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AptarGroup, Inc. (ATR)
:ATR
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AptarGroup
(NYSE:ATR)
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Rating:50Neutral
Price Target:
$116.00
▲(2.55% Upside)
AptarGroup's overall stock score is driven by mixed financial performance and bearish technical indicators. While there are positives in profitability and strategic initiatives, high leverage, declining cash flow, and technical weakness weigh heavily on the score.
Positive Factors
Pharma Segment Growth
The growth in the Pharma segment, particularly in central nervous system applications and injectables, indicates strong demand and potential for sustained revenue expansion in a crucial market.
Strategic Acquisition
The acquisition of Sommaplast enhances Aptar's presence in Brazil and strengthens its position in the growing oral dosing market, potentially driving long-term revenue growth.
Innovations and Approvals
FDA clearance for HeroTracker Sense technology underscores Aptar's innovation capability, enhancing its competitive edge and opening new market opportunities in drug delivery systems.
Negative Factors
High Leverage
High leverage poses financial risk, potentially limiting Aptar's ability to invest in growth opportunities and affecting its long-term financial stability.
Declining Cash Flow
A significant decline in free cash flow growth suggests challenges in cash generation, which could impact Aptar's ability to fund operations and strategic initiatives.
Leadership Change
The departure of a key executive could disrupt Aptar's legal and compliance functions, potentially affecting strategic decision-making and operational stability.
AptarGroup (ATR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.42B
Dividend Yield1.58%
Average Volume (3M)484.38K
Price to Earnings (P/E)18.1
Beta (1Y)0.58
Revenue Growth2.50%
EPS Growth25.05%
CountryUS
Employees13,000
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.62
Shares Outstanding65,619,156
10 Day Avg. Volume682,457
30 Day Avg. Volume484,382
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)4.22
Price to Sales (P/S)2.91
P/FCF Ratio29.84
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue2.71
Enterprise Value/Gross Profit7.94
Enterprise Value/Ebitda11.81
Forecast
1Y Price Target
$165.60Price Target Upside46.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
AptarGroup Business Overview & Revenue Model
Company DescriptionAptarGroup, Inc. is a global leader in the design and manufacturing of dispensing, sealing, and active packaging solutions. The company operates primarily in three segments: Beauty + Home, Food + Beverage, and Pharma. AptarGroup's core products include innovative dispensing systems, pumps, valves, and closures that serve a wide range of industries, including personal care, food, beverage, and pharmaceutical markets. With a strong emphasis on sustainability and innovation, AptarGroup develops solutions that enhance user experience while meeting the evolving needs of their customers and consumers.
How the Company Makes MoneyAptarGroup generates revenue primarily through the sale of its dispensing and packaging solutions across its three business segments. The company has a diversified revenue model that includes direct sales to manufacturers and brand owners in various industries. Key revenue streams include the sale of pumps, aerosols, and closures for beauty and personal care products, as well as packaging solutions for food and beverage markets. Additionally, AptarGroup earns revenue from its pharmaceutical segment by providing delivery systems for injectables and inhalation products. Strategic partnerships with major global brands in these sectors further enhance its market reach and contribute to steady revenue growth. The company also invests in research and development to innovate and expand its product offerings, which can drive additional sales and market share.
AptarGroup Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
Aptar's earnings call presented a mixed outlook. The company highlighted growth in its Pharma segment, strategic acquisitions, and shareholder returns. However, challenges in the emergency medicine market and segments like Beauty and Closures, along with atypical litigation costs, were notable lowlights.Q3-2025 Updates
Positive Updates
Pharma Segment Growth
Pharma segment saw a core sales increase of 2%, driven by strong demand for dosing and dispensing technologies, especially in central nervous system applications, asthma, and COPD therapeutics. Injectables core sales increased 18%.
Strategic Acquisition in Brazil
Aptar signed an agreement to acquire Sommaplast, a Brazil-based provider of oral dosing pharma packaging solutions. This acquisition is expected to reinforce Aptar's footprint in Brazil and capitalize on growth in the oral dosing market.
Shareholder Returns
Aptar plans to continue returning capital to shareholders through share repurchases and increased dividends. 2025 has been a banner year for share repurchases, and the quarterly dividend was increased by nearly 7% to $0.48 per share.
Innovations and Approvals
Aptar's HeroTracker Sense technology received FDA 510(k) clearance. The company also inaugurated its expanded pharma research and development center in France, enhancing capabilities across its proprietary drug delivery business.
Negative Updates
Emergency Medicine Portfolio Challenges
Near-term headwinds in the emergency medicine market are expected to impact Q4 and at least the first half of FY '26, with a projected 35% revenue decline in 2026 compared to 2025.
Beauty Segment Margin Decline
The Beauty segment's adjusted EBITDA margin for the quarter was 12.1%, a decline of 120 basis points, due to a less favorable sales mix and lower margin tooling sales.
Closures Segment Sales Decline
Closures segment core sales decreased by 1% compared with the prior year, impacted by lower tooling sales and pass-throughs of lower resin pricing.
Litigation Costs
Atypical litigation costs of approximately $4 million were incurred to defend the pharma IP portfolio, impacting net income.
Company Guidance
During Aptar's 2025 Third Quarter Results Conference Call, the company reported adjusted earnings per share of $1.62, with a 6% increase in reported sales and 1% growth in core sales. The Pharma segment experienced a 2% core sales increase, driven by strong demand for proprietary drug delivery systems, particularly in central nervous system therapeutics and asthma treatments, alongside significant growth in injectables, up 18%. The Beauty segment saw flat core sales, offset by a decline in product sales, while the Closures segment reported a 1% decrease in core sales due to lower tooling sales and resin pricing pass-throughs. The company also highlighted its continued investment in innovation, with several product launches and strategic acquisitions, while maintaining a strong balance sheet with $265 million in cash and a leverage ratio of 1.22. Aptar plans to continue share repurchases and recently announced a 7% increase in its quarterly dividend to $0.48 per share.AptarGroup Financial Statement Overview
Summary
AptarGroup's financial performance is mixed. Improved net profit margin and return on equity are positive, but high leverage and declining cash flow generation are concerning. The company faces cost pressures and needs to manage debt levels better.Income Statement
AptarGroup's income statement shows a mixed performance. The TTM gross profit margin is significantly lower than previous years, indicating increased cost pressures. However, the net profit margin has improved to 11.45% in TTM, suggesting better cost management or pricing strategies. Revenue growth is modest at 1.44% in TTM, which is a slowdown compared to previous years. The EBIT and EBITDA margins have decreased, reflecting potential operational challenges.65
Positive
Balance Sheet
The balance sheet reveals high leverage with a TTM debt-to-equity ratio of 35.96, indicating significant financial risk. This is a sharp increase from previous years, suggesting increased borrowing or reduced equity. The return on equity has improved to 21.69% in TTM, which is a positive sign of profitability relative to shareholder investment. However, the equity ratio is low, highlighting potential solvency concerns.40
Negative
Cash Flow
Cash flow analysis shows a concerning decline in free cash flow growth by 50.24% in TTM, indicating potential cash generation issues. The operating cash flow to net income ratio is low at 0.27, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is 0.42, reflecting moderate cash flow relative to earnings.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.66B | 3.58B | 3.49B | 3.32B | 3.23B | 2.93B |
| Gross Profit | 1.25B | 1.36B | 1.26B | 1.16B | 1.16B | 1.09B |
| EBITDA | 841.27M | 777.45M | 663.84M | 609.41M | 586.79M | 556.17M |
| Net Income | 419.25M | 374.54M | 284.49M | 239.29M | 244.10M | 214.04M |
Balance Sheet | ||||||
| Total Assets | 5.10B | 4.43B | 4.45B | 4.20B | 4.14B | 3.99B |
| Cash, Cash Equivalents and Short-Term Investments | 264.81M | 226.18M | 223.64M | 141.73M | 123.67M | 300.38M |
| Total Debt | 882.06M | 1.08B | 1.18B | 1.22B | 1.24B | 1.23B |
| Total Liabilities | 2.29B | 1.95B | 2.13B | 2.14B | 2.16B | 2.14B |
| Stockholders Equity | 24.53M | 2.47B | 2.31B | 2.05B | 1.97B | 1.85B |
Cash Flow | ||||||
| Free Cash Flow | 169.98M | 349.22M | 256.84M | 163.00M | 55.51M | 318.11M |
| Operating Cash Flow | 400.40M | 643.41M | 575.24M | 478.62M | 363.44M | 570.15M |
| Investing Cash Flow | -363.17M | -396.72M | -324.46M | -295.64M | -457.24M | -451.98M |
| Financing Cash Flow | -302.06M | -225.34M | -171.55M | -162.10M | -81.52M | -73.72M |
AptarGroup Technical Analysis
Negative
113.12
Price Trends
131.91
Negative
141.16
Negative
145.00
Negative
Market Momentum
-3.59
Positive
14.47
Positive
31.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATR, the sentiment is Negative. The current price of 113.12 is below the 20-day moving average (MA) of 127.48, below the 50-day MA of 131.91, and below the 200-day MA of 145.00, indicating a bearish trend. The MACD of -3.59 indicates Positive momentum. The RSI at 14.47 is Positive, neither overbought nor oversold. The STOCH value of 31.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $20.13B | 41.44 | 16.94% | 0.30% | 4.90% | -0.26% | |
| ― | $13.88B | 34.37 | 5.01% | ― | 6.35% | 12.94% | |
| ― | $8.45B | 6,825.91 | 0.08% | ― | 11.74% | ― | |
| ― | $6.74B | 46.10 | 9.55% | 0.25% | 5.95% | 7.73% | |
| ― | $9.35B | -28.98 | ― | 3.68% | -21.20% | -371.78% | |
| ― | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
| ― | $7.42B | 18.13 | 15.80% | 1.58% | 2.50% | 25.05% |
* Healthcare Sector Average
ATR
AptarGroup
113.12
-53.08
-31.94%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.