Amcor

Methodology

Amcor's global packaging business provides stable earnings from consumer staples and healthcare markets with limited cyclicality. Diversified customer base and focus on rigid and flexible packaging for non-discretionary products creates predictable cash flows. This works well for Amcor as a mature, slow-growth provider with utility-like characteristics in consumer goods supply chains.

Methodology

Amcor's PEG often appears elevated given very modest low-single-digit growth, reflecting market willingness to pay for stability and defensive characteristics. Limited growth comes from volumes, geographic expansion, and gradual sustainable packaging mix improvement. For low-growth stable businesses like Amcor, dividend yield and free cash flow matter more than PEG ratios.

Methodology

Amcor's substantial dividend is central to the investment thesis as mature packaging generates significant free cash flow for shareholder returns. Consistent dividend payments and steady increases appeal to income investors seeking defensive exposure. PEGY is essential for properly valuing Amcor where high yield combined with minimal growth creates total return rather than appreciation alone.