AptarGroup (NYSE:ATR) - Share price, News & Analysis

Q: What is the Fair Price of ATR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ATR ($103.39) is trading above our estimate of [[fair value]] ($101.9)

ATR fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	1/6
Past Performance	2/6
Financial Health	4/6
Dividends	3/6

ATR Stock Overview

Rewards

Earnings are forecast to grow 13.49% per year

Risk Analysis

Has a high level of debt

AptarGroup Competitors

Berry Global Group

NYSE:BERY

US$7.2b

Silgan Holdings

NasdaqGS:SLGN

US$4.6b

Greif

NYSE:GEF

US$3.1b

O-I Glass

NYSE:OI

US$2.2b

Price History & Performance

Summary of all time highs, changes and price drops for AptarGroup
Historical stock prices
Current Share Price	US$103.39
52 Week High	US$141.94
52 Week Low	US$94.03
Beta	0.62
1 Month Change	-5.05%
3 Month Change	-12.01%
1 Year Change	-26.59%
3 Year Change	-17.89%
5 Year Change	18.44%
Change since IPO	2,020.82%

Recent News & Updates

May 20

There Are Reasons To Feel Uneasy About AptarGroup's (NYSE:ATR) Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

May 04

AptarGroup: There Is A Lot Of Room For Growth

Net sales increased over the years thanks to steady acquisitions. Growth has slowed during the second half of 2021 but accelerated again during the first quarter of 2022. The company has high exposure in Europe, leading the price to fall by 27% due to the Ukrainian war. Debt has increased in recent years, which will limit future growth. The dividend cash payout ratio is very low, allowing the company high capital expenditures and acquisitions. This is a buy-and-hold for the long-run company.

May 03

AptarGroup (NYSE:ATR) Seems To Use Debt Quite Sensibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	ATR	US Packaging	US Market
7D	5.0%	3.7%	1.6%
1Y	-26.6%	-17.8%	-20.8%

Return vs Industry: ATR underperformed the US Packaging industry which returned -17% over the past year.

Return vs Market: ATR underperformed the US Market which returned -20.4% over the past year.

Price Volatility

Is ATR's price volatile compared to industry and market?
ATR volatility
ATR Average Weekly Movement	4.7%
Packaging Industry Average Movement	5.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: ATR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ATR's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	13,000	Stephan Tanda	https://www.aptar.com

AptarGroup, Inc. provides a range of dispensing, sealing, and material science solutions primarily for the beauty, personal care, home care, prescription drug, consumer health care, injectable, and food and beverage markets. The company operates through three segments: Pharma, Beauty + Home, and Food + Beverage. The Pharma segment provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments, such as asthma and chronic obstructive pulmonary diseases in pharmaceutical market; elastomer for injectable primary packaging components; and active material science solutions.

AptarGroup Fundamentals Summary

How do AptarGroup's earnings and revenue compare to its market cap?
ATR fundamental statistics
Market Cap	US$6.78b
Earnings (TTM)	US$222.57m
Revenue (TTM)	US$3.30b

30.5x

P/E Ratio

2.1x

P/S Ratio

Is ATR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATR income statement (TTM)
Revenue	US$3.30b
Cost of Revenue	US$2.13b
Gross Profit	US$1.17b
Other Expenses	US$942.67m
Earnings	US$222.57m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	3.39
Gross Margin	35.36%
Net Profit Margin	6.75%
Debt/Equity Ratio	70.5%

How did ATR perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

45%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ATR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ATR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ATR. This is calculated by dividing ATR's market cap by their current preferred multiple.
What is ATR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$6.78b

ATR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.4x
Enterprise Value/EBITDA	13x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does ATR's PE Ratio compare to its peers?

ATR PE Ratio vs Peers

The above table shows the PE ratio for ATR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.4x
BERY Berry Global Group	9.6x	9.3%	US$7.2b
SLGN Silgan Holdings	12.5x	8.3%	US$4.6b
GEF Greif	8.7x	13.8%	US$3.1b
OI O-I Glass	6.9x	9.0%	US$2.2b
ATR AptarGroup	30.5x	13.5%	US$6.8b

Forward PE

Price-To-Earnings vs Peers: ATR is expensive based on its Price-To-Earnings Ratio (30.5x) compared to the peer average (9.4x).

Price to Earnings Ratio vs Industry

How does ATR's PE Ratio compare vs other companies in the North American Packaging Industry?

Price-To-Earnings vs Industry: ATR is expensive based on its Price-To-Earnings Ratio (30.5x) compared to the US Packaging industry average (16.2x)

Price to Earnings Ratio vs Fair Ratio

What is ATR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ATR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.5x
Fair PE Ratio	19.6x

Price-To-Earnings vs Fair Ratio: ATR is expensive based on its Price-To-Earnings Ratio (30.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

Share Price vs Fair Value

What is the Fair Price of ATR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ATR ($103.39) is trading above our estimate of fair value ($101.9)

Significantly Below Fair Value: ATR is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: ATR is poor value based on its PEG Ratio (2.3x)

Discover undervalued companies

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATR's forecast earnings growth (13.5% per year) is above the savings rate (1.9%).

Earnings vs Market: ATR's earnings (13.5% per year) are forecast to grow slower than the US market (13.7% per year).

High Growth Earnings: ATR's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATR's revenue (5.2% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: ATR's revenue (5.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ATR's Return on Equity is forecast to be low in 3 years time (14.4%).

Discover growth companies

Past Performance

How has AptarGroup performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

2.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ATR has high quality earnings.

Growing Profit Margin: ATR's current net profit margins (6.8%) are lower than last year (8.1%).

Past Earnings Growth Analysis

Earnings Trend: ATR's earnings have grown by 2.2% per year over the past 5 years.

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

Earnings vs Industry: ATR had negative earnings growth (-8.3%) over the past year, making it difficult to compare to the Packaging industry average (15.6%).

Return on Equity

High ROE: ATR's Return on Equity (11.1%) is considered low.

Discover strong past performing companies

Financial Health

How is AptarGroup's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ATR's short term assets ($1.6B) exceed its short term liabilities ($861.5M).

Long Term Liabilities: ATR's short term assets ($1.6B) exceed its long term liabilities ($1.5B).

Debt to Equity History and Analysis

Debt Level: ATR's net debt to equity ratio (52.6%) is considered high.

Reducing Debt: ATR's debt to equity ratio has increased from 62.5% to 70.5% over the past 5 years.

Debt Coverage: ATR's debt is well covered by operating cash flow (27.2%).

Interest Coverage: ATR's interest payments on its debt are well covered by EBIT (13.2x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is AptarGroup current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.47%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ATR's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: ATR's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

Stable Dividend: ATR's dividends per share have been stable in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44.9%), ATR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (150.5%), ATR's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure

CEO

Stephan Tanda (56 yo)

5.25yrs

Tenure

US$9,379,483

Compensation

Mr. Stephan B. Tanda, MBA, has been an Independent Director at Ingredion Incorporated since August 19, 2019. He has been Chief Executive Officer and President at AptarGroup, Inc. since February 01, 2017. M...

CEO Compensation Analysis

Compensation vs Market: Stephan's total compensation ($USD9.38M) is about average for companies of similar size in the US market ($USD8.21M).

Compensation vs Earnings: Stephan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: ATR's management team is considered experienced (3.7 years average tenure).

Board Members

Experienced Board: ATR's board of directors are considered experienced (7.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31