AptarGroup (ATR) Margin Gains Reinforce Bullish Narrative Despite Slowing Growth Forecasts

AptarGroup (ATR) delivered standout earnings growth this year, with EPS surging by 24.8% and net profit margins rising to 11.5% from last year’s 9.4%. Despite this, shares are trading at $116.01, below both the estimated fair value of $142.44 and analyst targets. Investors will likely take note of robust profitability, ongoing profit growth, and a valuation that looks attractive compared to intrinsic value models, even as forward growth rates trail broader market expectations.

See our full analysis for AptarGroup.

The next section examines how AptarGroup’s numbers compare to the main market narratives, showing where perceptions match reality and where surprises might emerge.

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Margin Expansion Outpaces Peers

• AptarGroup’s net profit margin climbed to 11.5% this year, beating last year’s 9.4% and demonstrating steady margin improvement beyond the broader packaging industry norm.
• Analysts' consensus narrative emphasizes that margin expansion is being driven by proprietary drug delivery technology and new sustainable packaging wins. Both factors deepen AptarGroup’s competitive moat and widen profit margins.
  • Proprietary drug delivery systems, especially in the injectable therapies space, underpin this outsized margin performance by supporting premium pricing and recurring demand across global healthcare markets.
  • Market recognition for sustainability, such as inclusion on leading environmental rankings, enhances AptarGroup’s reputation and enables higher-margin sales in both pharma and beauty packaging despite rising compliance and innovation costs.
  See how analysts think these edge-driving innovations could keep propelling margins in the full consensus narrative. 📊 Read the full AptarGroup Consensus Narrative.

Slowing Long-Term Growth Rates

• Looking forward, forecasted annual earnings growth drops to 3.8% and projected revenue growth to 5.9%, despite AptarGroup’s five-year historical average for earnings growth being a much higher 13.2%.
• The consensus narrative acknowledges that while innovation and expansion in Asia-Pacific are positives, prolonged challenges remain. These include a slowdown in emergency medicine systems and inventory headwinds in European pharma that dampen the future trajectory.
  • Analysts expect future profit margins to compress slightly, from 10.8% today to 10.4% in three years, highlighting that higher legal and R&D costs may begin to weigh on bottom-line growth.
  • Continued investment in new product lines and operational efficiency offer partial offsets, but the net effect is a long-term growth rate trailing both AptarGroup’s history and broader market expectations.

Valuation: Discount to Fair Value, But Premium to Industry

• Shares are trading at $116.01, below the DCF fair value of $142.44 and below the consensus analyst price target of $169.43. However, the price-to-earnings ratio stands at 18.2x, making AptarGroup more expensive than both the peer average (16.5x) and the packaging industry (16.0x).
• Consensus narrative points to a valuation puzzle. The stock looks attractively discounted versus intrinsic models, but less compelling relative to industry peers.
  • For the analysts’ price target to be realized, profits and revenue would have to climb to ambitious levels by 2028, and the shares would need to trade at a PE of 30.1x, far above today’s 18.2x and the industry’s 16.0x.
  • The share price’s current discount to fair value could attract value-focused investors, but only if slowing growth and higher costs do not erode future earnings power.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for AptarGroup on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your AptarGroup research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

AptarGroup’s slowing earnings and revenue growth projections, along with future margin pressure, raise concerns about the company’s ability to sustain consistent performance.

If you want more predictability and less uncertainty, check out stable growth stocks screener (2096 results) to focus on businesses that consistently deliver reliable growth regardless of broader market swings.

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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