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AptarGroup (ATR)
NYSE:ATR
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AptarGroup
(NYSE:ATR)
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Rating:74Outperform
Price Target:
$150.00
▲(5.14% Upside)
Action:UpgradedDate:02/07/26
The score is driven primarily by strong underlying financial performance (steady growth, solid margins, and manageable leverage). This is supported by generally positive near-term technical momentum, while a mid-range valuation and a balanced earnings-call outlook—strong pipeline and buybacks offset by near-term margin/EPS headwinds—keep the overall score in the mid-70s.
Positive Factors
Pharma Segment Growth
The growth in the Pharma segment, particularly in central nervous system applications and injectables, indicates a strong market position and potential for sustained revenue growth.
Strategic Acquisition
The acquisition of Sommaplast is expected to strengthen Aptar's market presence in Brazil, enhancing its growth prospects in the oral dosing market.
Innovations and Approvals
FDA clearance for HeroTracker Sense technology enhances Aptar's product portfolio, supporting long-term growth in the drug delivery market.
Negative Factors
High Leverage
High leverage indicates significant financial risk, potentially limiting Aptar's ability to invest in growth opportunities and affecting financial stability.
Cash Flow Decline
A decline in free cash flow growth suggests potential issues in cash generation, which could impact Aptar's ability to fund operations and strategic initiatives.
Leadership Change
The departure of a key legal executive could disrupt Aptar's legal and compliance functions, potentially affecting strategic decision-making and regulatory compliance.
AptarGroup (ATR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.19B
Dividend Yield1.5%
Average Volume (3M)531.23K
Price to Earnings (P/E)24.4
Beta (1Y)0.51
Revenue Growth2.50%
EPS Growth25.05%
CountryUS
Employees13,000
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.25
Shares Outstanding64,379,740
10 Day Avg. Volume435,490
30 Day Avg. Volume531,225
Financial Highlights & Ratios
PEG Ratio3.60
Price to Book (P/B)3.01
Price to Sales (P/S)2.12
P/FCF Ratio26.76
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit9.39
Enterprise Value/Ebitda12.62
Forecast
1Y Price Target
$145.33Price Target Upside1.86% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)5.64
Revenue Forecast (FY)$3.92B
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 systems and packaging solutions across its three business segments. The company earns money by selling products to various industries, including pharmaceuticals, beauty, and food and beverage, with key revenue streams derived from both established products and new innovations. The pharmaceutical segment is particularly significant, driven by the growing demand for drug delivery systems. Additionally, AptarGroup benefits from long-term partnerships with major consumer brands and pharmaceutical companies, which provide a steady stream of income. The company's focus on innovation allows it to adapt to market trends and customer needs, further enhancing its revenue potential.
AptarGroup Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call presented a mix of clear operational and commercial strengths—notably strong Q4 revenue growth, sustained Pharma pipeline momentum (including FDA approval of CARDAMYST), meaningful tooling and commercial wins in Beauty and Closures, solid capital returns and a healthy balance sheet—while also disclosing significant near-term margin pressures driven by emergency medicine destocking (~$65 million headwind), operational disruptions in Beauty and Closures, higher interest and tax expenses, and a sizable Q4 EPS decline. Management emphasized that many negative items are transitory, expects sequential margin improvement through 2026 and reaffirmed productivity programs and buyback flexibility. Overall, positive revenue and pipeline momentum are meaningfully offset by near-term margin and cost challenges, leaving a balanced outlook.Q4-2025 Updates
Positive Updates
Strong Q4 Revenue Growth
Reported sales for Q4 grew 14% year-over-year to $963 million (from $848 million); core sales increased 5%, reflecting healthy underlying demand across the portfolio.
Full Year Revenue and EPS Growth
For FY2025, reported sales increased 5% to $3.8 billion; reported net income rose 5% to $393 million and reported EPS increased 7% to $5.89 (from $5.53).
Pharma Segment Momentum and Pipeline Milestones
Pharma core sales (ex-emergency medicine) grew 10% in Q4; injectables core sales increased 24%. Notable pipeline and commercial milestones include FDA approval of CARDAMYST (Bidose nasal delivery), partnerships on intranasal vaccines, an exclusive ophthalmology agreement with Bausch + Lomb, TGA approval of neffy (needle-free nasal epinephrine), and multiple Phase II studies—underscoring diversification across respiratory, biologics/injectables and systemic nasal delivery.
Adjusted EBITDA and Profitability Base
Q4 adjusted EBITDA of $191 million; adjusted EBITDA margin approximately 19.8%. Full-year adjusted EBITDA increased 5% with full-year adjusted EBITDA margin stable at 21.6%.
Beauty and Closures Top-Line Wins
Beauty core sales grew 10% in Q4 (includes tooling contribution); key product wins include Unilever (Nexxus hair care pump), Chanel (HYDRA BEAUTY Micro Serum custom pump) and Chinese brand launches. Closures saw product volume growth with core sales up 1% (beverage up 7%, food down 1%) and customer wins including McCormick and Coca-Cola in South Africa.
Record Tooling Sales and Customer Retention
Q4 marked a record quarter for tooling sales and FY2025 was the second-highest tooling year in over a decade—positive for customer retention and future revenue opportunities despite tooling's lower margins.
Strong Capital Returns and Buyback Authorization
Returned $486 million to shareholders in 2025 (share repurchases and dividends); repurchased $175 million in Q4 and $365 million total in 2025. Board authorized up to $600 million in new buybacks, replacing prior authorizations.
Healthy Balance Sheet and Cash Generation
Ended year with $410 million cash and short-term investments, net debt ~ $1.1 billion and leverage ratio 1.38. Free cash flow for FY2025 was $303 million (cash from operations $570 million less capital expenditures net of grants $267 million).
Sustainability and Corporate Recognition
Named to CDP Climate A list (top ~4% of companies) and ranked among America's Most Responsible Companies by Newsweek (56 of 600), highlighting leadership in climate action and transparency.
Ongoing Productivity Programs
Management cited sustained structural productivity improvements 'well north of $100 million' (annualized reductions realized from prior initiatives) and ongoing cost-savings efforts, footprint rationalization, automation and centralization to improve scalability and margins.
Negative Updates
Material Margin Compression in Q4
Consolidated adjusted EBITDA margin declined by ~320 basis points to 19.8% in Q4; consolidated gross margins declined roughly 371 basis points year-over-year, driven by product mix and production impacts in Beauty and Closures and the high-margin emergency medicine decline.
Q4 Adjusted EPS Decline
Q4 adjusted earnings per share were $1.25 versus $1.62 in the prior-year quarter at comparable exchange rates, a decline of ~23% year-over-year.
Emergency Medicine Destocking and Revenue Headwind
Emergency medicine sales declined 36% in the quarter; company expects a FY2026 revenue headwind of roughly $65 million (with about ~70% of the impact in H1), pressuring margins because the portfolio is relatively high-margin.
Operational Disruptions in Beauty
Beauty adjusted EBITDA margin declined to 10.2% (down ~220 bps). Issues included lower-margin tooling mix, required environmental upgrades at a metal anodization plant, and a supplier disruption (supplier fire) that forced qualification of a new supplier with higher costs and additional quality testing—expected to abate in H1 2026.
Production and Maintenance Problems in Closures
Closures adjusted EBITDA margin fell to 14.9% (down ~120 bps). The segment experienced equipment maintenance and unscheduled downtime at a North American site, impacting production; management described a backlog of repairs being addressed and expects transitory improvement.
Higher Interest, Depreciation and Tax Rates
Adjusted EPS pressure from higher depreciation & amortization (capex and acquisitions) and higher interest expense due to a higher average debt balance and a $600 million senior notes issuance. Adjusted effective tax rate increased to 19.4% in Q4 (from 13.5% prior-year quarter) and full-year tax rate rose to 21.4% (from 20.5%).
SG&A and One-Time Costs
SG&A increased in absolute dollars due to currency effects, non-ordinary litigation costs and acquisitions, although SG&A as a percent of sales declined 60 basis points to 15.7%.
Tooling Mix Lowers Near-Term Margins
Record tooling sales (Q4) and second-highest tooling year reduced near-term margins because tooling generally carries lower margin despite its strategic benefits for customer retention.
Free Cash Flow Decline vs Prior Year
Free cash flow was $303 million, down $64 million year-over-year primarily due to timing of tax payments (~$44 million), higher pension contributions (~$10 million) and some working capital changes.
Company Guidance
Management reaffirmed its guidance with Q1 adjusted EPS of $1.13–$1.21 (assumes an effective tax rate of 21%–23% and a EUR/USD of $1.18), full‑year 2026 capital expenditures of $260–$280M and depreciation & amortization of $320–$330M, and a ~ $65M 2026 revenue headwind from emergency medicine (roughly 70% in H1 vs. 30% in H2) that will weigh on margins early in the year but is expected to moderate in H2; the company is offsetting pressure with structural productivity savings “well north of $100M,” expects full‑year performance to be within long‑term Pharma targets (core sales 7%–11% and adjusted margins 32%–36%), has a refreshed $600M share‑repurchase authorization, and noted higher interest costs tied to the stronger rate environment and its recently issued $600M 4.75% senior notes due March 2031.AptarGroup Financial Statement Overview
Summary
Strong overall financial quality: steady multi-year revenue growth with improved profitability (net margin ~10% in 2024–2025; EBITDA margin ~19–22%) and manageable leverage (debt-to-equity ~0.44). Main offsets are modest recent growth (~3% in 2025) and volatile free cash flow with a slight 2025 pullback.Income Statement
Revenue has grown steadily from 2020 to 2025 (about $2.93B to $3.78B), with low-to-mid single-digit growth in the last two years. Profitability improved versus 2022–2023, with net margin around 10% in 2024–2025 and EBITDA margin holding near ~19–22%, supporting solid earnings quality for the industry. The main weakness is that growth is not consistently strong (2025 growth ~3%), and some 2025 margin fields appear unavailable in the data, limiting year-to-year margin comparability.82
Very Positive
Balance Sheet
Leverage looks manageable based on 2024 debt relative to equity (debt-to-equity ~0.44) and rising equity over time, indicating improving balance-sheet capacity. Returns to shareholders are healthy in 2023–2024 (return on equity in the low-to-mid teens), consistent with a profitable, established operator. A key risk is that total debt remains sizable (roughly $1.1B–$1.2B across the period), and some 2025 leverage/return fields are unavailable, which reduces visibility into the most recent balance-sheet trajectory.77
Positive
Cash Flow
Operating cash flow is consistently positive and robust (roughly $480M–$640M in 2022–2024 and ~$570M in 2025), and free cash flow has generally been meaningfully positive. However, free cash flow has been volatile: strong gains in 2022–2024 followed by a modest decline in 2025 (free cash flow down slightly year over year), and several 2025 cash conversion metrics are unavailable, limiting assessment of how well cash generation tracked earnings most recently.73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.78B | 3.58B | 3.49B | 3.32B | 3.23B |
| Gross Profit | 1.12B | 1.36B | 1.26B | 1.16B | 1.16B |
| EBITDA | 831.48M | 777.45M | 663.84M | 609.41M | 586.79M |
| Net Income | 392.79M | 374.54M | 284.49M | 239.29M | 244.10M |
Balance Sheet | |||||
| Total Assets | 5.25B | 4.43B | 4.45B | 4.20B | 4.14B |
| Cash, Cash Equivalents and Short-Term Investments | 409.53M | 226.18M | 223.64M | 141.73M | 123.67M |
| Total Debt | 1.53B | 1.08B | 1.18B | 1.22B | 1.24B |
| Total Liabilities | 2.54B | 1.95B | 2.13B | 2.14B | 2.16B |
| Stockholders Equity | 2.67B | 2.47B | 2.31B | 2.05B | 1.97B |
Cash Flow | |||||
| Free Cash Flow | 299.58M | 349.22M | 256.84M | 163.00M | 55.51M |
| Operating Cash Flow | 570.00M | 643.41M | 575.24M | 478.62M | 363.44M |
| Investing Cash Flow | -330.64M | -396.72M | -324.46M | -295.64M | -457.24M |
| Financing Cash Flow | -78.26M | -225.34M | -171.55M | -162.10M | -81.52M |
AptarGroup Technical Analysis
Positive
142.67
Price Trends
128.86
Positive
125.70
Positive
135.95
Positive
Market Momentum
4.81
Positive
67.48
Neutral
45.32
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 142.67 is above the 20-day moving average (MA) of 137.59, above the 50-day MA of 128.86, and above the 200-day MA of 135.95, indicating a bullish trend. The MACD of 4.81 indicates Positive momentum. The RSI at 67.48 is Neutral, neither overbought nor oversold. The STOCH value of 45.32 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 28 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.19B | 24.43 | 15.28% | 1.50% | 2.50% | 25.05% | |
72 Outperform | $18.10B | 37.45 | 16.85% | 0.32% | 4.90% | -0.26% | |
68 Neutral | $16.45B | 44.78 | 4.59% | ― | 5.06% | -4.47% | |
63 Neutral | $4.12B | 27.28 | 9.81% | 0.29% | 9.19% | 23.06% | |
60 Neutral | $7.04B | 144.57 | 2.40% | ― | 11.74% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $10.13B | -11.73 | -13.75% | 2.75% | -21.20% | -325.40% |
* Healthcare Sector Average
ATR
AptarGroup
142.67
-1.98
-1.37%
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AptarGroup Corporate Events
Business Operations and StrategyPrivate Placements and Financing
AptarGroup Completes $600M Senior Notes Offering
Neutral
Nov 20, 2025
On November 20, 2025, AptarGroup, Inc. completed a public offering of $600 million in 4.750% Senior Notes due 2031. This issuance is part of the company’s strategy to manage its financial obligations and potentially enhance its market position. The notes are unsecured and rank equally with the company’s other senior unsecured debts, offering flexibility in redemption options before and after February 28, 2031. The issuance includes covenants limiting certain financial activities and provides for events of default, which could impact the company’s financial stability if triggered.
The most recent analyst rating on (ATR) stock is a Buy with a $133.00 price target. To see the full list of analyst forecasts on AptarGroup stock, see the ATR Stock Forecast page.
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.