BLL
Ball Corp
Industrial/Transportation, Event Driven/Special Sit
06/13/2016
Presented
| Date | 06/09/2016 |
| Price | $37.44 |
| Market Cap | $10.62B |
| Ent Value | $15.71B |
| P/E Ratio | 79.66x |
| Book Value | $3.77 |
| Div Yield | 0.01% |
| Shares O/S | 283.59M |
| Ave Daily Vol | 2,638,904 |
| Short Int | 11.00% |
Current
| Price | $66.03 |
| Market Cap | $20.04B |
| Ball Corp. provides metal packaging for beverages, foods and household products, and of aerospace and other technologies and services to commercial and governmental customers. It operates through the following segments: Metal Beverage Packaging, Americas and Asia; Metal Beverage Packaging, Europe; Metal Food and Household Products Packaging, Americas; and Aerospace and Technologies. The Metal Beverage Packaging, Americas and Asia, segment consists of the metal beverage packaging, Americas, operations in the U.S., Canada and Brazil, and the metal beverage packaging, Asia, operations in the People's Republic of China. The Metal Beverage Packaging, Europe, segment consists of operations in several countries in Europe, which manufactures and sells metal beverage containers, extruded aluminum aerosol containers and aluminum slugs. The Metal Food and Household Products Packaging, Americas, segment consists of operations in the U.S., Canada, Mexico and Argentina, which manufactures and sells metal food, aerosol, paint and general line containers, as well as decorative specialty containers, extruded aluminum aerosol containers and aluminum slugs. The Aerospace and Technologies segment consists of the manufacture and sale of aerospace and other related products and the providing of services used in the defense, civil space and commercial space industries. The company was founded by Edmund Burke Ball, Frank Clayton Ball, George A. Ball, Lucius Lorenzo Ball and William Charles Ball in 1880 and is headquartered in Broomfield, CO. |
Please note, this stock split on 05/17/2017 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $74.88.
Publicly traded companies mentioned herein: Ball Corporation (BLL), Crown Holdings Inc (CCK), Rexam PLC (REX LN)
Highlights
The presenter is long shares of Ball Corporation (BLL) heading into the closing of the ~$6.8 billion acquisition of Rexam, which was announced in February 2015 (BLL offered £4.07 in cash and 0.04568 new Ball shares for each share of Rexam). He sees a high probability of this “highly accretive” deal closing by the end of June (2016), as management has guided. With the stock trading in the mid-$70s, the risk/ reward is favorable. He estimates that the synergies from the deal alone could add $1.30 of EPS, which would be a boost to expected 2016 EPS (or, FCF per share, which is roughly similar to EPS) by ~35%, and there are a number of other earnings growth drivers including growth capital projects, organic growth, and stock buybacks that could push FCF/ share to $6 in 2017 and $7 in 2018. If a reasonable 15x multiple is applied, the stock could see $90 near-term (within 6 - 9 months) and then $105 longer-term.
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