AMCR Investors, You Need to Know These Facts Today.

Amcor logged a -3.2% change during today's afternoon session, and is now trading at a price of $11.62 per share. The S&P 500 index moved -0.3% and the Nasdaq posted a -0.3% change. AMCR's trading volume is 3,123,506 compared to the stock's average volume of 7,390,877. Let's dive right into a brief fundamental analysis of Amcor.

Amcor shares moved 1.8% over the last 52 weeks, with a high of $13.61 and a low of $10.42. During this time, the stock outperformed the S&P 500 index by 9.5%. As of January 2022, the company's 50-day average price is $12.0. Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The large-cap Consumer Cyclical company has 44,000 full time employees and is based in Zurich, Switzerland. Amcor has returned a 4.0% dividend yield over the last 12 months.

Good EPS Growth with a Highly Leveraged Balance Sheet:

2019-06-30 2020-06-30 2021-06-30 2022-06-30
Revenue (MM) $9,458 $12,468 $12,861 $14,544
Revenue Growth n/a 31.82% 3.16% 13.09%
Gross Margins 19.0% 20.3% 21.2% 19.4%
Gross Margins Growth n/a 6.84% 4.43% -8.49%
Operating Margins 9.8% 8.9% 11.0% 10.1%
Operating Margins Growth n/a -9.18% 23.6% -8.18%
Earnings Per Share $0.36 $0.38 $0.6 $0.53
EPS Growth n/a 5.56% 57.89% -11.67%
Free Cash Flow (MM) $444 $985 $993 $999
FCF Growth n/a 121.83% 0.84% 0.6%
Capital Expenditures (MM) -$332 -$400 -$468 -$527
Net Debt / EBITDA 3.94 3.05 2.7 2.68

Amcor Is Currently Fairly Valued:

Compared to the Consumer Cyclical sector's average of 24.11, Amcor has a trailing twelve month P/E ratio of 20.7 and, according to its EPS guidance of 0.83, an expected P/E ratio of 14.0. Amcor's PEG ratio is 0.76 based on its 27.25% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Amcor's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 1.59, which suggests that the company's shares are actually overvalued.

Amcor's P/B ratio is 4.4 compared to its sector average of 3.11. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 119.9% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 0.47 * 2.638) = $5.28

Amcor's elevated P/B ratio notwithstanding, the company's strong cash flows and healthy debt levels factor towards it being fairly valued.

Amcor Is the Subject of Mixed Market Indicators:

7 analysts are following Amcor and have set target prices ranging from $10.75 to $13 per share. On average, they have given the company a rating of hold. At the current price of $11.62, AMCR is trading -2.31% away from its average analyst target price of $11.89 per share, implying an analyst consensus of some upside potential for the stock.

The company has an average amount of shares sold short since 2.1% of the company's shares are tied to short positions. Institutions own 48.9% of Amcor's shares, while the insider ownership rate stands at 0.93%. The biggest shareholder is Blackrock Inc. with a 8% stake in the company worth approximately $1,358,848,928.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.