5.22% Yield and Huge Growth Potential: Is Amcor a Must-Buy Now?

15-Aug-2025 Medium » Coinmonks

Imagine you’re sipping your morning coffee, planning your next investment move, when you stumble across Amcor PLC (NYSE: AMCR), a packaging giant with a juicy 5.22% dividend yield and a stock price that’s screaming “undervalued.”

As an investor-whether you’re a retail enthusiast managing your portfolio or an institutional pro hunting for stable returns-Amcor’s recent Berry Global acquisition and strong technical setup at $8.37 could be your chance to snag a bargain. With global demand for sustainable packaging soaring, this stock offers both25, 2025, earnings release, a dip could sweeten the deal. Why care? Because Amcor could pack both growth and income into your portfolio!

Operations

Amcor has become one of the largest consumer packaging manufacturers globally-offering flexible packaging, rigid containers, closures, and dosing solutions across food, beverages, healthcare, and personal care segments.

On April 30, 2025, Amcor completed the all-share acquisition of Berry Global (~USD 8.4 bn), creating a packaging powerhouse with roughly $24 bn in annual revenue across over 40 countries.

Under CEO Peter Konieczny, the company emphasizes materials science and sustainability-focused R&D, leveraging combined scale.

Financial Performance and Ratios: Steady and Resilient

Amcor reported fiscal 2025 Q4 net sales of $5.08 billion, a 43% increase year-over-year, driven by the Berry Global acquisition. Its adjusted EPS was $0.20, with a full-year adjusted EPS of $0.712, up 3% excluding currency impacts. Key ratios include a P/E ratio of 17.23, a debt-to-equity ratio of 2.24, and a return on equity (ROE) of 21%, reflecting solid profitability despite high debt.

Amcor targets $650M in annual synergies by FY 2028, of which around $260M is expected by FY 2026 (boosting adjusted EPS by about 12%).

Stock Price Performance: Stable but Underperforming

Amcor trades on the NYSE under ticker AMCR, with a current share price of approximately USD 9.94 (as of August 14, 2025). Its stock typically exhibits defensive characteristics-sensitive to volume shifts and raw material cycles-supported by a reliable dividend profile.

The stock’s 52-week range is $8.37 to $11.48, showing moderate volatility with a beta of 0.73. Analysts rate it a “ Moderate Buy” with a $11.37 price target, suggesting growth potential.

The stock price has dropped by more than -11.09% since the IPO.

Competitive Landscape: Standing Tall

Amcor’s key competitors span multiple packaging segments:

  • Crown Holdings — metal cans and beverage packaging
  • Ball Corporation — aluminum containers
  • Sealed Air — protective and flexible packaging
  • Mondi plc — paper and flexible packaging
  • Huhtamäki — foodservice and flexible packaging

After combining with Berry, Amcor delivers broader exposure across healthcare, personal care, specialty beverages, and flexible packaging-with potential for higher-margin products. Scale and synergies offer competitive advantage, but execution risk remains significant.

Competitor Comparison Table

Investment Insight

Based on the latest data, the company’s shares hold a moderate yet attractive Investment Scoreboard rating of 67. In our price forecast table, we present a pessimistic scenario that completely excludes any benefits from projected synergies. This means the stock has greater upside potential if management’s synergy projections are achieved.

Should those projections materialize, and given the current metrics- PEG ratio of 0.51 and an equity risk premium of 4.71%-the shares appear undervalued in the market. Adding to this, the stock offers a 5%+ dividend yield at current prices, making it even more appealing. In our view, this is an opportune moment to buy or add to positions while the market still prices the stock at a discount.

Investment attractiveness

Amcor Stock Forecast**

2025–2029 Price Targets:

When to buy and Investment Tips

Strong support has formed at $8.37 on elevated volume, confirmed by a Double Bottom pattern. Key resistance levels are $10.00 and $10.45.

With quarterly earnings released below expectations today, a short-term dip is possible, presenting a potential entry opportunity. This enhances the stock’s appeal for long-term investors.

Dividend and Buyback Policy: Attractive for Income Seekers

Amcor offers a robust 5.22% dividend yield, paying $0.51 annually per share, with a recent quarterly dividend of $0.1275, up slightly from last year. The payout ratio of 91.07% raises sustainability concerns, though projected earnings growth could lower it to 64.56% next year. The company has not emphasized share buybacks recently, focusing instead on dividends and acquisition integration.

Latest News: Transformative Growth

Merger Closed (April 30, 2025): The Berry acquisition finalized, unlocking a path to USD 650 m of annual synergies-this remains the primary value engine if execution stays on track.

EPS and Execution Outlook: Guidance includes ~12% EPS accretion in 2026 from synergies. The market sees this as a smooth “linear” ramp-up-but any delays could materially pressure the valuation multiple.

Key Risks: These include post-deal leverage levels, raw material cost cycles (resins, aluminum, paper), and maintaining pricing power with major FMCG and healthcare clients. Execution efficiency and cost discipline will determine outcomes.

What to Watch Next

  • Synergy Realization: Quarterly “run-rate” updates will indicate whether the USD 260 m by FY 2026 target is on track.
  • Margin Trends: Especially gross and adjusted operating margins.
  • Organic Volume Recovery: Low-single-digit volume rebounds would support top-line growth.
  • Debt Metrics: De-leveraging pace and return to investment-grade leverage ratios.
  • Capital Allocation: Stability of dividend and potential “bolt-on” acquisitions or divestments.

Expert Quotes from X Platform

  • “Amcor’s Berry acquisition is a game-changer, positioning it as a global packaging titan with massive synergy potential. Bullish for long-term investors!” — @MarketMaverick
  • “$AMCR’s 5.22% dividend yield is a gem for income portfolios, but watch that high payout ratio!” — @DividendDynamo
  • “Solid Q4 for Amcor, but macro headwinds could cap near-term upside. Patience is key.” — @StockSentry

Conclusion

Amcor’s blend of a high dividend yield, transformative acquisition, and a technically sound entry point makes it a must-watch for investors. While execution risks and a high payout ratio add spice, the potential for 12% EPS growth and synergies could deliver sweet returns. Grab this stock before it’s fully unpacked-your portfolio might just thank you with a wink and a smile!

Have you already invested in this company’s stock? Leave a comment-we’re closely following this stock!

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***

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*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.

Originally published at https://www.aipt.lt on August 14, 2025.


5.22% Yield and Huge Growth Potential: Is Amcor a Must-Buy Now? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

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