AMCOR PLC (AMCR) Stock Fundamental Analysis
NYSE:AMCR - New York Stock Exchange, Inc. - JE00BJ1F3079 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AMCR. AMCR was compared to 22 industry peers in the Containers & Packaging industry. While AMCR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AMCR is not valued too expensively and it also shows a decent growth rate. Finally AMCR also has an excellent dividend rating. This makes AMCR very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year AMCR was profitable.
AMCR had a positive operating cash flow in the past year.
Each year in the past 5 years AMCR has been profitable.
In the past 5 years AMCR always reported a positive cash flow from operatings.
1.2 Ratios
AMCR's Return On Assets of 4.47% is amongst the best of the industry. AMCR outperforms 81.82% of its industry peers.
The Return On Equity of AMCR (20.93%) is better than 90.91% of its industry peers.
With a decent Return On Invested Capital value of 8.20%, AMCR is doing good in the industry, outperforming 77.27% of the companies in the same industry.
AMCR had an Average Return On Invested Capital over the past 3 years of 9.33%. This is in line with the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 20.93% | ||
| ROIC | 8.2% |
ROA(3y)5.04%
ROA(5y)4.86%
ROE(3y)21.41%
ROE(5y)19.43%
ROIC(3y)9.33%
ROIC(5y)8.88%
1.3 Margins
The Profit Margin of AMCR (5.99%) is better than 81.82% of its industry peers.
In the last couple of years the Profit Margin of AMCR has grown nicely.
AMCR has a better Operating Margin (10.42%) than 63.64% of its industry peers.
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 (20.00%) is worse than 68.18% of its industry peers.
AMCR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | 5.99% | ||
| GM | 20% |
OM growth 3Y-4.43%
OM growth 5Y-1.31%
PM growth 3Y-9.89%
PM growth 5Y3.23%
GM growth 3Y-2.18%
GM growth 5Y0.89%
2. Health
2.1 Basic Checks
AMCR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for AMCR has been reduced compared to 1 year ago.
Compared to 5 years ago, AMCR has less shares outstanding
Compared to 1 year ago, AMCR has a worse debt to assets ratio.
2.2 Solvency
AMCR has an Altman-Z score of 2.18. This is not the best score and indicates that AMCR is in the grey zone with still only limited risk for bankruptcy at the moment.
AMCR's Altman-Z score of 2.18 is fine compared to the rest of the industry. AMCR outperforms 77.27% of its industry peers.
AMCR has a debt to FCF ratio of 12.13. This is a negative value and a sign of low solvency as AMCR would need 12.13 years to pay back of all of its debts.
The Debt to FCF ratio of AMCR (12.13) is better than 72.73% of its industry peers.
A Debt/Equity ratio of 2.28 is on the high side and indicates that AMCR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.28, AMCR is doing worse than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 12.13 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.74
WACC4.72%
2.3 Liquidity
A Current Ratio of 1.70 indicates that AMCR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.70, AMCR is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that AMCR should not have too much problems paying its short term obligations.
The Quick ratio of AMCR (1.16) is better than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.08% over the past year.
AMCR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.98% yearly.
Looking at the last year, AMCR shows a decrease in Revenue. The Revenue has decreased by -2.29% in the last year.
The Revenue has been growing slightly by 7.60% on average over the past years.
EPS 1Y (TTM)4.08%
EPS 3Y-1.83%
EPS 5Y6.98%
EPS Q2Q%0%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y1.98%
Revenue growth 5Y7.6%
Sales Q2Q%-2.29%
3.2 Future
Based on estimates for the next years, AMCR will show a small growth in Earnings Per Share. The EPS will grow by 6.60% on average per year.
The Revenue is expected to grow by 14.15% on average over the next years. This is quite good.
EPS Next Y5.14%
EPS Next 2Y7.2%
EPS Next 3Y9.75%
EPS Next 5Y6.6%
Revenue Next Year6.34%
Revenue Next 2Y21.75%
Revenue Next 3Y20.03%
Revenue Next 5Y14.15%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 13.65, which indicates a correct valuation of AMCR.
Compared to the rest of the industry, the Price/Earnings ratio of AMCR indicates a rather cheap valuation: AMCR is cheaper than 81.82% of the companies listed in the same industry.
AMCR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.98 indicates a reasonable valuation of AMCR.
Based on the Price/Forward Earnings ratio, AMCR is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
AMCR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMCR is valued a bit more expensive than 77.27% of the companies in the same industry.
AMCR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.81 | ||
| EV/EBITDA | 14.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMCR does not grow enough to justify the current Price/Earnings ratio.
AMCR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.66
PEG (5Y)1.95
EPS Next 2Y7.2%
EPS Next 3Y9.75%
5. Dividend
5.1 Amount
AMCR has a Yearly Dividend Yield of 5.54%, which is a nice return.
AMCR's Dividend Yield is rather good when compared to the industry average which is at 3.06. AMCR pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, AMCR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
The dividend of AMCR has a limited annual growth rate of 0.43%.
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)0.43%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
90.57% of the earnings are spent on dividend by AMCR. This is not a sustainable payout ratio.
AMCR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP90.57%
EPS Next 2Y7.2%
EPS Next 3Y9.75%
9.69
+0.22 (+2.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners43.34%
Inst Owner Change17.02%
Ins Owners0.19%
Ins Owner Change20.65%
Market Cap22.34B
Analysts78.57
Price Target11.72 (20.95%)
Short Float %2.22%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Yearly Dividend0.5
Dividend Growth(5Y)0.43%
DP90.57%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.83%
Min EPS beat(2)-2.73%
Max EPS beat(2)-0.93%
EPS beat(4)1
Avg EPS beat(4)-1.39%
Min EPS beat(4)-2.86%
Max EPS beat(4)0.98%
EPS beat(8)5
Avg EPS beat(8)1.18%
EPS beat(12)7
Avg EPS beat(12)0.52%
EPS beat(16)9
Avg EPS beat(16)0.52%
Revenue beat(2)0
Avg Revenue beat(2)-5.18%
Min Revenue beat(2)-5.31%
Max Revenue beat(2)-5.04%
Revenue beat(4)0
Avg Revenue beat(4)-5.26%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)-4.79%
Revenue beat(8)0
Avg Revenue beat(8)-4.62%
Revenue beat(12)2
Avg Revenue beat(12)-2.95%
Revenue beat(16)6
Avg Revenue beat(16)-1.34%
PT rev (1m)0.1%
PT rev (3m)0.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)19.53%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 11.98 | ||
| P/S | 1.66 | ||
| P/FCF | 30.81 | ||
| P/OCF | 18.33 | ||
| P/B | 5.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.59 |
EPS(TTM)0.71
EY7.33%
EPS(NY)0.81
Fwd EY8.35%
FCF(TTM)0.31
FCFY3.25%
OCF(TTM)0.53
OCFY5.46%
SpS5.84
BVpS1.67
TBVpS-1.19
PEG (NY)2.66
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 20.93% | ||
| ROCE | 9.95% | ||
| ROIC | 8.2% | ||
| ROICexc | 9.57% | ||
| ROICexgc | 20.8% | ||
| OM | 10.42% | ||
| PM (TTM) | 5.99% | ||
| GM | 20% | ||
| FCFM | 5.39% |
ROA(3y)5.04%
ROA(5y)4.86%
ROE(3y)21.41%
ROE(5y)19.43%
ROIC(3y)9.33%
ROIC(5y)8.88%
ROICexc(3y)9.87%
ROICexc(5y)9.42%
ROICexgc(3y)23.63%
ROICexgc(5y)23.09%
ROCE(3y)11.29%
ROCE(5y)10.76%
ROICexcg growth 3Y-3.75%
ROICexcg growth 5Y7.52%
ROICexc growth 3Y-1.63%
ROICexc growth 5Y8.02%
OM growth 3Y-4.43%
OM growth 5Y-1.31%
PM growth 3Y-9.89%
PM growth 5Y3.23%
GM growth 3Y-2.18%
GM growth 5Y0.89%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 12.13 | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 90.48% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 4.87 | ||
| Cash Conversion | 62.54% | ||
| Profit Quality | 89.95% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.18 |
F-Score7
WACC4.72%
ROIC/WACC1.74
Cap/Depr(3y)85.59%
Cap/Depr(5y)79.92%
Cap/Sales(3y)3.6%
Cap/Sales(5y)3.53%
Profit Quality(3y)99.95%
Profit Quality(5y)113.35%
High Growth Momentum
Growth
EPS 1Y (TTM)4.08%
EPS 3Y-1.83%
EPS 5Y6.98%
EPS Q2Q%0%
EPS Next Y5.14%
EPS Next 2Y7.2%
EPS Next 3Y9.75%
EPS Next 5Y6.6%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y1.98%
Revenue growth 5Y7.6%
Sales Q2Q%-2.29%
Revenue Next Year6.34%
Revenue Next 2Y21.75%
Revenue Next 3Y20.03%
Revenue Next 5Y14.15%
EBIT growth 1Y9.27%
EBIT growth 3Y-2.54%
EBIT growth 5Y6.19%
EBIT Next Year35.79%
EBIT Next 3Y35.4%
EBIT Next 5Y22.05%
FCF growth 1Y10.69%
FCF growth 3Y-5.84%
FCF growth 5Y15.56%
OCF growth 1Y2.35%
OCF growth 3Y-3.3%
OCF growth 5Y12.46%