Ball Corp has roughly 1.45
B in cash with 1.96
B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.46.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ball Corp has an asset utilization ratio of 320.39 percent. This denotes that the company is making $3.2 for each dollar of assets. An increasing asset utilization means that Ball Corp is more efficient with each dollar of assets it utilizes for everyday operations.
How important is Ball's Liquidity
Ball
financial leverage refers to using borrowed capital as a funding source to finance Ball Corporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ball financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ball's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ball's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Ball's total debt and its cash.
Ball Correlation with Peers
Investors in Ball can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Ball Corporation. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Ball and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Ball is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Ball for more details
An Additional Perspective On Ball
We consider Ball Corp very steady.
Ball Corp secures Sharpe Ratio (or Efficiency) of 0.0141, which signifies that the company had 0.0141% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Ball Corp, which you can use to evaluate the future volatility of the firm. Please confirm Ball Corp
mean deviation of 1.19, and Risk Adjusted Performance of
(0.037045) to double-check if the risk estimate we provide is consistent with the expected return of 0.0232%.
Our perspective of the new Ball Corp hike
Treynor Ratio just dropped to -0.37, may denote upcoming price depreciation. Ball Corp exhibits very low volatility with skewness of -0.57 and kurtosis of 0.8. However, we advise investors to further study Ball Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ball Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ball Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Ball Corp Implied Volatility
Ball Corp's implied volatility exposes the market's sentiment of Ball Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Ball Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Ball Corp stock will not fluctuate a lot when Ball Corp's options are near their expiration.
Our Bottom Line On Ball Corp
While few other entities within the packaging & containers industry are still a little expensive, even after the recent corrections, Ball Corp may offer a potential longer-term growth to stakeholders. To summarize, as of the 27th of January 2022, we believe that at this point, Ball Corp is
fairly valued with
low probability of distress within the next 2 years. Our primary buy vs. sell advice on the company is
Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Ball Corporation. Please refer to our
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