Amcor (AMCR) AI Stock Analysis

• Market Cap: $19.41B
• Dividend Yield: 6.11%
• Average Volume (3M): 26.05M
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.45
• Revenue Growth: 10.03%
• EPS Growth: -28.33%
• Country: US
• Employees: 41,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Packaging & Containers
• EPS (TTM): 0.20
• Shares Outstanding: 2,305,359,900
• 10 Day Avg. Volume: 22,588,680
• 30 Day Avg. Volume: 26,050,538
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 11.69
• Enterprise Value/Ebitda: 18.90
• 1Y Price Target: $10.55
• Price Target Upside: 26.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 63 Neutral
• Price Target: $9.00 ▲(7.78% Upside)

Amcor's overall stock score reflects a balance of strong strategic initiatives and current financial challenges. The successful acquisition of Berry Global and positive future projections in EPS and cash flow are significant strengths. However, declining profit margins, increased leverage, and bearish technical indicators present notable risks. The attractive dividend yield provides some compensation for these risks.

Positive Factors

Cost Synergies

The identification of $530 million in cost synergies by AMCR is seen as manageable and positively impacts its financial outlook.

Mergers and Acquisitions

AMCR's strong track record of integrating large deals like BMS and Alcan boosts confidence in its ability to successfully merge with Berry Global.

Profit Growth

Significant profit growth for Amcor is anticipated, driven by synergies over the upcoming years.

Shareholder Value

The BERY deal structure offers an attractive entry point for shareholders with the stock price currently below pre-announcement levels.

Negative Factors

Asset Divestiture

The anticipated divestment of non-core assets, including the NA beverage business, might create uncertainty about AMCR's future business focus.

Debt and Leverage

While AMCR aims to reduce leverage through asset divestiture, there is a risk if the divestment doesn't proceed as planned.

Amcor Business Overview & Revenue Model

Company Description

Amcor (AMCR) is a global leader in packaging solutions, providing a wide range of products and services to various industries, including food, beverage, pharmaceutical, medical, and personal care sectors. With a strong focus on sustainability and innovation, Amcor specializes in flexible and rigid packaging, including bags, pouches, containers, and films, designed to meet the diverse needs of its customers while minimizing environmental impact.

How the Company Makes Money

Amcor generates revenue primarily through the sale of its packaging products, which are divided into flexible and rigid segments. The company serves a diverse customer base across multiple sectors, allowing it to capitalize on various market demands. Flexible packaging products, such as pouches and films, often have higher margins compared to rigid packaging, contributing significantly to the company's profitability. Amcor also benefits from long-term contracts and partnerships with key clients, providing stability in revenue streams. Additionally, the company's focus on sustainability attracts environmentally conscious brands, further enhancing its market position and revenue potential. Strategic acquisitions and investments in innovative packaging technologies have also played a crucial role in expanding Amcor's product offerings and geographical reach, thereby bolstering its earnings.

Amcor Financial Statement Overview

Summary

Amcor demonstrates strong revenue growth and effective use of equity, but faces challenges with declining profit margins and increased leverage. The cash flow situation requires attention due to declining free cash flow. While the company shows growth potential, it must address profitability and leverage to ensure long-term financial stability.

Income Statement

Amcor shows a strong revenue growth rate of 11.49% in the latest year, indicating robust sales performance. However, the net profit margin has decreased from previous years, reflecting potential cost pressures or pricing challenges. The gross profit margin remains stable, suggesting efficient production processes. Overall, the income statement reflects positive growth with some profitability concerns.

Balance Sheet

The company's debt-to-equity ratio has increased significantly, indicating higher leverage and potential risk if interest rates rise. However, the return on equity remains healthy, demonstrating effective use of shareholder funds. The equity ratio is stable, reflecting a balanced asset structure. The balance sheet shows a mix of growth potential and increased financial risk.

Cash Flow

Free cash flow has declined by 25.66%, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is strong, indicating good cash conversion from profits. However, the decrease in free cash flow growth suggests potential challenges in maintaining liquidity. Overall, the cash flow statement highlights a need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.01B	15.01B	13.64B	14.69B	14.54B	12.86B
Gross Profit	2.83B	2.83B	2.71B	2.73B	2.82B	2.73B
EBITDA	1.75B	1.77B	1.84B	2.13B	1.90B	1.92B
Net Income	511.00M	511.00M	730.00M	1.05B	805.00M	939.00M
Balance Sheet
Total Assets	37.07B	37.07B	16.52B	17.00B	17.43B	17.19B
Cash, Cash Equivalents and Short-Term Investments	827.00M	827.00M	588.00M	689.00M	775.00M	850.00M
Total Debt	15.01B	15.01B	7.19B	7.21B	6.98B	6.75B
Total Liabilities	25.33B	25.33B	12.57B	12.91B	13.29B	12.37B
Stockholders Equity	11.73B	11.73B	3.88B	4.03B	4.08B	4.76B
Cash Flow
Free Cash Flow	1.17B	810.00M	829.00M	735.00M	999.00M	993.00M
Operating Cash Flow	1.39B	1.39B	1.32B	1.26B	1.53B	1.46B
Investing Cash Flow	-2.10B	-2.10B	-476.00M	-308.00M	-510.00M	-228.00M
Financing Cash Flow	910.00M	910.00M	-857.00M	-1.01B	-886.00M	-1.18B

Amcor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 8.35 is below the 20-day moving average (MA) of 8.84, below the 50-day MA of 9.25, and below the 200-day MA of 9.42, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 33.09 is Neutral, neither overbought nor oversold. The STOCH value of 10.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMCR.

Amcor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKG	77 Outperform	$19.48B	21.60	20.51%	2.31%	8.98%	25.81%
CCK	72 Outperform	$11.49B	20.73	20.64%	1.12%	2.07%	32.37%
BALL	68 Neutral	$13.90B	23.84	9.59%	1.59%	-3.12%	―
AMCR	63 Neutral	$19.41B	26.30	6.55%	6.11%	10.03%	-28.33%
SW	63 Neutral	$24.52B	71.26	3.85%	3.40%	―	―
Sector *	61 Neutral	$17.96B	13.14	-5.36%	3.00%	1.25%	-13.95%
IP	57 Neutral	$25.96B	46.41	-0.20%	3.83%	18.13%	-106.71%

Amcor Corporate Events

Amcor Announces Consent Solicitations for Berry Merger

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.

Amcor Shareholders Approve Merger with Berry Global

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.