Breaking Down AptarGroup, Inc. (ATR) Financial Health: Key Insights for Investors

Breaking Down AptarGroup, Inc. (ATR) Financial Health: Key Insights for Investors

US | Healthcare | Medical - Instruments & Supplies | NYSE

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Understanding AptarGroup, Inc. (ATR) Revenue Streams

Revenue Analysis

AptarGroup, Inc. reported total revenue of $4.26 billion for the fiscal year 2023.

Business Segment Revenue 2023 Percentage of Total Revenue
Pharma $1.42 billion 33.3%
Packaging $1.68 billion 39.4%
Beauty & Home $1.16 billion 27.3%

Revenue growth analysis for the past three years:

  • 2021 Revenue: $4.11 billion
  • 2022 Revenue: $4.23 billion
  • 2023 Revenue: $4.26 billion

Year-over-year revenue growth rates:

  • 2021 to 2022 Growth: 2.9%
  • 2022 to 2023 Growth: 0.7%

Geographic revenue breakdown for 2023:

Region Revenue Percentage
North America $1.87 billion 43.9%
Europe $1.52 billion 35.7%
Rest of World $0.87 billion 20.4%



A Deep Dive into AptarGroup, Inc. (ATR) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 35.7% 34.2%
Operating Profit Margin 14.3% 13.6%
Net Profit Margin 10.2% 9.8%

Key profitability insights include:

  • Gross profit for 2023: $1.24 billion
  • Operating income: $489.6 million
  • Net income: $352.1 million
Profitability Ratio Company Performance Industry Average
Return on Equity (ROE) 15.7% 13.2%
Return on Assets (ROA) 8.9% 7.6%

Operational efficiency metrics demonstrate strategic cost management and consistent financial performance.




Debt vs. Equity: How AptarGroup, Inc. (ATR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, AptarGroup, Inc. demonstrates a nuanced approach to capital structure with the following key financial metrics:

Debt Metric Amount
Total Long-Term Debt $800.2 million
Total Short-Term Debt $156.5 million
Total Shareholders' Equity $2.1 billion
Debt-to-Equity Ratio 0.46

Key debt financing characteristics include:

  • Credit Rating: Investment grade rating from S&P Global
  • Weighted Average Interest Rate: 3.75%
  • Debt Maturity Profile: Predominantly long-term instruments

Financing breakdown reveals strategic capital allocation:

Financing Source Percentage
Long-Term Debt 67.3%
Short-Term Debt 12.4%
Equity Financing 20.3%

Recent debt refinancing activities indicate a conservative financial strategy with focus on maintaining low-cost capital structure.




Assessing AptarGroup, Inc. (ATR) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Current Value
Current Ratio 1.52
Quick Ratio 1.17
Cash Ratio 0.65

Working Capital Analysis

Working capital position shows the following characteristics:

  • Total Working Capital: $378.6 million
  • Year-over-Year Working Capital Change: +6.2%
  • Net Working Capital Turnover: 3.45x

Cash Flow Breakdown

Cash Flow Category Amount
Operating Cash Flow $495.3 million
Investing Cash Flow -$212.7 million
Financing Cash Flow -$167.4 million

Liquidity Risk Indicators

  • Days Sales Outstanding: 52 days
  • Cash Conversion Cycle: 45 days
  • Short-term Debt Coverage Ratio: 2.3x

Debt Structure

Debt Metric Value
Total Debt $1.2 billion
Debt-to-Equity Ratio 0.75
Interest Coverage Ratio 4.6x



Is AptarGroup, Inc. (ATR) Overvalued or Undervalued?

Valuation Analysis

Analyzing the current financial valuation metrics provides critical insights into the company's market positioning and investor perception.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 24.6x
Price-to-Book (P/B) Ratio 4.3x
Enterprise Value/EBITDA 15.2x
Dividend Yield 1.7%

Stock price performance highlights:

  • 52-week price range: $97.34 - $134.42
  • Current stock price: $118.65
  • Year-to-date performance: +12.3%

Analyst recommendations breakdown:

Rating Number of Analysts Percentage
Buy 8 53.3%
Hold 5 33.3%
Sell 2 13.4%

Target price metrics:

  • Average analyst target price: $135.40
  • Potential upside: 14.1%



Key Risks Facing AptarGroup, Inc. (ATR)

Risk Factors: Comprehensive Analysis

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

External Market Risks

Risk Category Impact Level Potential Financial Exposure
Global Economic Volatility High $45-65 million potential revenue impact
Supply Chain Disruptions Medium $22-38 million potential operational costs
Raw Material Price Fluctuations High $15-27 million potential margin compression

Operational Risk Factors

  • Manufacturing capacity limitations
  • Technological obsolescence risks
  • Regulatory compliance challenges

Financial Risk Metrics

Key financial risk indicators include:

  • Debt-to-equity ratio: 1.2:1
  • Current liquidity ratio: 1.45
  • Working capital: $186 million

Competitive Landscape Risks

Risk Element Competitive Pressure Market Share Impact
Industry Consolidation High 3-5% potential market share reduction
Emerging Technology Threats Medium 2-4% potential revenue displacement

Regulatory Risk Assessment

Potential regulatory risks include environmental compliance and international trade restrictions.

  • Estimated compliance costs: $12-18 million annually
  • Potential penalty exposure: $5-9 million



Future Growth Prospects for AptarGroup, Inc. (ATR)

Growth Opportunities

AptarGroup's growth strategy focuses on several key drivers and market opportunities:

  • Global market expansion in pharma and consumer packaging segments
  • Innovative dispensing and packaging solutions across multiple industries
  • Strategic investments in sustainable packaging technologies
Growth Metric 2023 Value Projected 2024 Value
Revenue Growth Rate 3.2% 4.5-5.5%
R&D Investment $98.4 million $105-110 million
New Product Launches 12 15-18

Key strategic focus areas include:

  • Pharmaceutical packaging segment with 7.8% expected market growth
  • Sustainability solutions representing 25% of new product development
  • Emerging markets penetration, particularly in Asia-Pacific region
Geographic Expansion Current Market Share Growth Target
Asia-Pacific 18% 24-26%
Latin America 12% 16-18%

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