| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
AMCR Stock Overview
Amcor plc develops, produces, and sells packaging products for food, beverage, pharmaceutical, medical, home- and personal-care, and other products worldwide.
Amcor Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$12.37 |
| 52 Week High | AU$12.92 |
| 52 Week Low | AU$10.33 |
| Beta | 0.43 |
| 1 Month Change | 4.92% |
| 3 Month Change | 3.86% |
| 1 Year Change | 11.95% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 10.64% |
Recent News & Updates
Amcor: The Scrumptious 4% Dividend Yield For ESG Investors Is Safe
Amcor Plc, one of the largest players in the plastic packaging industry, offers an attractive 4% dividend yield. Management is committed to rewarding shareholders through dividends and share buybacks. It has positioned itself as an attractive choice for ESG conscious investors. However, Amcor Plc operates in a mature industry that is projected to grow at a low-to-mid single-digit growth for the next eight years. Amcor's 4% dividend seems risky at a dividend payout ratio of 77%. This article examines if Amcor can afford to pay a growing dividend.
The Momentum Investor: Spotlight On Amcor
A growing economy means companies will need more packaging. Analysts are increasing earnings estimates. The stock chart is bullish.
Amcor: Share Buybacks Will Fuel Dividend Hikes - Anticipate A 4% Dividend Yield
Amcor is a leader in the packaging space, and the acquisition of Bemis is fueling the company's efficiency and results. Virtually, the entire free cash flow is spent on the dividend and share buybacks. This should enable the company to hike its dividend per share, without having to actually pay more.
Shareholder Returns
| AMCR | US Packaging | US Market | |
|---|---|---|---|
| 7D | 2.1% | 0.02% | -0.5% |
| 1Y | 11.9% | 7.1% | 13.7% |
Return vs Industry: AMCR exceeded the US Packaging industry which returned 7.1% over the past year.
Return vs Market: AMCR underperformed the US Market which returned 13.7% over the past year.
Price Volatility
| AMCR volatility | |
|---|---|
| AMCR Average Weekly Movement | 2.3% |
| Packaging Industry Average Movement | 3.8% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: AMCR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: AMCR's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1926 | 46,000 | Ron Delia | https://www.amcor.com |
Amcor plc develops, produces, and sells packaging products for food, beverage, pharmaceutical, medical, home- and personal-care, and other products worldwide. It operates through two segments, Flexibles and Rigid Packaging. The company provides flexible packaging solutions, special cartons, plastic bottles and jars, and capsules and closures.
Amcor Fundamentals Summary
| AMCR fundamental statistics | |
|---|---|
| Market Cap | US$18.38b |
| Earnings (TTM) | US$941.00m |
| Revenue (TTM) | US$13.18b |
19.5x
P/E Ratio1.4x
P/S RatioIs AMCR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AMCR income statement (TTM) | |
|---|---|
| Revenue | US$13.18b |
| Cost of Revenue | US$10.46b |
| Gross Profit | US$2.73b |
| Expenses | US$1.79b |
| Earnings | US$941.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.63 |
| Gross Margin | 20.69% |
| Net Profit Margin | 7.14% |
| Debt/Equity Ratio | 140.1% |
How did AMCR perform over the long term?
See historical performance and comparisonDividends
3.9%
Current Dividend Yield77%
Payout RatioValuation
Is Amcor undervalued compared to its fair value and its price relative to the market?
44.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AMCR ($12.37) is trading below our estimate of fair value ($22.43)
Significantly Below Fair Value: AMCR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AMCR is good value based on its PE Ratio (19.5x) compared to the US Packaging industry average (22.7x).
PE vs Market: AMCR is poor value based on its PE Ratio (19.5x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: AMCR is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: AMCR is overvalued based on its PB Ratio (4x) compared to the US Packaging industry average (3.2x).
Future Growth
How is Amcor forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
6.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMCR's forecast earnings growth (6.5% per year) is above the savings rate (2%).
Earnings vs Market: AMCR's earnings (6.5% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: AMCR's earnings are forecast to grow, but not significantly.
Revenue vs Market: AMCR's revenue (1.6% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: AMCR's revenue (1.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AMCR's Return on Equity is forecast to be high in 3 years time (26.2%)
Past Performance
How has Amcor performed over the past 5 years?
17.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMCR has high quality earnings.
Growing Profit Margin: AMCR's current net profit margins (7.1%) are higher than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: AMCR's earnings have grown by 17.2% per year over the past 5 years.
Accelerating Growth: AMCR's earnings growth over the past year (26.5%) exceeds its 5-year average (17.2% per year).
Earnings vs Industry: AMCR earnings growth over the past year (26.5%) underperformed the Packaging industry 48.8%.
Return on Equity
High ROE: Whilst AMCR's Return on Equity (20.28%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Amcor's financial position?
Financial Position Analysis
Short Term Liabilities: AMCR's short term assets ($5.3B) exceed its short term liabilities ($4.0B).
Long Term Liabilities: AMCR's short term assets ($5.3B) do not cover its long term liabilities ($8.3B).
Debt to Equity History and Analysis
Debt Level: AMCR's net debt to equity ratio (126.6%) is considered high.
Reducing Debt: AMCR's debt to equity ratio has reduced from 553.3% to 140.1% over the past 5 years.
Debt Coverage: AMCR's debt is well covered by operating cash flow (22.1%).
Interest Coverage: AMCR's interest payments on its debt are well covered by EBIT (10.7x coverage).
Balance Sheet
Dividend
What is Amcor current dividend yield, its reliability and sustainability?
3.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AMCR's dividend (3.93%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: AMCR's dividend (3.93%) is in the top 25% of dividend payers in the US market (3.44%)
Stability and Growth of Payments
Stable Dividend: AMCR's dividend payments have been volatile in the past 10 years.
Growing Dividend: AMCR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (77.5%), AMCR's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AMCR's dividends in 3 years are forecast to be covered by earnings (61% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
Ron Delia (50 yo)
6.75yrs
Tenure
US$10,991,148
Compensation
Mr. Ronald Stephen Delia, also known as Ron, BSc (Marketing), MBA serves as Chief Executive Officer and Managing Director of Amcor PLC (formerly, Amcor Limited) since April 17, 2015. Mr. Delia joined Amcor...
CEO Compensation Analysis
Compensation vs Market: Ron's total compensation ($USD10.99M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AMCR's management team is seasoned and experienced (5.2 years average tenure).
Board Members
Experienced Board: AMCR's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AMCR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Amcor plc's employee growth, exchange listings and data sources
Key Information
- Name: Amcor plc
- Ticker: AMCR
- Exchange: NYSE
- Founded: 1926
- Industry: Paper Packaging
- Sector: Materials
- Implied Market Cap: AU$25.446b
- Listing Market Cap: AU$18.385b
- Shares outstanding: 1.50b
- Website: https://www.amcor.com
Number of Employees
Location
- Amcor plc
- Thurgauerstrasse 34
- Zurich
- Zurich
- 8050
- Switzerland
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:02 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/06/30 |
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.