Amcor (AMCR) AI Stock Analysis

• Market Cap: $21.30B
• Dividend Yield: 5.52%
• Average Volume (3M): 36.08M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.44
• Revenue Growth: -2.29%
• EPS Growth: 24.05%
• Country: US
• Employees: 41,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Packaging & Containers
• EPS (TTM): 0.18
• Shares Outstanding: 2,305,343,300
• 10 Day Avg. Volume: 25,514,279
• 30 Day Avg. Volume: 36,082,216
• PEG Ratio: 0.41
• Price to Book (P/B): 3.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.93
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: -5.20
• Enterprise Value/Ebitda: 3.57
• 1Y Price Target: $11.80
• Price Target Upside: 28.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: $9.50 ▲(3.71%Upside)

Amcor's overall score is driven primarily by its strong earnings call outlook and stable valuation metrics. Financial performance is mixed, with significant leverage but robust cash flow. Technical analysis provides a neutral view, limiting the score's upside.

Positive Factors

Dividends

Dividend increased to 12.75 cents, reflecting a commitment to returning value to shareholders.

Earnings

Volumes returned to growth with a 2.3% year-over-year increase, signaling positive earnings momentum.

Mergers and Acquisitions

Shareholder approvals for the Berry transaction and encouraging regulatory review suggest potential for growth through strategic acquisitions.

Negative Factors

Operational Performance

Operational performance was fractionally lower than consensus with 2% lower sales and $5m lower EBIT.

Sales

Unfavourable price/mix impact and lower demand in high-value healthcare categories negatively affected net sales.

Amcor Business Overview & Revenue Model

Company Description

Amcor (AMCR) is a global leader in developing and producing responsible packaging solutions for a wide range of products across industries such as food, beverage, pharmaceutical, medical, home, and personal care. The company focuses on creating packaging that is durable, sustainable, and tailored to the needs of its clients, utilizing materials like flexible and rigid plastics, cartons, and closures.

How the Company Makes Money

Amcor generates revenue primarily through the sale of its diverse packaging solutions to a broad range of industries. The company's revenue model is based on long-term contracts and partnerships with major consumer goods companies, pharmaceutical firms, and other businesses requiring packaging solutions. Amcor leverages its global footprint and advanced technology to deliver cost-effective and sustainable packaging, which is a key factor in attracting and retaining clients. Significant revenue streams include the sales of flexible packaging, rigid packaging, and specialty cartons. Additionally, Amcor invests in innovation and sustainability, which not only enhances its product offerings but also aligns with the increasing demand for environmentally friendly packaging solutions, further contributing to its earnings.

Amcor Financial Statement Overview

Summary

Amcor shows a mixed financial performance. Despite challenges in revenue growth and negative gross profit margins, the company maintains positive EBIT and net profit margins. The balance sheet reflects a stable equity position despite high leverage, and strong cash flow supports operational needs.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 9.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMCR, the sentiment is Positive. The current price of 9.16 is above the 20-day moving average (MA) of 9.12, above the 50-day MA of 9.16, and below the 200-day MA of 9.80, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 71.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMCR.

Amcor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKG	76 Outperform	$17.75B	20.65	20.07%	2.53%	9.47%	19.37%
CCK	73 Outperform	$11.64B	21.49	21.30%	1.04%	0.90%	34.40%
BALL	65 Neutral	$15.26B	29.19	8.23%	1.45%	-9.79%	―
GPK	64 Neutral	$6.78B	11.02	20.62%	1.96%	-6.28%	-7.43%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
AMCR	60 Neutral	$21.30B	16.58	20.71%	5.52%	-2.29%	24.05%

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.