AptarGroup, Inc. (ATR) stock analysis

P/E above its 5-year median

AptarGroup's P/E of 34.7 is above its own 5-year median of 30.9.

P/E above the industry

AptarGroup's P/E of 34.7 is above the Miscellaneous Plastics Products median of 30.9.

EV/EBITDA below its 5-year median

AptarGroup's EV/EBITDA of 13.1 is below its 5-year median of 14.6.

P/B below the industry

AptarGroup's price-to-book of 3.47 is below the Miscellaneous Plastics Products median of 3.56.

Trading above fair value

The share price of $143.08 is above our fair value estimate of $129.16.

Margin of safety under 20%

The price is 10.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 17.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -36.3% over the last twelve months, against a 5-year average of 12.9% a year.

Growing slower than the industry

Revenue grew 9.0% over the last twelve months; the Miscellaneous Plastics Products median is 9.2%.

Guidance issued

The latest outlook (fourth quarter of 2026 adjusted earnings per share, Oct 29, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 35.8% over the last twelve months, against 38.1% a year earlier.

Return on equity under 15%

Return on equity was 9.9% over the last twelve months and averaged 13.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.4%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

AptarGroup's return on equity of 9.9% is above the Miscellaneous Plastics Products median of 7.1%.

Earnings grew over 5 years

Net income grew 12.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.7% over the last twelve months, against a 5-year average of 8.8%.

Net margin above the industry

AptarGroup's net margin of 6.7% is above the Miscellaneous Plastics Products median of 5.0%.

High debt

Debt is 52.6% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 63.4% five years ago to 52.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 41.7% of total debt.

Interest well covered

Operating income covers interest expense 7.2 times.

Short-term assets cover short-term debts

Current assets are 1.50 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.18; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

AptarGroup paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; AptarGroup yields 1.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 46.2% of net income.

Covered by free cash flow

Dividends take 41.9% of free cash flow.