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Fundamental analysis: Amcor plc (AMCR)

Awarener score: 7.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (unknown) and growth (Poor), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.0

  • Business has been shrinking. It's been weak when measured against peer companies.
  • Amcor plc business stability could not be estimated, due to insufficient input data. It looks we cannot compare it to rivals.

Margins score: 6.3

  • AMCR profit margins -on goods and services sold- are usually meagre. They stand somewhat worse than rival companies.
  • Business profit on sales tends to be very good. It's almost average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still somewhat better than similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain more than average in relation to rivals.
  • Total net profit tends to be good when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 5.4

  • Amcor plc profit -on goods and services sold- has been growing at a very low pace. It's been rather normal in relation to competitors.
  • In recent years, earnings -on operations- have been growing at a low step, which has been slightly worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a low pace, which compares below average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be in a weak position compared to similar stocks.
  • In past years, profits -before income taxes- grew at a normal speed. It was somewhat better than rivals.
  • In the previous years, growth on total net profit has been average, and encouraging in relation to peer companies.
  • Earnings per share have grown at a good rhythm in past years. It's been a slight improvement compared to industry peers.

Miscellaneous score: 7.7

  • AMCR had to pay substantial income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
  • Research and development expenses hardly consume a portion of revenues. It's substantially worse when measured against competitors.
  • The company shows very good business growth in relation to research and development efforts. It stands in a very weak position compared to rival companies.

Profitability score: 10.0

  • Amcor plc usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
  • Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.1

  • AMCR usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands top tier when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is below average when measured against industry peers.
  • In the past twelve months it paid good dividends, considering the current stock price. It came somewhat better than competitors.
  • Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved rather normal in relation to similar firms.
  • The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks mediocre against comparable companies.
  • The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands impressive in relation to rivals.
  • The company uses somewhat more funds to reward investors than it can genuinely generate, so some part of them is paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business somewhat improves, or rewards will probably not be sustained at this pace. It still looks weak when measured against competitors.

Balance Sheet score: 6.3

  • Amcor plc intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
  • The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be close to average when compared to similar firms.
  • A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains slightly worse than rival firms.
  • Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks substantially worse when measured against rivals.
  • For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's lacking compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is somewhat worse than similar enterprises.
  • Usually, sales are mostly on cash. It still ranks top tier when measured against peers.
  • Normally has approximately only a couple of weekly sales worth in inventory. It comes up as excellent in relation to competitors.
  • On average, it takes less than one month from the purchase to charging customers. It happens to be top-notch against peers.
  • On average pays suppliers during the first couple of weeks from the purchase. It ranks last-in-rank when measured against industry peers.
  • The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's impressive in relation to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands better than most rival firms.
  • Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks top tier when measured against comparable enterprises.
  • Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
  • Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 5.7

  • Amcor plc looks expensive in relation to profits and financial position. It happens to be weak when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some free funds in relation to the stock price, which stands somewhat worse than similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still similar to industry firms.
  • In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
  • The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks top-notch against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks substantially worse when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a disappointment compared to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
  • In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be substantially worse when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still rather normal in relation to peer companies.

Total score: 6.3


AMCR logos

Company at a glance: Amcor plc (AMCR)

Sector, industry: Consumer Cyclical, Packaging & Containers

Market Cap: 17.62 billions

Revenues TTM: 11.12 billions

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.

Awarener score: 7.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (unknown) and growth (Poor), and the company's inclination to return cash to the stockholders (Superb).