AMCOR PLC (AMCR) Stock Fundamental Analysis
NYSE:AMCR - New York Stock Exchange, Inc. - JE00BJ1F3079 - Common Stock - Currency: USD
Taking everything into account, AMCR scores 5 out of 10 in our fundamental rating. AMCR was compared to 24 industry peers in the Containers & Packaging industry. AMCR has an excellent profitability rating, but there are concerns on its financial health. AMCR has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
Each year in the past 5 years AMCR has been profitable.
Each year in the past 5 years AMCR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.92%, AMCR is doing good in the industry, outperforming 78.26% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.04%, AMCR is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for AMCR is in line with the industry average of 7.64%.
The last Return On Invested Capital (9.40%) for AMCR is above the 3 year average (9.33%), which is a sign of increasing profitability.
| 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
AMCR has a Profit Margin of 5.88%. This is in the better half of the industry: AMCR outperforms 78.26% of its industry peers.
In the last couple of years the Profit Margin of AMCR has grown nicely.
AMCR has a Operating Margin of 10.30%. This is in the better half of the industry: AMCR outperforms 69.57% of its industry peers.
In the last couple of years the Operating Margin of AMCR has remained more or less at the same level.
AMCR has a Gross Margin (20.17%) which is comparable to the rest of the 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
AMCR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AMCR has less shares outstanding than it did 1 year ago.
AMCR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AMCR is higher compared to a year ago.
2.2 Solvency
AMCR has an Altman-Z score of 1.98. 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 has a Altman-Z score of 1.98. This is comparable to the rest of the industry: AMCR outperforms 56.52% of its industry peers.
AMCR has a debt to FCF ratio of 9.11. This is a negative value and a sign of low solvency as AMCR would need 9.11 years to pay back of all of its debts.
AMCR's Debt to FCF ratio of 9.11 is fine compared to the rest of the industry. AMCR outperforms 65.22% of its industry peers.
AMCR has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.83, AMCR is doing worse than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.22
WACC7.68%
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 is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
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.
The Quick ratio of AMCR (0.71) is worse than 78.26% 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%.
Measured over the past 5 years, AMCR shows a small growth in Earnings Per Share. The EPS has been growing by 6.98% on average per year.
Looking at the last year, AMCR shows a decrease in Revenue. The Revenue has decreased by -3.52% in the last year.
Measured over the past years, AMCR shows a small growth in Revenue. The Revenue has been growing by 7.60% on average per year.
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
AMCR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.51% yearly.
AMCR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.41% yearly.
EPS Next Y5.94%
EPS Next 2Y8.05%
EPS Next 3Y8.69%
EPS Next 5Y3.51%
Revenue Next Year-0.14%
Revenue Next 2Y5.64%
Revenue Next 3Y7.36%
Revenue Next 5Y1.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
AMCR is valuated correctly with a Price/Earnings ratio of 14.27.
Based on the Price/Earnings ratio, AMCR is valued a bit cheaper than 69.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. AMCR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.33, the valuation of AMCR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMCR indicates a somewhat cheap valuation: AMCR is cheaper than 60.87% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, AMCR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
AMCR's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 19.21 | ||
| EV/EBITDA | 10.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AMCR may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)2.04
EPS Next 2Y8.05%
EPS Next 3Y8.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.07%, AMCR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.19, AMCR pays a better dividend. On top of this AMCR pays more dividend than 91.30% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
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
91.33% 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.
DP91.33%
EPS Next 2Y8.05%
EPS Next 3Y8.69%
10.13
+0.01 (+0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners58.47%
Inst Owner Change7.25%
Ins Owners0.21%
Ins Owner Change5.35%
Market Cap14.64B
Analysts77.33
Price Target11.61 (14.61%)
Short Float %6.86%
Short Ratio5.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
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)0.44%
PT rev (3m)5.3%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 12.33 | ||
| P/S | 1.08 | ||
| P/FCF | 19.21 | ||
| P/OCF | 11.69 | ||
| P/B | 3.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.72 |
EPS(TTM)0.71
EY7.01%
EPS(NY)0.82
Fwd EY8.11%
FCF(TTM)0.53
FCFY5.2%
OCF(TTM)0.87
OCFY8.55%
SpS9.37
BVpS2.62
TBVpS-1.94
PEG (NY)2.4
PEG (5Y)2.04
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 | 1.98 |
F-Score7
WACC7.68%
ROIC/WACC1.22
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 Y5.94%
EPS Next 2Y8.05%
EPS Next 3Y8.69%
EPS Next 5Y3.51%
Revenue 1Y (TTM)-3.52%
Revenue growth 3Y1.98%
Revenue growth 5Y7.6%
Sales Q2Q%-0.31%
Revenue Next Year-0.14%
Revenue Next 2Y5.64%
Revenue Next 3Y7.36%
Revenue Next 5Y1.41%
EBIT growth 1Y9.07%
EBIT growth 3Y-2.54%
EBIT growth 5Y6.19%
EBIT Next Year30.69%
EBIT Next 3Y11.82%
EBIT Next 5Y7.77%
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%