Amcor Plc Intrinsic Stock Value – Amcor plc May be Inexpensive, But Not Enticing Enough
January 4, 2024
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Although the company may currently appear to be an attractive bargain, there are some potential drawbacks to investing in Amcor ($NYSE:AMCR) plc stock. Firstly, Amcor plc has limited growth opportunities due to its size and position in the industry. The company has already achieved significant market share and has a well-established presence in the industry, so further growth may be difficult to achieve without significant strategic changes.
Additionally, the company’s stock is currently trading at a relatively low PE ratio, which could mean that it is not being adequately valued by the market. Furthermore, while Amcor plc may have a solid history of financial performance, its profitability may be hampered by volatile input costs and exchange rates. The company is exposed to these risks due to its global operations, meaning that any sudden changes in these factors could have an adverse effect on its bottom line. Overall, while Amcor plc may initially appear to offer an attractive proposition for investors, there are several factors that should be taken into account before investing. The company’s limited growth prospects and exposure to volatile input costs and exchange rates mean that it may not be as enticing an investment as initially thought.
Price History
Amcor plc is a global packaging company, but investors may not be enticed by its stock prices. On Tuesday, AMCOR PLC stock opened at $9.6 and closed at $9.8, up by 1.1% from last closing price of 9.6. Although it may appear to be inexpensive compared to other stocks, the potential for growth is not necessarily there. Investors may be looking for something with more potential than Amcor plc has to offer.
The stock has been fairly stable recently, with only slight fluctuations in its prices, indicating that it may not have the potential for robust growth. Despite this, Amcor plc still has a large presence in the industry and may be a good option for investors looking for some stability in their portfolio. 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 Stock Value
At GoodWhale, we believe in investing with confidence. That’s why we’ve conducted an analysis of AMCOR PLC‘s financials to understand the intrinsic value of their stock. Our proprietary Valuation Line found that the intrinsic value of AMCOR PLC’s share is around $12.1. However, AMCOR PLC’s stock is currently being traded at $9.8, a fair price that is undervalued by 18.8%. This discrepancy presents an attractive opportunity for potential investors to get into AMCOR PLC at a lower cost than its intrinsic value. More…
Peers
The company’s primary competitors are Huhtamäki Oyj, Robinson PLC, and Southern Packaging Group Ltd. All three companies are global leaders in the packaging industry with a strong presence in Europe and North America.
– Huhtamäki Oyj ($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
AMCOR PLC is an Australian-based packaging company with a diversified portfolio and a long history of success. AMCOR PLC has seen steady growth in revenues and profit margins over the past few years and analysts expect strong earnings growth for the upcoming quarters. The company has also been investing heavily in R&D, and expanding into new markets, which should lead to additional long-term growth. Investors should note that AMCOR PLC may not be as attractive as some of its peers, but its low valuation could make it a good buy for value investors looking for a long-term return.
