Amcor (AMCR) AI Stock Analysis

• Market Cap: $19.29B
• Dividend Yield: 6.15%
• Average Volume (3M): 22.52M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.35
• Revenue Growth: 28.41%
• EPS Growth: -35.50%
• Country: US
• Employees: 41,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.19
• Shares Outstanding: 2,304,359,900
• 10 Day Avg. Volume: 18,522,712
• 30 Day Avg. Volume: 22,519,855
• PEG Ratio: -0.77
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 18.03
• Enterprise Value/Market Cap: 0.10
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.61
• Enterprise Value/Ebitda: 0.93
• 1Y Price Target: $10.82
• Price Target Upside: 29.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.8
• Revenue Forecast (FY): $23.06B

• Rating: 73 Outperform
• Price Target: $9.00 ▲(7.91% Upside)

Amcor's overall stock score reflects strong financial performance and positive earnings call outcomes, with significant EPS growth and synergy realization. However, challenges with profitability, high leverage, and mixed technical indicators temper the score. The attractive dividend yield provides some support against valuation concerns.

Positive Factors

Revenue Growth

Robust revenue growth indicates strong demand and market expansion, supporting long-term business stability and competitive positioning.

Synergy Realization

Realizing synergies enhances operational efficiency and cost savings, contributing to improved profitability and competitive advantage.

Cash Flow Generation

Strong cash flow generation improves financial flexibility, enabling strategic investments and debt management, supporting long-term growth.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in rising interest rate environments, potentially impacting long-term financial stability.

Profitability Challenges

Low profitability margins can limit reinvestment capabilities and shareholder returns, posing challenges to sustaining competitive advantage.

Volume Decline

Declining volumes, particularly in key markets, could indicate weakening demand, impacting revenue growth and market share over time.

Amcor Business Overview & Revenue Model

Company Description

Amcor (AMCR) is a global leader in packaging solutions, specializing in the design and manufacture of flexible and rigid packaging products for various industries, including food, beverage, healthcare, and personal care. With a commitment to sustainability, Amcor provides innovative packaging solutions that enhance product protection, shelf life, and consumer convenience. The company operates in multiple sectors, offering a wide range of products such as flexible films, rigid containers, and specialty packaging designed to meet the evolving needs of its global customers.

How the Company Makes Money

Amcor generates revenue primarily through the sale of its packaging products across various sectors. The company operates in two main segments: Flexibles and Rigid Packaging. Its Flexibles segment includes products like flexible films and bags, while the Rigid Packaging segment encompasses containers and lids. Amcor's revenue model is based on long-term contracts with large multinational clients, which provides stability and predictability in earnings. Additionally, the company benefits from strategic partnerships and collaborations with key players in the food, beverage, and healthcare industries, enabling it to innovate and expand its product offerings. Factors contributing to its earnings include increased demand for sustainable packaging solutions, geographic expansion into emerging markets, and a focus on operational efficiency to reduce costs.

Amcor Financial Statement Overview

Summary

Amcor demonstrates solid revenue growth and operational efficiency, as evidenced by healthy EBIT and EBITDA margins. However, the company faces challenges with profitability and high leverage, as indicated by the modest net profit margin and elevated debt-to-equity ratio. Strong cash flow generation provides a buffer, but the reliance on debt financing could pose risks in a rising interest rate environment.

Income Statement

Amcor's income statement shows strong revenue growth of 15.94% in the TTM, indicating robust demand and market expansion. The gross profit margin is stable at 18.88%, while the net profit margin is modest at 3.40%, suggesting room for improvement in cost management. EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the decline in net income from previous years highlights potential profitability challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.28, indicating significant leverage, which could pose risks if interest rates rise. Return on equity is moderate at 8.78%, showing decent profitability relative to equity. The equity ratio stands at 31.55%, suggesting a balanced capital structure but with a reliance on debt financing.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 31.54% in the TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 2.62, indicating strong cash conversion. However, the free cash flow to net income ratio of 0.84 suggests that a significant portion of earnings is not translating into free cash flow, which could impact future investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.40B	15.01B	13.64B	14.69B	14.54B	12.86B
Gross Profit	3.30B	2.83B	2.71B	2.73B	2.82B	2.73B
EBITDA	2.16B	1.77B	1.85B	2.13B	1.90B	1.92B
Net Income	582.00M	511.00M	730.00M	1.05B	805.00M	939.00M
Balance Sheet
Total Assets	37.15B	37.07B	16.52B	17.00B	17.43B	17.19B
Cash, Cash Equivalents and Short-Term Investments	825.00M	827.00M	588.00M	689.00M	775.00M	850.00M
Total Debt	15.80B	15.01B	7.19B	7.21B	6.98B	6.75B
Total Liabilities	25.42B	25.33B	12.57B	12.91B	13.29B	12.37B
Stockholders Equity	11.72B	11.73B	3.88B	4.03B	4.08B	4.76B
Cash Flow
Free Cash Flow	1.54B	810.00M	829.00M	735.00M	999.00M	993.00M
Operating Cash Flow	1.53B	1.39B	1.32B	1.26B	1.53B	1.46B
Investing Cash Flow	-2.17B	-2.10B	-476.00M	-309.00M	-527.00M	-233.00M
Financing Cash Flow	1.03B	910.00M	-857.00M	-1.02B	-891.00M	-1.18B

Amcor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 8.34 is above the 20-day moving average (MA) of 8.34, above the 50-day MA of 8.17, and below the 200-day MA of 8.67, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 68.93 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	$18.21B	20.45	19.68%	2.47%	7.30%	15.31%
AMCR	73 Outperform	$19.29B	24.45	7.44%	6.15%	28.41%	-35.50%
CCK	73 Outperform	$12.03B	12.91	34.10%	1.01%	2.94%	893.70%
SW	69 Neutral	$19.79B	26.63	4.11%	4.46%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALL	59 Neutral	$13.95B	19.48	11.74%	1.53%	2.87%	―
IP	49 Neutral	$20.43B	-14.79	-4.65%	4.79%	25.91%	-316.17%

Amcor Corporate Events

Amcor Announces Reverse Stock Split Plan

On December 11, 2025, Amcor announced it will proceed with a 1-for-5 reverse stock split, effective January 14, 2026, reducing its outstanding ordinary shares from approximately 2.3 billion to 461 million. This move, approved by shareholders on November 6, 2025, aims to consolidate shares and adjust share values, impacting trading on the New York and Australian Stock Exchanges. The reverse stock split will also proportionately adjust unvested equity-based awards and ensure no fractional shares are issued, with cash payments provided instead.

Amcor Shareholders Approve Key Proposals at AGM

At its Annual General Meeting on November 6, 2025, Amcor plc shareholders re-elected eleven directors and ratified PricewaterhouseCoopers AG as the independent registered public accounting firm for the 2026 fiscal year. Additionally, shareholders approved the executive compensation plan, decided on an annual advisory vote frequency for executive compensation, and sanctioned an amendment to the company’s Memorandum of Association to implement a reverse stock split. These decisions reflect a strategic alignment with shareholder interests and a focus on corporate governance, potentially impacting Amcor’s operational efficiency and market perception.

Amcor Completes Merger with Berry Global Group

On April 30, 2025, Amcor plc completed its merger with Berry Global Group, Inc., making Berry a wholly-owned subsidiary of Amcor. This strategic move involved significant financial adjustments, including the delisting of Berry’s shares from the New York Stock Exchange and the issuance of unsecured notes by Amcor to finance the merger. The merger is expected to enhance Amcor’s market position by integrating Berry’s operations, although the actual financial impact remains to be seen.

Amcor Adopts Executive Change in Control Plan

Amcor plc announced the adoption of an Executive Change in Control Severance Plan effective September 23, 2025. This plan offers ‘double trigger’ severance protections for executives, including cash severance, pro rata bonuses, accelerated equity vesting, and limited healthcare coverage, in the event of a qualifying termination related to a change in control. This move is likely to enhance executive stability and confidence during potential transitions, impacting the company’s operational continuity and stakeholder assurance.