Narrow-moat Aptar reported solid first-quarter earnings that were in line with expectations. Revenue was $915 million, or 5% year-over-year core growth, which excludes 1% of currency headwinds. Adjusted EBITDA margin was 19.5%, a respectable 1.7 percentage points better than the same period last year. We maintain our fair value estimate of $147 and view shares as fairly valued.
Aptar’s strong relationships with multinational customers will help the firm expand into emerging markets such as Asia and Latin America.
Aptar’s negotiating power could decline along with further consolidation of large consumer and pharmaceutical companies.
|
Metric
|
ATR
|
PODD
|
WST
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.28 | 64.85 | 45.70 |
Price/Book Value | 4.20 | 16.83 | 9.98 |
Price/Sales | 2.82 | 7.65 | 9.38 |
Price/Cash Flow | 16.63 | 38.62 | 35.93 |
|
Metric
|
ATR
|
PODD
|
WST
|
|---|---|---|---|
Quick Ratio | 0.72 | 2.36 | 1.74 |
Current Ratio | 1.24 | 3.51 | 2.61 |
Interest Coverage | 10.17 | 6.14 | 76.96 |
|
Metric
|
ATR
|
PODD
|
WST
|
|---|---|---|---|
Return on Assets (Normalized) | 8.50% | 8.02% | 15.47% |
Return on Equity (Normalized) | 16.67% | 33.45% | 20.59% |
Return on Invested Capital (Normalized) | 11.51% | 10.07% | 17.98% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
ISRG
| Intuitive Surgical Inc | Lzdwccrc | Yjqh | $135.9 Bil | |
BDX
| Becton Dickinson & Co | Blnymjm | Cqgtjy | $68.4 Bil | |
ALC
| Alcon Inc | Gnkgfrmq | Lkdlhpg | $39.1 Bil | |
RMD
| ResMed Inc | Hrpgxdcfr | Hfcjmz | $31.9 Bil | |
CLPBY
| Coloplast A/S ADR | Mwrxvfnfz | Qkp | $28.3 Bil | |
WST
| West Pharmaceutical Services Inc | Ybxcvjpm | Zsqt | $26.8 Bil | |
BAX
| Baxter International Inc | Ykhlkndwh | Fhjfk | $18.6 Bil | |
COO
| The Cooper Companies Inc | Klqbkrdzk | Wnjxsq | $18.4 Bil | |
HOLX
| Hologic Inc | Xflmtmdh | Cbcyvd | $17.7 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/0f2146bc-8a38-4a78-8fb8-fe1b37fb7287.jpg)