Will Amcor’s (AMCR) 1‑for‑5 Reverse Split Reshape Its Capital Structure and Investment Narrative?

• Amcor plc has confirmed it will proceed with a 1‑for‑5 reverse stock split approved in November 2025, consolidating its approximately 2.30 billion outstanding ordinary shares into about 461 million and adjusting CHESS Depositary Interests on the same basis, with trading on a split‑adjusted basis set to begin January 15, 2026.
• The move not only reshapes Amcor’s share count and par value to US$0.05 per share but will also see earnings and other per‑share metrics reported on a split‑adjusted basis, underscoring management’s focus on aligning capital structure with how investors evaluate the business.
• We’ll now examine how the reverse split’s impact on Amcor’s share count and per‑share reporting could influence its investment narrative.

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Amcor Investment Narrative Recap

To own Amcor, you need to believe its Berry integration and cost synergies can offset weak volumes, portfolio uncertainty and elevated leverage. The 1‑for‑5 reverse split mainly changes share count optics and does not materially alter the near term catalyst around delivering the targeted US$260 million of fiscal 2026 synergies, or the key risk that sluggish demand and underperforming North American beverage operations continue to weigh on margins and cash generation.

The reverse split sits alongside Amcor’s recent update that analysts expect earnings growth supported by cost control and Berry integration benefits, with management targeting at least US$260 million of synergies in fiscal 2026 and further upside through fiscal 2028. For investors, the core question is whether those self help gains can overcome ongoing volume pressure, portfolio reshaping and a balance sheet that already carries above target leverage.

Yet behind these integration benefits, investors should also be aware of the heightened risk that portfolio reviews and potential asset sales...

Read the full narrative on Amcor (it's free!)

Amcor's narrative projects $24.3 billion revenue and $1.7 billion earnings by 2028. This requires 17.5% yearly revenue growth and a $1.2 billion earnings increase from $510.0 million today.

Uncover how Amcor's forecasts yield a $10.41 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly US$8.43 to about US$20.48 per share, highlighting wide disagreement on Amcor’s upside. You should weigh these views against the execution risk around extracting Berry synergies while managing weak volumes and high leverage, and consider how each could shape the company’s future performance.

Explore 6 other fair value estimates on Amcor - why the stock might be worth over 2x more than the current price!

Build Your Own Amcor Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Amcor research is our analysis highlighting 3 key rewards and 5 important warning signs that could impact your investment decision.
• Our free Amcor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Amcor's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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