APTARGROUP INC (ATR) Stock Fundamental Analysis
NYSE:ATR - New York Stock Exchange, Inc. - US0383361039 - Common Stock - Currency: USD
ATR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 24 industry peers in the Containers & Packaging industry. ATR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ATR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATR was profitable.
In the past year ATR had a positive cash flow from operations.
ATR had positive earnings in each of the past 5 years.
ATR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.45%, ATR belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.15%, ATR is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.19%, ATR belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATR is above the industry average of 7.64%.
The last Return On Invested Capital (11.19%) for ATR is above the 3 year average (10.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 15.15% | ||
| ROIC | 11.19% |
ROA(3y)6.84%
ROA(5y)6.36%
ROE(3y)13.05%
ROE(5y)12.62%
ROIC(3y)10.32%
ROIC(5y)9.7%
1.3 Margins
ATR has a Profit Margin of 10.45%. This is amongst the best in the industry. ATR outperforms 95.65% of its industry peers.
ATR's Profit Margin has improved in the last couple of years.
The Operating Margin of ATR (14.22%) is better than 95.65% of its industry peers.
In the last couple of years the Operating Margin of ATR has remained more or less at the same level.
With an excellent Gross Margin value of 37.83%, ATR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ATR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.22% | ||
| PM (TTM) | 10.45% | ||
| GM | 37.83% |
OM growth 3Y7.03%
OM growth 5Y0.47%
PM growth 3Y11.39%
PM growth 5Y4.3%
GM growth 3Y1.82%
GM growth 5Y0.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATR is still creating some value.
Compared to 1 year ago, ATR has more shares outstanding
The number of shares outstanding for ATR has been increased compared to 5 years ago.
Compared to 1 year ago, ATR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.03 indicates that ATR is not in any danger for bankruptcy at the moment.
The Altman-Z score of ATR (5.03) is better than 100.00% of its industry peers.
ATR has a debt to FCF ratio of 2.94. This is a good value and a sign of high solvency as ATR would need 2.94 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.94, ATR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ATR has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
ATR has a Debt to Equity ratio of 0.35. This is amongst the best in the industry. ATR outperforms 95.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.34
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.38 indicates that ATR should not have too much problems paying its short term obligations.
The Current ratio of ATR (1.38) is comparable to the rest of the industry.
A Quick Ratio of 0.95 indicates that ATR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, ATR is in line with its industry, outperforming 47.83% of the companies in the same industry.
The current and quick ratio evaluation for ATR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
ATR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.99%, which is quite good.
Measured over the past 5 years, ATR shows a small growth in Earnings Per Share. The EPS has been growing by 7.38% on average per year.
The Revenue has been growing slightly by 2.74% in the past year.
The Revenue has been growing slightly by 4.61% on average over the past years.
EPS 1Y (TTM)17.99%
EPS 3Y13.38%
EPS 5Y7.38%
EPS Q2Q%25.62%
Revenue 1Y (TTM)2.74%
Revenue growth 3Y3.55%
Revenue growth 5Y4.61%
Sales Q2Q%1.15%
3.2 Future
ATR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.22% yearly.
ATR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.87% yearly.
EPS Next Y-0.07%
EPS Next 2Y5.23%
EPS Next 3Y7.54%
EPS Next 5Y7.22%
Revenue Next Year1.66%
Revenue Next 2Y3.58%
Revenue Next 3Y5%
Revenue Next 5Y6.87%
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.
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
Based on the Price/Earnings ratio of 25.99, the valuation of ATR can be described as expensive.
73.91% of the companies in the same industry are cheaper than ATR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ATR to the average of the S&P500 Index (29.75), we can say ATR is valued inline with the index average.
A Price/Forward Earnings ratio of 26.01 indicates a quite expensive valuation of ATR.
ATR's Price/Forward Earnings ratio is rather expensive when compared to the industry. ATR is more expensive than 82.61% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. ATR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.99 | ||
| Fwd PE | 26.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATR is valued a bit more expensive than 78.26% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.91 | ||
| EV/EBITDA | 13.42 |
4.3 Compensation for Growth
ATR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.52
EPS Next 2Y5.23%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
ATR has a Yearly Dividend Yield of 1.24%.
Compared to an average industry Dividend Yield of 3.19, ATR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.30, ATR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of ATR has a limited annual growth rate of 3.89%.
ATR has paid a dividend for at least 10 years, which is a reliable track record.
ATR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.89%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
30.45% of the earnings are spent on dividend by ATR. This is a low number and sustainable payout ratio.
ATR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.45%
EPS Next 2Y5.23%
EPS Next 3Y7.54%
146.59
-0.16 (-0.11%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners92.74%
Inst Owner Change2.31%
Ins Owners0.49%
Ins Owner Change-0.23%
Market Cap9.75B
Analysts85.45
Price Target175.61 (19.8%)
Short Float %0.8%
Short Ratio1.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend1.72
Dividend Growth(5Y)3.89%
DP30.45%
Div Incr Years31
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.35%
Min EPS beat(2)3.89%
Max EPS beat(2)18.81%
EPS beat(4)3
Avg EPS beat(4)7.86%
Min EPS beat(4)-0.12%
Max EPS beat(4)18.81%
EPS beat(8)7
Avg EPS beat(8)7.29%
EPS beat(12)9
Avg EPS beat(12)6.03%
EPS beat(16)11
Avg EPS beat(16)5.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.39%
Max Revenue beat(2)-1.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)1.8%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.44%
Revenue beat(16)8
Avg Revenue beat(16)0.04%
PT rev (1m)-5.06%
PT rev (3m)-5.51%
EPS NQ rev (1m)-9.95%
EPS NQ rev (3m)-13.15%
EPS NY rev (1m)-4.29%
EPS NY rev (3m)-5.9%
Revenue NQ rev (1m)-3.75%
Revenue NQ rev (3m)-5.12%
Revenue NY rev (1m)-2.75%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.99 | ||
| Fwd PE | 26.01 | ||
| P/S | 2.72 | ||
| P/FCF | 27.91 | ||
| P/OCF | 15.15 | ||
| P/B | 3.94 | ||
| P/tB | 7.61 | ||
| EV/EBITDA | 13.42 |
EPS(TTM)5.64
EY3.85%
EPS(NY)5.64
Fwd EY3.84%
FCF(TTM)5.25
FCFY3.58%
OCF(TTM)9.68
OCFY6.6%
SpS53.88
BVpS37.17
TBVpS19.26
PEG (NY)N/A
PEG (5Y)3.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 15.15% | ||
| ROCE | 15.15% | ||
| ROIC | 11.19% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 18.66% | ||
| OM | 14.22% | ||
| PM (TTM) | 10.45% | ||
| GM | 37.83% | ||
| FCFM | 9.75% |
ROA(3y)6.84%
ROA(5y)6.36%
ROE(3y)13.05%
ROE(5y)12.62%
ROIC(3y)10.32%
ROIC(5y)9.7%
ROICexc(3y)10.97%
ROICexc(5y)10.33%
ROICexgc(3y)17.95%
ROICexgc(5y)17.23%
ROCE(3y)13.65%
ROCE(5y)12.84%
ROICexcg growth 3Y5.78%
ROICexcg growth 5Y-0.35%
ROICexc growth 3Y9.34%
ROICexc growth 5Y0.75%
OM growth 3Y7.03%
OM growth 5Y0.47%
PM growth 3Y11.39%
PM growth 5Y4.3%
GM growth 3Y1.82%
GM growth 5Y0.74%
F-Score8
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 111.53% | ||
| Cap/Sales | 8.21% | ||
| Interest Coverage | 11.71 | ||
| Cash Conversion | 83.19% | ||
| Profit Quality | 93.24% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 5.03 |
F-Score8
WACC8.35%
ROIC/WACC1.34
Cap/Depr(3y)124.89%
Cap/Depr(5y)124.02%
Cap/Sales(3y)8.95%
Cap/Sales(5y)9%
Profit Quality(3y)83.88%
Profit Quality(5y)84.61%
High Growth Momentum
Growth
EPS 1Y (TTM)17.99%
EPS 3Y13.38%
EPS 5Y7.38%
EPS Q2Q%25.62%
EPS Next Y-0.07%
EPS Next 2Y5.23%
EPS Next 3Y7.54%
EPS Next 5Y7.22%
Revenue 1Y (TTM)2.74%
Revenue growth 3Y3.55%
Revenue growth 5Y4.61%
Sales Q2Q%1.15%
Revenue Next Year1.66%
Revenue Next 2Y3.58%
Revenue Next 3Y5%
Revenue Next 5Y6.87%
EBIT growth 1Y13.45%
EBIT growth 3Y10.83%
EBIT growth 5Y5.11%
EBIT Next Year66.72%
EBIT Next 3Y24.9%
EBIT Next 5Y20.74%
FCF growth 1Y35.97%
FCF growth 3Y84.62%
FCF growth 5Y5.48%
OCF growth 1Y11.85%
OCF growth 3Y20.98%
OCF growth 5Y4.57%