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 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. ATR is quite expensive at the moment. 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.
Each year in the past 5 years ATR had a positive operating cash flow.
1.2 Ratios
ATR has a better Return On Assets (8.18%) than 90.91% of its industry peers.
The Return On Equity of ATR (14.59%) is better than 72.73% of its industry peers.
ATR's Return On Invested Capital of 11.39% is amongst the best of the industry. ATR outperforms 86.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATR is above the industry average of 7.52%.
The last Return On Invested Capital (11.39%) for ATR is above the 3 year average (10.32%), which is a sign of increasing profitability.
| 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's Profit Margin of 10.42% is amongst the best of the industry. ATR outperforms 100.00% of its industry peers.
ATR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.33%, ATR belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
ATR's Operating Margin has been stable in the last couple of years.
ATR has a better Gross Margin (38.24%) than 100.00% of its industry peers.
ATR's Gross Margin has been stable in the last couple of years.
| 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
ATR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATR has an improved debt to assets ratio.
2.2 Solvency
ATR has an Altman-Z score of 5.21. This indicates that ATR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ATR (5.21) is better than 100.00% of its industry peers.
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.
ATR has a Debt to FCF ratio of 2.83. This is amongst the best in the industry. ATR outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that ATR is not too dependend on debt financing.
ATR has a better Debt to Equity ratio (0.28) than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 5.21 |
ROIC/WACC1.34
WACC8.49%
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.
With a Current ratio value of 1.25, ATR perfoms like the industry average, 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.
With a Quick ratio value of 0.85, ATR perfoms like the industry average, outperforming 50.00% 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 | 1.25 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.63% over the past year.
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.
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
Based on estimates for the next years, ATR will show a small growth in Earnings Per Share. The EPS will grow by 5.71% on average per year.
The Revenue is expected to grow by 6.17% on average over the next years.
EPS Next Y5.78%
EPS Next 2Y7.75%
EPS Next 3Y9.33%
EPS Next 5Y5.71%
Revenue Next Year3.17%
Revenue Next 2Y4.2%
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.
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
The Price/Earnings ratio is 28.85, 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.
Compared to an average S&P500 Price/Earnings ratio of 28.04, ATR is valued at the same level.
A Price/Forward Earnings ratio of 24.59 indicates a rather expensive 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.
ATR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.85 | ||
| Fwd PE | 24.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATR indicates a slightly more expensive valuation: ATR is more expensive than 72.73% of the companies listed in the same industry.
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 | 29.87 | ||
| EV/EBITDA | 14.7 |
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.
ATR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5
PEG (5Y)3.91
EPS Next 2Y7.75%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
ATR has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
ATR's Dividend Yield is slightly below the industry average, which is at 3.00.
With a Dividend Yield of 1.11, ATR pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of ATR has a limited annual growth rate of 3.89%.
ATR has been paying a dividend for at least 10 years, so it has 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
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 2Y7.75%
EPS Next 3Y9.33%
160.99
-0.83 (-0.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners95.92%
Inst Owner Change-0.37%
Ins Owners0.8%
Ins Owner Change3.36%
Market Cap10.63B
Analysts85.45
Price Target174.93 (8.66%)
Short Float %1.52%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)0.78%
PT rev (3m)-0.39%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)10.64%
EPS NY rev (1m)0.11%
EPS NY rev (3m)6.17%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)3.72%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.85 | ||
| Fwd PE | 24.59 | ||
| P/S | 2.99 | ||
| P/FCF | 29.87 | ||
| P/OCF | 16.77 | ||
| P/B | 4.19 | ||
| P/tB | 7.97 | ||
| EV/EBITDA | 14.7 |
EPS(TTM)5.58
EY3.47%
EPS(NY)6.55
Fwd EY4.07%
FCF(TTM)5.39
FCFY3.35%
OCF(TTM)9.6
OCFY5.96%
SpS53.83
BVpS38.42
TBVpS20.19
PEG (NY)5
PEG (5Y)3.91
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 | 5.21 |
F-Score7
WACC8.49%
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)9.63%
EPS 3Y13.38%
EPS 5Y7.38%
EPS Q2Q%-4.76%
EPS Next Y5.78%
EPS Next 2Y7.75%
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 Year3.17%
Revenue Next 2Y4.2%
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%