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1. Company Snapshot

1.a. Company Description

AptarGroup, Inc.provides a range of dispensing, sealing, and material science solutions primarily for the beauty, personal care, home care, prescription drug, consumer health care, injectable, and food and beverage markets.The company operates through three segments: Pharma, Beauty + Home, and Food + Beverage.


The Pharma segment provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments, such as asthma and chronic obstructive pulmonary diseases in pharmaceutical market; elastomer for injectable primary packaging components; and active material science solutions.The Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories, and sealing solutions to the personal care and home care markets; and pumps and decorative components to the beauty market.The Food + Beverage segment offers dispensing and non-dispensing closures, elastomeric flow control components, spray pumps, and aerosol valves to the food and beverage markets.


It sells its products through own sales force, as well as independent representatives and distributors in Asia, Europe, Latin America, and North America.The company has a strategic partnership with PureCycle Technologies LLC to develop ultra-pure recycled polypropylene into dispensing applications; and a collaboration with Sonmol for developing a digital therapies and services platform targeting respiratory and other diseases.AptarGroup, Inc.


was incorporated in 1992 and is headquartered in Crystal Lake, Illinois.

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1.b. Last Insights on ATR

AptarGroup's recent performance has been impacted by several negative factors. The company's pharma segment experienced a setback, with slower growth in high-margin emergency solutions, leading to a 25% drop in shares from summer highs. Additionally, Envestnet Portfolio Solutions Inc. decreased its position in AptarGroup by 11.6% during Q2, selling 351 shares. Despite beating Q3 earnings estimates with $1.62 per share, concerns about flat growth and a soft outlook for 2026 have compressed the valuation from 26x to 20x earnings. Headwinds in emergency-use delivery systems are expected to impact revenues next year.

1.c. Company Highlights

2. Steady Pharma Growth Drives Earnings Beat

The company's third-quarter financial performance was marked by adjusted earnings per share of $1.62, beating estimates of $1.57. Revenue growth was driven by the Pharma segment, with reported sales increasing 6% and core sales growing 1% compared to the prior year period. The Pharma segment's core sales increased 2%, with prescription core sales up 3% due to strong demand for dosing and dispensing technologies for central nervous system applications, asthma, and COPD therapeutics. Consolidated gross margins declined by 80 basis points year-over-year, while adjusted EBITDA margins increased by 30 basis points to 23.2%. As noted by Stephan Tanda, "Growth in our Pharma segment was driven by solid demand for proprietary drug delivery systems for central nervous system therapeutics, asthma, COPD, and ophthalmic treatments."

Publication Date: Nov -09

📋 Highlights
  • Pharma Segment Growth:: Prescription core sales up 7%, injectables +6%, active material science +8% in first 9 months.
  • Acquisition of Sommaplast:: Brazil-based pharma packaging deal to expand oral dosing and OTC/nutraceutical markets.
  • Gross Margin Decline vs. EBITDA Improvement:: Margins down 80 bps, but adjusted EBITDA rose 30 bps to 23.2%.
  • GLP-1 Injectables Surge:: 40% YoY growth in September YTD due to high demand for elastomeric components.
  • 2026 Revenue Headwind:: Emergency medicine decline expected to reduce pharma sales by $40–$45M (35% YoY).

Segment Performance

The Pharma segment's performance was a highlight, with prescription core sales increasing 7% over the first 9 months of the year, injectables up 6%, and active material science 8%. The Consumer Healthcare segment, however, continues to be affected by destocking and was down 11%. The Beauty segment's core sales were flat in the quarter, while the Closures segment's core sales decreased by 1%.

Outlook and Guidance

For Q4, the company expects continued strength across the majority of its Pharma businesses, particularly injectables, driven by rising demand for higher-value elastomeric components. The effective tax rate range for the fourth quarter is 19.5% to 21.5%. The company's guidance for the quarter assumes a EUR 1.17 euro to USD exchange rate. Analysts estimate next year's revenue growth at 3.5%.

Valuation Metrics

With a P/E Ratio of 18.29 and an EV/EBITDA of 9.88, the company's valuation appears reasonable. The ROE of 21.69% and ROIC of 10.79% indicate a strong ability to generate returns on equity and invested capital. The Net Debt / EBITDA ratio of 0.74 suggests a manageable debt burden.

3. NewsRoom

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Aptar Named One of America's Most Responsible Companies by Newsweek for the Seventh Consecutive Year

Dec -04

Source: businesswire.com

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Edgestream Partners L.P. Invests $3.40 Million in AptarGroup, Inc. $ATR

Dec -04

Source: defenseworld.net

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Is the Options Market Predicting a Spike in AptarGroup Stock?

Dec -03

Source: zacks.com

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Aptar Strengthens Latin America Footprint With Sommaplast Buy

Dec -02

Source: benzinga.com

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Creative Planning Acquires 2,233 Shares of AptarGroup, Inc. $ATR

Dec -01

Source: defenseworld.net

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Boston Family Office LLC Sells 3,390 Shares of AptarGroup, Inc. $ATR

Dec -01

Source: defenseworld.net

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AXQ Capital LP Takes $261,000 Position in AptarGroup, Inc. $ATR

Nov -25

Source: defenseworld.net

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Aviso Financial Inc. Acquires 3,508 Shares of AptarGroup, Inc. $ATR

Nov -25

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.19%)

6. Segments

Pharma

Expected Growth: 2.5%

AptarGroup's Pharma segment growth of 2.5% is driven by increasing demand for injectable and ophthalmic products, expansion in emerging markets, and growing adoption of prescription drug delivery systems. Additionally, the company's focus on innovation, quality, and customer relationships contributes to its steady growth in the pharma industry.

Beauty

Expected Growth: 1.8%

AptarGroup's Beauty segment growth of 1.8% is driven by increasing demand for premium and sustainable packaging, expansion in emerging markets, and strategic partnerships with key beauty brands. Additionally, the segment benefits from Aptar's innovative dispensing systems and closures, which enhance customer experience and drive brand loyalty.

Closures

Expected Growth: 2.2%

AptarGroup's 2.2% growth in closures is driven by increasing demand for dispensing systems in the beauty and personal care markets, as well as growth in the pharmaceutical market. Additionally, the company's focus on innovation and sustainability, such as its recyclable and reusable packaging solutions, is contributing to its growth.

7. Detailed Products

Dispensing Systems

AptarGroup's Dispensing Systems segment offers a range of dispensing solutions for the beauty, personal care, and pharmaceutical industries.

Closures

AptarGroup's Closures segment provides a variety of closure solutions for the food, beverage, and pharmaceutical industries.

Pharmaceutical Components

AptarGroup's Pharmaceutical Components segment offers a range of components and systems for the pharmaceutical industry.

Active Material Science Solutions

AptarGroup's Active Material Science Solutions segment provides innovative material science solutions for the pharmaceutical industry.

Beauty + Home

AptarGroup's Beauty + Home segment offers a range of dispensing and packaging solutions for the beauty and home care industries.

8. AptarGroup, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

AptarGroup, Inc. operates in a industry where substitutes are available, but they are not a significant threat to the company's business. The company's products are specialized and have a high barrier to entry, which limits the threat of substitutes.

Bargaining Power Of Customers

AptarGroup, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. The company's products are also customized to meet the specific needs of its customers, which increases customer loyalty and reduces the bargaining power of customers.

Bargaining Power Of Suppliers

AptarGroup, Inc. has a moderate level of dependence on its suppliers, but the company has implemented various strategies to mitigate the bargaining power of its suppliers, such as diversifying its supplier base and implementing long-term contracts.

Threat Of New Entrants

The threat of new entrants in the industry is low due to the high barriers to entry, including the need for significant capital investment and specialized expertise. AptarGroup, Inc. has a strong brand reputation and a large customer base, which makes it difficult for new entrants to gain traction in the market.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established players. AptarGroup, Inc. competes with other companies in the industry, and the company must continually innovate and improve its products and services to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.93%
Debt Cost 4.50%
Equity Weight 66.07%
Equity Cost 6.79%
WACC 6.01%
Leverage 51.36%

11. Quality Control: AptarGroup, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AptarGroup

A-Score: 4.8/10

Value: 4.0

Growth: 5.1

Quality: 5.8

Yield: 3.0

Momentum: 1.5

Volatility: 9.3

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Merit Medical Systems

A-Score: 4.4/10

Value: 2.6

Growth: 7.3

Quality: 6.5

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

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Hologic

A-Score: 4.3/10

Value: 2.9

Growth: 5.8

Quality: 7.1

Yield: 0.0

Momentum: 1.5

Volatility: 8.3

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Haemonetics

A-Score: 3.8/10

Value: 5.1

Growth: 6.2

Quality: 6.0

Yield: 0.0

Momentum: 0.5

Volatility: 5.0

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Teleflex

A-Score: 3.6/10

Value: 4.7

Growth: 3.4

Quality: 5.4

Yield: 1.0

Momentum: 0.5

Volatility: 6.7

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Repligen

A-Score: 3.0/10

Value: 0.2

Growth: 5.0

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

121.91$

Current Price

121.91$

Potential

-0.00%

Expected Cash-Flows