AMCOR PLC (AMCR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMCR - JE00BJ1F3079 - Common Stock
44.72 USD
+0.19 (+0.43%)
44.82 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 is not valued too expensively and it also shows 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.
- In the past 5 years AMCR has always been profitable.
- Each year in the past 5 years AMCR had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AMCR (1.57%) is worse than 63.64% of its industry peers.
- 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.
- 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
- AMCR's Profit Margin of 3.34% is in line compared 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.
- Looking at the Gross Margin, with a value of 18.96%, AMCR is doing worse than 77.27% 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 | 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.
- Compared to 1 year ago, AMCR has more shares outstanding
- The number of shares outstanding for AMCR has been increased compared to 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 3.06 indicates that AMCR is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.06, AMCR belongs to the best 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.
- With a Debt to FCF ratio value of 17.38, AMCR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.10 is on the high side and indicates that AMCR has dependencies on debt 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 | 3.06 |
ROIC/WACC0.9
WACC4.74%
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.
- A Quick Ratio of 0.62 indicates that AMCR may have some problems paying its short term obligations.
- The Quick ratio of AMCR (0.62) is worse than 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.
- Looking at the last year, AMCR shows a very strong growth in Revenue. 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
- The Earnings Per Share is expected to decrease by -14.26% on average over the next years. This is quite bad
- 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 14.76.
- Based on the Price/Earnings ratio, AMCR is valued a bit cheaper than 72.73% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. AMCR is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 9.84 indicates a reasonable valuation of AMCR.
- Based on the Price/Forward Earnings ratio, AMCR is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
- AMCR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMCR indicates a rather expensive valuation: AMCR more expensive than 81.82% of the companies listed 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 | 121.02 | ||
| EV/EBITDA | 47.08 |
4.3 Compensation for Growth
- AMCR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as AMCR's earnings are expected to grow with 29.63% in the coming years.
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.
- AMCR's Dividend Yield is rather good when compared to the industry average which is at 2.38. 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 | 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.
- AMCR's earnings and Dividend Rate are 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.