Now trading at a price of $8.5, Amcor has moved 0.2% so far today.
Amcor returned losses of -21.4% last year, with its stock price reaching a high of $11.48 and a low of $8.37. Over the same period, the stock underperformed the S&P 500 index by -36.6%. AThe company's 50-day average price was $9.4. Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, and the Asia Pacific. Based in Zurich, Switzerland, the Large-Cap Consumer Discretionary company has 77,000 full time employees. Amcor has offered a 6.0% dividend yield over the last 12 months.
The Firm Has a Highly Leveraged Balance Sheet:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $9,458 | $12,468 | $12,861 | $14,544 | $14,694 | $13,640 |
| Gross Margins | 19% | 20% | 21% | 19% | 19% | 20% |
| Net Margins | 5% | 5% | 7% | 6% | 7% | 5% |
| Net Income (M) | $430 | $612 | $939 | $805 | $1,048 | $730 |
| Net Interest Expense (M) | $208 | $207 | $153 | $159 | $290 | $348 |
| Depreciation & Amort. (M) | $453 | $652 | $574 | $625 | $586 | $595 |
| Diluted Shares (M) | 1,615 | 1,570 | 1,524 | 1,485 | 1,440 | 1,446 |
| Earnings Per Share | $0.36 | $0.38 | $0.6 | $0.53 | $0.7 | $0.5 |
| EPS Growth | n/a | 5.56% | 57.89% | -11.67% | 32.08% | -28.57% |
| Avg. Price | $8.74 | $9.11 | $10.84 | $11.42 | $9.64 | $8.48 |
| P/E Ratio | 24.28 | 23.97 | 18.07 | 21.55 | 13.58 | 16.96 |
| Free Cash Flow (M) | -$211 | $984 | $993 | $999 | $735 | $829 |
| CAPEX (M) | $332 | $400 | $468 | $527 | $526 | $492 |
| EV / EBITDA | 19.84 | 15.79 | 15.19 | 15.74 | 12.99 | 13.96 |
| Total Debt (M) | $11,162 | $12,460 | $12,734 | $13,180 | $13,664 | $13,440 |
| Net Debt / EBITDA | 8.42 | 7.11 | 6.39 | 6.62 | 6.32 | 7.18 |
| Current Ratio | 1.24 | 1.28 | 1.26 | 1.33 | 1.25 | 1.26 |
Amcor has growing revenues and increasing reinvestment in the business, generally positive cash flows, and positive EPS growth. However, the firm has a highly leveraged balance sheet. Finally, we note that Amcor has just enough current assets to cover current liabilities, as shown by its current ratio of 1.26.
a Lower P/B Ratio Than Its Sector Average but Trading Above Its Fair Price:
Amcor has a trailing twelve month P/E ratio of 29.4, compared to an average of 20.93 for the Consumer Discretionary sector. Based on its EPS guidance of $0.79, the company has a forward P/E ratio of 11.9. The 11.9% compound average growth rate of Amcor's historical and projected earnings per share yields a PEG ratio of 2.47. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Amcor in terms of its equity because its P/B ratio is 1.67 while the sector average is 2.93. The company's shares are currently trading 56.5% below their Graham number.
Amcor Has an Analyst Consensus of Strong Upside Potential:
The 10 analysts following Amcor have set target prices ranging from $10.0 to $12.4 per share, for an average of $11.04 with a buy rating. The company is trading -23.0% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Amcor has an average amount of shares sold short because 3.0% of the company's shares are sold short. Institutions own 68.4% of the company's shares, and the insider ownership rate stands at 0.26%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 7% stake in the company is worth $1,370,450,707.
