operacyjna
ROIC
WACC
Spread ROIC−WACC
2016-12-31
9,1 mld USD
895 mln USD
263 mln USD
193 mln USD
-413 mln USD
606 mln USD
453 mln USD
35 mln USD
107 mln USD
83 mln USD
—
-1,3 mld USD
-387 mln USD
—
607 mln USD
597 mln USD
7,4 mld USD
5,1%
—
5,7%
—
2017-12-31
11 mld USD
1,5 mld USD
374 mln USD
1,5 mld USD
922 mln USD
556 mln USD
729 mln USD
46 mln USD
103 mln USD
129 mln USD
—
-545 mln USD
-1,1 mld USD
607 mln USD
459 mln USD
448 mln USD
6,6 mld USD
7,3%
—
4,6%
—
2018-12-31
11,6 mld USD
1,7 mld USD
454 mln USD
1,6 mld USD
750 mln USD
816 mln USD
702 mln USD
75 mln USD
739 mln USD
137 mln USD
—
-206 mln USD
-1 mld USD
459 mln USD
728 mln USD
721 mln USD
6,5 mld USD
8,0%
—
4,6%
—
2019-12-31
11,5 mld USD
1,6 mld USD
566 mln USD
1,5 mld USD
950 mln USD
598 mln USD
678 mln USD
37 mln USD
964 mln USD
182 mln USD
—
-422 mln USD
-46 mln USD
728 mln USD
1,4 mld USD
1,8 mld USD
7,8 mld USD
8,1%
—
4,2%
—
2020-12-31
11,8 mld USD
1,6 mld USD
585 mln USD
1,4 mld USD
319 mln USD
1,1 mld USD
668 mln USD
43 mln USD
57 mln USD
198 mln USD
—
-1,2 mld USD
-602 mln USD
1,4 mld USD
1,4 mld USD
1,4 mld USD
8,1 mld USD
8,5%
—
3,2%
—
2021-12-31
13,9 mld USD
2 mld USD
878 mln USD
1,8 mld USD
34 mln USD
1,7 mld USD
700 mln USD
40 mln USD
766 mln USD
229 mln USD
—
-1,6 mld USD
-894 mln USD
1,4 mld USD
579 mln USD
563 mln USD
8,2 mld USD
9,3%
—
3,8%
—
2022-12-31
15,3 mld USD
1,9 mld USD
719 mln USD
301 mln USD
-1,4 mld USD
1,7 mld USD
594 mln USD
39 mln USD
618 mln USD
254 mln USD
1,4 mld USD
-786 mln USD
485 mln USD
579 mln USD
558 mln USD
548 mln USD
9,4 mld USD
7,9%
—
6,2%
—
2023-12-31
14 mld USD
2 mld USD
707 mln USD
1,9 mld USD
818 mln USD
1 mld USD
605 mln USD
33 mln USD
3 mln USD
252 mln USD
-440 mln USD
-1,1 mld USD
-662 mln USD
558 mln USD
710 mln USD
706 mln USD
8,6 mld USD
9,1%
—
6,8%
—
2024-12-31
11,8 mld USD
1,5 mld USD
4 mld USD
115 mln USD
-369 mln USD
484 mln USD
611 mln USD
—
1,7 mld USD
244 mln USD
-2,9 mld USD
5 mld USD
-4,8 mld USD
710 mln USD
931 mln USD
885 mln USD
6 mld USD
10,0%
—
7,6%
—
2025-12-31
13,2 mld USD
2,1 mld USD
912 mln USD
1,3 mld USD
788 mln USD
474 mln USD
622 mln USD
—
1,3 mld USD
220 mln USD
1,2 mld USD
-656 mln USD
-344 mln USD
931 mln USD
1,2 mld USD
1,2 mld USD
7 mld USD
10,6%
—
7,0%
—
§9 Porównanie wyceny z konkurentami
Wartość godziwaReport-date price
Ball CorporationBALL
Cena / wartość godziwa
Wartość godziwa66,71 USDReport-date price59,32 USD
Data oceny
Przewaga konkurencyjnaNarrow
Karta wyników inwestycyjnych68 / 100
Avery Dennison CorporationAVY
Cena / wartość godziwa
Wartość godziwa161,18 USDReport-date price170,72 USD
Data oceny
Przewaga konkurencyjnaNarrow
Karta wyników inwestycyjnych64 / 100
Ralph Lauren CorporationRL
Cena / wartość godziwa
Wartość godziwa292,23 USDReport-date price378,42 USD
Ball Corporation (BALL) trades at 13.2x forward earnings against a peer median of 16.2x. Its EV/EBITDA of 10.9x compares with a peer median of 11.4x. The comparison uses 4 peers: Amcor plc, Avery Dennison Corporation, Packaging Corporation of America and Ralph Lauren Corporation, as of 2026-10-12.
§10 Branża i cyklEN
Faza cyklu
Expansion
Ball's capital expenditures moderated to $474 million in FY2025 from peak multi-year buildout levels, with FY2026 capex guided in line with depreciation and amortization ($622 million). Start-up expenses of $35 million in FY2026 mark the completion of major facility investments like Millersburg.4,6
Cykl byczy
An accelerated cyclical upswing occurs as sustainability mandates and brand ESG goals drive rapid conversion from single-use PET plastic and glass to infinitely recyclable aluminum cans. Premium beverage categories, energy drinks, and ready-to-drink beverages expand specialty can volume growth above the 4% trend, driving operating margin expansion and higher plant throughput.
Cykl niedźwiedzi
A cyclical downturn occurs if persistent inflation and consumer elasticity prompt beverage brand owners to cut volume output and delay packaging promotions. Substrate conversion stalls, while elevated interest rates increase carrying costs on Ball's $7,012 million total debt and customer inventory destocking compresses regional plant utilization.
Trendy długoterminowe
Trend
Wpływ
Uwaga
Substrate shift from plastic and glass to infinitely recyclable aluminum cans
positive
Global regulatory pressure against single-use plastics and corporate ESG commitments drive sustained beverage substrate conversion toward aluminum cans, which boast the highest recycling rates globally.
Proliferation of specialty beverage categories and package sizes
positive
Rapid expansion in energy drinks, ready-to-drink cocktails, and sparkling flavored waters increases demand for differentiated sleek and specialty can formats that carry higher operating margins.
Pozycjonowanie
Ball holds the market-leading position across global beverage packaging with $13,161 million in consolidated FY2025 revenue. Its geographical footprint is anchored by $6,286 million in North and Central America, $3,983 million in Europe, and $2,162 million in South America, creating plant density that insulates local operations from distant competitor capacity additions.3,4,7
§11 Zarządzanie pozycjąEN
Wielkość pozycji
3-5%
Moderate conviction is warranted by the attractive 12.46% upside to Fair value ($66.71) and robust >$900 million FCFguidance, balanced against customer concentration risks (top 3 represent 40% of sales) and $7,012 million in total debt.3,4,7
Ryzyko
Risk management requires monitoring debt deleveraging toward the 2.7x net debt to EBITDA threshold to mitigate refinancing risk on Ball's $7,012 million debt burden. Position sizing should remain capped at 5% of portfolio equity to guard against customer reallocation shocks from top accounts.
Transze wejścia
Poziom
Działanie
Dlaczego
$57.00 - $60.00
Establish primary initial tranche (50% of target allocation).
Anchored near the report-date price of $59.32, offering an 11.08% discount to Fair value ($66.71).
$52.00 - $55.00
Add secondary opportunistic tranche (remaining 50% of target allocation).
Capitalizes on broader market sell-offs or temporary aluminum price pass-through concerns, expanding margin of safety toward historical support.
Reassess start-up cost duration at Millersburg and reduce terminal margin assumptions in valuation models.
§12 Perspektywy inwestorówEN
Value Perspective
Buy
Trading at an 11.08% discount to Fair value ($66.71) and 13.24x forward earnings, Ball offers defensive cash generation and multi-year margin expansion as start-up costs subside.3
Quality / Compounder Perspective
Buy
Long-term equity compounding is supported by high asset density, substrate conversion from plastic, and annual share buybacks of >=$600 million that steadily retire share count.4
Tactical Perspective
Hold
Near-term margin upside is constrained by $30 million in second-half start-up costs and North American volume tracking at the low end of guidance, suggesting patient accumulation on dips.4
§14 Końcowa rekomendacjaEN
Działanie
Kupuj
Ball Corporation offers a compelling 11.08% discount to our Fair value of $66.71, backed by structural freight advantages, defensive global beverage packaging volume, and strong free cash flow exceeding $900 million that fuels ongoing share buybacks,.4
While second-half FY2026 operating margins absorb $30 million in facility start-up costs and leverage remains elevated at $7,012 million total debt, the normalization of production lines and steady 10-plus percent EPS growth provide an attractive risk-adjusted total return profile.
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Sources
The records this analysis drew on, as they stood when it was run.
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Prolonged commercialization delays at the Millersburg facility combined with aluminum price pass-through lag compress consolidated operating margins below peer baseline levels.
Facility start-up costs of $35 million in FY2026 and localized delivery bottlenecks erode operating profitability. If start-up inefficiencies extend into FY2027 while metal cost adjustments lag, operating margin risks dropping toward Amcor's historical 9.69% level or breaking the 8.5% stress threshold, undermining the modeled 11.5% margin target.2,3,4
FV impact
0%
Operating margin 3 points lower throughout
Trigger
Within 18 months
Slowing global beverage category volumes and sustained heavy interest burden force a multiple de-rating toward packaging peer medians.
Ball trades at 13.24x forward earnings, commanding a premium over packaging peer Amcor at 9.65x. With total debt of $7,012 million incurring $310 million in annual interest, any stagnation in beverage end-market volumes could compress valuation multiples toward 10.5x, eliminating equity upside.2,3,4
FV impact
-6.1%
Terminal multiple 20% lower
Trigger
Within 12 months
Persistent macro inflation keeps interest rates elevated and increases debt refinancing costs on Ball's $7.0B debt load, raising Ke by 200 bps.
Moderate cost of equity is 9.35% and pre-tax cost of debt is 6.22% on $7,012 million in total debt. Sustained higher refinancing yields and a 200 bps rise in Ke to 11.35% substantially lower the present value of cash flows and reduce equity valuation.1,3
Aggressive competitor capacity expansion in overlapping regional territories
low
Medium-term (18 to 36 months)
Localized freight economics insulate core regional clusters from distant capacity additions, while Ball continues disciplined brownfield expansion such as Millersburg.4
Raw material cost spikes and timing lags in contractual formula adjustments
low
Near-term (3 to 12 months)
Formulaic contractual indexation mechanisms pass through variations in aluminum and energy costs, smoothing long-term economic margins despite temporary intra-quarter lags.3
BieżącyOperating cash conversion progressing on track to meet full-year targets with capital spending matched to depreciation.
Dlaczego to ważne
Underpins management capacity to execute planned share repurchases and reduce net leverage without sacrificing maintenance capital investment.
04
Wskaźnik:
Specialty Container Penetration and Brand Partnerships
BieżącyAnchor beverage brand accounts maintaining steady can adoption across expanded flavor and package varieties.
Dlaczego to ważne
Favorable customer mix in energy drinks and specialty beverages delivers superior unit realization and shields margins against commodity substrate shifts.
Ball's capital allocation balances disciplined reinvestment with aggressive shareholder cash returns and balance sheet deleveraging. Net debt to comparable EBITDA is targeted at approximately 2.7x by year-end 2026, framing credit stability. With free cash flow guided to exceed $900 million, management has committed to at least $600 million in share repurchases and close to $200 million in dividends, delivering $800 million in total shareholder capital return and driving negative net share count growth.
Management can comfortably execute its >=$600 million share buyback commitment, reducing diluted shares outstanding from 275.97 million and compounding per-share earnings.
Start-up costs create temporary operating margin headwind that resolves into FY2027
FY2026 operating expenses absorb approximately $35 million in plant start-up costs, with $30 million concentrated in the second half,.
The elimination of start-up friction in FY2027 provides operational operating leverage and supports modeled EBIT margin expansion toward 11.5%.
Debt service absorbs substantial cash flow but remains manageable under targeted leverage
Total debt stood at $7,012 million at FY2025 year-end with FY2026 interest expense guided to $310 million.
Consolidation and cost scrutiny among multinational beverage brand owners
neutral
High concentration among major brand owners such as Anheuser-Busch InBev, Coca-Cola, and Red Bull (representing 40.0% of sales) creates aggressive procurement negotiations, balanced by co-located plant integration.
