AptarGroup Inc. is a supplier of a broad range of innovative dispensing solutions for the beauty, personal care, home care, prescription drug, consumer health care, injectables, food, and beverage markets. The company was founded in 1992 and is based in Crystal Lake, Illinois.
ATR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ATR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Aptargroup Inc ranked in the 30th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for ATR, they are:
The company's balance sheet shows it gets 97% of its capital from equity, and 3% of its capital from debt. Its equity weight surpasses that of 93.78% of free cash flow generating stocks in the Consumer Cyclical sector.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than only 11.08% of the free cash flow producing stocks we're observing.
ATR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 47.56% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CPRI, PVH, DAN, NATH, and WEYS can be thought of as valuation peers to ATR, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
As there is more and more re-open talk, some of the stocks that will likely benefit the most, are starting to move nicely. One of those is AptarGroup (ATR). The company has survived what they are calling the "Crisis Low Point" and looks to gradually recover over the second half...
Graham Grieder on Seeking Alpha | September 4, 2020
AptarGroup, Inc. (NYSE:ATR) today reported second quarter results for 2020 and provided an update related to COVID-19 including the Company’s ability to supply essential products for critical industries and continued health and safety measures being implemented across its global facilities.