Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Non-Paper Containers & Packaging industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Non-Paper Containers & Packaging Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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5 Undervalued Non-Paper Containers & Packaging Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Non-Paper Containers & Packaging industry for Thursday, December 29, 2022. Let’s take a closer look at their individual scores to see how they measure up against each other and the Non-Paper Containers & Packaging industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Ardagh Metal Packaging SA’s Value Grade

Value Grade:

Ardagh Metal Packaging S.A. is a Luxembourg based company that supplies consumer metal beverage cans. It supplies infinitely recyclable, metal beverage cans to brand owners. The Company deals with the multiple categories of products including beer, carbonated soft drinks, energy drinks, hard seltzers, juices, pre-mixed cocktails, teas, sparkling waters and wine. The Company operates approximately 23 production facilities in the Americas and Europe. The Company is also a suppliers of metal beverage can package solutions, capable of supplying multi-national, national and regional beverage producers. The Company's subsidiaries inlcude Ardagh Metal Packaging Holdings Sarl and Gores Holdings V, Inc.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Ardagh Metal Packaging SA has a Value Score of 61, which is considered to be undervalued.

When you look at Ardagh Metal Packaging SA’s price-to-sales ratio at 0.60 compared to the industry median at 0.92, this company has a lower price relative to revenue compared to its peers. This could make Ardagh Metal Packaging SA’s stock more attractive for value investors.

Ardagh Metal Packaging SA’s price-earnings ratio is 12.0 compared to the industry median at 9.9. This means it has a higher share price relative to earnings compared to its peers. This could make Ardagh Metal Packaging SA less attractive for value investors.

Now, let’s assess Ardagh Metal Packaging SA’s EV/EBITDA ratio, also known as enterprise multiple. At 9.5, when compared to the industry median of 5.8, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Ardagh Metal Packaging SA’s shareholder yield is lower than its industry median ratio of 0.0%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Ardagh Metal Packaging SA’s price-to-book ratio is higher than its industry median ratio of 1.46. This could make Ardagh Metal Packaging SA less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Ardagh Metal Packaging SA’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Ardagh Metal Packaging SA’s price-to-free-cash-flow ratio is lower than its industry median ratio of 10.4. This could make Ardagh Metal Packaging SA more attractive because the lower P/FCF ratio indicates that Ardagh Metal Packaging SA is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Berry Global Group Inc’s Value Grade

Value Grade:

Berry Global Group, Inc. is engaged in providing packed and engineered products. The Company’s segments include Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Engineered Materials. The Consumer Packaging International segment consists of containers, closures and dispensing systems, pharmaceutical devices and packaging, bottles and canisters, and technical components. The Consumer Packaging North America segment consists of containers and pails, foodservice, closures, bottles, prescription vials, and tubes. The Health, Hygiene & Specialties segment consists of nonwoven specialty materials, tapes and adhesives, and films used in hygiene, infection prevention, personal care, industrial, and construction. The Engineered Materials segment consists of stretch and shrink films, converter films, institutional can liners, food and consumer films, retail bags, and agriculture films. It serves markets, such as beverage, food, and beverage.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Berry Global Group Inc has a Value Score of 82, which is considered to be undervalued.

Berry Global Group Inc’s price-earnings ratio is 10.2 compared to the industry median at 9.9. This means that it has a higher price relative to its earnings compared to its peers. This makes Berry Global Group Inc less attractive for value investors.

Berry Global Group Inc’s price-to-book ratio is lower than its peers. This could make Berry Global Group Inc more attractive for value investors when compared to the industry median at 1.46.

You can read more about Berry Global Group Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Core Molding Technologies, Inc.’s Value Grade

Value Grade:

Core Molding Technologies, Inc. is an engineered materials company. The Company specializes in molded structural products, principally in building products, utilities, transportation and powersports industries across North America and Mexico. The Company operates in one operating segment as a molder of thermoplastic and thermoset structural products. The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, automobiles, marine, construction, and other commercial markets. It offers customers a range of manufacturing processes to fit various program volume and investment requirements, which includes Sheet Molding Compound (SMC), resin transfer molding (RTM), liquid molding of dicyclopentadiene (DCPD), spray-up and hand-lay-up, direct long-fiber thermoplastics (D-LFT) and structural foam and structural Web injection molding (SIM). It operates seven production facilities in three countries, including United States, Canada, and Mexico.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Core Molding Technologies, Inc. has a Value Score of 76, which is considered to be undervalued.

Core Molding Technologies, Inc.’s price-earnings ratio is 14.1 compared to the industry median at 9.9. This means that it has a higher price relative to its earnings compared to its peers. This makes Core Molding Technologies, Inc. less attractive for value investors.

Core Molding Technologies, Inc.’s price-to-book ratio is higher than its peers. This could make Core Molding Technologies, Inc. less attractive for value investors when compared to the industry median at 1.46.

You can read more about Core Molding Technologies, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Greif, Inc.’s Value Grade

Value Grade:

Greif, Inc. is a global producer of industrial packaging products and services with operations in over 40 countries. Its segments include Global Industrial Packaging, Paper Packaging & Services and Land Management. The Global Industrial Packaging segment offers industrial packaging products, such as steel, fiber and plastic drums, rigid intermediate bulk containers and closure systems for industrial packaging products, among others and services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Paper Packaging & Services segment produces and sells containerboard, corrugated sheets, corrugated containers, and other corrugated products to customers in North America in industries, such as packaging, automotive, food and building products. The Land Management segment is focused on the harvesting and regeneration of its United States timber properties. It is also a manufacturer of barrier and conventional blow-molded containers.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Greif, Inc. has a Value Score of 87, which is considered to be undervalued.

Greif, Inc.’s price-earnings ratio is 8.6 compared to the industry median at 9.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Greif, Inc. more attractive for value investors.

Greif, Inc.’s price-to-book ratio is lower than its peers. This could make Greif, Inc. more attractive for value investors when compared to the industry median at 1.46.

You can read more about Greif, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Viskase Companies, Inc.’s Value Grade

Value Grade:

Viskase Companies, Inc. is a producer of non-edible cellulosic, fibrous and plastic casings, which is used to prepare and package processed meat products. The Company provides value-added support services relating to these products for consumer product companies. The Company operates approximately 10 manufacturing facilities in North America, Europe, South America, and Asia. It sells its products in approximately 100 countries throughout the world. The Company’s products include cellulose casings, plastic casings, fibrous casings, netting and fabric, transfer casings, and applied technologies. Cellulose Casings are designed for automated production of tubular sausages, such as hot dogs, cooked sausages, dry salamis, pepperoni, mortadella. Plastic casings are casings for processed meat and poultry applications. Fibrous casings can be used for a range of applications, including pepperoni, salami, luncheon meats, boneless hams and other deli-style processed meats.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Viskase Companies, Inc. has a Value Score of 93, which is considered to be undervalued.

Viskase Companies, Inc.’s price-earnings ratio is 0.0 compared to the industry median at 9.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Viskase Companies, Inc. more attractive for value investors.

Viskase Companies, Inc.’s price-to-book ratio is higher than its peers. This could make Viskase Companies, Inc. less attractive for value investors when compared to the industry median at 1.46.

You can read more about Viskase Companies, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Non-Paper Containers & Packaging Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Non-Paper Containers & Packaging stocks as well as other industrys.

Choosing Which of the 5 Best Non-Paper Containers & Packaging Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Ardagh Metal Packaging SA stock has a Value Grade of B.
• Berry Global Group Inc stock has a Value Grade of A.
• Core Molding Technologies, Inc. stock has a Value Grade of B.
• Greif, Inc. stock has a Value Grade of A.
• Viskase Companies, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 undervalued stocks in the Non-Paper Containers & Packaging industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Non-Paper Containers & Packaging Stocks

Want to learn more about Non-Paper Containers & Packaging stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 5 Undervalued Non-Paper Containers & Packaging Stocks for Thursday, December, 29
• Which Is a Better Investment, Crown Holdings, Inc. or Sealed Air Corp Stock?
• Which Is a Better Investment, Pactiv Evergreen Inc or Silgan Holdings Inc. Stock?
• Which Is a Better Investment, Crown Holdings, Inc. or Pactiv Evergreen Inc Stock?

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