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Why Berry Plastics is Poised to Plunge

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, plastic consumer packaging company Berry Plastics Group (NYSE: BERY  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Berry Plastics, and see what CAPS investors are saying about the stock right now.

Berry Plastics facts


Headquarters (founded)

Evansville, Ind. (1967)

Market Cap

$1.3 billion


Rubber and plastics

Trailing-12-Month Revenue

$4.8 billion


Chairman/CEO Jonathan Rich

President/COO Randall Becker

Trailing-12-Month Return on Capital



$87.0 million / $4.5 billion


AptarGroup (NYSE: ATR  )


Reynolds Food Packaging

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 67% of the 15 members who have rated Berry Plastics believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star BlacknGold, succinctly summed up the bear case for our community:

The recent IPO vaulted Berry Plastics to a market cap of $1.75 billion. While the company raised somewhere around $470 million it has a long way to go before gaining much needed financial flexibility. ... You have to figure there is an enormous amount of competition in the plastic molding/blowing space.

I'll keep an eye on Berry because they do rake in nearly $5 billion in revenue each year. Not much of that goes to net income (a microscopic 0.04% profit margin), but perhaps that just means there is plenty of room for improvement?

A very different company with a much brighter future is Kraton Performance Polymers (NYSE: KRA  ) which designs plastic/polymer resins for many high-value applications -- one of which could transform the asphalt industry.

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10/20/2016 4:02 PM
ATR $75.97 Down -0.51 -0.67%
AptarGroup CAPS Rating: *****
BERY $45.32 Down -0.19 -0.42%
Berry Plastics Gro… CAPS Rating: ***
KRA $33.43 Up +0.04 +0.12%
Kraton Performance… CAPS Rating: **