Last Updated: 10 Nov 2024
Executive Summary
Amcor PLC (AMCR) is a leading global packaging company with a market capitalization of $14.77 billion. The company's strong financial performance, including an EBITDA of $1.9 billion and an EPS of $0.53, has contributed to its attractive valuation metrics, such as a PERatio of 19.28 and a PEGRatio of 3.807. Despite facing headwinds in the short term, Amcor's long-term outlook remains positive, supported by its strong fundamentals and analyst recommendations.
Company Overview
Amcor is a global leader in packaging solutions, serving a diverse range of industries including food, beverage, pharmaceutical, and personal care. The company operates in over 40 countries and employs approximately 48,000 people. Amcor's product portfolio includes flexible packaging, rigid containers, specialty cartons, closures, and services.
Fundamental Analysis
Amcor's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 4.5% over the past five years, while its EBITDA has increased by 6.2% during the same period. Amcor's profit margin has remained stable at around 5.7%. The company's balance sheet is also strong, with a debt-to-equity ratio of 0.55.
Technical Analysis
Amcor's stock price has been trading within a range of $8.46 to $11.48 over the past 52 weeks. The stock is currently trading at $10.22, near the lower end of its range. The 50-day moving average is $11.05, while the 200-day moving average is $10.08. The relative strength index (RSI) is 45.5, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, Amcor faces headwinds from rising input costs and supply chain disruptions. The company's revenue growth is expected to slow in the coming quarters, while its margins may come under pressure. As a result, Amcor's stock price may remain range-bound in the near term.
Long Term Outlook
Over the long term, Amcor's outlook is positive. The company's strong market position, diversified product portfolio, and commitment to innovation are expected to drive continued growth. Amcor is also well-positioned to benefit from the growing demand for sustainable packaging solutions.
Analyst Recommendations
Analysts have a mixed view on Amcor's stock. Two analysts recommend buying the stock, while seven recommend holding it. Two analysts recommend selling the stock. The average analyst target price is $10.7, which implies a potential upside of 4.7% from the current price.
