Company Overview
Amcor plc functions as a leading manufacturer and distributor of packaging solutions, serving markets across Europe, North America, Latin America, and the Asia Pacific through its two primary operational segments: Global Flexible Packaging Solutions and Global Rigid Packaging Solutions. The enterprise operates within the Consumer Cyclical sector, specifically the Packaging & Containers industry, positioning it as a supplier of essential materials for diverse consumer goods and industrial applications. With a market capitalization of $17.84B and an annual revenue of $19.61B, the company employs approximately 77,000 individuals globally to execute its production and sales strategy. These valuation and revenue figures indicate that Amcor maintains a substantial footprint as a major player in the global packaging landscape, though the specific implications of its sector classification suggest sensitivity to broader consumer spending patterns. The scale of operations, evidenced by the large workforce and multi-billion dollar revenue base, underscores the company's established presence and capacity to influence supply chain dynamics within the flexible and rigid packaging industries.
Financial Health
The company reported a trailing twelve-month revenue of $19.61B and generated net income of $596.00M, while reporting an EBITDA of $2.84B. The significant disparity between the $19.61B in revenue and the $596.00M in net income reveals a cost structure where operating expenses, including cost of goods sold, depreciation, and interest, absorb the majority of top-line growth before reaching the bottom line. Free cash flow stands at $446.25M, which indicates a specific level of financial flexibility available for capital expenditures, debt servicing, or potential strategic acquisitions after mandatory cash obligations are met. Profitability analysis shows a Gross Margin of 18.9%, an Operating Margin of 8.3%, and a Profit Margin of 3.0%, where the widening gap between gross and profit margins highlights the substantial impact of overhead costs and interest expenses on final profitability. The balance sheet presents a leveraged profile with $1.06B in cash against $16.16B in debt, resulting in a Debt to Equity ratio of 138.73, which signals a reliance on borrowed capital relative to shareholder equity. Short-term liquidity is assessed via a Current Ratio of 1.30, suggesting the company holds sufficient current assets to cover its current liabilities, though the margin for error is relatively narrow. Return on Equity of 7.7% and Return on Assets of 3.9% indicate that management is generating returns that are modest relative to the capital employed, reflecting the capital-intensive nature of the manufacturing business and the high debt load.
Valuation Assessment
The stock carries a Trailing Twelve Months (TTM) P/E Ratio of 29.04 compared to a Forward P/E of 8.77, implying that the market is pricing in a significant contraction of earnings in the coming periods or that current earnings include one-off items not expected to recur. The Price to Book ratio is listed at 1.53, indicating that the market values the company's equity at a 53% premium over the book value of its assets, which can reflect investor confidence in intangible brand value or future growth prospects despite the high debt load. Alternative valuation metrics show a Price to Sales ratio of 0.91 and an EV/EBITDA of 11.58, suggesting the company trades at less than one dollar of revenue per share and offers a valuation multiple that is compressed relative to historical averages for packaging peers. Price metrics define a 52-Week High of $50.94 and a 52-Week Low of $38.02, and without the current real-time price provided in the facts, the specific percentage deviation from the high cannot be calculated, but the range demonstrates a trading band of approximately $12.92. The Beta of 0.64 indicates that the stock's price volatility is historically lower than the broader market, moving at roughly two-thirds the intensity of the market index during periods of systemic risk.
Growth & Income
Revenue Growth (YoY) is reported at 68.1% while Earnings Growth (YoY) is -32.1%, a divergence that implies earnings are growing significantly slower than revenue, likely due to the high cost of revenue or non-recurring charges impacting the bottom line. The company reports a Dividend Yield of 6.7% with a Payout Ratio of 192.7%, which indicates that the dividend payments exceed the net income generated, making the payout mathematically unsustainable based on current earnings figures. Given the payout ratio exceeding 100%, the company is effectively returning capital to shareholders at a rate higher than its reported profitability, a strategy often funded by cash reserves or debt rather than current operating income. The overall growth and income profile presents a complex picture of double-digit revenue expansion contrasted with negative earnings growth and a dividend yield that relies on financial leverage rather than current net income sustainability.