AMCOR PLC (AMCR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMCR - JE00BJ1F3079 - Common Stock
44.53 USD
+0.25 (+0.56%)
44.63 USD
+0.1 (+0.22%)
Overall AMCR gets a fundamental rating of 4 out of 10. We evaluated AMCR against 22 industry peers in the Containers & Packaging industry. Both the profitability and financial health of AMCR have multiple concerns. AMCR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AMCR was profitable.
- In the past year AMCR had a positive cash flow from operations.
- In the past 5 years AMCR has always been profitable.
- 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.
- With a Return On Equity value of 4.97%, AMCR is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- The Return On Invested Capital of AMCR (4.26%) is worse than 72.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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.
- 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.
- AMCR's Operating Margin has been stable in the last couple of years.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMCR is creating some value.
- Compared to 1 year ago, AMCR has more shares outstanding
- Compared to 5 years ago, AMCR has more shares outstanding
- AMCR has a better debt/assets ratio than last year.
2.2 Solvency
- AMCR has an Altman-Z score of 3.05. This indicates that AMCR is financially healthy and has little risk of bankruptcy at the moment.
- AMCR has a Altman-Z score of 3.05. This is amongst the best in the industry. AMCR outperforms 81.82% of its industry peers.
- 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.
- AMCR has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of AMCR (1.10) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 17.38 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.9
WACC4.74%
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.
- With a Current ratio value of 1.04, AMCR is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
- A Quick Ratio of 0.62 indicates that AMCR may have some problems paying 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.
- 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.
- AMCR shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.42%.
- 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
- 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.
- Based on estimates for the next years, AMCR will show a quite strong growth in Revenue. The Revenue will grow by 11.24% on average per year.
EPS Next Y84.68%
EPS Next 2Y43.01%
EPS Next 3Y29.63%
EPS Next 5Y-14.26%
Revenue Next Year56.01%
Revenue Next 2Y25.72%
Revenue Next 3Y17.24%
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
- AMCR is valuated correctly with a Price/Earnings ratio of 14.70.
- 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 27.25, AMCR is valued a bit cheaper.
- A Price/Forward Earnings ratio of 9.79 indicates a reasonable valuation of AMCR.
- AMCR's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMCR is cheaper than 86.36% of the companies in the same industry.
- AMCR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 9.79 |
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.
- AMCR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AMCR is more expensive than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 120.51 | ||
| EV/EBITDA | 46.84 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AMCR's earnings are expected to grow with 29.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)0.51
EPS Next 2Y43.01%
EPS Next 3Y29.63%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.08%, AMCR is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.38, AMCR pays a better dividend. On top of this AMCR pays more dividend than 95.45% of the companies listed 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 | 6.08% |
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
- AMCR pays out 164.78% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of AMCR has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP164.78%
EPS Next 2Y43.01%
EPS Next 3Y29.63%
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 5 / 10 to AMCOR PLC (AMCR). This can be considered as Fairly Valued.
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 grow by 84.68% in the next year.