AMC share price in focus
Amcor designs and manufactures a wide variety of packaging solutions, including flexible packaging, rigid containers, specialty cartons, and closures.
With origins dating back to the 1860s, Amcor has grown into a global leader, operating across more than 200 sites in 40 countries.
The company prioritizes innovation in packaging to address evolving consumer preferences and regulatory requirements for sustainable solutions.
COL shares
Coles is a leading Australian retailer providing everyday essentials including fresh food, groceries, general merchandise, liquor, fuel and financial services. It was founded in 1914 in Victoria and still calls Melbourne its home base.
Coles was formerly owned by the listed giant Wesfarmers from 2007 until 2018, when it was spun-off and listed as its own entity on the ASX under the ticker symbol ‘COL’. Coles’ earnings are unsurprisingly dominated by the supermarket side of the business, however, it partly or fully owns and operates adjacent businesses like flybuys, Liquorland, First Choice, Vintage Cellars, Coles Express and more.
While Coles is second to Woolworths in the supermarket sector, it still controls a significant share of the Australian grocery market (about 28%). Since its listing in 2018, Coles has established itself as fairly reliable dividend payer for investors seeking income.
AMC share price valuation
We would consider AMC to be a ‘mature’ or ‘blue-chip’ business, so some of the metrics that could be worth considering include the debt/equity ratio, average yield, and return on equity, or ROE. These measures give us a sense of the company’s debt levels, their ability to generate returns from their assets, and their ability to consistently return profits to shareholders.
For FY24, Amcor CDI reported a debt/equity ratio of 187.0%, meaning the company is leveraged (it has more debt than equity). This can increase risk so it’s important that a leveraged company is generating stable returns and has sufficient cash flow to pay interest on its debts.
Over the last 5 years, AMC has delivered an average dividend yield of 4.4% per year. This is important to note if you’re looking for income from your investments.
Finally, in FY24, AMC reported an ROE of 18.4%. For a mature business you generally want to see an ROE of more than 10%, so AMC clears this hurdle.
In FY24, Coles Group Ltd reported a debt/equity ratio of 278.4%, meaning the company is leveraged.
As for dividends, since 2019 COL has achieved an average dividend yield of 3.8% per year, and in FY24 reported an ROE of 32.4%
It’s important to keep in mind that these are only a small selection of metrics and don’t give us enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.
