AptarGroup (ATR) AI Stock Analysis

• Market Cap: $8.74B
• Dividend Yield: 1.36%
• Average Volume (3M): 468.45K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.59
• Revenue Growth: 1.51%
• EPS Growth: 21.70%
• Country: US
• Employees: 13,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.66
• Shares Outstanding: 65,880,520
• 10 Day Avg. Volume: 495,941
• 30 Day Avg. Volume: 468,452
• PEG Ratio: 0.92
• Price to Book (P/B): 4.22
• Price to Sales (P/S): 2.91
• P/FCF Ratio: 29.84
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 3.18
• Enterprise Value/Gross Profit: 8.73
• Enterprise Value/Ebitda: 14.18
• 1Y Price Target: $179.75
• Price Target Upside: 35.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $154.00 ▲(16.03% Upside)

AptarGroup's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust revenue growth and profitability, coupled with strategic acquisitions and sustainability recognition, bolster its outlook. However, bearish technical indicators and moderate valuation metrics slightly temper the overall score.

Positive Factors

Sustainability Recognition

Recognition for sustainability enhances AptarGroup's brand reputation and aligns with growing consumer and regulatory focus on environmental responsibility, potentially driving long-term customer loyalty and market differentiation.

Pharma Segment Growth

Strong growth in the Pharma segment indicates a solid market position and demand for AptarGroup's products, supporting sustained revenue expansion and profitability in a critical business area.

Dividend Increase

Increasing dividends reflect confidence in cash flow stability and financial health, providing shareholders with a tangible return and signaling management's commitment to returning value to investors.

Negative Factors

Consumer Healthcare Challenges

Declining sales in Consumer Healthcare highlight potential demand issues and competitive pressures, which could impact overall revenue growth and require strategic adjustments to regain market traction.

Legal Expenses Impact

Rising legal expenses can strain financial resources and affect profitability, potentially diverting funds from growth initiatives and impacting future earnings if not managed effectively.

Naloxone Sales Normalization

Normalization of Naloxone sales may slow overall pharma growth, requiring AptarGroup to identify new growth drivers to maintain momentum in this key segment.

AptarGroup Business Overview & Revenue Model

Company Description

AptarGroup, 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 Money

AptarGroup 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 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.61B	3.58B	3.49B	3.32B	3.23B	2.93B
Gross Profit	1.31B	1.36B	1.26B	1.16B	1.16B	1.09B
EBITDA	808.81M	777.45M	663.84M	609.41M	586.79M	556.17M
Net Income	391.50M	374.54M	284.49M	239.29M	244.10M	214.04M
Balance Sheet
Total Assets	4.87B	4.43B	4.45B	4.20B	4.14B	3.99B
Cash, Cash Equivalents and Short-Term Investments	169.76M	226.18M	223.64M	141.73M	123.67M	300.38M
Total Debt	1.14B	1.08B	1.18B	1.22B	1.24B	1.23B
Total Liabilities	2.15B	1.95B	2.13B	2.14B	2.16B	2.14B
Stockholders Equity	2.70B	2.47B	2.31B	2.05B	1.97B	1.85B
Cash Flow
Free Cash Flow	341.58M	349.22M	256.84M	163.00M	55.51M	318.11M
Operating Cash Flow	616.20M	643.41M	575.24M	478.62M	363.44M	570.15M
Investing Cash Flow	-377.81M	-396.72M	-324.46M	-295.64M	-457.24M	-451.98M
Financing Cash Flow	-298.38M	-225.34M	-171.55M	-162.10M	-81.52M	-73.72M

AptarGroup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 132.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 132.72 is below the 20-day moving average (MA) of 136.79, below the 50-day MA of 143.62, and below the 200-day MA of 150.12, indicating a bearish trend. The MACD of -2.50 indicates Negative momentum. The RSI at 30.10 is Neutral, neither overbought nor oversold. The STOCH value of 8.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATR.

AptarGroup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WST	78 Outperform	18.14B	38.18	16.65%	0.33%	2.88%	-5.50%
ATR	72 Outperform	$8.74B	23.19	15.36%	1.36%	1.51%	21.70%
COO	67 Neutral	13.52B	33.48	4.88%	―	6.35%	12.94%
STVN	66 Neutral	7.35B	50.06	9.63%	0.23%	5.95%	7.73%
RGEN	56 Neutral	7.09B	-504.37	-1.29%	―	8.73%	-245.82%
BAX	54 Neutral	11.72B	-85.91	-9.32%	2.98%	-27.41%	67.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%