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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on AMCR

Amcor's recent performance was negatively impacted by a weak Q4 earnings report, with earnings of $0.2 per share missing the Zacks Consensus Estimate of $0.21 per share. Soft volume gains and supply challenges likely weighed on its performance. The company's merger with Berry Global, aimed at boosting packaging leadership, resulted in increased revenues but failed to meet earnings expectations. Additionally, Amcor's Q4 outlook had been subject to softening expectations, reflecting concerns over its business performance.

1.c. Company Highlights

2. Amcor's Q1 FY2026 Earnings: A Strong Start to the Year

Amcor reported adjusted EPS of $0.193 per share, above the midpoint of its guidance range and representing an 18% increase compared to the previous year. The company's revenue growth was driven by the acquisition of Berry, with adjusted EBIT rising 28% on a constant currency basis to $426 million in the Global Flexible Packaging Solutions segment. The Global Rigid Packaging Solutions segment also saw a significant increase in adjusted EBIT, up 365% on a constant currency basis to $295 million. The company's EPS performance was in line with analyst estimates of $0.19.

Publication Date: Nov -15

📋 Highlights
  • Adjusted EPS Growth:: Achieved $0.193 per share, up 18% YoY, exceeding guidance midpoint.
  • Segment EBIT Growth:: Global Flexible Packaging EBIT rose 28% to $426M; Rigid Packaging EBIT surged 365% to $295M.
  • Synergy Delivery:: Generated $38M in synergies (upper end of guidance), with $70M+ in annualized revenue synergies secured.
  • Free Cash Flow Guidance:: $1.8–1.9B range, double FY25, supported by cost discipline and asset optimization.
  • 3-Year EPS Growth Target:: $650M in synergies expected to drive >30% EPS growth by fiscal 2028.

Segment Performance

The Global Flexible Packaging Solutions segment saw a 28% increase in adjusted EBIT, driven primarily by approximately $75 million in acquired earnings net of divestments. However, the segment faced some weakness, particularly in Europe, due to general market softness. In contrast, the Global Rigid Packaging Solutions segment performed strongly, with a 365% increase in adjusted EBIT driven by approximately $240 million in acquired earnings, net of divestments.

Synergy Realization and Cost Management

Amcor delivered $38 million in synergies during the quarter, towards the upper end of its guidance range. The company is confident in its synergy delivery for the year, with benefits coming from G&A and procurement. As Peter Konieczny noted, "We're gaining traction with synergy realization, including commercial synergies and have solid pipelines, which continue to grow." The company's focus on cost management is also evident in its efforts to adjust capacities to the actual volume situation.

Valuation and Growth Prospects

With a P/E Ratio of 21.73 and an EV/EBITDA of 9.53, Amcor's valuation suggests that the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 53.1%, which could potentially justify the current valuation. However, the company's ROE of 7.49% and ROIC of 3.02% indicate that there is still room for improvement in terms of profitability. The dividend yield of 6.01% is attractive, and the company's commitment to returning value to shareholders is evident in its increased quarterly dividend.

Outlook and Conclusion

Amcor reaffirmed its guidance for adjusted EPS of $0.80 to $0.83 per share, representing strong year-over-year growth of 12% to 17%. The company's focus on portfolio optimization, revenue synergies, and focus categories is expected to drive growth in the long term. With its strong start to the year, Amcor is well-positioned to achieve its financial objectives and create shareholder value.

3. NewsRoom

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The Highest-Yielding Dividend Aristocrats Deliver 5%-6% Yields and Safety

Dec -04

Source: 247wallst.com

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Best Dividend Aristocrats For December 2025

Nov -29

Source: seekingalpha.com

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Creative Planning Boosts Stake in Amcor PLC $AMCR

Nov -26

Source: defenseworld.net

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Amcor's Underperformance Opens A Compelling Entry Point With An Attractive Yield

Nov -24

Source: seekingalpha.com

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Amcor Lift-Off to accelerate more sustainable packaging innovation with Winter 2025/26 Challenge

Nov -18

Source: prnewswire.com

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Why Are These 4 Dividend Stocks Still Trading At A Deep Discount?

Nov -17

Source: forbes.com

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Amcor: Undervalued Packaging Leader Offering Compelling Yield And Defensive Approach

Nov -17

Source: seekingalpha.com

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Worried About an AI Bubble? Here Are BofA's Top Stock Picks to Diversify Your Portfolio

Nov -13

Source: investopedia.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.67%)

6. Segments

Flexibles

Expected Growth: 4.65%

Amcor's Flexibles segment growth of 4.65% is driven by increasing demand for flexible packaging in the food and beverage industry, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, sustainability, and customer partnerships has contributed to its growth momentum.

Rigid Packaging

Expected Growth: 4.73%

Amcor's Rigid Packaging segment growth of 4.73% is driven by increasing demand for sustainable packaging solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the segment benefits from a shift towards premium and specialty packaging, as well as growth in the healthcare and pharmaceutical industries.

7. Detailed Products

Rigid Packaging

Amcor's rigid packaging products include plastic bottles, containers, and caps for the food, beverage, and pharmaceutical industries.

Flexible Packaging

Amcor's flexible packaging products include flexible films, laminates, and pouches for the food, beverage, and pharmaceutical industries.

Specialty Cartons

Amcor's specialty cartons are used for packaging of premium and specialty products, such as cosmetics, fragrances, and confectionery.

Tubing and Capsules

Amcor's tubing and capsules are used for packaging of pharmaceutical and healthcare products.

Closures

Amcor's closures include caps, lids, and closures for the food, beverage, and pharmaceutical industries.

8. Amcor plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Amcor plc is medium due to the availability of alternative packaging solutions. However, Amcor's focus on innovation and sustainability helps to differentiate its products and reduce the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low for Amcor plc due to the company's strong relationships with its customers and its ability to provide customized packaging solutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Amcor plc due to the company's dependence on raw materials such as paper, plastic, and aluminum. However, Amcor's diversified supply chain and long-term contracts help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low for Amcor plc due to the high barriers to entry in the packaging industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high for Amcor plc due to the competitive nature of the packaging industry, with several large players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.26%
Debt Cost 4.54%
Equity Weight 37.74%
Equity Cost 8.19%
WACC 5.92%
Leverage 164.94%

11. Quality Control: Amcor plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vidrala

A-Score: 6.1/10

Value: 5.7

Growth: 7.4

Quality: 7.0

Yield: 3.8

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Viscofan

A-Score: 5.9/10

Value: 4.5

Growth: 5.1

Quality: 7.2

Yield: 7.5

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Huhtamaki

A-Score: 5.4/10

Value: 6.4

Growth: 4.9

Quality: 5.4

Yield: 5.6

Momentum: 1.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Amcor

A-Score: 4.8/10

Value: 4.8

Growth: 3.3

Quality: 3.2

Yield: 8.8

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
SIG

A-Score: 4.2/10

Value: 5.9

Growth: 5.3

Quality: 3.9

Yield: 6.2

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Smurfit Kappa

A-Score: 3.3/10

Value: 3.3

Growth: 3.7

Quality: 3.0

Yield: 2.5

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.32$

Current Price

8.32$

Potential

-0.00%

Expected Cash-Flows