Ball Corporation: Worth Knowing, But Not Worth Banking On For Strong Returns

2025-02-13 13:59:25 ET

Summary

• I last reaffirmed Ball Corporation as a “hold” in October 2022, but the stock underperformed the S&P 500 significantly since then.
• The sale of Ball Corporation's aerospace division in February 2024 brought $4.5 billion after tax, making it a pure packaging play.
• Despite revenue and profitability declines in 2024, management returned $1.96 billion to shareholders and plans a new $4 billion share buyback.
• Given mixed financial results and valuation, I maintain a “hold” rating for Ball Corporation.

I take my track record as an investor very seriously. However, nobody is perfect, as much as we would like to be. A good example of one call that has not proven to be successful involves a company by the name of Ball Corporation ( BALL ). This is a business that plays in the global beverage packaging space. It produces aluminum cans and other related products. Back in October 2022, I reaffirmed the company as a “hold” candidate. I acknowledged that the business was experiencing weakness. However, the stock was not priced at levels that I would consider to be worrisome....

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