NYSE:ATR

Stock Analysis Report

Executive Summary

AptarGroup, Inc. provides a range of packaging, dispensing, and sealing solutions primarily for the beauty, personal care, home care, prescription drug, consumer health care, injectable, and food and beverage markets.

Rewards

Earnings are forecast to grow 11.95% per year

Earnings grew by 15.1% over the past year

Pays a reliable dividend of 1.24%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

ATR

-1.6%

US Packaging

-1.3%

US Market


1 Year Return

20.3%

ATR

15.2%

US Packaging

22.0%

US Market

Return vs Industry: ATR exceeded the US Packaging industry which returned 17.4% over the past year.

Return vs Market: ATR underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ATRIndustryMarket
7 Day-0.2%-1.6%-1.3%
30 Day2.0%-0.2%1.6%
90 Day-0.6%2.1%8.9%
1 Year21.8%20.3%18.0%15.2%24.7%22.0%
3 Year66.3%59.5%22.1%13.9%49.4%39.7%
5 Year99.3%85.6%47.0%28.0%78.1%58.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

31.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATR ($116.13) is trading above our estimate of fair value ($75.32)

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


Price To Earnings Ratio

PE vs Industry: ATR is poor value based on its PE Ratio (31.4x) compared to the Packaging industry average (18.8x).

PE vs Market: ATR is poor value based on its PE Ratio (31.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ATR is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ATR is overvalued based on its PB Ratio (4.8x) compared to the US Packaging industry average (3.4x).


Next Steps

Future Growth

How is AptarGroup forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATR's forecast earnings growth (11.9% per year) is above the savings rate (1.7%).

Earnings vs Market: ATR's earnings (11.9% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: ATR's revenue (4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ATR's revenue (4% 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 (17.9%).


Next Steps

Past Performance

How has AptarGroup performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATR has high quality earnings.

Growing Profit Margin: ATR's current net profit margins (8.2%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: ATR's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: ATR's earnings growth over the past year (15.1%) exceeds its 5-year average (2.9% per year).

Earnings vs Industry: ATR earnings growth over the past year (15.1%) exceeded the Packaging industry -18.3%.


Return on Equity

High ROE: ATR's Return on Equity (15.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AptarGroup's financial position?


Financial Position Analysis

Short Term Liabilities: ATR's short term assets ($1.3B) exceed its short term liabilities ($648.8M).

Long Term Liabilities: ATR's short term assets ($1.3B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: ATR's debt to equity ratio (74.6%) is considered high.

Reducing Debt: ATR's debt to equity ratio has increased from 43% to 74.6% over the past 5 years.

Debt Coverage: ATR's debt is well covered by operating cash flow (41.8%).

Interest Coverage: ATR's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ATR's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

1.23%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: ATR's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ATR's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), ATR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATR's dividends in 3 years are forecast to be well covered by earnings (32.1% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Stephan Tanda (54yo)

2.9yrs

Tenure

US$8,039,185

Compensation

Mr. Stephan B. Tanda, MBA, serves as 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.  ...


CEO Compensation Analysis

Compensation vs Market: Stephan's total compensation ($USD8.04M) is about average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

1.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: ATR's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

63yo

Average Age

Experienced Board: ATR's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: ATR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$259,34703 Dec 19
Maritza Montiel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,313
Max PriceUS$112.13
SellUS$368,03405 Mar 19
Stephen Hagge
EntityIndividual
Shares3,634
Max PriceUS$102.00

Ownership Breakdown

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


Management Team

  • Stephan Tanda (54yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$8.04m
  • Bob Kuhn (57yo)

    Executive VP

    • Tenure: 11.3yrs
    • Compensation: US$2.68m
  • Matthew DellaMaria

    Senior VP of Investor Relations & Communications

    • Eldon Schaffer (53yo)

      Executive Vice President of Strategic Projects & Commercial Excellence

      • Tenure: 0.3yrs
      • Compensation: US$1.95m
    • Shiela Vinczeller (55yo)

      Chief Human Resources Officer

      • Tenure: 1.2yrs
    • Gael Touya (49yo)

      President of Aptar Pharma

      • Tenure: 4yrs
      • Compensation: US$1.95m
    • Marc Prieur

      President of Aptar Beauty + Home

      • Tenure: 1.3yrs
    • Xiangwei Gong (49yo)

      President of Aptar Asia

      • Tenure: 1.3yrs
      • Compensation: US$1.43m
    • Heidi Tlili

      President of Aptar Food + Beverage

      • Tenure: 0.08yrs

    Board Members

    • George Fotiades (65yo)

      Independent Chairman

      • Tenure: 1.7yrs
      • Compensation: US$315.04k
    • Joanne Smith (58yo)

      Independent Director

      • Tenure: 21yrs
      • Compensation: US$211.95k
    • B. Owens (65yo)

      Independent Director

      • Tenure: 1.9yrs
      • Compensation: US$221.95k
    • Ralf Wunderlich (53yo)

      Independent Director

      • Tenure: 10.7yrs
      • Compensation: US$221.95k
    • Giovanna Kampouri Monnas (64yo)

      Independent Director

      • Tenure: 9.7yrs
      • Compensation: US$226.95k
    • Stephan Tanda (54yo)

      President

      • Tenure: 2.9yrs
      • Compensation: US$8.04m
    • Isabelle Marey-Semper (51yo)

      Independent Director

      • Tenure: 0.7yrs
    • Andreas Kramvis (66yo)

      Independent Director

      • Tenure: 5.8yrs
      • Compensation: US$221.95k
    • Jesse Wu (62yo)

      Independent Director

      • Tenure: 1.9yrs
      • Compensation: US$211.95k
    • Maritza Montiel (67yo)

      Independent Director

      • Tenure: 5yrs
      • Compensation: US$232.95k

    Company Information

    AptarGroup, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: AptarGroup, Inc.
    • Ticker: ATR
    • Exchange: NYSE
    • Founded: 1992
    • Industry: Metal and Glass Containers
    • Sector: Materials
    • Market Cap: US$7.487b
    • Shares outstanding: 63.93m
    • Website: https://www.aptar.com

    Number of Employees


    Location

    • AptarGroup, Inc.
    • 265 Exchange Drive
    • Suite 100
    • Crystal Lake
    • Illinois
    • 60014
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ATRNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1993
    AGTDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1993

    Biography

    AptarGroup, Inc. provides a range of packaging, dispensing, and sealing 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: Beauty + Home, Pharma, and Food + Beverage. The Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories, and sealing solutions to the personal care and home care markets; and pumps and decorative components components to the beauty market. 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; and elastomer for injectable primary packaging components. The Food + Beverage segment offers dispensing and non-dispensing closures, elastomeric flow control components, spray pumps, and aerosol valves to the food and beverage markets. The company also manufactures and sells elastomeric primary packaging components for injectable market, which include stoppers for infusion, antibiotic, lyophilization, and diagnostic vials; and pre-filled syringe components, such as plungers, needle shields, tip caps and cartridges, and dropper bulbs and syringe plungers. AptarGroup, Inc. sells its products through own sales force, as well as independent representatives and distributors in Asia, Europe, Latin America, and North America. The company has a strategic partnership with PureCycle Technologies LLC to develop ultra-pure recycled polypropylene into dispensing applications. AptarGroup, Inc. was founded in 1992 and is headquartered in Crystal Lake, Illinois. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/25 23:31
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.