Amcor logged a -.90% change during today's afternoon session, and is now trading at a price of $10.85 per share. The S&P 500 index moved -1.74% and the Nasdaq posted a -1.63% change.
Amcor shares moved 2.79% over the last 52 weeks, with a high of $13.19 and a low of $10.2. During this time, the stock outperformed the S&P 500 index by 9.07%. As of January 2022, the company's 50-day average price is $12.0. Amcor plc is an Australian-American, UK-domiciled packaging company. The large-cap Industrials company is based in Zurich, None. Amcor has returned a 4.47% dividend yield over the last 12 months.
The Company Has a Pattern of Improving Revenues and Cash Flows:
| 2019-06-30 | 2020-06-30 | 2021-06-30 | 2022-06-30 | |
|---|---|---|---|---|
| Revenue (MM) | $9,458 | $12,468 | $12,741 | $14,402 |
| Revenue Growth | n/a | 31.82% | 2.19% | 13.04% |
| Gross Margins | 19.02% | 20.34% | 21.44% | 19.58% |
| Gross Margins Growth | n/a | 6.94% | 5.41% | -8.68% |
| Operating Margins | 8.37% | 7.97% | 10.37% | 8.6% |
| Operating Margins Growth | n/a | -4.78% | 30.11% | -17.07% |
| Earnings Per Share | $0.34 | $0.39 | $0.61 | $0.53 |
| EPS Growth | n/a | 14.71% | 56.41% | -13.11% |
| Diluted Shares (MM) | 1,251 | 1,572 | 1,537 | 1,505 |
| Free Cash Flow (MM) | $444 | $984 | $993 | $999 |
| FCF Growth | n/a | 121.62% | 0.91% | 0.6% |
| Capital Expenditures (MM) | $332 | $400 | $468 | $527 |
| Net Debt / EBITDA | 6.44 | 1.81 | 1.38 | 2.11 |
Amcor Is Reasonably Valued:
Compared to the Industrials sector's average of 20.49, Amcor has a trailing twelve month P/E ratio of 15.42 and, according to its EPS guidance of 0.82, an expected P/E ratio of 13.35. Amcor's PEG ratio is 0.55 based on its 28.25% 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 1.18, which implies that the company's shares might in fact be fairly valued.
Amcor's P/B ratio is 4.743 compared to its sector average of 3.78. The company is likely overvalued in terms of its equity. The company's shares are currently trading 96.59% 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 * 2.934) = $5.57
Amcor's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Amcor Is the Subject of Mixed Market Indicators:
8 analysts are following Amcor and have set target prices ranging from $10.75 to $13.0 per share. On average, they have given the company a rating of hold. At the current price of $10.95, AMCR is trading -7.67% away from its average analyst target price of $11.86 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% of the company's shares are tied to short positions. Institutions own 50% of Amcor's shares, while the insider ownership rate stands at 1%.
