AMCOR PLC (AMCR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMCR - JE00BJ1F3079 - Common Stock
44.28 USD
+1.51 (+3.53%)
44.28 USD
0 (0%)
Taking everything into account, AMCR scores 4 out of 10 in our fundamental rating. AMCR was compared to 22 industry peers in the Containers & Packaging industry. AMCR has a bad profitability rating. Also its financial health evaluation is rather negative. AMCR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- AMCR had positive earnings in the past year.
- In the past year AMCR had a positive cash flow from operations.
- AMCR had positive earnings in each of the past 5 years.
- In the past 5 years AMCR always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AMCR (1.57%) is worse than 63.64% of its industry peers.
- Looking at the Return On Equity, with a value of 4.97%, AMCR is doing worse than 63.64% of the companies in the same industry.
- The Return On Invested Capital of AMCR (4.26%) is worse than 72.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AMCR is in line with the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | 4.97% | ||
| ROIC | 4.26% |
ROA(3y)3.97%
ROA(5y)4.39%
ROE(3y)16.31%
ROE(5y)17.65%
ROIC(3y)7.02%
ROIC(5y)7.88%
1.3 Margins
- The Profit Margin of AMCR (3.34%) is comparable to the rest of the industry.
- AMCR's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 8.82%, AMCR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- AMCR's Operating Margin has been stable in the last couple of years.
- AMCR's Gross Margin of 18.96% is on the low side compared to the rest of the industry. AMCR is outperformed by 77.27% of its industry peers.
- In the last couple of years the Gross Margin of AMCR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.82% | ||
| PM (TTM) | 3.34% | ||
| GM | 18.96% |
OM growth 3Y-4.71%
OM growth 5Y-0.3%
PM growth 3Y-14.9%
PM growth 5Y-7.09%
GM growth 3Y-0.88%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMCR is still creating some value.
- AMCR has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AMCR has more shares outstanding
- The debt/assets ratio for AMCR has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.96 indicates that AMCR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.96, AMCR belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- AMCR has a debt to FCF ratio of 17.38. This is a negative value and a sign of low solvency as AMCR would need 17.38 years to pay back of all of its debts.
- The Debt to FCF ratio of AMCR (17.38) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.10 is on the high side and indicates that AMCR has dependencies on debt financing.
- AMCR has a Debt to Equity ratio (1.10) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 17.38 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.9
WACC4.73%
2.3 Liquidity
- AMCR has a Current Ratio of 1.04. This is a normal value and indicates that AMCR is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.04, AMCR is doing worse than 90.91% of the companies in the same industry.
- AMCR has a Quick Ratio of 1.04. This is a bad value and indicates that AMCR is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.62, AMCR is doing worse than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 326.20% over the past year.
- The Earnings Per Share has been growing by 28.68% on average over the past years. This is a very strong growth
- AMCR shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.42%.
- AMCR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.78% yearly.
EPS 1Y (TTM)326.2%
EPS 3Y40.24%
EPS 5Y28.68%
EPS Q2Q%495.68%
Revenue 1Y (TTM)28.42%
Revenue growth 3Y1.05%
Revenue growth 5Y3.78%
Sales Q2Q%71.34%
3.2 Future
- AMCR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.26% yearly.
- The Revenue is expected to grow by 11.24% on average over the next years. This is quite good.
EPS Next Y-63.06%
EPS Next 2Y-35.92%
EPS Next 3Y-24.26%
EPS Next 5Y-14.26%
Revenue Next Year55.78%
Revenue Next 2Y25.66%
Revenue Next 3Y17.15%
Revenue Next 5Y11.24%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.61, AMCR is valued correctly.
- 72.73% of the companies in the same industry are more expensive than AMCR, based on the Price/Earnings ratio.
- AMCR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 48.51, which means the current valuation is very expensive for AMCR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AMCR indicates a slightly more expensive valuation: AMCR is more expensive than 77.27% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, AMCR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 48.51 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AMCR is valued expensively inside the industry as 81.82% of the companies are valued cheaper.
- Based on the Price/Free Cash Flow ratio, AMCR is valued a bit more expensive than the industry average as 68.18% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 119.83 | ||
| EV/EBITDA | 45.44 |
4.3 Compensation for Growth
- A cheap valuation may be justified as AMCR's earnings are expected to decrease with -24.26% in the coming years.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-35.92%
EPS Next 3Y-24.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.89%, AMCR is a good candidate for dividend investing.
- AMCR's Dividend Yield is rather good when compared to the industry average which is at 2.35. AMCR pays more dividend than 95.45% of the companies in the same industry.
- AMCR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
5.2 History
- The dividend of AMCR decreases each year by -1.15%.
- AMCR has been paying a dividend for over 5 years, so it has already some track record.
- AMCR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-1.15%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 164.78% of the earnings are spent on dividend by AMCR. This is not a sustainable payout ratio.
- AMCR's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP164.78%
EPS Next 2Y-35.92%
EPS Next 3Y-24.26%
AMCOR PLC / AMCR FAQ
What is the fundamental rating for AMCR stock?
ChartMill assigns a fundamental rating of 4 / 10 to AMCR.
What is the valuation status for AMCR stock?
ChartMill assigns a valuation rating of 1 / 10 to AMCOR PLC (AMCR). This can be considered as Overvalued.
How profitable is AMCOR PLC (AMCR) stock?
AMCOR PLC (AMCR) has a profitability rating of 3 / 10.
What is the financial health of AMCOR PLC (AMCR) stock?
The financial health rating of AMCOR PLC (AMCR) is 3 / 10.
What is the expected EPS growth for AMCOR PLC (AMCR) stock?
The Earnings per Share (EPS) of AMCOR PLC (AMCR) is expected to decline by -63.06% in the next year.