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AptarGroup (ATR)
NYSE:ATR
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AptarGroup
(NYSE:ATR)
78Outperform
Positive Factors
Earnings
Aptar's first-quarter results beat expectations on profitability, and second-quarter EPS guidance exceeded forecasts.
Pharma Growth
Improving growth in Pharma is anticipated, with a clear path seen due to ramping-up capacity and strong demand trends in injectables.
Shareholder Returns
Improving ROIC should support multiple expansion, with a five-year EPS CAGR expected to be upwards of 10%, combined with a roughly 1% dividend as an attractive total shareholder return.
Negative Factors
Beauty Segment Challenges
FX and tax headwinds, remaining destocking, and the potential for continued China consumer weakness to weigh on Beauty segment results.
Consumer Spending
Aptar’s Beauty segment, which makes up 34% of total sales, may see headwinds if consumer spending sentiments continue to stay low.
Sales Performance
Beauty and Closures sales missed expectations.
AptarGroup (ATR) vs. S&P 500 (SPY)
Market Cap
$10.03B
Dividend Yield1.16%
Average Volume (3M)378.13K
Price to Earnings (P/E)27.8
Beta (1Y)0.59
Revenue Growth0.34%
EPS Growth17.27%
CountryUS
Employees13,000
SectorHealthcare
Sector Strength60
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.20
Shares Outstanding65,966,140
10 Day Avg. Volume371,968
30 Day Avg. Volume378,131
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.09
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.08
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$176.33Price Target Upside16.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
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 makes money through the sale of its packaging solutions, which are primarily developed for the beauty, personal care, home care, pharmaceutical, food, and beverage industries. The company's revenue streams are largely derived from long-term supply agreements with major consumer goods companies, providing them with customized and proprietary dispensing and packaging systems. Aptar's business model focuses on innovation and customer-centric solutions, which allows for the establishment of strong, ongoing partnerships with global brands. Additionally, the company invests in research and development to continuously improve and expand its product offerings, thereby maintaining its competitive edge and securing new business opportunities. The company's earnings are also supported by its global manufacturing and distribution network, which enables efficient production and delivery of its products worldwide.
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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.58B | 3.49B | 3.32B | 3.23B | 2.93B | Gross Profit |
| 1.36B | 1.26B | 1.16B | 1.16B | 1.09B | EBIT |
| 496.50M | 404.02M | 379.27M | 347.35M | 339.50M | EBITDA |
| 777.45M | 663.84M | 609.41M | 586.79M | 556.17M | Net Income Common Stockholders |
| 374.54M | 284.49M | 239.29M | 244.10M | 214.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 226.18M | 223.64M | 141.73M | 123.67M | 300.38M | Total Assets |
| 4.43B | 4.45B | 4.20B | 4.14B | 3.99B | Total Debt |
| 1.08B | 1.18B | 1.18B | 1.20B | 1.17B | Net Debt |
| 852.22M | 961.03M | 1.03B | 1.07B | 872.73M | Total Liabilities |
| 1.95B | 2.13B | 2.14B | 2.16B | 2.14B | Stockholders Equity |
| 2.47B | 2.31B | 2.05B | 1.97B | 1.85B |
| Cash Flow | Free Cash Flow | |||
| 366.93M | 256.84M | 163.00M | 55.51M | 318.11M | Operating Cash Flow |
| 643.41M | 575.24M | 478.62M | 363.44M | 570.15M | Investing Cash Flow |
| -396.72M | -324.46M | -295.64M | -457.24M | -451.98M | Financing Cash Flow |
| -225.34M | -171.55M | -162.10M | -81.52M | -73.72M |
AptarGroup Technical Analysis
Positive
151.48
Price Trends
146.71
Positive
151.28
Positive
154.55
Negative
Market Momentum
1.38
Negative
57.48
Neutral
75.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATR, the sentiment is Positive. The current price of 151.48 is above the 20-day moving average (MA) of 145.72, above the 50-day MA of 146.71, and below the 200-day MA of 154.55, indicating a neutral trend. The MACD of 1.38 indicates Negative momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 75.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.03B | 27.78 | 15.15% | 1.16% | 0.34% | 17.27% | |
74 Outperform | $15.18B | 33.18 | 17.42% | 0.39% | -1.14% | -16.35% | |
68 Neutral | $48.37B | 32.21 | 5.97% | 2.36% | 5.84% | 15.12% | |
67 Neutral | $5.83B | 45.50 | 9.40% | 0.27% | 1.72% | -21.26% | |
66 Neutral | $12.15B | 22.26 | 11.77% | ― | 1.66% | 21.95% | |
61 Neutral | $7.95B | ― | -1.16% | ― | 4.88% | -196.93% | |
52 Neutral | $5.35B | 3.83 | -41.70% | 2.85% | 17.03% | 1.22% |
* Healthcare Sector Average
Performance Comparison
ATR
AptarGroup
151.48
3.73
2.52%
BDX
Becton Dickinson
167.00
-65.52
-28.18%
HOLX
Hologic
52.73
-23.20
-30.55%
RGEN
Repligen
140.92
-27.12
-16.14%
WST
West Pharmaceutical Services
210.98
-154.49
-42.27%
STVN
Stevanato Group
22.13
-4.46
-16.77%
AptarGroup Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 2.16%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The call presented a mix of positive achievements and ongoing challenges. While the company demonstrated strong growth in its proprietary drug delivery systems and received significant sustainability recognition, it faced decreased reported sales and challenges in certain markets. The outlook remains cautiously optimistic with expectations for improvement in the coming quarters.Q1-2025 Updates
Positive Updates
Strong Performance in Proprietary Drug Delivery Systems
Core sales for proprietary drug delivery systems grew 4%, with 12 consecutive quarters of growth, including six with double-digit growth. Success driven by record launches, new innovations, and product reliability.
Recognition for Sustainability Efforts
Aptar was named one of Barron's most sustainable US companies for the seventh consecutive year and achieved EcoVadis' Platinum level rating, placing them among the top 1% of over 150,000 companies rated.
Positive Developments in Beauty and Closures Segments
Sequential improvement in Beauty sales, notably in Europe and China. Closures segment showed product sales growth in all end markets, with improvements in utilization rates and cost management.
Innovations and New Product Launches
New technologies and product launches in Pharma, Beauty, and Closures segments, including a nasal delivery system in Germany and an ophthalmic dispenser in China.
Share Repurchase Program
Aptar ramped up share repurchases, buying over 0.5 million shares for approximately $80 million, emphasizing belief in the company's future trajectory.
Negative Updates
Decreased Reported Sales
Reported sales decreased by 3%, including a 3% foreign currency translation headwind, resulting in flat core sales compared to the prior year period.
Challenges in Fragrance and Skincare Markets
Core sales in the Beauty segment decreased by 3%, driven by lower sales in prestige fragrance and facial skincare, particularly in Europe.
Softer Demand in Consumer Healthcare
Consumer healthcare core sales decreased by 10%, driven by softer demand for nasal decongestants and saline solutions, with ongoing inventory management issues at the customer level.
Lower Tooling Sales Affecting Closures Segment
Closures segment experienced a decrease in core sales by 2%, primarily due to significantly lower tooling sales compared to the prior year.
Company Guidance
During Aptar's 2025 First Quarter Results Conference Call, the company reported an adjusted earnings per share of $1.20, reflecting a 5% increase over the prior year when neutralizing currency effects and taxes. The Pharma segment saw a core sales growth of 4%, with continuous strong demand for proprietary drug delivery systems and a robust order book for injectables, particularly GLP-1 and biologics. Despite a 3% decrease in reported sales, adjusted EBITDA rose to $183 million, marking a 3% increase from the previous year, with an EBITDA margin improvement of 120 basis points to 20.7%. The effective tax rate increased to 25.8% due to a temporary surtax in France. Aptar repurchased over 0.5 million shares for approximately $80 million, underscoring confidence in the company's future. Looking ahead, the company anticipates second-quarter adjusted earnings per share between $1.56 and $1.64, with growth expected across all segments supported by a strong order book and innovation pipeline.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.