Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Amcor plc (ASX:AMC) due to its excellent fundamentals in more than one area. AMC is a highly-regarded dividend payer with a strong track record of performance and a buoyant future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Amcor here.
High growth potential with proven track record and pays a dividend
One reason why investors are attracted to AMC is its earnings growth potential in the near future of 20% underlying the notable 22% return on equity over the next few years leading up to 2022. Over the past year, AMC has grown its earnings by 17%, with its most recent figure exceeding its annual average over the past five years. Not only did AMC outperformed its past performance, its growth also exceeded the Packaging industry expansion, which generated a 4.4% earnings growth. This is an notable feat for the company.
Income investors would also be happy to know that AMC is a great dividend company, with a current yield standing at 5.6%. AMC has also been regularly increasing its dividend payments to shareholders over the past decade.
For Amcor, I've put together three pertinent aspects you should further examine:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is AMC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AMC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AMC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.