AMCR - Amcor: An Underpriced Fundamentally Sound Company

2024-05-09 02:14:18 ET

Summary

• Amcor's growth over the past 6 years was driven by acquisitions, resulting in top-line and bottom-line growth. There were also improving returns.
• AMCR is financially sound with a low reinvestment rate. But operating trends show mixed signals for operating and capital efficiencies.
• A valuation assuming zero or low reinvestment rates provided more than 30% margin of safety.

Investment Thesis

Amcor plc's ( AMCR ) growth over the past 6 years was driven by acquisitions. While there were mixed signals about its track record in improving operating and capital efficiencies, there was a top-line and bottom-line growth. There were also uptrends on the various return metrics....

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