Berry Global Group, Inc. (BERY)

Berry Global Group, Inc. (BERY) Consumer Business Overview

Berry Global Group, Inc. is a global leader in plastic packaging, engineered materials, and health/hygiene solutions, leveraging a diversified product portfolio and extensive international reach. The company manufactures non-woven, flexible, and rigid materials for a wide array of consumer and industrial applications.

What Is the Investment Thesis for BERY?

Berry Global Group, Inc. (BERY) presents a compelling investment profile driven by its diversified product portfolio and global market penetration within the essential packaging and materials sector. With a market capitalization of $7.83B and a P/E ratio of 28.4, the company demonstrates significant scale and market valuation. Its robust gross margin of 19.5% and profit margin of 5.6% indicate efficient operations and profitability. Key value drivers include ongoing demand for its wide array of consumer packaging, engineered materials, and health/hygiene products, supported by its extensive international distribution network. Growth catalysts are anticipated from continued innovation in specialized materials and expansion into emerging markets, particularly within healthcare and sustainable packaging solutions. However, investors should acknowledge potential risks, including the company's beta of 1.11, indicating higher volatility, and ongoing exposure to fluctuating raw material costs and evolving environmental regulations impacting plastics usage. Monitoring commodity price trends and regulatory developments will be crucial for assessing future performance.

Based on FMP financials and quantitative analysis

BERY Key Highlights

• Market capitalization stands at $7.83 billion, reflecting its substantial presence in the global packaging and materials industry.
• The company's P/E ratio is 28.4, indicating how much investors are willing to pay per dollar of earnings.
• Berry Global Group maintains a profit margin of 5.6%, demonstrating its ability to convert revenue into net income.
• A gross margin of 19.5% highlights the company's efficiency in managing production costs relative to its sales.
• With a Beta of 1.11, BERY's stock price tends to be slightly more volatile than the overall market.
• The company does not currently offer a dividend yield, indicating a focus on reinvesting earnings back into the business.

Who Are BERY's Competitors?

BERY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BERY's Key Strengths?

• Global scale and diversified product portfolio across consumer packaging, engineered materials, and health/hygiene segments.
• Extensive geographic reach with operations and sales across North America, Europe, and other international markets.
• Strong capabilities in manufacturing a wide array of non-woven, flexible, and rigid materials.
• Established direct sales team and distribution network supporting global market penetration.

What Are BERY's Weaknesses?

• Vulnerability to fluctuating raw material costs, particularly plastics, which can impact profit margins.
• Exposure to potential regulatory changes concerning plastics usage and environmental impact.
• High competition within the global packaging and materials industry.
• Reliance on consumer and industrial demand, making it susceptible to economic downturns.

What Could Drive BERY Stock Higher?

• Global demand for essential packaging solutions across consumer, industrial, and healthcare sectors continues to provide a stable foundation for revenue generation.
• Strategic product innovation, particularly in sustainable materials and advanced film technologies, is expected to enhance market competitiveness and open new revenue streams.
• Further penetration and expansion into high-growth international markets, leveraging existing distribution networks and localizing product offerings, could drive significant top-line growth.
• Continued focus on operational efficiencies and cost management initiatives across its four segments can lead to improved profit margins and financial performance.
• Development of specialized packaging for e-commerce and direct-to-consumer channels is anticipated to capitalize on the ongoing shift in retail consumption patterns.

What Are the Key Risks for BERY?

• Financial-distress signal — its Altman Z-Score of 1.67 sits in the distress zone (elevated bankruptcy risk).
• Fluctuating raw material costs, particularly for plastics, pose a continuous risk to Berry Global's gross and profit margins, requiring agile procurement and pricing strategies.
• Evolving environmental regulations and increasing public scrutiny regarding plastic waste could lead to higher compliance costs, product restrictions, or shifts in consumer preferences away from plastic packaging.
• Intense competition within the global packaging and materials industry may exert pressure on pricing and market share, necessitating continuous innovation and cost control.
• Economic downturns or recessions in key operating regions could reduce consumer spending and industrial activity, thereby decreasing demand for Berry Global's diverse product portfolio.
• Supply chain disruptions, including geopolitical events or natural disasters, could impact the availability of raw materials or the timely delivery of finished products, affecting operational continuity.

What Are the Growth Opportunities for BERY?

• Growth in Specialized Healthcare and Hygiene Markets: Berry Global's Health, Hygiene & Specialties division offers solutions for healthcare, hygiene, and specialty markets, including adhesive tapes. The global healthcare packaging market is projected to continue expanding due to an aging population, increased health awareness, and advancements in medical technology. By innovating and expanding its product offerings in pharmaceutical devices, sterile packaging, and hygiene components, Berry Global can capture a larger share of this resilient and growing market. This segment's focus on essential products provides a stable revenue stream less susceptible to economic fluctuations.
• Expansion in Emerging International Markets: The company currently markets its products globally, serving customers in the United States, Canada, Europe, and various international markets. There is significant opportunity to deepen penetration and expand operations in rapidly developing economies where consumer spending and industrialization are on the rise. These markets often present increasing demand for packaged goods, infrastructure development, and healthcare products, creating a fertile ground for Berry Global's diverse portfolio of consumer packaging, engineered materials, and hygiene solutions. Strategic partnerships and localized product development can further accelerate this international growth.
• Innovation in Sustainable Packaging Solutions: With increasing consumer and regulatory pressure for environmentally friendly products, Berry Global has a significant opportunity to invest in and expand its sustainable packaging offerings. This includes developing more recyclable, compostable, or bio-based materials, as well as lightweighting existing products to reduce material usage. By leading in sustainable innovation, the company can enhance its brand reputation, meet evolving customer demands, and potentially gain market share from competitors less focused on eco-friendly solutions. This trend is a long-term driver across all its segments, from consumer packaging to engineered films.
• Diversification and Specialization in Engineered Materials: The Engineered Materials segment, responsible for diverse film products such as stretch, shrink, converter, food, consumer, and agriculture films, offers avenues for specialized growth. As industries evolve, so do their material requirements, particularly for high-performance films that offer enhanced barrier properties, durability, or specific functionalities. Berry Global can leverage its R&D capabilities to develop advanced film solutions for niche industrial applications or high-value consumer segments, such as smart packaging or advanced protective films, thereby commanding premium pricing and expanding its market reach beyond traditional film products.
• Leveraging E-commerce and Direct-to-Consumer Packaging Trends: The ongoing surge in e-commerce necessitates specialized packaging solutions that are durable, efficient for shipping, and often designed for direct-to-consumer appeal. Berry Global can capitalize on this trend by developing innovative packaging that reduces shipping damage, optimizes logistics, and enhances the unboxing experience for online retailers. This includes lightweight yet robust containers, secure closures, and customizable packaging options. By becoming a preferred supplier for e-commerce businesses, the company can tap into a rapidly expanding market segment that demands agile and tailored packaging solutions, driving significant volume growth.

What Opportunities Does BERY Have?

• Expansion into emerging international markets with growing consumer bases and industrial development.
• Innovation in sustainable packaging solutions to meet increasing environmental demands and regulatory pressures.
• Growth in specialized markets such as healthcare and hygiene, driven by demographic shifts and health awareness.
• Leveraging e-commerce growth by developing specialized packaging solutions for online retail and direct-to-consumer channels.

What Threats Does BERY Face?

• Volatile commodity prices for key raw materials, leading to unpredictable input costs.
• Increasing global regulations and public sentiment against single-use plastics impacting product demand and manufacturing processes.
• Intensified competition from both established players and new entrants in various packaging segments.
• Economic slowdowns or recessions that could reduce consumer spending and industrial production, affecting demand for packaging.

What Are BERY's Competitive Advantages?

• **Scale and Diversified Portfolio:** Operates globally with a vast product range across four segments, reducing reliance on any single product line or market.
• **Extensive Manufacturing Footprint:** A broad network of production facilities enables efficient global distribution and localized service capabilities.
• **Specialized Material Expertise:** Deep knowledge in non-woven, flexible, and rigid material science allows for the development of high-performance and customized solutions.
• **Customer Relationships and Global Reach:** Long-standing relationships with major global brands and a robust direct sales and distribution network ensure consistent market access.
• **Operational Efficiency:** Significant scale allows for economies of scale in raw material procurement and manufacturing processes, contributing to competitive pricing and margins.

What Does BERY Do?

Berry Global Group, Inc., founded in Evansville, Indiana, in 1967, has evolved into a prominent global manufacturer and distributor of non-woven, flexible, and rigid materials. Initially known as Berry Plastics Group, Inc., the company rebranded in April 2017 to reflect its expanded scope and market presence. Its operations are strategically segmented to cater to a broad spectrum of consumer and industrial needs worldwide. The Consumer Packaging International division focuses on producing essential items such as closures, dispensing systems, pharmaceutical devices, various bottles, canisters, containers, and specialized technical components, serving markets beyond North America. Complementing this, the Consumer Packaging North America segment addresses domestic demand with products like containers, pails, foodservice items, overcaps, and prescription vials. The Engineered Materials segment is a key supplier of diverse film products, including stretch, shrink, converter, food, consumer, and agriculture films, alongside institutional can liners and retail bags, demonstrating its versatility in industrial applications. Furthermore, the Health, Hygiene & Specialties division provides critical solutions for healthcare, hygiene, and other specialty markets, including adhesive tapes. Berry Global Group, Inc. maintains a global footprint, marketing its extensive product range through a dedicated direct sales team and a robust network of distributors, reaching customers across the United States, Canada, Europe, and various other international regions, solidifying its position as a comprehensive packaging and materials provider.

What Products and Services Does BERY Offer?

• Manufactures non-woven materials used in various applications, including hygiene and healthcare.
• Produces flexible packaging solutions like stretch, shrink, converter, food, consumer, and agriculture films.
• Creates rigid packaging products such as bottles, canisters, containers, pails, and prescription vials.
• Develops closures and dispensing systems for consumer and pharmaceutical products.
• Supplies specialized technical components for diverse industrial and consumer uses.
• Offers foodservice products, including containers and other related items.
• Provides solutions for healthcare, hygiene, and specialty markets, including adhesive tapes.
• Distributes its products globally through direct sales and a network of distributors.

How Does BERY Make Money?

• Generates revenue by manufacturing and selling a broad portfolio of plastic packaging, engineered materials, and non-woven products.
• Operates through four key segments: Consumer Packaging International, Consumer Packaging North America, Engineered Materials, and Health, Hygiene & Specialties.
• Serves a diverse customer base globally, including consumer goods companies, industrial clients, and healthcare providers.
• Utilizes a direct sales force and a network of distributors to reach markets in the United States, Canada, Europe, and other international regions.
• Focuses on providing essential materials and packaging solutions that are integral to its customers' supply chains and product delivery.

What Industry Does BERY Operate In?

Berry Global Group, Inc. operates within the Packaging & Containers industry, a critical component of the broader Consumer Cyclical sector. This industry is characterized by its essential role in manufacturing and distributing materials vital for consumer goods, industrial applications, and specialized markets like healthcare. The market is influenced by trends such as increasing demand for sustainable packaging, the growth of e-commerce driving flexible packaging needs, and evolving regulatory landscapes concerning plastic usage. Berry Global's diversified product portfolio, spanning rigid, flexible, and non-woven materials, positions it to address these varied demands. The competitive landscape is fragmented, featuring large multinational corporations and specialized regional players. Berry Global's scale and extensive global reach provide a significant competitive advantage, enabling it to serve a wide array of customers across different geographies and product categories, from consumer packaging to highly engineered films and hygiene solutions.

Who Are BERY's Key Customers?

• Consumer goods manufacturers requiring packaging for food, beverages, personal care, and household products.
• Industrial clients utilizing engineered films for applications in agriculture, construction, and protective packaging.
• Healthcare and pharmaceutical companies needing specialized devices, packaging, and hygiene solutions.
• Foodservice operators requiring containers, pails, and other related products.
• Retailers and institutions purchasing can liners and retail bags.

Company Profile

Berry Global Group, Inc. operates in the Packaging & Containers industry within the Consumer Cyclical sector. It is headquartered in Evansville, US. The company is led by CEO Kevin J. Kwilinski. BERY has traded publicly since 2012.

Berry Global Group, Inc. Financial Trajectory

Berry Global Group, Inc. (BERY) reported $2.52B in revenue for Q1 2025, reflecting 5.7% growth compared to the prior quarter. The company recorded net income of $193.0M, with diluted EPS of $1.64. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Consumer Cyclical. Across the four most recent quarters, BERY averaged $0.21 in diluted EPS.

How Berry Global Group, Inc. Is Valued

Berry Global Group, Inc. carries a market capitalization of $7.83B, placing it in the mid-cap category. Relative to its peer group, BERY's quantitative score of 41/100 is below the peer average of 53/100.

ROE 12%Key Financial Metrics

Return on equity for Berry Global Group, Inc. stands at 11.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.1%, showing how much profit it generates from its asset base. BERY trades at a trailing price-to-earnings ratio of 28.44, below the Consumer Cyclical sector average of ~39x. Its free cash flow yield is -7.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.91 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 3.5%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 8/9Financial Health

Berry Global Group, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.67 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Berry Global Group, Inc. revenue of about $10.17B for fiscal 2026, with EPS near $6.80. The estimate reflects 9 contributing analysts.

Net sellingInsider Activity

The most recent 12 insider filings for Berry Global Group, Inc. break down as 12 sales and 0 purchases. On net that is roughly 213K shares disposed (about $0), a signal worth weighing alongside the fundamentals.

BERY Financials

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BERY Analyst Consensus

BERY MoonshotScore

BERY Consumer Cyclical Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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