Amcor (AMCR) AI Stock Analysis

• Market Cap: $20.86B
• Dividend Yield: 5.63%
• Average Volume (3M): 25.41M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.43
• Revenue Growth: -2.29%
• EPS Growth: 24.05%
• Country: US
• Employees: 41,000
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Packaging & Containers
• EPS (TTM): 0.18
• Shares Outstanding: 2,305,343,300
• 10 Day Avg. Volume: 21,446,988
• 30 Day Avg. Volume: 25,409,261
• PEG Ratio: -0.74
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.05
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 8.15
• Enterprise Value/Ebitda: 3.81
• 1Y Price Target: $11.80
• Price Target Upside: 30.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: $9.50 ▲(4.97%Upside)

Amcor's overall score reflects strong future growth potential from the Berry Global merger and robust cash flows. However, current revenue challenges, high leverage, and volume declines in North America weigh on the stock. The attractive dividend yield offers some compensation to investors.

Positive Factors

Dividend Increase

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

Regulatory Progress

Amcor received shareholder approvals for the Berry transaction and is encouraged with the pace of regulatory review.

Volume Growth

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

Negative Factors

Operational Performance

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

Sales Impact

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

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 generates revenue primarily through the sale of its diverse packaging solutions to a broad range of industries. The company's revenue model is based on long-term contracts and partnerships with major consumer goods companies, pharmaceutical firms, and other businesses requiring packaging solutions. Amcor leverages its global footprint and advanced technology to deliver cost-effective and sustainable packaging, which is a key factor in attracting and retaining clients. Significant revenue streams include the sales of flexible packaging, rigid packaging, and specialty cartons. Additionally, Amcor invests in innovation and sustainability, which not only enhances its product offerings but also aligns with the increasing demand for environmentally friendly packaging solutions, further contributing to its earnings.

Amcor Financial Statement Overview

Summary

Amcor exhibits a 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. Cash flow remains strong, supporting the company's operational needs and 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
13.46B	13.64B	14.69B	14.54B	12.86B	12.47B
	Gross Profit
2.69B	2.71B	2.73B	2.82B	2.73B	2.54B
	EBIT
712.00M	1.21B	1.51B	1.24B	1.32B	994.00M
	EBITDA
1.00B	1.84B	2.13B	1.90B	1.92B	1.68B
	Net Income Common Stockholders
453.00M	730.00M	1.05B	805.00M	939.00M	612.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.04B	588.00M	689.00M	775.00M	850.00M	743.00M
	Total Assets
18.04B	16.52B	17.00B	17.43B	17.19B	16.44B
	Total Debt
9.24B	7.19B	6.75B	6.49B	6.29B	6.23B
	Net Debt
7.20B	6.60B	6.06B	5.71B	5.44B	5.49B
	Total Liabilities
0.00	12.57B	12.91B	13.29B	12.37B	11.76B
	Stockholders Equity
3.85B	3.88B	4.03B	4.08B	4.76B	4.63B
Cash Flow		Free Cash Flow
1.09B	829.00M	735.00M	999.00M	993.00M	984.00M
	Operating Cash Flow
1.23B	1.32B	1.26B	1.53B	1.46B	1.38B
	Investing Cash Flow
-357.76M	-476.00M	-308.00M	-510.00M	-228.00M	38.00M
	Financing Cash Flow
792.75M	-857.00M	-1.01B	-886.00M	-1.18B	-1.24B

Amcor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 9.05 is below the 20-day moving average (MA) of 9.10, below the 50-day MA of 9.14, and below the 200-day MA of 9.76, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 30.17 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	76 Outperform	$16.77B	19.51	20.07%	2.68%	9.47%	19.37%
CCK	73 Outperform	$11.76B	21.71	21.30%	1.01%	0.90%	34.40%
BERY	67 Neutral	$7.83B	14.54	21.42%	1.73%	-8.26%	10.64%
BALL	65 Neutral	$15.34B	29.34	8.23%	1.43%	-9.79%	―
GPK	64 Neutral	$6.40B	10.40	20.62%	2.07%	-6.28%	-7.43%
Sector *	62 Neutral	$6.80B	11.08	2.79%	5.80%	2.68%	-24.86%
AMCR	59 Neutral	$20.86B	16.24	20.71%	5.63%	-2.29%	24.05%

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.