AptarGroup’s FY 2025 Earnings Set Against Easing Growth Momentum

AptarGroup (ATR) closed FY 2025 with fourth quarter revenue of US$962.7 million and basic EPS of US$1.14, compared with US$848.1 million and EPS of US$1.52 in the same quarter a year earlier. Trailing twelve month EPS for Q4 stood at US$5.97 on revenue of US$3.8 billion. Over the last 12 months, earnings growth of 4.9% sat below the 13.3% five year pace and came alongside a net profit margin of 10.4% versus 10.5% the prior year. This sets up a picture of steady but easing profitability that investors may regard as a test of how durable the margin profile really is.

See our full analysis for AptarGroup.

With the headline numbers on the table, the next step is to see how this earnings profile aligns with the widely shared narratives around AptarGroup’s growth, quality and resilience, and to consider where those narratives may need updating.

TTM Earnings Growth Slows To 4.9%

• Over the last 12 months, earnings grew 4.9% compared with a 13.3% per year average over the past five years, while trailing twelve month net income reached US$392.8 million on US$3.8b of revenue.
• Bulls often focus on that 13.3% multi year earnings growth. Yet the latest 4.9% figure raises questions about how repeatable the past pace is, especially when TTM revenue of US$3.8b and net profit of US$392.8 million now sit alongside forecasts that call for earnings growth of about 5.1% a year.
  • Supporters may point out that reported TTM EPS of US$5.97 still reflects a higher run rate than the US$5.65 level seen a year earlier in Q4 2024, which backs the idea of an earnings base that has moved up over time.
  • At the same time, the step down from the 13.3% five year average to 4.9% most recent growth means the bullish story leans more on the long history than on the latest 12 month trend.

To see how this mixed growth picture compares with how other investors frame AptarGroup’s story, take a look at the wider community views in Curious how numbers become stories that shape markets? Explore Community Narratives.

Margins Hold Around 10.4% Level

• Net profit margin sits at 10.4% on the latest trailing twelve month numbers, only slightly lower than the 10.5% reported a year earlier, pairing US$392.8 million of net income with roughly US$3.8b of revenue.
• What stands out for bullish readers is that this small margin change, from 10.5% to 10.4%, suggests the business is still converting a similar share of its US$3.8b revenue into profit, even as annual earnings growth slowed to 4.9%.
  • The nearly unchanged margin line supports the idea that AptarGroup has kept its profitability profile relatively steady while growing trailing twelve month revenue from US$3.6b to US$3.8b over the past year.
  • On the other hand, anyone expecting margin expansion to match the earlier 13.3% multi year earnings growth streak will see that the current 10.4% figure instead reflects stability rather than a step up in profitability.

P/E Premium Meets DCF Upside Signal

• The shares trade on a trailing P/E of 22.4x, slightly above the North American Packaging industry average of 20.6x and a peer average of 22.0x, while a DCF fair value of US$193.11 sits well above the current price of US$134.31 and the only analyst target given of US$159.86.
• Critics highlight that paying a 22.4x P/E for forecast earnings growth of roughly 5.1% and revenue growth of 4.6% per year looks demanding. Yet the DCF fair value of US$193.11 and a 1.43% dividend yield offer a counterpoint that the current US$134.31 price does not fully reflect the company’s multi year earnings record.
  • The premium to industry and peers is modest at about 1.8 P/E turns versus the 20.6x sector level, which some bears see as hard to justify given growth forecasts below the referenced US market rates.
  • Supporters instead point to the gap between the US$134.31 share price, the US$159.86 target, and the higher DCF fair value figure to argue that the current multiple may still be acceptable relative to those valuation markers.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on AptarGroup's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

AptarGroup’s slower 4.9% earnings growth versus its 13.3% five year pace, combined with a steady 10.4% margin, raises questions about how much growth investors are paying for.

If that mix of modest growth and a 22.4x P/E feels demanding, you might want to shift your focus toward 53 high quality undervalued stocks that look better aligned with your return expectations.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.