Amcor PLC AMC

Morningstar Rating
A$16.34 −0.08 (0.49%)
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Company Report

Amcor's Fiscal 2024 Result Strong Despite Volume Decline

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 17% over the five years to fiscal 2024, comparing favorably against a weighted average cost of capital of 8%.

Price vs Fair Value

AMC is trading at a 787% premium.
Price
A$16.42
Fair Value
A$44.10
Uncertainty
Medium
1-Star Price
A$58.45
5-Star Price
A$84.39
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Exposure to high-growth emerging markets balances low-volume growth in mature developed markets for products with similar or higher profit margins.

Bears

Amcor’s aggressive acquisition strategy has the potential for overcapitalization, overcapacity, and lower-than-expected cost synergies.

News

Trading Information

Previous Close Price
A$16.42
Day Range
A$16.2916.49
52-Week Range
A$13.3516.94
Bid/Ask
A$16.34 / A$16.38
Market Cap
A$23.62 Bil
Volume/Avg
1.2 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
15.32
Price/Sales
1.14
Dividend Yield (Trailing)
4.69%
Dividend Yield (Forward)
4.69%
Total Yield
5.21%

Company Profile

Amcor is a global producer of plastic packaging primarily for the fast-moving consumer goods industry. About 90% of earnings are exposed to the flexible packaging business. This is soft disposable plastic for a variety of food, drink, healthcare, and hygiene products. The remainder of earnings are from the Latin and North American rigids business, which is primarily beverage bottling for the soft drink industry. Operating in more than 35 countries, Amcor has market share in its established regions of North America, Latin America, Europe, and Asia-Pacific. About half of group sales are derived from North America and the remainder is split equally between Western Europe and emerging markets. Australia and New Zealand sales make up less than 5% of group sales.
Sector
Consumer Cyclical
Industry
Packaging & Containers
Stock Style Box
Large Value
Total Number of Employees
35,000

Competitors

Valuation

Metric
AMC
BXB
JHX
Price/Earnings (Normalized)
15.3222.4323.23
Price/Book Value
4.095.388.41
Price/Sales
1.142.614.08
Price/Cash Flow
10.769.4618.17
Price/Earnings
AMC
BXB
JHX

Financial Strength

Metric
AMC
BXB
JHX
Quick Ratio
0.570.530.98
Current Ratio
1.170.611.94
Interest Coverage
3.508.7723.89
Quick Ratio
AMC
BXB
JHX

Profitability

Metric
AMC
BXB
JHX
Return on Assets (Normalized)
6.07%9.02%15.08%
Return on Equity (Normalized)
25.74%25.64%38.63%
Return on Invested Capital (Normalized)
11.09%14.96%24.07%
Return on Assets
AMC
BXB
JHX

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Morningstar Rating for Stocks
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