📊 AI Stock Rating — Summary

AptarGroup reported quarterly revenue of approximately $961 million with a net income of $127.9 million, translating to an EPS of $1.95. The company witnessed a net income margin of 13.3%. However, the free cash flow (FCF) was negative at -$22.1 million, raising concerns about cash management. Revenue growth remains moderate, and net income shows profitability. Despite low free cash flow, cash on hand was $257 million. Net debt stood at $882 million, against total equity of $49.1 million, indicating a high leverage with a debt/equity ratio significantly above 10. Valuation as per analyst price targets shows potential upside, suggesting that the company's current market position might be somewhat undervalued. ATR also returned value to shareholders via dividends totaling $1.83 per share over the last year and share repurchases of $19.2 million. ATR must address cash flow issues to enhance its financial robustness, though a positive analyst sentiment provides a buffer amid challenges.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue growth for the quarter was stable at $961 million, reflecting moderate expansion. Main growth drivers were not detailed, indicating perhaps a need for diversification or new initiatives for growth acceleration.

Profitability — Score: 7/10

The company maintained a strong net margin of 13.3% and EPS of $1.95, showcasing robust profitability. Efficiency metrics suggest good cost control, underpinning stable profit performance.

Cash Flow Quality — Score: 4/10

Negative free cash flow at -$22.1 million highlights potential liquidity challenges. While dividends and buybacks took place, cash management could be improved to ensure long-term sustainability.

Leverage & Balance Sheet — Score: 3/10

Net debt of $882 million signifies high leverage, with a particularly elevated debt to equity ratio due to low equity levels. This indicates potential risks should there be any downturn in operating profits.

Shareholder Returns — Score: 5/10

Dividends of $1.83 per share alongside share buybacks evidence commitment to shareholder returns. However, without stock price performance data, comprehensive return evaluation lacks. Assume moderate stability in returns.

Analyst Sentiment & Valuation — Score: 7/10

Analyst target median of $139 implies some discount relative to market price, suggesting potential upside and reflecting somewhat positive sentiment despite current leverage.

⚠ AI-generated — informational only, not financial advice.