AMCOR PLC (AMCR) Stock Fundamental Analysis
NYSE:AMCR - New York Stock Exchange, Inc. - JE00BJ1F3079 - Common Stock - Currency: USD
AMCR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 23 industry peers in the Containers & Packaging industry. While AMCR has a great profitability rating, there are quite some concerns on its financial health. AMCR has a valuation in line with the averages, but it does not seem to be growing. Finally AMCR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AMCR was profitable.
AMCR had a positive operating cash flow in the past year.
AMCR had positive earnings in each of the past 5 years.
Each year in the past 5 years AMCR had a positive operating cash flow.
1.2 Ratios
AMCR has a Return On Assets of 4.92%. This is in the better half of the industry: AMCR outperforms 78.26% of its industry peers.
AMCR's Return On Equity of 21.04% is fine compared to the rest of the industry. AMCR outperforms 78.26% of its industry peers.
AMCR's Return On Invested Capital of 9.40% is fine compared to the rest of the industry. AMCR outperforms 78.26% of its industry peers.
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 7.71%.
The 3 year average ROIC (9.33%) for AMCR is below the current ROIC(9.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 21.04% | ||
| ROIC | 9.4% |
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
With a decent Profit Margin value of 5.88%, AMCR is doing good in the industry, outperforming 78.26% of the companies in the same industry.
AMCR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 10.30%, AMCR is doing good in the industry, outperforming 73.91% of the companies in the same industry.
AMCR's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 20.17%, AMCR perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
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 | 10.3% | ||
| PM (TTM) | 5.88% | ||
| GM | 20.17% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMCR is still creating some value.
The number of shares outstanding for AMCR has been reduced compared to 1 year ago.
The number of shares outstanding for AMCR has been reduced compared to 5 years ago.
The debt/assets ratio for AMCR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.92 indicates that AMCR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AMCR (1.92) is comparable to the rest of the industry.
The Debt to FCF ratio of AMCR is 9.11, which is on the high side as it means it would take AMCR, 9.11 years of fcf income to pay off all of its debts.
AMCR has a Debt to FCF ratio of 9.11. This is in the better half of the industry: AMCR outperforms 65.22% of its industry peers.
A Debt/Equity ratio of 1.83 is on the high side and indicates that AMCR has dependencies on debt financing.
AMCR has a Debt to Equity ratio of 1.83. This is in the lower half of the industry: AMCR underperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.26
WACC7.48%
2.3 Liquidity
AMCR has a Current Ratio of 1.26. 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 1.26, AMCR perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
AMCR has a Quick Ratio of 1.26. 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's Quick ratio of 0.71 is on the low side compared to the rest of the industry. AMCR is outperformed by 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
AMCR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.85%.
AMCR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.98% yearly.
AMCR shows a decrease in Revenue. In the last year, the revenue decreased by -3.52%.
The Revenue has been growing slightly by 7.60% on average over the past years.
EPS 1Y (TTM)4.85%
EPS 3Y-1.83%
EPS 5Y6.98%
EPS Q2Q%2.55%
Revenue 1Y (TTM)-3.52%
Revenue growth 3Y1.98%
Revenue growth 5Y7.6%
Sales Q2Q%-0.31%
3.2 Future
The Earnings Per Share is expected to grow by 3.51% on average over the next years.
AMCR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.43% yearly.
EPS Next Y6.06%
EPS Next 2Y7.87%
EPS Next 3Y8.22%
EPS Next 5Y3.51%
Revenue Next Year0.04%
Revenue Next 2Y4.91%
Revenue Next 3Y5.67%
Revenue Next 5Y1.43%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.03, the valuation of AMCR can be described as correct.
AMCR's Price/Earnings ratio is a bit cheaper when compared to the industry. AMCR is cheaper than 73.91% of the companies in the same industry.
AMCR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.13.
With a Price/Forward Earnings ratio of 11.29, the valuation of AMCR can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMCR indicates a somewhat cheap valuation: AMCR is cheaper than 65.22% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AMCR to the average of the S&P500 Index (21.03), we can say AMCR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMCR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMCR indicates a somewhat cheap valuation: AMCR is cheaper than 60.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.55 | ||
| EV/EBITDA | 10.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMCR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)1.87
EPS Next 2Y7.87%
EPS Next 3Y8.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.65%, AMCR is a good candidate for dividend investing.
AMCR's Dividend Yield is rather good when compared to the industry average which is at 3.66. AMCR pays more dividend than 91.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, AMCR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
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.
As AMCR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.43%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
AMCR pays out 91.33% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AMCR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP91.33%
EPS Next 2Y7.87%
EPS Next 3Y8.22%
9.25
-0.11 (-1.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners58.47%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner Change5.88%
Market Cap13.37B
Analysts78.57
Price Target11.57 (25.08%)
Short Float %9.08%
Short Ratio6.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
Yearly Dividend0.5
Dividend Growth(5Y)0.43%
DP91.33%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.9%
Min EPS beat(2)-2.86%
Max EPS beat(2)-0.93%
EPS beat(4)2
Avg EPS beat(4)1.1%
Min EPS beat(4)-2.86%
Max EPS beat(4)7.23%
EPS beat(8)5
Avg EPS beat(8)0.72%
EPS beat(12)8
Avg EPS beat(12)0.84%
EPS beat(16)10
Avg EPS beat(16)0.82%
Revenue beat(2)0
Avg Revenue beat(2)-5.47%
Min Revenue beat(2)-5.89%
Max Revenue beat(2)-5.04%
Revenue beat(4)0
Avg Revenue beat(4)-5.03%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)-4.4%
Revenue beat(8)0
Avg Revenue beat(8)-4.17%
Revenue beat(12)3
Avg Revenue beat(12)-2.03%
Revenue beat(16)6
Avg Revenue beat(16)-1.21%
PT rev (1m)-0.38%
PT rev (3m)4.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.29 | ||
| P/S | 0.99 | ||
| P/FCF | 17.55 | ||
| P/OCF | 10.68 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.08 |
EPS(TTM)0.71
EY7.68%
EPS(NY)0.82
Fwd EY8.86%
FCF(TTM)0.53
FCFY5.7%
OCF(TTM)0.87
OCFY9.36%
SpS9.37
BVpS2.62
TBVpS-1.94
PEG (NY)2.15
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 21.04% | ||
| ROCE | 11.37% | ||
| ROIC | 9.4% | ||
| ROICexc | 9.75% | ||
| ROICexgc | 21.83% | ||
| OM | 10.3% | ||
| PM (TTM) | 5.88% | ||
| GM | 20.17% | ||
| FCFM | 5.63% |
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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 9.11 | ||
| Debt/EBITDA | 3.53 | ||
| Cap/Depr | 86.42% | ||
| Cap/Sales | 3.62% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 63.81% | ||
| Profit Quality | 95.73% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.92 |
F-Score7
WACC7.48%
ROIC/WACC1.26
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)4.85%
EPS 3Y-1.83%
EPS 5Y6.98%
EPS Q2Q%2.55%
EPS Next Y6.06%
EPS Next 2Y7.87%
EPS Next 3Y8.22%
EPS Next 5Y3.51%
Revenue 1Y (TTM)-3.52%
Revenue growth 3Y1.98%
Revenue growth 5Y7.6%
Sales Q2Q%-0.31%
Revenue Next Year0.04%
Revenue Next 2Y4.91%
Revenue Next 3Y5.67%
Revenue Next 5Y1.43%
EBIT growth 1Y9.07%
EBIT growth 3Y-2.54%
EBIT growth 5Y6.19%
EBIT Next Year26.92%
EBIT Next 3Y15.8%
EBIT Next 5Y8.35%
FCF growth 1Y1.46%
FCF growth 3Y-5.84%
FCF growth 5Y15.56%
OCF growth 1Y-1.65%
OCF growth 3Y-3.3%
OCF growth 5Y12.46%