Australia Stock Alert

AUSTR

Morning Alert: Amcor inches higher, resistance at 12-day EMA July 27, 2017 11:00:00 AEST

NEWS BITES - AUSTRALIA

Amcor Limited (ASX:AMC) has increased 0.1% but fell short of the 12-day Exponential Moving Average [EMA] of $A15.72.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Amcor increases on below average volume July 26, 2017 16:00 AEST

Amcor Limited (ASX:AMC), Australia's 3rd largest Materials company by market cap, has increased 4.0c (or 0.3%) in the past week to close at $A15.64, ending a four-week streak of losses. Compared with the All Ordinaries Index which rose 52.7 points (or 0.9%) in the week, this represented a relative price change of -0.5%. The volume was 0.8 times average trading per week of 14.6 million shares. In the past week the market cap has risen $A46.3 million.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Price/Sales of 1.5 [2.4]

Dividend yield of 3.5% [2.9%]

Return on Capital Employed 12.1% [1.8%]

SECTION 2: Ranking

DescriptionValueRank In Market
MCap $US billion14.4In Top 3%
Today's Volatility %0.7In Top Quartile
Price/MAP2001.05In Top Quartile
52-week Range (in $A)13.4-16.8
1-month Range (in $A)15.3-16.6
Stochastic18.6Bullish

SECTION 3: Earnings

Annual Report: Amcor profits hit by 64% fall

Amcor (ASX:AMC) reported net profit for the year-ended 30 June 2016 of $US244m, down 64.1% from $US680m in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Total non-current assets to Total Assets up from 60.1% to 63.2%

- Fixed Assets to Total Assets up from 30% to 31%

Unfavourable Changes:

- Net profit slumps 64.1% from $US680.3m to $US244.1m

- Total revenue down 2.4% from $US9.8b to $US9.6b

- EBIT Margin down from 11.4% to 6.5%

- Interest cover down 45.5% from 5.6 to 3.0

- EBIT to total assets down from 12.8% to 7.0%

- Administration expenses to Sales up from 7.8% to 13.3%

- Profit before tax to Sales down from 9.3% to 4.3%

- Total liabilities to Total assets up 11.1% from 0.8 to 0.9

- Retained earnings to total assets down from 5.3% to 1.6%

- Total current assets to Total Assets down from 39.9% to 36.8%

- Current Debtors to Total Assets down from 17.2% to 16.3%

- Total Liabilities to EBITDA of 7.8 compares unfavourably with the Joseph Piotroski benchmark of less than 5. This ratio has deteriorated by 65.4% from the previous year's ratio of 4.7.

- Total Liabilities to Operating Cash Flow of 7.1 compares unfavourably with the Joseph Piotroski benchmark of less than 4. This ratio has deteriorated by 2.7% from the previous year's ratio of 6.9.

Note:

- Total revenue to total assets steady at 1.1

- Cost of Goods Sold to Sales down from 79.9% to 78.8%

- Depreciation to Sales up from 3.9% to 4.1%

- Current ratio steady at 0.9

- Intangibles to Total Assets up from 21.6% to 24.2%

SECTION 4: Recent News of Amcor

July 18: Amcor (AMC) issued new U.S. patent [9,707,732]

Amcor (AMC) has been issued a new U.S. patent titled "Barrier system for wide mouth containers" by the US Patent and Trademark Office. The patent number is 9,707,732 and was issued on July 18, 2017.

ABSTRACT

A container including a shoulder portion terminating at an opening and a sidewall portion extending from the shoulder portion to a base portion.

July 04: Amcor (AMC) issued new U.S. patent [9,694,930]

Amcor (AMC) has been issued a new U.S. patent titled "Lightweight container base" by the US Patent and Trademark Office. The patent number is 9,694,930 and was issued on July 4, 2017.

ABSTRACT

A container defining a longitudinal axis and a transverse direction that is transverse with respect to the longitudinal axis.

June 26: Amcor: June 2017 North America Analyst Trip - Day 5 presentations

Source: Australian Securities Exchange

June 23: Amcor: June 2017 North America Analyst Trip - Day 4 presentations

Source: Australian Securities Exchange

June 21: Amcor: June 2017 North America Analyst Trip - Day 2 presentations

Source: Australian Securities Exchange

Amcor Limited (AU:AMC; ASX:AMC; AX:AMC)

ISIN: AU000000AMC4

PermID: 4295856624

Source: www.BuySellSignals.com