AMCRAmcor
Is the business good?
The checks split: earnings fully cash-backed (1.3×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AMCR?
Amcor earns 6.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.9 points below what the capital costs: growth destroys value
- Operating margin
- 8.1%
Operating margin · Packaging & Containers median 4.7% · 12 months to Q4 2026
- Cash conversion
- 1.32×
Cash conversion · 1.74× a year ago · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 0.72%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 10% |
| FY2022 | 8.5% |
| FY2023 | 10% |
| FY2024 | 8.9% |
| FY2025 | 6.7% |
| FY2026 | 8.1% |
Details›
- Gross margin12 months to Q4 2026
- 20%
- Operating margin12 months to Q4 2026
- 8.1%
- Net margin12 months to Q4 2026
- 4.7%
- Free cash flow margin
- 5.2%
- R&D as % of revenue
- 0.72%
- Revenue, trailing twelve months
- $23.5B
- Free cash flow, trailing twelve months
- $1.23B
- Net income, trailing twelve months
- $1.11B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Packaging & Containers
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