Is Berry Global Group (BERY) a Great Stock to Invest in?

Rhizome Partners, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund generated a 4.8% net loss compared to a 4.9% loss for the S&P 500 Index and a 10.8% loss for the National Association of Real Estate Investment Trusts (NAREIT). The hedging efforts of the fund generated a gain of 2.9% during the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Rhizome Partners highlighted stocks like Berry Global Group, Inc. (NYSE:BERY) in its Q3 2022 investor letter. Headquartered in Evansville, Indiana, Berry Global Group, Inc. (NYSE:BERY) supplies packaging products in consumer and industrial end markets. On December 6, 2022, Berry Global Group, Inc. (NYSE:BERY) stock closed at $61.47 per share. One-month return of Berry Global Group, Inc. (NYSE:BERY) was 25.68% and its shares lost 14.53% of their value over the last 52 weeks. Berry Global Group, Inc. (NYSE:BERY) has a market capitalization of $7.628 billion.

Rhizome Partners made the following comment about Berry Global Group, Inc. (NYSE:BERY) in its Q3 2022 investor letter:

Berry Global Group, Inc. (NYSE:BERY) reported solid quarterly results and continues to generate a prodigious amount of EBITDA (earnings before interest, taxes, depreciation, and amortization) and free cash flow. For the 2022 calendar year, free cash flow will be $150 million less than the normal run rate, mostly due to increases in working capital. At quarter-end, Berry Global is trading at 6.5 times 2022 P/FCF (price to free cash flow), with a net debt to EBITDA metric of 3.9 times, which is the lowest in the past few years. Berry does have a 35% revenue exposure to Europe and roughly a 30% revenue exposure to industrial end markets. Everyday staples, such as shampoos and food packaging, represent 70% of Berry’s products. During the Great Financial Crisis, plastic packaging companies with Berry’s product mix experienced drops of less than 10% in EBITDA. Lastly, Berry has bought back 8% of the shares outstanding in the past three quarters. We feel very comfortable with the company.”

Berry Global Group, Inc. (NYSE:BERY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Berry Global Group, Inc. (NYSE:BERY) at the end of the third quarter, which was 37 in the previous quarter.

We discussed Berry Global Group, Inc. (NYSE:BERY) in another article and shared the list of trending stocks on November 15. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.