APTARGROUP INC (ATR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATR - US0383361039 - Common Stock
126 USD
+1.53 (+1.23%)
126 USD
0 (0%)
Taking everything into account, ATR scores 6 out of 10 in our fundamental rating. ATR was compared to 22 industry peers in the Containers & Packaging industry. ATR gets an excellent profitability rating and is at the same time showing great financial health properties. ATR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- ATR had positive earnings in the past year.
- In the past year ATR had a positive cash flow from operations.
- In the past 5 years ATR has always been profitable.
- Each year in the past 5 years ATR had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.22%, ATR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- ATR's Return On Equity of 15.14% is fine compared to the rest of the industry. ATR outperforms 72.73% of its industry peers.
- ATR has a Return On Invested Capital of 10.30%. This is amongst the best in the industry. ATR outperforms 90.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ATR is above the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.22% | ||
| ROE | 15.14% | ||
| ROIC | 10.3% |
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 11.45%. This is amongst the best in the industry. ATR outperforms 100.00% of its industry peers.
- ATR's Profit Margin has improved in the last couple of years.
- ATR has a Operating Margin of 14.37%. This is amongst the best in the industry. ATR outperforms 90.91% of its industry peers.
- ATR's Operating Margin has been stable in the last couple of years.
- ATR has a better Gross Margin (38.11%) than 95.45% of its industry peers.
- ATR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.37% | ||
| PM (TTM) | 11.45% | ||
| GM | 38.11% |
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.
- The number of shares outstanding for ATR has been increased compared to 1 year ago.
- The number of shares outstanding for ATR has been increased compared to 5 years ago.
- ATR has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.97 indicates that ATR is not in any danger for bankruptcy at the moment.
- ATR has a Altman-Z score of 3.97. This is amongst the best in the industry. ATR outperforms 95.45% of its industry peers.
- The Debt to FCF ratio of ATR is 3.92, which is a good value as it means it would take ATR, 3.92 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.92, ATR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.33 indicates that ATR is not too dependend on debt financing.
- ATR's Debt to Equity ratio of 0.33 is amongst the best of the industry. ATR outperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 3.97 |
ROIC/WACC1.2
WACC8.62%
2.3 Liquidity
- ATR has a Current Ratio of 1.19. 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 1.19, ATR is doing worse than 72.73% of the companies in the same industry.
- A Quick Ratio of 0.82 indicates that ATR may have some problems paying its short term obligations.
- ATR has a Quick ratio of 0.82. This is in the lower half of the industry: ATR underperforms 68.18% 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 | 1.19 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
- ATR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.57%, which is quite good.
- ATR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.38% yearly.
- Looking at the last year, ATR shows a small growth in Revenue. The Revenue has grown by 2.50% in the last year.
- The Revenue has been growing slightly by 4.61% on average over the past years.
EPS 1Y (TTM)12.57%
EPS 3Y13.38%
EPS 5Y7.38%
EPS Q2Q%8.72%
Revenue 1Y (TTM)2.5%
Revenue growth 3Y3.55%
Revenue growth 5Y4.61%
Sales Q2Q%5.7%
3.2 Future
- ATR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.89% yearly.
- ATR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.61% yearly.
EPS Next Y2.3%
EPS Next 2Y0.15%
EPS Next 3Y4.52%
EPS Next 5Y4.89%
Revenue Next Year2.79%
Revenue Next 2Y3%
Revenue Next 3Y3.94%
Revenue Next 5Y5.61%
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 21.00, which indicates a rather expensive current valuation of ATR.
- ATR's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. ATR is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 22.27 indicates a rather expensive valuation of ATR.
- ATR's Price/Forward Earnings 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.
- When comparing the Price/Forward Earnings ratio of ATR to the average of the S&P500 Index (25.98), we can say ATR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 22.27 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATR is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, ATR is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.96 | ||
| EV/EBITDA | 10.98 |
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 excellent profitability rating of ATR may justify a higher PE ratio.
PEG (NY)9.14
PEG (5Y)2.84
EPS Next 2Y0.15%
EPS Next 3Y4.52%
5. Dividend
5.1 Amount
- ATR has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.38, ATR has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, ATR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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
- 28.45% 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.
DP28.45%
EPS Next 2Y0.15%
EPS Next 3Y4.52%
APTARGROUP INC / ATR FAQ
Can you provide the ChartMill fundamental rating for APTARGROUP INC?
ChartMill assigns a fundamental rating of 6 / 10 to ATR.
What is the valuation status for ATR stock?
ChartMill assigns a valuation rating of 3 / 10 to APTARGROUP INC (ATR). This can be considered as Overvalued.
How profitable is APTARGROUP INC (ATR) stock?
APTARGROUP INC (ATR) has a profitability rating of 8 / 10.
What is the valuation of APTARGROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for APTARGROUP INC (ATR) is 21 and the Price/Book (PB) ratio is 2.99.
Can you provide the expected EPS growth for ATR stock?
The Earnings per Share (EPS) of APTARGROUP INC (ATR) is expected to grow by 2.3% in the next year.