AptarGroup Inc. Common Stock (ATR)

FairStock Score: 49/100 — MIXED

Key Financials

Strengths

• Generates $206 million in annual free cash flow (2.5% yield on market cap)
• Solid return on equity of 15.1% above cost of capital
• Established organization with 14,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($74) with negative 71% margin of safety—limited downside protection

AI Analysis

AptarGroup Inc. Common Stock is a small-cap healthcare company valued at $8.2 billion. The business generates $3.8 billion in annual revenue with a 2.0% net margin and $206 million in free cash flow. From a quality standpoint, AptarGroup shows healthy Altman Z-Score of 3.1 and adequate 15% ROE. On valuation, the stock is reasonably priced at 21.2x earnings, with trades above its Graham Number with a negative 71% margin. Growth dynamics show revenue growing at 13.5% and profit growth of -26.4%. The 1.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 49/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $206 million in annual free cash flow (2.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer