Amcor logged a 2.2% change during today's afternoon session, and is now trading at a price of $8.6 per share.
Amcor returned losses of -17.4% last year, with its stock price reaching a high of $10.71 and a low of $7.67. Over the same period, the stock underperformed the S&P 500 index by -32.5%. AThe company's 50-day average price was $8.15. Amcor plc, together with its subsidiaries, engages in the production and sale of 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 6.1% 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 | $8.65 |
| P/E Ratio | 24.28 | 23.97 | 18.07 | 21.55 | 13.58 | 17.3 |
| 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 | 14.09 |
| 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 Priced Beyond Its Margin of Safety:
Amcor has a trailing twelve month P/E ratio of 27.2, 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 10.3. The 11.9% compound average growth rate of Amcor's historical and projected earnings per share yields a PEG ratio of 2.29. 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 1.69 while the sector average is 2.93. The company's shares are currently trading 58.3% below their Graham number.
Amcor Has an Average Rating of Buy:
The 11 analysts following Amcor have set target prices ranging from $9.0 to $12.0 per share, for an average of $10.41 with a buy rating. The company is trading -17.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Amcor has an average amount of shares sold short because 3.9% of the company's shares are sold short. Institutions own 71.2% of the company's shares, and the insider ownership rate stands at 0.22%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 7% stake in the company is worth $1,321,798,678.
