February 16, 2026 a 07:46 am
AMCR: Dividend Analysis - Amcor plc
Amcor plc demonstrates a commitment to return value to its shareholders, reflected in its attractive dividend yield and consistent payout history. Despite the high payout ratio, the company's dividend stability and a solid history of 13 consecutive annual payments build investor confidence. However, monitoring the company's ability to sustain this high payout given its financial leverage is crucial.
📊 Overview
Amcor plc operates within the packaging industry, providing essential products worldwide. Its current dividend yield is notably competitive at 5.14%, with a dividend history spanning 13 years without any recent cuts or suspensions, showcasing a commitment to shareholder returns.
| Metric | Value |
|---|---|
| Sector | Packaging |
| Dividend yield | 5.14% |
| Current dividend per share | 2.66 USD |
| Dividend history | 13 years |
| Last cut or suspension | None |
🗣️ Dividend History
The company's dividend history reveals its attractiveness to dividend-focused investors, with an evolving pattern that indicates consistent returns. Tracking dividend payments is essential as it reflects corporate health and the ability to sustain payouts.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.65 |
| 2025 | 2.5625 |
| 2024 | 2.5125 |
| 2023 | 2.4625 |
| 2022 | 2.4125 |
📈 Dividend Growth
Dividend growth is a critical indicator of financial health and future profitability. For Amcor plc, the average dividend growth over the past 5 years is moderate at 2.07%, suggesting steady financial health and commitment to increasing shareholder value over time.
| Time | Growth |
|---|---|
| 3 years | 2.03% |
| 5 years | 2.07% |
The average dividend growth is 2.07% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Payout ratios indicate the proportion of earnings paid to shareholders in dividends and help assess the sustainability of payouts. With an EPS-based payout ratio of 206.60%, Amcor appears to pay out dividends exceeding its earnings, whereas FCF-based is more conservative at 77.79%.
| Key figure | Ratio |
|---|---|
| EPS-based | 206.60% |
| Free cash flow-based | 77.79% |
The EPS-based payout ratio of 206.60% suggests a potential risk due to high dividend payouts relative to earnings, while the FCF-based ratio of 77.79% implies a better alignment with cash flow capacity.
✅ Cashflow & Capital Efficiency
The evaluation of cash flow and capital efficiency provides insights into the company's operational performance and management's ability to generate returns from invested capital. Understanding free cash flow yield and CAPEX implications is critical for investment decisions.
| Measure | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 5.55% | 6.00% | 5.02% |
| Earnings Yield | 3.50% | 5.28% | 7.15% |
| CAPEX to Operating Cash Flow | 41.73% | 37.24% | 41.71% |
| Stock-based Compensation to Revenue | 0.49% | 0.23% | 0.37% |
| Free Cash Flow / Operating Cash Flow Ratio | 58.27% | 62.76% | 58.28% |
The stability of cash flow and capital efficiency is crucial for dividend sustainability and growth, reflecting the company's ability to balance dividends with reinvestment needs and debt obligations.
⚠️ Balance Sheet & Leverage Analysis
Understanding the leverage and liquidity positions provides insight into financial stability and risk management. Amcor's leverage ratios highlight its approach to balancing debt and equity for optimal capital structure.
| Measure | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.28 | 1.85 | 1.79 |
| Debt-to-Assets | 40.49% | 43.49% | 42.40% |
| Debt-to-Capital | 56.13% | 64.93% | 64.17% |
| Net Debt to EBITDA | 8.02 | 3.57 | 3.07 |
| Current Ratio | 1.21 | 1.17 | 1.19 |
| Quick Ratio | 0.71 | 0.69 | 0.69 |
| Financial Leverage | 3.16 | 4.26 | 4.22 |
The financial structure reflects substantial leverage, requiring scrutiny of Amcor's ability to manage debt obligations while maintaining liquidity and financial agility.
📊 Fundamental Strength & Profitability
Profitability metrics are vital for evaluating Amcor's capacity to generate earnings from resources and for gauging operational efficiency. These insights assist in understanding the sustainability of the firm's profit strategies.
| Measure | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 4.36% | 18.81% | 26.03% |
| Return on Assets | 1.38% | 4.42% | 6.16% |
| Margins: Net | 3.40% | 5.35% | 7.13% |
| EBIT Margin | 6.97% | 9.20% | 10.49% |
| EBITDA Margin | 11.78% | 13.56% | 14.48% |
| Gross Margin | 18.88% | 19.88% | 18.54% |
| Research & Development to Revenue | 0.80% | 0.78% | 0.69% |
Amcor's profitability trends underscore its robust financial performance and strategic alignment to maintain growth margins, signaling potential for continued investor returns.
📈 Price Development
✅ Dividend Scoring System
| Category | Score (1-5) | |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 28/40
🗣️ Rating
Amcor plc presents a favorable dividend proposition with strong historical continuity and moderate growth. However, high payout and leverage ratios necessitate careful consideration of its long-term sustainability. In light of these factors, it would be prudent for dividend investors to weigh Amcor plc as a component of a diversified income portfolio, considering both the attractive yield and the financial implications of its current payout structure.