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Fundamental analysis: Amcor plc (AMCR)

Awarener score: 8.4

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 (Very good), 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: 8.0

  • Business growth could not be estimated, due to not enough input data. It's been unavailable to compare with 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: 6.5

  • AMCR profit margins -on goods and services sold- are usually meagre. They stand slightly better than rival companies.
  • Business profit on sales tends to be very good. It's similar to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain rather normal in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good 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 encouraging in relation to rivals.
  • Total net profit tends to be good when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 6.4

  • Amcor plc has an unknown gross margin growth, as there is not enough data to analyze. It's been impossible to compare to competitors.
  • There is not sufficient data to estimate the operating income margin trend, which has been therefore unknown against comparable firms.
  • EBITDA growth is unknown due to insufficient inputs, which compares unknown against peer enterprises.
  • We were not able to provide an estimate for EBIT growth, because of lacking data. It turns to be not yet known in relation to similar stocks.
  • Profit before income tax growth was not estimated, on insufficient history. It was impossible to measure against rivals.
  • Net income growth could not be estimated, and so it is unknown against peer companies.
  • There was not enough input data to estimate EPS trend. It's been an impossibility to compare it with industry peers.

Miscellaneous score: 8.3

  • AMCR had to pay some income taxes in relation to profits made in the past years. It's been slightly worse than peers.
  • Research and development expenses hardly consume a portion of revenues. It's substantially worse when measured against competitors.
  • The company shows excellent 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 similar to 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 below average 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 encouraging in relation to comparable enterprises.

Usage of Funds score: 5.7

  • AMCR usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands encouraging in relation to rival firms.
  • The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is weak when measured against industry peers.
  • In the past twelve months it paid very good dividends, considering the current stock price. It came better than most competitors.
  • Has greatly increased dividend payments in the past years. Business prospects are most likely good. 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 worse than most comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
  • We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against 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 has not disclosed intangibles assets, so we could not reach a meaningful conclusion on this metric. It happens to be a not known variable when measured with peer companies.
  • The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be rather normal in relation 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 top-notch against 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 almost another of cash and short-term receivables. It's a slight improvement compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is well ranked against similar enterprises.
  • Usually, sales are mostly on cash. It still ranks weak when measured against peers.
  • Normally has approximately only a couple of weekly sales worth in inventory. It comes up as lacking compared to competitors.
  • On average, it takes less than one month from the purchase to charging customers. It happens to be mediocre against peers.
  • On average pays suppliers during the first couple of weeks from the purchase. It ranks top tier 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 in good shape compared 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 a slight improvement compared 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 slightly worse than peer companies.

Valuation score: 5.9

  • Amcor plc looks expensive in relation to profits and financial position. It happens to be similar to 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 good free funds in relation to the stock price, which stands top-notch against 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 top tier when measured against 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 excellent 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 weak 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 in a weak position compared to rival firms.
  • We have not enough information on the relation between current stock price and accounting book value. The company remains a mystery against 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 similar to 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 in good shape compared to peer companies.

Total score: 7.1


AMCR logos

Company at a glance: Amcor plc (AMCR)

Sector, industry: Consumer Cyclical, Packaging & Containers

Market Cap: 16.51 billions

Revenues TTM: 10.64 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: 8.4

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 (Very good), and the company's inclination to return cash to the stockholders (Superb).