AMC - Amcor PLC
Amcor Plc (AMC) is in developing and producing responsible packaging solutions for food, beverage, pharmaceutical, medical, home and personal-care, and other products. The Company works with companies around the world to protect their products and the people who rely on them, differentiate brands, and improve supply chains through a range of flexible and rigid packaging, specialty cartons, closures, and services. The company is focused on making packaging that is increasingly lighter weight, recyclable and reusable, and made using an increasing amount of recycled content across a variety of materials.
website: www.amcor.com
It's major concern is its debt. 16 Billion in 2026. is the high dividend sustainable?
The Price-to-Earnings (P/E) ratio for Amcor PLC (ASX: AMC) has fluctuated considerably over the last decade, maintaining a 10-year mean historical P/E ratio of 28.36x. The global packaging giant's valuation compressed significantly during 2021–2023 due to macro pressures, but has rebounded sharply toward the 28x–35x range. [1, 2]
Historical P/E Ratio Overview (Fiscal Year End)
| Year [1, 2, 3, 4, 5] | Approximate P/E Ratio | Valuation Context |
|---|---|---|
| 2026 (Current TTM) | 34.5x – 35.6x | Reflects higher trailing multiples amidst lower recent cyclical net earnings. |
| 2025 | 26.1x | Rising trend line driven by operational portfolio optimization. |
| 2024 | 21.7x | Post-inflation cost correction recovery. |
| 2023 | 14.8x | 5-year low triggered by consumer destocking and global demand headwinds. |
| 2022 | 19.5x | Stabilized mid-pandemic multi-year baseline. |
| 2021 | 20.4x | Compression from peak levels following strong pandemic-induced sales volume. |
| 2020 | 24.5x | Heightened defensive stock demand during global supply chain transitions. |
| 2019 | 59.9x (Peak) | Historic multi-decade peak following structural distortions from the Bemis acquisition. |
| 2018 | 17.2x | Traditional consumer staples packaging sector baseline. |
| 2017 | 18.5x | Consistent organic volume growth era. |
| 2016 | -105.4x (Low) | Skewed negative due to localized statutory restructurings and non-recurring items. |
3 Key Structural Drivers Behind Amcor's Valuation
- The 2019 Bemis Merger: The spike in 2019 was caused by statutory accounting changes, transaction friction costs, and temporary earnings dilution linked directly to Amcor’s major $6.8B USD acquisition of US rival Bemis.
- Defensive vs. Cyclical Shifts: Amcor trades as a defensive packaging safe-haven. During macroeconomic uncertainty (like 2025–2026), investors historically pay a premium for its resilient revenue pipeline, expanding its P/E multiple. [1]
- Forward Outlook Convergence: While trailing multiples sit near 34x–36x, the market consensus Forward P/E sits much lower at roughly 10.2x–10.9x. This variance reveals that analysts expect a substantial earnings-per-share (EPS) bounce-back over the next 12 months
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Over the last 5 years, global packaging giant Amcor PLC (ASX:AMC) has experienced flat overall stock returns, but has maintained strong dividend payouts for investors. Recent financial metrics have been impacted by their massive, debt-funded acquisition of Berry Global. [1, 2, 3, 4]
Key 5-Year Financial Metrics
- Revenue: Annual revenue has been volatile but trending upward, largely propelled by the Berry Global acquisition (pushing trailing 12-month revenue to approximately USD \(\$22.19\) billion). Organic growth has otherwise remained modest. [1]
- Profit: Net profit margins have compressed. Historically hovering between \(5.5\% - 6.5\%\), net profit margins dropped to around \(3.06\%\) due to high one-off restructuring costs and integration charges from the recent merger. [1, 2, 3, 4]
- Debt: Amcor carries a significant debt burden (2026). Post-acquisition, total debt sits around USD \(\$15.0\) billion, resulting in an elevated Debt/Equity ratio of approximately \(136\%\) to \(143\%\). The interest coverage ratio sits at a functional 3.1x, meaning earnings adequately cover debt payments, but leave limited buffer. [1, 2, 3, 4]
- ROE (Return on Equity): Historically, Amcor boasted a strong ROE of over \(18\% - 20\%\). However, as the new equity and heavy acquisition costs hit the balance sheet, ROE has compressed down to approximately \(8.7\%\). [1, 2, 4]
- Dividend: Known for being an income stock, AMC has provided an attractive dividend yield in the range of \(5.9\% - 9.2\%\). However, the dividend payout ratio is currently high (exceeding 200% of net income recently), indicating it is being heavily funded by cash flow rather than net earnings alone. [1, 2]
You can track historical performance, monitor free cash flow, and review full-year documentation directly on the Amcor Investors portal or via Yahoo Finance AMC.AX. [1]
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