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AptarGroup (ATR)
NYSE:ATR
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AptarGroup
(NYSE:ATR)
Rating:71Outperform
Price Target:
$156.00
▲(10.83% Upside)
Positive Factors
Earnings
The company delivered its ninth consecutive EBITDA beat and 12th straight EPS beat.
Financial Performance
AptarGroup, Inc. has a best-in-class margin profile and an immense innovation pipeline to support medium to long-term growth.
Investor Events
The company's biennial Investor Day is expected to be a positive event showcasing AptarGroup's innovation.
Negative Factors
Inventory Challenges
Ongoing normalization of Naloxone sales following a period of elevated growth and lingering cough and cold inventory overhangs in Europe are cited as headwinds.
Legal and Litigation
Legal expenses related to intellectual property litigation in Pharma are impacting third-quarter guidance.
Market Sentiment
There has been noted weakness in Europe related to consumer sentiment and product launches in the Beauty segment.
AptarGroup (ATR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.27B
Dividend Yield1.28%
Average Volume (3M)402.84K
Price to Earnings (P/E)24.3
Beta (1Y)0.62
Revenue Growth1.51%
EPS Growth21.70%
CountryUS
Employees13,000
SectorHealthcare
Sector Strength38
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.66
Shares Outstanding65,880,520
10 Day Avg. Volume572,485
30 Day Avg. Volume402,840
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)4.22
Price to Sales (P/S)2.91
P/FCF Ratio28.40
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue3.23
Enterprise Value/Gross Profit8.44
Enterprise Value/Ebitda14.68
Forecast
1Y Price Target
$164.50Price Target Upside16.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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 primarily through the sale of its packaging and dispensing solutions. Its revenue model is based on long-term contracts and relationships with major global consumer product and pharmaceutical companies. Key revenue streams include sales from its Pharma segment, which provides drug delivery systems such as nasal sprays and eye droppers; the Beauty + Home segment, which offers packaging solutions for personal care and beauty products; and the Food + Beverage segment, which supplies closures and dispensing systems for food and beverage products. The company also leverages its proprietary technologies and innovations to deliver value-added services, which help drive profitability. Significant partnerships with multinational companies in the healthcare and consumer goods industries further contribute to AptarGroup's earnings, as does its focus on sustainable and environmentally friendly product solutions.
AptarGroup Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -10.43%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a mix of strong financial performance and strategic achievements in key segments, despite challenges in certain areas like Consumer Healthcare and Prestige Beauty. Legal expenses and naloxone sales normalization pose potential headwinds. Overall, the sentiment is slightly positive, with significant achievements in Pharma and Closures segments outweighing the challenges.Q2-2025 Updates
Positive Updates
Strong Earnings Growth
Adjusted earnings per share increased by 18% over the prior year quarter, exceeding the high end of guidance range with $1.66 per share.
Robust Pharma Segment Performance
Pharma segment showed strong core sales growth with Prescription increasing by 8%, Injectables by 9%, and Active Materials Science Solutions by 11%.
Successful Mod3 Pharma Acquisition
Acquisition of Mod3 Pharma's clinical trial manufacturing capabilities expands Aptar Pharma services and strengthens its position in early-stage development.
Recognition and Awards
Aptar named one of Time Magazine's World's Most Sustainable Companies for the second consecutive year and added to CDP's Supplier Engagement Assessment A List.
Closure Segment Growth
Core sales in the Closures segment increased by 7%, driven by strong demand in food and beverage markets.
Improved EBITDA Margin
Consolidated adjusted EBITDA margins expanded by 140 basis points to 22.6% compared to 21.2% in the prior year.
Negative Updates
Consumer Healthcare Challenges
Consumer Healthcare core sales decreased by 14%, impacted by inventory management and softer demand in Europe.
Prestige Beauty Headwinds
Prestige beauty faced headwinds due to trade uncertainties impacting demand recovery and delays in new product launches.
Legal Expenses Impact
Litigation to protect pharma intellectual property rights led to increased legal expenses, anticipated to continue in the coming quarters.
Naloxone Sales Normalization
Naloxone sales are facing uncertainty and expected to normalize, impacting growth in the Pharma segment.
Company Guidance
During Aptar's 2025 Q2 earnings call, the company reported an adjusted earnings per share of $1.66, marking an 18% increase over the previous year's quarter, exceeding the high end of their guidance range. Core sales rose, particularly driven by the Pharma and Closures segments. The Pharma segment saw strong demand in prescription, injectables, and active materials, with core sales increases of 8%, 9%, and 11%, respectively. The Closures segment benefited from a robust innovation pipeline. While the Consumer Healthcare division faced challenges due to softer demand in Europe, the company highlighted the acquisition of Mod3 Pharma, enhancing capabilities in clinical trial manufacturing. The company also noted that its Beauty segment experienced a 4% decrease in fragrance, skincare, and cosmetics sales, mainly due to trade uncertainties affecting Prestige beauty. Aptar plans to maintain cost discipline, with SG&A expenses decreasing as a percentage of sales. Looking ahead, the company anticipates third-quarter adjusted EPS to range from $1.53 to $1.61.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 | 2.55B | 2.47B | 2.31B | 2.05B | 1.97B | 1.85B |
Cash Flow | ||||||
| Free Cash Flow | 358.43M | 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
140.75
Price Trends
153.76
Negative
151.12
Negative
154.79
Negative
Market Momentum
-4.17
Positive
30.43
Neutral
11.86
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 140.75 is below the 20-day moving average (MA) of 152.33, below the 50-day MA of 153.76, and below the 200-day MA of 154.79, indicating a bearish trend. The MACD of -4.17 indicates Positive momentum. The RSI at 30.43 is Neutral, neither overbought nor oversold. The STOCH value of 11.86 is Positive, 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $55.46B | 34.80 | 6.26% | 2.10% | 7.86% | 14.24% | |
78 Outperform | $17.33B | 36.10 | 17.72% | 0.35% | 2.88% | -5.50% | |
75 Outperform | $15.14B | 28.24 | 11.38% | ― | 1.28% | -17.73% | |
71 Outperform | $9.27B | 24.28 | 15.36% | 1.28% | 1.51% | 21.70% | |
65 Neutral | $6.45B | 44.14 | 9.55% | 0.26% | 5.95% | 7.73% | |
65 Neutral | ¥333.15B | 8.16 | -3.93% | 2.48% | 10.26% | -20.64% | |
56 Neutral | $6.27B | ― | -0.68% | ― | 8.73% | -245.82% |
* Healthcare Sector Average
Performance Comparison
ATR
AptarGroup
140.75
-0.92
-0.65%
BDX
Becton Dickinson
193.50
-36.14
-15.74%
HOLX
Hologic
68.06
-13.71
-16.77%
RGEN
Repligen
111.43
-52.15
-31.88%
WST
West Pharmaceutical Services
240.98
-48.68
-16.81%
STVN
Stevanato Group
23.63
3.77
18.98%
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.