Amcor (AMCR) AI Stock Analysis

• Market Cap: $13.04B
• Dividend Yield: 5.6%
• Average Volume (3M): 31.03M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.45
• Revenue Growth: -3.54%
• EPS Growth: 25.25%
• Country: US
• Employees: 41,000
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Packaging & Containers
• EPS (TTM): 0.55
• Shares Outstanding: 1,445,343,300
• 10 Day Avg. Volume: 36,122,702
• 30 Day Avg. Volume: 31,034,401
• PEG Ratio: 0.65
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.01
• Price to Cash Flow (P/CF): 8.00
• P/FCF Ratio: 8.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.66
• Price Target Upside: 24.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Amcor's overall score reflects mixed financial performance and weak technical indicators, offset by positive earnings call sentiment and a fair valuation. The strategic merger with Berry Global is a potential catalyst for future growth, although current market conditions present challenges.

Positive Factors

Dividends

Dividend increased to 12.75 cents, reflecting a commitment to returning value to shareholders.

Earnings

Volume growth returned in late FQ4 24 and continued in FQ1, with a 2.3% year-over-year increase in FQ2.

Leadership

A very smooth transition is expected with the appointment of the new permanent CEO, Peter Konieczny.

Negative Factors

Market Demand

Unfavourable price/mix impact and lower demand in high-value healthcare categories negatively affected net sales.

Recovery Uncertainty

The timing of a recovery remains uncertain, with de-stocking ongoing in key categories such as healthcare and North American beverages.

Sales Performance

Operational performance was fractionally lower than consensus with 2% lower sales and $5m lower EBIT.

Amcor Business Overview & Revenue Model

Company Description

Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments, Flexibles and Rigid Packaging. The Flexibles segment provides flexible and film packaging products in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment offers rigid containers for a range of beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items; and plastic caps for various applications. The company sells its products primarily through its direct sales force. Amcor plc was incorporated in 2018 and is headquartered in Zürich, Switzerland.

How the Company Makes Money

Amcor makes money primarily through the manufacture and sale of packaging products. Its revenue model is centered around key revenue streams, including the production of flexible packaging solutions, which account for a significant portion of its income. The company also generates revenue through its rigid packaging segment, which produces containers and closures for various end markets. Amcor's earnings are bolstered by strategic partnerships and long-term contracts with major global brands in the food, beverage, healthcare, and home and personal care industries. Additionally, the company's focus on innovation and sustainability attracts customers seeking environmentally friendly packaging solutions, further contributing to its revenue.

Amcor Financial Statement Overview

Summary

Amcor exhibits mixed financial performance with challenges in revenue growth and gross profit margins. Despite a high debt-to-equity ratio, the balance sheet remains stable. Strong cash flow supports operations, providing a buffer against revenue volatility.

Income Statement

The income statement shows mixed results with a recent decline in revenue from the previous annual period and negative gross profit in the TTM (Trailing-Twelve-Months). However, the company has maintained positive EBIT and net profit margins in both TTM and the previous annual report. The revenue growth rate from 2023 to 2024 is negative, indicating a decrease in sales.

Balance Sheet

The balance sheet reveals a stable equity position with a consistent equity ratio. The debt-to-equity ratio is relatively high, indicating significant leverage, but the company maintains a healthy equity base. Return on equity appears robust in the TTM period despite challenges in revenue.

Cash Flow

Cash flow analysis shows a strong operating cash flow, outpacing net income, indicating effective cash management. Free cash flow remains positive with a stable growth rate over the periods analyzed. This underlines the company's ability to generate cash despite revenue fluctuations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
6.95B	13.64B	14.69B	14.54B	12.86B	12.47B
	Gross Profit
-3.94B	2.71B	2.73B	2.82B	2.73B	2.54B
	EBIT
706.00M	1.21B	1.51B	1.24B	1.32B	994.00M
	EBITDA
1.04B	1.84B	2.08B	1.78B	2.00B	1.64B
	Net Income Common Stockholders
444.00M	730.00M	1.05B	805.00M	939.00M	612.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
373.46M	588.00M	689.00M	775.00M	850.00M	743.00M
	Total Assets
11.68B	16.52B	17.00B	17.43B	17.19B	16.44B
	Total Debt
0.00	7.19B	6.75B	6.49B	6.29B	6.23B
	Net Debt
-373.46M	6.60B	6.06B	5.71B	5.44B	5.49B
	Total Liabilities
8.13B	12.57B	12.91B	13.29B	12.37B	11.76B
	Stockholders Equity
3.46B	3.88B	4.03B	4.08B	4.76B	4.63B
Cash Flow		Free Cash Flow
766.53M	829.00M	735.00M	999.00M	993.00M	984.00M
	Operating Cash Flow
1.26B	1.32B	1.26B	1.53B	1.46B	1.38B
	Investing Cash Flow
-355.76M	-476.00M	-308.00M	-510.00M	-228.00M	38.00M
	Financing Cash Flow
-813.25M	-857.00M	-1.01B	-886.00M	-1.18B	-1.24B

Amcor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMCR, the sentiment is Negative. The current price of 9.33 is below the 20-day moving average (MA) of 9.48, below the 50-day MA of 9.79, and below the 200-day MA of 10.06, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 73.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMCR.

Amcor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKG	71 Outperform	$17.04B	21.21	19.03%	2.64%	7.45%	5.26%
BERY	68 Neutral	$7.53B	16.19	19.44%	1.81%	-5.35%	-13.51%
CCK	65 Neutral	$9.75B	23.49	16.41%	1.23%	-1.53%	-5.16%
GPK	65 Neutral	$7.47B	11.48	22.72%	1.66%	-6.59%	-7.81%
Sector *	59 Neutral	$11.40B	10.19	-0.83%	4.03%	1.27%	-16.17%
AMCR	54 Neutral	$13.04B	16.37	20.60%	5.60%	-3.54%	25.25%
BALL	43 Neutral	$13.18B	―	8.80%	1.74%	-15.64%	-186.66%

Amcor Corporate Events

Amcor Announces Consent Solicitations for Berry Merger

On February 26, 2025, Amcor plc announced the commencement of consent solicitations from holders of various senior secured notes issued by Berry Global, Inc., a subsidiary of Berry Global Group, Inc. The solicitations aim to amend indentures governing these notes in connection with a planned merger where Berry will become a wholly-owned subsidiary of Amcor. The proposed amendments include releasing certain guarantees and liens if Amcor provides an unconditional guarantee of Berry’s payment obligations. The consent process is part of a broader strategy to align the credit support of Berry’s notes with Amcor’s notes, potentially impacting stakeholders by altering the security structure of these financial instruments.

Amcor Shareholders Approve Merger with Berry Global

On February 25, 2025, Amcor plc shareholders approved a merger with Berry Global Group, marking a significant step towards combining these complementary businesses. The merger, expected to close in mid-2025, aims to create a global leader in consumer and healthcare packaging solutions, promising faster growth and $650 million in synergies, thus enhancing value for stakeholders.

Amcor and Berry Global Announce Merger Plans

On January 23, 2025, Amcor and Berry Global announced the filing of a definitive joint proxy statement with the SEC, marking a significant step towards their all-stock transaction. This merger aims to create a global leader in consumer and healthcare packaging, offering substantial synergies and shareholder value through cost savings and enhanced growth, with shareholder meetings scheduled for February 25, 2025.