Will Amcor Plc immediately recoup?

In defiance of relatively unfluctuating forward-looking signals, Amcor Plc reported solid returns over the last few months and may actually be approaching a breakup point. What is Amcor Plc chance of financial distress for July 2020?
Published over a year ago
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Reviewed by Michael Smolkin

Amcor Plc is OVERVALUED at 9.00 per share with modest projections ahead. The entity dividends can provide clues to the current value of the stock. Amcor Plc one year expected dividend income is about $0.34 per share.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Amcor PLC income statement, its balance sheet, and the statement of cash flows. Potential Amcor PLC investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Amcor PLC investors may use each financial statement separately, they are all related. The changes in Amcor PLC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Amcor PLC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Amcor PLC fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Amcor PLC performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Amcor PLC shares is the value that is considered the true value of the share. If the intrinsic value of Amcor is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Amcor PLC. Please read more on our fundamental analysis page.

How effective is Amcor PLC in utilizing its assets?

Amcor PLC reports assets on its Balance Sheet. It represents the amount of Amcor resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Amcor PLC aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Metal, Glass & Plastic Containers space. To get a better handle on how balance sheet or income statements item affect Amcor volatility, please check the breakdown of all its fundamentals.

Are Amcor PLC Earnings Expected to grow?

The future earnings power of Amcor PLC involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Amcor PLC factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Amcor PLC stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Amcor expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Amcor PLC earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Amcor PLC dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Amcor one year expected dividend income is about USD0.37 per share.
At this time, Amcor PLC's Dividends Paid is relatively stable compared to the past year. As of 04/19/2024, Dividend Payout Ratio is likely to grow to 0.77, while Dividend Yield is likely to drop 0.03.
Last ReportedProjected for Next Year
Dividends Paid831.5 M873 M
Dividend Yield 0.04  0.03 
Dividend Payout Ratio 0.62  0.77 
Dividend Paid And Capex Coverage Ratio 5.76  6.12 
Investing in dividend-paying stocks, such as Amcor PLC is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Amcor PLC must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Amcor PLC. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Amcor PLC Gross Profit

Amcor PLC Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Amcor PLC previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Amcor PLC Gross Profit growth over the last 10 years. Please check Amcor PLC's gross profit and other fundamental indicators for more details.

Is Amcor PLC valued sensibly by the market?

The firm has a beta of 0.0015. Let's try to break down what Amcor's beta means in this case. As returns on the market increase, Amcor Plc returns are expected to increase less than the market. However, during the bear market, the loss on holding Amcor Plc will be expected to be smaller as well. The beta indicator helps investors understand whether Amcor Plc moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Amcor deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Amcor Plc reported previous year revenue of 11.93 B. Net Income was 520.4 M with profit before overhead, payroll, taxes, and interest of 1.8 B. Amcor Plc preserves 32.81 % of shares owned by institutions. Amcor Plc Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 6 years. The previous year's value of Amcor Plc Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 1,680,000,000. Also, Amcor Plc Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment.
 2017 2018 2019 2020 (projected)
Cost of Revenue7.46 B7.66 B8.81 B8.94 B
Consolidated Income586.6 M437.4 M503.01 M541.19 M
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Our Final Take On Amcor Plc

While many of the other players under packaging & containers industry are still a little expensive, even after the recent corrections, Amcor Plc may offer a potential longer-term growth to investors. To summarize, as of 28th of June 2020, our actual 30 days buy-hold-sell advice on the enterprise is Strong Sell. We believe Amcor Plc is overvalued with below average odds of financial distress for the next two years. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to quit some or all of your Amcor Plc holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Amcor Plc.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Amcor PLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

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