2024-04-29 21:39:30 ET
Summary
- Since the announcement of new CEO, Kevin Kwilinski, Berry Global has delivered negative returns of double-digits and underperformed its material peers.
- Kwilinski is implementing a lean transformation program, better utilization of CAPEX, and focusing on portfolio optimization to improve the company's performance.
- The company's reliable FCF profile and $1bn worth of distributions from a spin-off, put it in a better position to step up buybacks or lift the dividend.
- Berry Global has delivered positive adjusted EPS growth for 8 years on the trot and this trend looks set to continue for the next 3 years even in the midst of ongoing volume pressures.
- The stock is trading at a discount to its historical P/E average, and the risk-reward on the standalone and relative strength charts look attractive.
Introduction
Berry Global Group, Inc. ( BERY ), a mid-cap stock, that is primarily noted for its expertise in packaging solutions for the global (half of BERY’s revenue comes from the domestic shores and the rest is from abroad) consumer markets, has seen a changing of the guard at the very top in recent years....
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Berry Global: Good Time To Buy Before New CEO's Efforts Pay Off