AMCOR PLC (AMCR) Stock Fundamental Analysis
NYSE:AMCR - New York Stock Exchange, Inc. - JE00BJ1F3079 - Common Stock - Currency: USD
Overall AMCR gets a fundamental rating of 6 out of 10. We evaluated AMCR against 22 industry peers in the Containers & Packaging industry. While AMCR has a great profitability rating, there are some minor concerns on its financial health. AMCR has a correct valuation and a medium growth rate. Finally AMCR also has an excellent dividend rating. These ratings could make AMCR a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year AMCR was profitable.
In the past year AMCR had a positive cash flow from operations.
Each year in the past 5 years AMCR has been profitable.
AMCR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMCR has a Return On Assets of 4.47%. This is amongst the best in the industry. AMCR outperforms 81.82% of its industry peers.
With an excellent Return On Equity value of 20.93%, AMCR belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.20%, AMCR is doing good in the industry, outperforming 77.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMCR is in line with the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 20.93% | ||
| ROIC | 8.2% |
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 better Profit Margin (5.99%) than 81.82% of its industry peers.
In the last couple of years the Profit Margin of AMCR has grown nicely.
AMCR has a Operating Margin of 10.42%. This is in the better half of the industry: AMCR outperforms 63.64% of its industry peers.
AMCR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 20.00%, AMCR is doing worse than 68.18% 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 | 10.42% | ||
| PM (TTM) | 5.99% | ||
| GM | 20% |
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 well above the Cost of Capital (WACC), which means it is creating value.
AMCR has less shares outstanding than it did 1 year ago.
AMCR has less shares outstanding than it did 5 years ago.
AMCR has a worse debt/assets ratio than last year.
2.2 Solvency
AMCR has an Altman-Z score of 2.14. 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.
The Altman-Z score of AMCR (2.14) is better than 72.73% of its industry peers.
The Debt to FCF ratio of AMCR is 12.13, which is on the high side as it means it would take AMCR, 12.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AMCR (12.13) is better than 72.73% of its industry peers.
A Debt/Equity ratio of 2.28 is on the high side and indicates that AMCR has dependencies on debt financing.
AMCR's Debt to Equity ratio of 2.28 is on the low side compared to the rest of the industry. AMCR is outperformed by 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 12.13 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.72
WACC4.77%
2.3 Liquidity
A Current Ratio of 1.70 indicates that AMCR should not have too much problems paying its short term obligations.
AMCR's Current ratio of 1.70 is fine compared to the rest of the industry. AMCR outperforms 72.73% of its industry peers.
A Quick Ratio of 1.16 indicates that AMCR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.16, AMCR belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.08% over the past year.
AMCR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.98% yearly.
AMCR shows a decrease in Revenue. In the last year, the revenue decreased by -2.29%.
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)4.08%
EPS 3Y-1.83%
EPS 5Y6.98%
EPS Q2Q%0%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y1.98%
Revenue growth 5Y7.6%
Sales Q2Q%-2.29%
3.2 Future
AMCR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.60% yearly.
AMCR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.15% yearly.
EPS Next Y5.4%
EPS Next 2Y6.97%
EPS Next 3Y9.28%
EPS Next 5Y6.6%
Revenue Next Year6.34%
Revenue Next 2Y21.75%
Revenue Next 3Y20.03%
Revenue Next 5Y14.15%
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 12.93, the valuation of AMCR can be described as correct.
Based on the Price/Earnings ratio, AMCR is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AMCR to the average of the S&P500 Index (26.53), we can say AMCR is valued rather cheaply.
The Price/Forward Earnings ratio is 11.40, which indicates a very decent valuation of AMCR.
Based on the Price/Forward Earnings ratio, AMCR is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
AMCR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMCR is valued a bit more expensive than 72.73% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AMCR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.19 | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMCR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)1.85
EPS Next 2Y6.97%
EPS Next 3Y9.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.64%, AMCR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.13, AMCR pays a better dividend. On top of this AMCR pays more dividend than 95.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, AMCR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
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
90.57% 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.
DP90.57%
EPS Next 2Y6.97%
EPS Next 3Y9.28%
9.18
+0.07 (+0.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners58.47%
Inst Owner Change17.02%
Ins Owners0.21%
Ins Owner Change20.65%
Market Cap21.16B
Analysts78.57
Price Target11.72 (27.67%)
Short Float %3.91%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
Yearly Dividend0.5
Dividend Growth(5Y)0.43%
DP90.57%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.83%
Min EPS beat(2)-2.73%
Max EPS beat(2)-0.93%
EPS beat(4)1
Avg EPS beat(4)-1.39%
Min EPS beat(4)-2.86%
Max EPS beat(4)0.98%
EPS beat(8)5
Avg EPS beat(8)1.18%
EPS beat(12)7
Avg EPS beat(12)0.52%
EPS beat(16)9
Avg EPS beat(16)0.52%
Revenue beat(2)0
Avg Revenue beat(2)-5.18%
Min Revenue beat(2)-5.31%
Max Revenue beat(2)-5.04%
Revenue beat(4)0
Avg Revenue beat(4)-5.26%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)-4.79%
Revenue beat(8)0
Avg Revenue beat(8)-4.62%
Revenue beat(12)2
Avg Revenue beat(12)-2.95%
Revenue beat(16)6
Avg Revenue beat(16)-1.34%
PT rev (1m)0.1%
PT rev (3m)0.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)1.98%
Revenue NQ rev (3m)19.53%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 11.4 | ||
| P/S | 1.57 | ||
| P/FCF | 29.19 | ||
| P/OCF | 17.36 | ||
| P/B | 5.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.16 |
EPS(TTM)0.71
EY7.73%
EPS(NY)0.81
Fwd EY8.78%
FCF(TTM)0.31
FCFY3.43%
OCF(TTM)0.53
OCFY5.76%
SpS5.84
BVpS1.67
TBVpS-1.19
PEG (NY)2.39
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 20.93% | ||
| ROCE | 9.95% | ||
| ROIC | 8.2% | ||
| ROICexc | 9.57% | ||
| ROICexgc | 20.8% | ||
| OM | 10.42% | ||
| PM (TTM) | 5.99% | ||
| GM | 20% | ||
| FCFM | 5.39% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 12.13 | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 90.48% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 4.87 | ||
| Cash Conversion | 62.54% | ||
| Profit Quality | 89.95% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.14 |
F-Score7
WACC4.77%
ROIC/WACC1.72
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)4.08%
EPS 3Y-1.83%
EPS 5Y6.98%
EPS Q2Q%0%
EPS Next Y5.4%
EPS Next 2Y6.97%
EPS Next 3Y9.28%
EPS Next 5Y6.6%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y1.98%
Revenue growth 5Y7.6%
Sales Q2Q%-2.29%
Revenue Next Year6.34%
Revenue Next 2Y21.75%
Revenue Next 3Y20.03%
Revenue Next 5Y14.15%
EBIT growth 1Y9.27%
EBIT growth 3Y-2.54%
EBIT growth 5Y6.19%
EBIT Next Year35.79%
EBIT Next 3Y35.4%
EBIT Next 5Y22.05%
FCF growth 1Y10.69%
FCF growth 3Y-5.84%
FCF growth 5Y15.56%
OCF growth 1Y2.35%
OCF growth 3Y-3.3%
OCF growth 5Y12.46%