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AptarGroup (ATR)
NYSE:ATR
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AptarGroup
(NYSE:ATR)
Rating:71Outperform
Price Target:
$156.00
▲(12.01% Upside)
Positive Factors
Earnings
Aptar reported positive second-quarter results that beat estimates across the board.
Financial Performance
Shares trade at a valuation below the pure-play pharma packaging peer average, suggesting potential upside.
Innovation
The company's biennial Investor Day is expected to be a positive event showcasing AptarGroup's innovation.
Negative Factors
Guidance
Third-quarter EPS guidance came in about 5% below consensus prior to the print.
Inventory
Continued high inventories of cold/flu products in Europe and normalized sales growth of Naloxone are headwinds.
Legal Expenses
Legal expenses related to intellectual property litigation in Pharma are impacting third-quarter guidance.
AptarGroup (ATR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.18B
Dividend Yield1.29%
Average Volume (3M)494.06K
Price to Earnings (P/E)24.0
Beta (1Y)0.63
Revenue Growth1.51%
EPS Growth21.70%
CountryUS
Employees13,000
SectorHealthcare
Sector Strength54
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.66
Shares Outstanding65,880,520
10 Day Avg. Volume411,806
30 Day Avg. Volume494,056
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue3.23
Enterprise Value/Gross Profit8.44
Enterprise Value/Ebitda14.68
Forecast
1Y Price Target
$167.33Price Target Upside20.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
AptarGroup Business Overview & Revenue Model
Company DescriptionAptarGroup, Inc. provides a range of dispensing, sealing, and material science 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: Pharma, Beauty + Home, and Food + Beverage. 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; elastomer for injectable primary packaging components; and active material science solutions. 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 to the beauty market. 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. It 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; and a collaboration with Sonmol for developing a digital therapies and services platform targeting respiratory and other diseases. AptarGroup, Inc. was incorporated in 1992 and is headquartered in Crystal Lake, Illinois.
How the Company Makes MoneyAptarGroup generates revenue primarily through the sale of its dispensing and packaging solutions across its three business segments. The company has a diversified revenue model that includes direct sales to manufacturers and brand owners in various industries. Key revenue streams include the sale of pumps, aerosols, and closures for beauty and personal care products, as well as packaging solutions for food and beverage markets. Additionally, AptarGroup earns revenue from its pharmaceutical segment by providing delivery systems for injectables and inhalation products. Strategic partnerships with major global brands in these sectors further enhance its market reach and contribute to steady revenue growth. The company also invests in research and development to innovate and expand its product offerings, which can drive additional sales and market share.
AptarGroup Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a positive picture overall, with strong EPS growth and significant achievements in sustainability and segment performance. However, challenges persist in the Consumer Healthcare segment, Prestige Beauty, and due to increased legal expenses. The normalization of Naloxone sales also presents a potential hurdle.Q2-2025 Updates
Positive Updates
Strong EPS Growth
Aptar delivered adjusted earnings per share of $1.66, an increase of 18% over the prior year quarter, exceeding the high end of their guidance range.
Pharma Segment Performance
Pharma segment showed robust core sales growth with Prescription increasing by 8%, Injectables by 9%, and Active Materials Science Solutions by 11%.
Recognition for Sustainability
Aptar was named one of Time Magazine's World's Most Sustainable Companies for the second year in a row, and was also named to CDP's Supplier Engagement Assessment A List for the 2024 disclosure cycle.
New Acquisition to Expand Capabilities
Acquired Mod3 Pharma's clinical trial manufacturing capabilities, expanding Aptar Pharma services into CDMO field supporting Phase I and Phase II GMP fill and finish services.
Closure Segment Growth
Core sales in the Closures segment increased by 7%, driven by innovation and strong demand across various product categories.
Negative Updates
Consumer Healthcare Challenges
Consumer Healthcare core sales decreased 14% due to continued inventory management by customers in Europe, leading to softer demand for nasal decongestants and nasal saline rinse solutions.
Prestige Beauty Headwinds
Prestige beauty faced headwinds from trade uncertainties, slowing demand recovery despite growth in Masstige fragrance.
Legal Expenses Impact
Anticipated legal expenses associated with litigating pharma intellectual property rights are expected to increase significantly, impacting EPS guidance.
Naloxone Sales Normalization
Naloxone sales are beginning to normalize after a period of rapid growth, impacting the overall pharma growth rate.
Company Guidance
During the call, Aptar provided guidance on their financial performance for the second quarter of 2025, highlighting that they exceeded the high end of their guidance range with an adjusted earnings per share of $1.66, marking an 18% increase over the prior year. The company's core sales grew by 3%, supported by strong demand in their Pharma and Closures segments, with Pharma's adjusted EBITDA margin improving by 130 basis points to 35.4%. Adjusted EBITDA for the company increased by 13% to $218 million. Despite challenges in some areas, such as Consumer Healthcare in Europe, overall demand for dispensing closures and proprietary drug delivery systems drove positive results. The company announced an acquisition to expand their capabilities in clinical trial manufacturing and is expecting third quarter adjusted earnings per share to be in the range of $1.53 to $1.61. Notably, they have been recognized as one of Time Magazine's World's Most Sustainable Companies for the second consecutive year.AptarGroup Financial Statement Overview
Summary
AptarGroup exhibits a strong financial profile with robust profitability, solid balance sheet metrics, and effective cash flow management. The company's ability to maintain healthy margins and leverage ratios underscores its operational efficiency and financial stability. However, vigilance in managing revenue fluctuations and enhancing free cash flow growth is essential to sustain long-term financial resilience.Income Statement
AptarGroup demonstrates strong profitability with a consistent gross profit margin, achieving 51.9% in TTM. The net profit margin also remains robust at 10.4%, indicating efficient cost management. Revenue growth shows a positive trend with a 6.3% increase from 2022 to 2023, and a slight decline to 2024, followed by a recovery in TTM. EBIT and EBITDA margins are healthy, reinforcing solid operational efficiency. However, the revenue dip in 2024 highlights potential market challenges.85
Very Positive
Balance Sheet
The company maintains a stable financial position with a debt-to-equity ratio of 0.22 in TTM, reflecting prudent leverage management. Return on equity is satisfactory at 14.5%, showcasing effective utilization of shareholder funds. The equity ratio stands at 56.4%, indicating a strong equity base relative to assets. While the balance sheet reflects solid financial health, continuous monitoring of debt levels is advisable due to fluctuating total debt figures.78
Positive
Cash Flow
AptarGroup's cash flow management is commendable, with operating cash flow consistently exceeding net income, resulting in a ratio of 1.71 in TTM. Free cash flow remains positive, though the growth rate has been modest. The free cash flow to net income ratio of 0.97 in TTM suggests efficient cash conversion. Despite the stability, the company should aim to enhance free cash flow growth to strengthen financial flexibility.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.55B | 3.58B | 3.49B | 3.32B | 3.23B | 2.93B |
| Gross Profit | 1.36B | 1.36B | 1.26B | 1.16B | 1.16B | 1.09B |
| EBITDA | 781.62M | 777.45M | 663.84M | 609.41M | 586.79M | 556.17M |
| Net Income | 370.24M | 374.54M | 284.49M | 239.29M | 244.10M | 214.04M |
Balance Sheet | ||||||
| Total Assets | 4.53B | 4.43B | 4.45B | 4.20B | 4.14B | 3.99B |
| Cash, Cash Equivalents and Short-Term Investments | 136.82M | 226.18M | 223.64M | 141.73M | 123.67M | 300.38M |
| Total Debt | 1.06B | 1.08B | 1.18B | 1.22B | 1.24B | 1.23B |
| Total Liabilities | 1.98B | 1.95B | 2.13B | 2.14B | 2.16B | 2.14B |
| Stockholders Equity | 2.54B | 2.47B | 2.31B | 2.05B | 1.97B | 1.85B |
Cash Flow | ||||||
| Free Cash Flow | 355.96M | 349.22M | 256.84M | 163.00M | 55.51M | 318.11M |
| Operating Cash Flow | 633.82M | 643.41M | 575.24M | 478.62M | 363.44M | 570.15M |
| Investing Cash Flow | -376.78M | -396.72M | -324.46M | -295.64M | -457.24M | -451.98M |
| Financing Cash Flow | -324.37M | -225.34M | -171.55M | -162.10M | -81.52M | -73.72M |
AptarGroup Technical Analysis
Negative
139.27
Price Trends
149.83
Negative
150.25
Negative
152.68
Negative
Market Momentum
-3.00
Negative
37.58
Neutral
30.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATR, the sentiment is Negative. The current price of 139.27 is below the 20-day moving average (MA) of 139.73, below the 50-day MA of 149.83, and below the 200-day MA of 152.68, indicating a bearish trend. The MACD of -3.00 indicates Negative momentum. The RSI at 37.58 is Neutral, neither overbought nor oversold. The STOCH value of 30.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATR.
AptarGroup Risk Analysis
AptarGroup disclosed 29 risk factors in its most recent earnings report. AptarGroup reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AptarGroup Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $17.76B | 36.99 | 17.72% | 0.34% | 2.88% | -5.50% | |
71 Outperform | $9.18B | 24.02 | 15.36% | 1.29% | 1.51% | 21.70% | |
65 Neutral | $13.40B | 33.18 | 5.01% | ― | 6.35% | 12.94% | |
64 Neutral | $6.28B | 42.98 | 9.55% | 0.26% | 5.95% | 7.73% | |
54 Neutral | $12.68B | 136.07 | -3.30% | 2.75% | -27.41% | 67.01% | |
54 Neutral | $6.88B | ― | -0.68% | ― | 8.73% | -245.82% | |
51 Neutral | $7.84B | -0.18 | -41.53% | 2.28% | 22.72% | -1.87% |
* Healthcare Sector Average
Performance Comparison
ATR
AptarGroup
139.27
-9.08
-6.12%
BAX
Baxter International
24.69
-12.32
-33.29%
COO
Cooper Co
67.40
-38.66
-36.45%
RGEN
Repligen
122.32
-19.47
-13.73%
WST
West Pharmaceutical Services
246.95
-56.26
-18.55%
STVN
Stevanato Group
23.01
1.13
5.16%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.