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Amcor PLC (AMCR)
NYSE:AMCR
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Amcor
(NYSE:AMCR)
61Neutral
Positive Factors
Earnings
Volumes returned to growth in late FQ4 24 and continued in FQ1, with a 2.3% year-over-year increase in FQ2.
Management
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.
Sales
Operational performance was fractionally lower than consensus with 2% lower sales and $5m lower EBIT.
Volume Growth
Both companies have struggled with core volume growth on a stand-alone basis, and the assumption of incremental core sales growth will likely be viewed with skepticism.
Amcor (AMCR) vs. S&P 500 (SPY)
Market Cap
$14.83B
Dividend Yield4.91%
Average Volume (3M)23.83M
Price to Earnings (P/E)18.7
Beta (1Y)0.50
Revenue Growth-3.54%
EPS Growth25.25%
CountryUS
Employees41,000
SectorConsumer Cyclical
Sector Strength50
IndustryContainers & Packaging
Share Statistics
EPS (TTM)0.55
Shares Outstanding1,445,343,300
10 Day Avg. Volume28,528,481
30 Day Avg. Volume23,826,390
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)N/A
Price to Sales (P/S)1.10
Price to Cash Flow (P/CF)8.70
P/FCF Ratio8.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.73Price Target Upside14.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Amcor Business Overview & Revenue Model
Company DescriptionAmcor plc is a global leader in the development and production of responsible packaging solutions for food, beverage, pharmaceutical, medical, home, personal care, and other products. The company operates across multiple sectors, providing a wide range of flexible and rigid packaging offerings. Amcor's core products include flexible packaging, rigid containers, specialty cartons, and closures, serving a diverse array of industries worldwide.
How the Company Makes MoneyAmcor 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 displays mixed financial performance, with challenges in revenue growth and gross profit margins, especially in the TTM period. The balance sheet shows a leveraged position but stable equity ratios, while cash flow remains strong, supporting operational needs despite 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.45
Neutral
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.50
Neutral
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.60
Neutral
| 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 | ||||
| 445.00M | 588.00M | 689.00M | 775.00M | 850.00M | 743.00M | Total Assets |
| 16.16B | 16.52B | 17.00B | 17.43B | 17.19B | 16.44B | Total Debt |
| 7.40B | 7.19B | 6.75B | 6.49B | 6.29B | 6.23B | Net Debt |
| 6.95B | 6.60B | 6.06B | 5.71B | 5.44B | 5.49B | Total Liabilities |
| 12.37B | 12.57B | 12.91B | 13.29B | 12.37B | 11.76B | Stockholders Equity |
| 3.78B | 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
Positive
10.26
Price Trends
9.75
Positive
9.99
Positive
10.07
Positive
Market Momentum
0.11
Negative
61.40
Neutral
60.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMCR, the sentiment is Positive. The current price of 10.26 is above the 20-day moving average (MA) of 10.08, above the 50-day MA of 9.75, and above the 200-day MA of 10.07, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.40 is Neutral, neither overbought nor oversold. The STOCH value of 60.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMCR.
Amcor Risk Analysis
Amcor disclosed 22 risk factors in its most recent earnings report. Amcor reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amcor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $17.89B | 23.13 | 19.03% | 2.42% | 7.45% | 5.26% | |
68 Neutral | $4.65B | 28.92 | 6.42% | 4.40% | -6.93% | -65.66% | |
67 Neutral | $4.43B | 17.30 | 45.91% | 2.50% | -1.75% | -21.15% | |
61 Neutral | $14.83B | 18.68 | 20.60% | 4.91% | -3.54% | 25.25% | |
60 Neutral | $12.41B | 10.84 | 1.22% | 3.53% | 1.65% | -18.69% | |
55 Neutral | $1.76B | ― | -7.89% | ― | -8.09% | -1.97% | |
43 Neutral | $15.24B | ― | 8.80% | 1.48% | -15.64% | -186.66% |
* Consumer Cyclical Sector Average
Performance Comparison
AMCR
Amcor
10.00
0.96
10.62%
BALL
Ball
52.31
-12.34
-19.09%
OI
O-I Glass
11.44
-4.60
-28.68%
PKG
Packaging
197.45
15.35
8.43%
SEE
Sealed Air
30.26
-5.82
-16.13%
SON
Sonoco Products
46.51
-8.82
-15.94%
Amcor Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 8.69% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook, with strong performance in volume improvements, EBIT, and EPS growth, along with strategic progress in the merger with Berry Global. However, some challenges were noted in healthcare destocking and regional market softness. Overall, the positives were emphasized more than the negatives.Highlights
Sequential Volume Improvement
Achieved fourth consecutive quarter of sequential volume improvement, with overall volumes growing by 2.3%.
Return to Sales Growth
Reported a return to sales growth with net sales of $3.2 billion, slightly ahead of last year.
Adjusted EBIT and EPS Growth
Adjusted EBIT and EPS both increased by 5% on a comparable basis.
Merger with Berry Global
Progress on the merger with Berry Global is well advanced, with expected synergies of $650 million and significant cash EPS accretion of over 35%.
Safety Achievements
Achieved an industry-leading total recordable incident rate of 0.30 with 79% of sites injury-free for more than a year.
Strong Cash Flow and Debt Reduction
Generated an inflow of more than $350 million in cash flow in the second quarter, leading to a reduction in net debt by approximately $375 million.
Lowlights
Healthcare Destocking Impact
Healthcare sector was impacted by destocking, affecting overall volumes by approximately 1%.
Soft Demand in North American Beverage Business
Demand remained soft in the North American Beverage business, leading to mid-single-digit volume declines.
Challenges in Latin America
Latin America volumes were down single digits, reflecting weaker customer demand in Argentina and Colombia.
Company Guidance
During the Amcor fiscal year 2025 second-quarter earnings call, the company reaffirmed its full-year guidance based on solid performance across key financial metrics. Amcor reported net sales of $3.2 billion, marking a slight increase from the previous year, with overall volumes growing by 2.3%. Adjusted EBIT and EPS both rose by 5% on a comparable basis, while the adjusted EBIT margin expanded by 40 basis points year-over-year. The call highlighted a total recordable incident rate of 0.30, with 79% of sites remaining injury-free for over a year, demonstrating a strong commitment to safety. Amcor emphasized the strategic merger with Berry Global, expected to deliver $650 million in total cost and financial synergies, with 40% realized in the first year. The merger aims to enhance margins, accelerate growth, and increase annual cash flows to over $3 billion. The company remains confident in achieving low to mid-single-digit organic growth, with a strong focus on innovation and sustainability.Amcor Corporate Events
M&A TransactionsBusiness Operations and Strategy
Amcor Announces Consent Solicitations for Berry Merger
Neutral
Feb 26, 2025
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.
M&A TransactionsShareholder Meetings
Amcor Shareholders Approve Merger with Berry Global
Positive
Feb 26, 2025
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.
M&A TransactionsShareholder MeetingsRegulatory Filings and Compliance
Amcor and Berry Global Announce Merger Plans
Positive
Jan 23, 2025
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.
Executive/Board ChangesBusiness Operations and Strategy
Amcor Announces Strategic Leadership Changes
Neutral
Jan 6, 2025
Amcor plc announced a leadership change with Eric Roegner transitioning from President of Amcor Rigid Packaging to Executive Vice President, Integration and Special Projects. This move is strategic, aiming to leverage Roegner’s expertise to enhance the integration process with Berry Global. Rodrigo Lecot has been appointed as the Interim President of Amcor Rigid Packaging, ensuring continuity in leadership while Roegner focuses on strategic initiatives.
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.