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Amcor PLC (AMCR)
NYSE:AMCR
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Amcor
(NYSE:AMCR)
Rating:56Neutral
Price Target:―
Positive Factors
Debt Reduction
Amcor completed the sale of its 50% interest in Bericap North America for $122m, with the proceeds used to reduce debt.
Dividend Increase
Dividend increased to 12.75 cents, reflecting a commitment to returning value to shareholders.
Shareholder Approvals
Amcor received shareholder approvals for the Berry transaction and is encouraged with the pace of regulatory review.
Negative Factors
Complex Integration
Execution specific to the Amcor/Berry combination will be complex given the expanse of the combined infrastructure.
Core Volume Growth
The core volume growth will likely remain muted on a pro-forma basis.
Operational Performance
Operational performance was fractionally lower than consensus with 2% lower sales and $5m lower EBIT.
Amcor (AMCR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.44B
Dividend Yield5.43%
Average Volume (3M)46.72M
Price to Earnings (P/E)16.7
Beta (1Y)0.42
Revenue Growth-2.29%
EPS Growth24.05%
CountryUS
Employees41,000
SectorConsumer Cyclical
Sector Strength74
IndustryPackaging & Containers
Share Statistics
EPS (TTM)0.18
Shares Outstanding2,305,343,300
10 Day Avg. Volume31,523,063
30 Day Avg. Volume46,718,750
Financial Highlights & Ratios
PEG Ratio8.72
Price to Book (P/B)3.42
Price to Sales (P/S)0.00
P/FCF Ratio19.30
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit-7.09
Enterprise Value/Ebitda4.87
Forecast
1Y Price Target
$11.80Price Target Upside28.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Amcor Business Overview & Revenue Model
Company DescriptionAmcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments, Flexibles and Rigid Packaging. The Flexibles segment provides flexible and film packaging products in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment offers rigid containers for a range of beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items; and plastic caps for various applications. The company sells its products primarily through its direct sales force. Amcor plc was incorporated in 2018 and is headquartered in Zürich, Switzerland.
How the Company Makes MoneyAmcor makes money primarily through the manufacture and sale of packaging products. Its revenue model is centered around key revenue streams, including the production of flexible packaging solutions, which account for a significant portion of its income. The company also generates revenue through its rigid packaging segment, which produces containers and closures for various end markets. Amcor's earnings are bolstered by strategic partnerships and long-term contracts with major global brands in the food, beverage, healthcare, and home and personal care industries. Additionally, the company's focus on innovation and sustainability attracts customers seeking environmentally friendly packaging solutions, further contributing to its revenue.
Amcor Financial Statement Overview
Summary
Amcor shows a mixed financial performance. The income statement reveals challenges with declining revenue and negative gross profit, but positive EBIT and net profit margins are maintained. The balance sheet is stable, although leveraged, and cash flow is strong, supporting operational needs despite revenue volatility.Income Statement
The income statement shows mixed results with a recent decline in revenue from the previous annual period and negative gross profit in the TTM (Trailing-Twelve-Months). However, the company has maintained positive EBIT and net profit margins in both TTM and the previous annual report. The revenue growth rate from 2023 to 2024 is negative, indicating a decrease in sales.45
Neutral
Balance Sheet
The balance sheet reveals a stable equity position with a consistent equity ratio. The debt-to-equity ratio is relatively high, indicating significant leverage, but the company maintains a healthy equity base. Return on equity appears robust in the TTM period despite challenges in revenue.50
Neutral
Cash Flow
Cash flow analysis shows a strong operating cash flow, outpacing net income, indicating effective cash management. Free cash flow remains positive with a stable growth rate over the periods analyzed. This underlines the company's ability to generate cash despite revenue fluctuations.60
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.87B | 13.64B | 14.69B | 14.54B | 12.86B | 12.47B | Gross Profit |
| -3.98B | 2.71B | 2.73B | 2.82B | 2.73B | 2.54B | EBIT |
| 712.00M | 1.21B | 1.51B | 1.24B | 1.32B | 994.00M | EBITDA |
| 998.61M | 1.84B | 2.08B | 1.78B | 2.00B | 1.64B | Net Income Common Stockholders |
| 453.00M | 730.00M | 1.05B | 805.00M | 939.00M | 612.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.04B | 588.00M | 689.00M | 775.00M | 850.00M | 743.00M | Total Assets |
| 18.04B | 16.52B | 17.00B | 17.43B | 17.19B | 16.44B | Total Debt |
| 9.24B | 7.19B | 6.75B | 6.49B | 6.29B | 6.23B | Net Debt |
| 7.20B | 6.60B | 6.06B | 5.71B | 5.44B | 5.49B | Total Liabilities |
| 0.00 | 12.57B | 12.91B | 13.29B | 12.37B | 11.76B | Stockholders Equity |
| 3.85B | 3.88B | 4.03B | 4.08B | 4.76B | 4.63B |
| Cash Flow | Free Cash Flow | ||||
| 1.09B | 829.00M | 735.00M | 999.00M | 993.00M | 984.00M | Operating Cash Flow |
| 1.23B | 1.32B | 1.26B | 1.53B | 1.46B | 1.38B | Investing Cash Flow |
| -357.76M | -476.00M | -308.00M | -510.00M | -228.00M | 38.00M | Financing Cash Flow |
| 792.75M | -857.00M | -1.01B | -886.00M | -1.18B | -1.24B |
Amcor Technical Analysis
Negative
9.18
Price Trends
9.42
Negative
9.59
Negative
10.01
Negative
Market Momentum
-0.04
Negative
45.42
Neutral
58.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMCR, the sentiment is Negative. The current price of 9.18 is below the 20-day moving average (MA) of 9.30, below the 50-day MA of 9.42, and below the 200-day MA of 10.01, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 58.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMCR.
Amcor Risk Analysis
Amcor disclosed 22 risk factors in its most recent earnings report. Amcor reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Amcor and Berry may waive one or more of the conditions to the consummation of the Merger without resoliciting shareholder or stockholder approval, as applicable, and may terminate the Merger Agreement even if the Amcor Shareholder Approval and the Berry Stockholder Approval have been obtained. Q4, 2024
2.
The market price of Amcor Ordinary Shares and Amcor CDIs following the Merger and may be affected by factors different from, or in addition to, those that historically have affected or currently affect the market prices of Amcor Ordinary Shares and Amcor CDIs. Q4, 2024
3.
Current Amcor Shareholders will have a reduced share of ownership and voting interest in the combined company following the Merger. Q4, 2024
Amcor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $11.53B | 21.28 | 21.30% | 1.02% | 0.90% | 34.40% | |
73 Outperform | $17.42B | 20.26 | 20.07% | 2.58% | 9.47% | 19.37% | |
67 Neutral | $7.83B | 14.54 | 21.42% | 1.73% | -8.26% | 10.64% | |
65 Neutral | $15.07B | 28.82 | 8.23% | 1.47% | -9.79% | ― | |
64 Neutral | $7.02B | 11.40 | 20.62% | 1.76% | -6.28% | -7.43% | |
62 Neutral | $6.97B | 11.36 | 2.77% | 3.91% | 2.66% | -22.00% | |
56 Neutral | $21.44B | 16.69 | 20.71% | 5.43% | -2.29% | 24.05% |
* Consumer Cyclical Sector Average
Performance Comparison
AMCR
Amcor
9.18
-0.35
-3.67%
BALL
Ball
53.83
-13.84
-20.45%
CCK
Crown Holdings
98.37
16.18
19.69%
GPK
Graphic Packaging
22.81
-4.27
-15.77%
PKG
Packaging
190.79
14.96
8.51%
BERY
Berry Global Group
67.58
14.69
27.77%
Amcor Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q3-2025)
| % Change Since: -0.22%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
Amcor's earnings call highlighted the successful merger with Berry Global and strong projections for synergy-driven growth, alongside ongoing challenges with North American volumes and macroeconomic uncertainties.Q3-2025 Updates
Positive Updates
Successful Merger with Berry Global
Amcor closed its merger with Berry Global earlier than anticipated, positioning the company to accelerate earnings growth through significant synergies.
Record Low Total Recordable Incident Rate
Amcor reported a TRIR of 0.27, with 69% of sites injury-free for over a year, highlighting a strong focus on workforce safety.
EPS Growth in Q3
Amcor delivered EPS growth of 5% on a comparable basis, driven by disciplined execution and improving healthcare volumes.
Synergy and Earnings Growth Projection
The integration with Berry is expected to deliver $650 million in synergies over three years, with a projected EPS accretion exceeding 35%.
Strong Cash Flow Projections
Amcor expects annual cash flow available to reinvest will exceed $3 billion by fiscal 2028, supporting dividends and further M&A activities.
Negative Updates
Weaker North American Volume Performance
Amcor reported weaker than expected consumer demand in North America, particularly affecting the Beverage business, with high single-digit volume declines.
Inventory Challenges
Higher inventories due to weaker sales volumes led to a net cash outflow of $17 million, compared to a $115 million inflow last year.
Macroeconomic Uncertainty
Amcor noted increasing uncertainty in the macro environment, with no anticipated improvement in consumer demand in Q4.
Company Guidance
During the fiscal 2025 third quarter earnings call, Amcor provided updated guidance reflecting its recent merger with Berry Global, which closed earlier than anticipated. The company anticipates delivering $650 million in synergies over the next three years, with $260 million expected to benefit fiscal 2026 earnings, contributing to a projected EPS increase of approximately 12% solely from synergies. Amcor revised its fiscal 2025 EPS guidance to a range of $0.72 to $0.74, incorporating two months of Berry's earnings, and expects free cash flow between $900 million and $1 billion. The company also highlighted its strong safety performance, with a TRIR of 0.27 and 69% of sites injury-free for over a year. Despite facing volume challenges in North America, particularly in the beverage sector, Amcor remains confident in its ability to drive growth and synergies, aiming for long-term EPS accretion exceeding 35% over three years.Amcor Corporate Events
M&A TransactionsBusiness Operations and Strategy
Amcor Announces Consent Solicitations for Berry Merger
Neutral
Feb 26, 2025
On February 26, 2025, Amcor plc announced the commencement of consent solicitations from holders of various senior secured notes issued by Berry Global, Inc., a subsidiary of Berry Global Group, Inc. The solicitations aim to amend indentures governing these notes in connection with a planned merger where Berry will become a wholly-owned subsidiary of Amcor. The proposed amendments include releasing certain guarantees and liens if Amcor provides an unconditional guarantee of Berry’s payment obligations. The consent process is part of a broader strategy to align the credit support of Berry’s notes with Amcor’s notes, potentially impacting stakeholders by altering the security structure of these financial instruments.
M&A TransactionsShareholder Meetings
Amcor Shareholders Approve Merger with Berry Global
Positive
Feb 26, 2025
On February 25, 2025, Amcor plc shareholders approved a merger with Berry Global Group, marking a significant step towards combining these complementary businesses. The merger, expected to close in mid-2025, aims to create a global leader in consumer and healthcare packaging solutions, promising faster growth and $650 million in synergies, thus enhancing value for stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.