APTARGROUP INC (ATR) Stock Fundamental Analysis
NYSE:ATR - New York Stock Exchange, Inc. - US0383361039 - Common Stock - Currency: USD
Overall ATR gets a fundamental rating of 6 out of 10. We evaluated ATR against 22 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. While showing a medium growth rate, ATR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ATR had positive earnings in the past year.
ATR had a positive operating cash flow in the past year.
In the past 5 years ATR has always been profitable.
ATR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ATR (8.18%) is better than 90.91% of its industry peers.
ATR has a better Return On Equity (14.59%) than 72.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.39%, ATR belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
ATR had an Average Return On Invested Capital over the past 3 years of 10.32%. This is above the industry average of 7.58%.
The 3 year average ROIC (10.32%) for ATR is below the current ROIC(11.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.18% | ||
| ROE | 14.59% | ||
| ROIC | 11.39% |
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 10.42%. This is amongst the best in the industry. ATR outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of ATR has grown nicely.
ATR's Operating Margin of 14.33% is amongst the best of the industry. ATR outperforms 90.91% of its industry peers.
ATR's Operating Margin has been stable in the last couple of years.
ATR's Gross Margin of 38.24% is amongst the best of the industry. ATR outperforms 100.00% of its industry peers.
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 | 14.33% | ||
| PM (TTM) | 10.42% | ||
| GM | 38.24% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ATR is creating some value.
Compared to 1 year ago, ATR has more shares outstanding
Compared to 5 years ago, ATR has more shares outstanding
Compared to 1 year ago, ATR has an improved debt to assets ratio.
2.2 Solvency
ATR has an Altman-Z score of 5.10. This indicates that ATR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.10, ATR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of ATR is 2.83, which is a good value as it means it would take ATR, 2.83 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.83, ATR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ATR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.28, ATR belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 5.1 |
ROIC/WACC1.36
WACC8.38%
2.3 Liquidity
ATR has a Current Ratio of 1.25. This is a normal value and indicates that ATR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.25, ATR is in line with its industry, outperforming 45.45% of the companies in the same industry.
ATR has a Quick Ratio of 1.25. This is a bad value and indicates that ATR is not financially healthy enough and could expect problems in meeting its short term obligations.
ATR has a Quick ratio of 0.85. This is comparable to the rest of the industry: ATR outperforms 50.00% of its industry peers.
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 | 1.25 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
ATR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.63%, which is quite good.
The Earnings Per Share has been growing slightly by 7.38% on average over the past years.
Looking at the last year, ATR shows a small growth in Revenue. The Revenue has grown by 0.34% in the last year.
Measured over the past years, ATR shows a small growth in Revenue. The Revenue has been growing by 4.61% on average per year.
EPS 1Y (TTM)9.63%
EPS 3Y13.38%
EPS 5Y7.38%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y3.55%
Revenue growth 5Y4.61%
Sales Q2Q%-3.07%
3.2 Future
ATR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.71% yearly.
Based on estimates for the next years, ATR will show a small growth in Revenue. The Revenue will grow by 6.17% on average per year.
EPS Next Y5.66%
EPS Next 2Y7.68%
EPS Next 3Y9.33%
EPS Next 5Y5.71%
Revenue Next Year3.09%
Revenue Next 2Y4.16%
Revenue Next 3Y4.96%
Revenue Next 5Y6.17%
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 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 28.50, which means the current valuation is very expensive for ATR.
Compared to the rest of the industry, the Price/Earnings ratio of ATR indicates a slightly more expensive valuation: ATR is more expensive than 77.27% of the companies listed in the same industry.
ATR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.31, which indicates a rather expensive current valuation of ATR.
Based on the Price/Forward Earnings ratio, ATR is valued a bit more expensive than 77.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. ATR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 24.31 |
4.2 Price Multiples
ATR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ATR is more expensive than 72.73% of the companies in the same industry.
63.64% of the companies in the same industry are more expensive than ATR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.5 | ||
| EV/EBITDA | 14.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ATR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ATR may justify a higher PE ratio.
PEG (NY)5.04
PEG (5Y)3.86
EPS Next 2Y7.68%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
ATR has a Yearly Dividend Yield of 1.17%.
ATR's Dividend Yield is slightly below the industry average, which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.42, ATR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.89%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
ATR pays out 31.58% of its income as dividend. This is a sustainable payout ratio.
The dividend of ATR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.58%
EPS Next 2Y7.68%
EPS Next 3Y9.33%
159.01
+2.58 (+1.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners95.92%
Inst Owner Change1.67%
Ins Owners0.8%
Ins Owner Change3.36%
Market Cap10.50B
Analysts85.45
Price Target173.57 (9.16%)
Short Float %1.34%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.72
Dividend Growth(5Y)3.89%
DP31.58%
Div Incr Years31
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.84%
Min EPS beat(2)2.87%
Max EPS beat(2)18.81%
EPS beat(4)3
Avg EPS beat(4)6.36%
Min EPS beat(4)-0.12%
Max EPS beat(4)18.81%
EPS beat(8)7
Avg EPS beat(8)7.12%
EPS beat(12)10
Avg EPS beat(12)6.34%
EPS beat(16)11
Avg EPS beat(16)4.3%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.65%
Revenue beat(12)4
Avg Revenue beat(12)-0.83%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)0%
PT rev (3m)-1.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.76%
EPS NY rev (1m)0%
EPS NY rev (3m)5.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 24.31 | ||
| P/S | 2.95 | ||
| P/FCF | 29.5 | ||
| P/OCF | 16.57 | ||
| P/B | 4.14 | ||
| P/tB | 7.88 | ||
| EV/EBITDA | 14.24 |
EPS(TTM)5.58
EY3.51%
EPS(NY)6.54
Fwd EY4.11%
FCF(TTM)5.39
FCFY3.39%
OCF(TTM)9.6
OCFY6.04%
SpS53.83
BVpS38.42
TBVpS20.19
PEG (NY)5.04
PEG (5Y)3.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.18% | ||
| ROE | 14.59% | ||
| ROCE | 15.35% | ||
| ROIC | 11.39% | ||
| ROICexc | 11.85% | ||
| ROICexgc | 18.53% | ||
| OM | 14.33% | ||
| PM (TTM) | 10.42% | ||
| GM | 38.24% | ||
| FCFM | 10.01% |
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-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.83 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 104.82% | ||
| Cap/Sales | 7.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.82% | ||
| Profit Quality | 96.14% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 5.1 |
F-Score7
WACC8.38%
ROIC/WACC1.36
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)9.63%
EPS 3Y13.38%
EPS 5Y7.38%
EPS Q2Q%-4.76%
EPS Next Y5.66%
EPS Next 2Y7.68%
EPS Next 3Y9.33%
EPS Next 5Y5.71%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y3.55%
Revenue growth 5Y4.61%
Sales Q2Q%-3.07%
Revenue Next Year3.09%
Revenue Next 2Y4.16%
Revenue Next 3Y4.96%
Revenue Next 5Y6.17%
EBIT growth 1Y8.56%
EBIT growth 3Y10.83%
EBIT growth 5Y5.11%
EBIT Next Year68.05%
EBIT Next 3Y24.9%
EBIT Next 5Y17.05%
FCF growth 1Y117.31%
FCF growth 3Y84.62%
FCF growth 5Y5.48%
OCF growth 1Y30.74%
OCF growth 3Y20.98%
OCF growth 5Y4.57%