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AptarGroup (ATR)
NYSE:ATR
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AptarGroup
(NYSE:ATR)69Neutral
Positive Factors
Earnings Growth
AptarGroup is well-positioned to deliver a high-quality earnings growth algorithm, driven by growth in Pharmaceuticals and cost-out initiatives in Packaging.
Pharmaceuticals Growth
New Pharma products will likely lead to 7% EBITDA growth in 2025 and an 8% CAGR through 2027.
Negative Factors
Beauty Segment Challenges
Aptar’s Beauty segment, which makes up 34% of total sales, may see headwinds if consumer spending sentiments continue to stay low.
Currency Exchange Impact
Unfavorable F/X translation is pegged as a $0.07 EPS headwind in Q1, and we estimate a $0.28 headwind in 2025.
AptarGroup (ATR) vs. S&P 500 (SPY)
Market Cap
$10.01B
Dividend Yield1.15%
Average Volume (3M)445.32K
Price to Earnings (P/E)27.6
Beta (1Y)0.67
Revenue Growth2.74%
EPS Growth30.22%
CountryUS
Employees13,500
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)5.53
Shares Outstanding66,495,290
10 Day Avg. Volume435,599
30 Day Avg. Volume445,316
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)N/A
Price to Sales (P/S)2.84
Price to Cash Flow (P/CF)14.30
P/FCF Ratio13.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$180.50Price Target Upside19.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
AptarGroup Business Overview & Revenue Model
Company DescriptionAptarGroup, Inc. is a global leader in the design and manufacturing of a broad range of innovative dispensing, sealing, and active packaging solutions. Serving a diverse group of customers in the beauty, personal care, home care, pharmaceutical, food, and beverage sectors, Aptar provides essential packaging components that enhance product functionality and consumer convenience. The company's products include pumps, closures, aerosol valves, and other dispensing systems that are used by some of the world's leading brands.
How the Company Makes MoneyAptarGroup makes money through the sale of its packaging solutions, which are primarily developed for the beauty, personal care, home care, pharmaceutical, food, and beverage industries. The company's revenue streams are largely derived from long-term supply agreements with major consumer goods companies, providing them with customized and proprietary dispensing and packaging systems. Aptar's business model focuses on innovation and customer-centric solutions, which allows for the establishment of strong, ongoing partnerships with global brands. Additionally, the company invests in research and development to continuously improve and expand its product offerings, thereby maintaining its competitive edge and securing new business opportunities. The company's earnings are also supported by its global manufacturing and distribution network, which enables efficient production and delivery of its products worldwide.
AptarGroup Financial Statement Overview
Summary
AptarGroup demonstrates a solid overall financial performance with consistent revenue and profit growth, efficient cost management, and strong cash flow generation. The company's balance sheet is stable with a manageable leverage level, although the decrease in total assets and equity warrants attention. AptarGroup appears well-positioned in the Medical Equipment & Supplies industry, but should continue to monitor potential risks related to asset and equity trends.Income Statement
AptarGroup shows a robust financial performance with strong revenue growth of 2.73% from 2023 to 2024. The gross profit margin remains stable at 100%, indicating efficient cost management. The net profit margin improved from 8.16% in 2023 to 10.45% in 2024, reflecting enhanced profitability. EBIT and EBITDA margins also show improvement, standing at 13.85% and 19.25% respectively for 2024. Overall, the company demonstrates strong growth and profitability trends.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position, with a moderate debt-to-equity ratio of 0.51, indicating manageable leverage. Return on equity (ROE) increased to 7.83% in 2024, showcasing effective utilization of shareholders' equity to generate profit. The equity ratio stands at 41.75%, pointing to a solid capital structure. However, the reduction in total assets and equity from 2023 to 2024 suggests potential risks that need monitoring.75
Positive
Cash Flow
AptarGroup's cash flow performance is strong, with a notable free cash flow growth rate of 42.88% from 2023 to 2024, indicating efficient cash generation and reinvestment capability. The operating cash flow to net income ratio is 1.72, reflecting robust cash conversion efficiency. The free cash flow to net income ratio is 0.98, suggesting healthy cash flow relative to earnings. Overall, the company shows strong cash flow management and liquidity.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.58B | 3.49B | 3.32B | 3.23B | 2.93B | Gross Profit |
| 3.58B | 1.26B | 1.16B | 1.16B | 1.09B | EBIT |
| 496.50M | 404.02M | 379.27M | 347.35M | 339.50M | EBITDA |
| 777.45M | 663.84M | 609.41M | 586.79M | 556.17M | Net Income Common Stockholders |
| 374.54M | 284.49M | 239.29M | 244.10M | 214.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 226.18M | 223.64M | 141.73M | 123.67M | 300.38M | Total Assets |
| 4.43B | 4.45B | 4.20B | 4.14B | 3.99B | Total Debt |
| 1.08B | 1.18B | 1.18B | 1.20B | 1.17B | Net Debt |
| 852.22M | 961.03M | 1.03B | 1.07B | 872.73M | Total Liabilities |
| 1.95B | 2.13B | 2.14B | 2.16B | 2.14B | Stockholders Equity |
| 47.80M | 2.31B | 2.05B | 1.97B | 1.85B |
| Cash Flow | Free Cash Flow | |||
| 366.93M | 256.84M | 163.00M | 55.51M | 318.11M | Operating Cash Flow |
| 643.41M | 575.24M | 478.62M | 363.44M | 570.15M | Investing Cash Flow |
| -396.72M | -324.46M | -295.64M | -457.24M | -451.98M | Financing Cash Flow |
| -225.34M | -171.55M | -162.10M | -81.52M | -73.72M |
AptarGroup Technical Analysis
Neutral
150.57
Price Trends
152.11
Negative
160.39
Negative
154.02
Negative
Market Momentum
-0.72
Negative
52.54
Neutral
83.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATR, the sentiment is Neutral. The current price of 150.57 is above the 20-day moving average (MA) of 146.48, below the 50-day MA of 152.11, and below the 200-day MA of 154.02, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 83.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $18.56B | 23.13 | 19.03% | 2.42% | 7.45% | 5.43% | |
69 Neutral | $10.01B | 27.64 | 15.68% | 1.15% | 2.74% | 30.22% | |
68 Neutral | $4.69B | 28.92 | 6.42% | 4.36% | -6.93% | -65.66% | |
67 Neutral | $4.65B | 17.30 | 45.91% | 2.50% | -1.75% | -21.15% | |
58 Neutral | $1.75B | ― | -7.89% | ― | -8.09% | -1.97% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
43 Neutral | $15.32B | ― | 8.80% | 1.47% | -15.64% | -186.66% |
* Healthcare Sector Average
Performance Comparison
ATR
AptarGroup
150.57
9.80
6.96%
BALL
Ball
53.97
-10.68
-16.52%
OI
O-I Glass
11.33
-4.71
-29.36%
PKG
Packaging
199.24
17.14
9.41%
SEE
Sealed Air
30.42
-5.66
-15.69%
SON
Sonoco Products
47.27
-8.06
-14.57%
AptarGroup Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -3.76% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the pharma and closure segments, significant returns to shareholders, and sustainability achievements. However, these were offset by challenges in the beauty segment, foreign currency and tax headwinds, and a decrease in consumer health care sales.Highlights
Pharma Segment Growth
The pharma segment achieved 8% core sales growth and an adjusted EBITDA margin of approximately 35%. Growth was driven by increased sales of higher value products and royalties.
Active Material Science Sales Increase
Active material science sales were up 13% for the full year 2024, due to increased demand for diabetes diagnostics, probiotics, and oral solid dose solutions.
Closure Segment Improvement
The closures segment returned to its core sales long-term target range, improving plant utilization by over 12% and achieving a 110 basis point improvement in adjusted EBITDA margins.
Record Return to Shareholders
Returned nearly $800 million to shareholders over five years through dividends and share repurchases, with 2025 expected to mark the 32nd consecutive year of increasing dividends.
Sustainability and Recognition
AptarGroup secured a place on the Climate A List and was named one of the World's Top Companies for Women by Forbes for the fourth consecutive year.
Lowlights
Challenges in Beauty Segment
Beauty segment core sales decreased 3% in the quarter, with lower tooling sales and a decline in high-value prestige products in EMEA.
Foreign Currency and Tax Headwinds
Anticipated significant foreign currency effects and a higher effective tax rate in the first quarter of 2025, resulting in a $55 headwind on EPS.
Consumer Health Care Decrease
Consumer health care core sales decreased 17%, driven by decreased demand for nasal decongestants and cough and cold medicines.
Company Guidance
During the AptarGroup, Inc. 2024 Fourth Quarter and Annual Results Conference Call, key financial metrics were highlighted, showcasing the company's performance and future outlook. AptarGroup reported a core sales growth of 2% in the fourth quarter, with adjusted earnings per share reaching $1.52, surpassing the top end of their guidance range. The adjusted EBITDA margin was 23% for the quarter. For the full year, the pharma segment achieved an 8% core sales growth with an adjusted EBITDA margin of approximately 35%. The closures segment saw a 7% core sales increase, with improved plant utilization and a 260 basis point improvement in adjusted EBITDA margin. The company returned $183 million to shareholders through dividends and share repurchases in 2024, marking a 20% increase from 2023. Looking ahead to 2025, AptarGroup anticipates continued growth, particularly in its pharma and closures segments, despite currency and tax headwinds. The company expects first-quarter adjusted earnings per share to be in the range of $1.11 to $1.19, with a noted foreign currency impact.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.