Amcor Plc Intrinsic Value Calculator – AMCOR PLC’s High Debt Level Poses Risk to Business Stability
December 15, 2023
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AMCOR PLC ($NYSE:AMCR) is a multinational packaging company which produces flexible and rigid plastic packaging as well as paper-based products. While AMCOR PLC is a successful business that has seen growth, their high debt level is a cause for concern as it presents a risk to the business’s stability. The amount of debt that AMCOR PLC is taking on is putting the business in danger. This high amount of debt could lead to financial instability if the company’s profits don’t improve enough to pay off this mountain of debt. Furthermore, if AMCOR PLC is unable to make their debt payments, they will face stiff penalties and potential bankruptcy.
The high debt level of AMCOR PLC poses a risk to the business’s stability and its long-term prospects. The company needs to take steps to reduce their debt and increase their profits in order to ensure their future success. If AMCOR PLC doesn’t take action soon, the business may be in danger of becoming insolvent and collapsing.
Stock Price
AMCOR PLC is under pressure to reduce its high debt levels, which could pose a risk to the company’s stability if not managed properly. On Thursday, AMCOR PLC stock opened at $9.8 and closed at $9.7, down by 0.3% from previous closing price of 9.7. This decline is indicative of investor concern over the company’s high debt levels. AMCOR PLC currently has total debts of over $20 billion, and has been working to reduce its debt burden by cutting costs and finding new sources of revenue.
However, the company’s high debt levels remain a major risk factor, as any sustained increase in interest rates or a drop in sales could put a strain on its balance sheet and lead to severe financial stress for the company. Given the risks associated with AMCOR PLC’s high debt levels, investors should proceed with caution when considering investing in the company. While AMCOR PLC may be working hard to reduce its debts, any unexpected changes in the business environment could have a big impact on the company’s profitability and stability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Amcor Plc. More…
| Total Revenues | Net Income | Net Margin |
| 14.43k | 962 | 6.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Amcor Plc. More…
| Operations | Investing | Financing |
| 1.39k | -211 | -1.21k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Amcor Plc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.68k | 12.72k | 2.69 |
Key Ratios Snapshot
Some of the financial key ratios for Amcor Plc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.1% | 2.9% | 10.2% |
| FCF Margin | ROE | ROA |
| 6.2% | 23.2% | 5.5% |
Analysis – Amcor Plc Intrinsic Value Calculator
GoodWhale provides comprehensive financial analysis of AMCOR PLC. Our proprietary Valuation Line calculated the fair value of AMCOR PLC’s share to be around $12.1. Currently, the stock is traded at $9.7 which is 20.1% undervalued compared to the fair value. Therefore, we believe that investors should take advantage of this undervaluation and consider investing in AMCOR PLC. More…
Peers
The company’s primary competitors are Huhtamäki Oyj, Robinson PLC, and Southern Packaging Group Ltd. All three companies are global leaders in the packaging industry with a strong presence in Europe and North America.
– Huhtamäki Oyj ($LTS:0K9W)
Huitamäki is a Finnish packaging company with a focus on sustainable food packaging solutions. The company has a strong focus on reducing its environmental impact, and has set a goal to be carbon neutral by 2040. The company’s products are used by some of the world’s leading food and beverage brands.
– Robinson PLC ($LSE:RBN)
Robinson PLC is a British company that manufactures and sells office products. It has a market cap of 14.24 million as of 2022 and a return on equity of 9.8%. The company was founded in 1887 and is headquartered in London, England. Robinson PLC’s products include office furniture, stationery, and office supplies. The company sells its products through a network of retailers in the United Kingdom and Europe.
– Southern Packaging Group Ltd ($SGX:BQP)
Southern Packaging Group Ltd is a packaging company that operates in Australia and New Zealand. The company has a market cap of 29.89M as of 2022 and a return on equity of 1.31%. Southern Packaging Group Ltd provides packaging solutions for a wide range of industries including food and beverage, pharmaceutical, and cosmetic. The company offers a variety of packaging products such as corrugated boxes, plastic containers, and glass bottles. Southern Packaging Group Ltd is a publicly traded company listed on the Australian Securities Exchange.
Summary
Investors must consider the potential risks in investing in AMCOR PLC, due to the company’s high debt levels. This high level of debt means the company carries a significant amount of risk should its revenue and/or profits decline. Investors must weigh the risks associated with the company’s debt levels against its potential for growth in order to make an informed decision.
