ASX:AMC

Stock Analysis Report

Executive Summary

Amcor plc develops, manufactures, and sells various packaging products for food, beverage, pharmaceutical, medical, home and personal care, and other consumer goods end markets worldwide.

Snowflake

Fundamentals

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Amcor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

AMC

-0.1%

AU Packaging

0.9%

AU Market


1 Year Return

8.2%

AMC

7.9%

AU Packaging

16.3%

AU Market

Return vs Industry: AMC matched the Australian Packaging industry which returned 7.9% over the past year.

Return vs Market: AMC underperformed the Australian Market which returned 16.3% over the past year.


Shareholder returns

AMCIndustryMarket
7 Day1.0%-0.1%0.9%
30 Day3.7%2.9%1.9%
90 Day-1.5%4.6%5.1%
1 Year12.9%8.2%10.7%7.9%23.0%16.3%
3 Year16.4%3.1%12.7%4.8%41.6%22.3%
5 Year47.5%21.2%46.0%27.6%57.7%22.5%

Price Volatility Vs. Market

How volatile is Amcor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Amcor undervalued compared to its fair value and its price relative to the market?

2.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMC (A$14.59) is trading below our estimate of fair value (A$15.02)

Significantly Below Fair Value: AMC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AMC is poor value based on its PE Ratio (31.9x) compared to the Packaging industry average (14.2x).

PE vs Market: AMC is poor value based on its PE Ratio (31.9x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: AMC is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: AMC is overvalued based on its PB Ratio (3x) compared to the XX Packaging industry average (1x).


Next Steps

Future Growth

How is Amcor forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMC's forecast earnings growth (20.9% per year) is above the savings rate (2.3%).

Earnings vs Market: AMC's earnings (20.9% per year) are forecast to grow faster than the Australian market (9.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMC's revenue (3.7% per year) is forecast to grow faster than the Australian market (3.7% per year).

High Growth Revenue: AMC's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMC's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

How has Amcor performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMC has large one-off items impacting its financial results.

Growing Profit Margin: AMC's current net profit margins (3.9%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: AMC's earnings have declined by -5.8% per year over the past 5 years.

Accelerating Growth: AMC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMC had negative earnings growth (-24.4%) over the past year, making it difficult to compare to the Packaging industry average (3.5%).


Return on Equity

High ROE: AMC's Return on Equity (7.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amcor's financial position?


Financial Position Analysis

Short Term Liabilities: AMC's short term assets ($4.6B) exceeds its short term liabilities ($3.8B)

Long Term Liabilities: AMC's short term assets ($4.6B) do not cover its long term liabilities (7.4B)


Debt to Equity History and Analysis

Debt Level: AMC's debt to equity ratio (105%) is considered high.

Reducing Debt: AMC's debt to equity ratio has reduced from 172.2% to 105% over the past 5 years.

Debt Coverage: AMC's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: AMC's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: AMC has a high level of physical assets or inventory.

Debt Coverage by Assets: AMC's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Amcor's current dividend yield, its reliability and sustainability?

4.83%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Amcor before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.8%marketbottom25%2.4%markettop25%5.6%industryaverage2.8%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: AMC's dividend (4.83%) is higher than the bottom 25% of dividend payers in the Australian market (2.37%).

High Dividend: AMC's dividend (4.83%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).


Stability and Growth of Payments

Stable Dividend: AMC's dividend payments have been volatile in the past 10 years.

Growing Dividend: AMC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (184.6%), AMC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMC's dividends in 3 years are forecast to be covered by earnings (74.3% payout ratio).


Next Steps

Management

What is the CEO of Amcor's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Ron Delia (48yo)

4.6yrs

Tenure

US$5,237,557

Compensation

Mr. Ronald Stephen Delia, also known as Ron, BSc (Marketing), MBA serves as Chief Executive Officer and Managing Director of Amcor PLC (formerly, Amcor Limited) since April 17, 2015. Mr. Delia joined Amcor ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD5.24M) is above average for companies of similar size in the Australian market ($USD3.53M).

Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

53yo

Average Age

Experienced Management: AMC's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

64yo

Average Age

Experienced Board: AMC's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.4%.


Management Team

  • Ian Wilson (61yo)

    Executive Vice President of Strategic Development

    • Tenure: 2.3yrs
    • Compensation: US$2.04m
  • Ron Delia (48yo)

    MD, CEO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: US$5.24m
  • Mike Schmitt

    Executive Vice President

    • Tenure: 1yrs
    • Compensation: US$1.74m
  • Sheri Edison (62yo)

    Executive VP & General Counsel

    • Tenure: 0.4yrs
  • Peter Konieczny (53yo)

    President of Flexibles Europe

    • Tenure: 0yrs
    • Compensation: US$1.74m
  • Michael John Casamento (48yo)

    Executive VP of Finance & CFO

    • Tenure: 4.2yrs
    • Compensation: US$2.53m
  • Jerry Krempa (58yo)

    VP & Chief Accounting Officer

    • Tenure: 0.8yrs
  • Eric Roegner (49yo)

    President of Amcor Rigid Plastics

    • Tenure: 1.8yrs
    • Compensation: US$1.61m
  • Tracey Whitehead

    Head of Investor Relations

    • Tenure: 3yrs
  • Ernesto Duran

    Head of Global Communications

    • Tenure: 0yrs

Board Members

  • Dave Szczupak (63yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
    • Compensation: US$7.53k
  • Armin Meyer (70yo)

    Deputy Chairman of the Board

    • Tenure: 5.9yrs
    • Compensation: US$234.49k
  • Arun Nayar (68yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
    • Compensation: US$7.53k
  • Jeremy Sutcliffe (61yo)

    Independent Non-Executive Director

    • Tenure: 10.1yrs
    • Compensation: US$185.16k
  • Graeme Liebelt (65yo)

    Independent Non-Executive Chairman

    • Tenure: 5.9yrs
    • Compensation: US$466.60k
  • Tom Long (60yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$184.62k
  • Billy Chan (68yo)

    Chairman of AMVIG

    • Tenure: 13.6yrs
    • Compensation: US$1.22m
  • Paul Brasher (69yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: US$230.00k
  • Ron Delia (48yo)

    MD, CEO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: US$5.24m
  • Karen Guerra (63yo)

    Independent Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: US$184.35k

Company Information

Amcor plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amcor plc
  • Ticker: AMC
  • Exchange: ASX
  • Founded:
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: AU$23.715b
  • Shares outstanding: 1.61b
  • Website: https://www.amcor.com

Number of Employees


Location

  • Amcor plc
  • Thurgauerstrasse 34
  • Zurich
  • Zurich
  • 8050
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
AXZADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
AXZABST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992
AMCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
AMCR.YOTCUS (Other "Grey Market" OTC)ADR NEWUSUSDJan 1993
AMCRNYSE (New York Stock Exchange)Ordinary SharesUSUSDJun 2019
485DB (Deutsche Boerse AG)Ordinary SharesDEEURJun 2019
AMCR NBMV (Bolsa Mexicana de Valores)Ordinary SharesMXMXNJun 2019

Biography

Amcor plc develops, manufactures, and sells various packaging products for food, beverage, pharmaceutical, medical, home and personal care, and other consumer goods end markets worldwide. It operates throu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 10:31
End of Day Share Price2019/11/18 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.