* Note: Prices are in Million (M) USD.
Description:
Amcor plc is an Australian-American, UK-domiciled packaging company. It develops and produces flexible packaging, rigid containers, specialty cartons, closures and services for food, beverage, pharmaceutical, medical-device, home and personal-care, and other products.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $588 M
Debt : $6,603 M
EBITDA : $1,899 M
Net Debt (Debt - Cash): $6,015 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer Cyclical
Industry: Packaging & Containers
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.00
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $831 M
Average Revenue: $10,620 M
Revenue Converted To Free Cash FLow(%): 8%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 21.91%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-06-30): $13,639 M
Revenue 4 Years Ago (2020-06-30): $12,468 M
Last 5 Years Average Revenue Growth: 2%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-06-30): $1,441 M
Share Count 5 Years Ago (2020-06-30): $1,602 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.82
Trailing 12-Month Earnings Per Share (EPS): $0.73
Average Earnings Per Share (EPS): $0.78
Dividend Per Share (DPS): $1
Payout Ratio: 66%
Dividend Yield: 6%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 22%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $9
52-Week Low: $8
Threshold Price (15% Above 52-Week Low): $9
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $22,501 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 31 points to above Amcor PLC (AMCR) stock.
Last 6 Years Avg PE (Limited to last 6 years of EPS data) 17, Fair Value PE 15, Industry Based PE is 18 and Growth based PE is 8. Based on these all values average assigned is 14.50.
Value-Trades has assined P/E value 14.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.775.
The fair value of Amcor PLC (AMCR) stock should be (14.50 x $0.775) = $11.24
