AMCOR PLC (AMCR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMCR - JE00BJ1F3079 - Common Stock
42.77 USD
+0.37 (+0.87%)
42.77 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 quite expensive at the moment. 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
- With a Return On Assets value of 1.57%, AMCR is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- The Return On Equity of AMCR (4.97%) is worse than 63.64% of its industry peers.
- The Return On Invested Capital of AMCR (4.26%) is worse than 72.73% of its industry peers.
- AMCR had an Average Return On Invested Capital over the past 3 years of 7.02%. This 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
- AMCR has a Profit Margin of 3.34%. This is comparable to the rest of the industry: AMCR outperforms 40.91% of its industry peers.
- In the last couple of years the Profit Margin of AMCR has declined.
- The Operating Margin of AMCR (8.82%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of AMCR has remained more or less at the same level.
- The Gross Margin of AMCR (18.96%) is worse than 77.27% of its industry peers.
- AMCR's Gross Margin has been stable in the last couple of years.
| 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.
- AMCR has more shares outstanding than it did 5 years ago.
- 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.
- Looking at the Altman-Z score, with a value of 2.96, AMCR belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- The Debt to FCF ratio of AMCR is 17.38, which is on the high side as it means it would take AMCR, 17.38 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AMCR (17.38) is comparable to the rest of the industry.
- AMCR has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external 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
- A Current Ratio of 1.04 indicates that AMCR should not have too much problems paying its short term obligations.
- The Current ratio of AMCR (1.04) is worse than 90.91% of its industry peers.
- 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.
- AMCR has a Quick ratio of 0.62. This is amonst the worse of the industry: AMCR underperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- AMCR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 326.20%, which is quite impressive.
- Measured over the past years, AMCR shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.68% on average per year.
- The Revenue has grown by 28.42% in the past year. This is a very strong growth!
- Measured over the past years, AMCR shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
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
- The Earnings Per Share is expected to decrease by -14.26% on average over the next years. This is quite bad
- AMCR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.24% yearly.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.12, the valuation of AMCR can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of AMCR indicates a somewhat cheap valuation: AMCR is cheaper than 72.73% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, AMCR is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 46.86, AMCR can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, AMCR is valued a bit more expensive than 77.27% of the companies 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 | 14.12 | ||
| Fwd PE | 46.86 |
4.2 Price Multiples
- AMCR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. AMCR is more expensive than 81.82% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMCR indicates a slightly more expensive valuation: AMCR is more expensive than 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 115.74 | ||
| 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)0.49
EPS Next 2Y-35.92%
EPS Next 3Y-24.26%
5. Dividend
5.1 Amount
- AMCR has a Yearly Dividend Yield of 5.89%, which is a nice return.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.83, AMCR pays a better dividend.
| 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.