Updated 3/5/25
AptarGroup, Inc. (NYSE: ATR) might not be a household name, but its products are everywhere. From the pumps on your favorite lotion to the inhalers used in the medical field, Aptar plays a critical role in packaging and dispensing solutions. The company serves industries like pharmaceuticals, beauty, food, and personal care, providing innovative solutions for some of the world’s biggest brands.
For dividend investors, AptarGroup offers a combination of stability and consistent growth. It’s not a high-yield stock, but it has a strong history of dividend increases, making it an attractive option for those looking to balance income and long-term capital appreciation.
📊 Key Dividend Metrics
💰 Dividend Yield: 1.21%
📈 5-Year Average Dividend Yield: 1.23%
💵 Forward Annual Dividend Rate: $1.80 per share
🔄 Dividend Growth Streak: Over 30 years of consistent increases
🛡️ Payout Ratio: 31.1%, indicating a sustainable dividend
📅 Recent Dividend Date: February 26, 2025
📆 Ex-Dividend Date: February 5, 2025
🏆 Dividend Safety: Strong earnings coverage and cash flow support
Dividend Overview
AptarGroup has built a reputation for being a dependable dividend payer. With a yield of just over 1.2%, it’s not going to catch the attention of income-focused investors looking for higher payouts. However, what it lacks in yield, it makes up for in consistency.
The company has raised its dividend every year for more than three decades, demonstrating a commitment to rewarding shareholders. This kind of reliability is a big deal, especially during economic downturns when some companies struggle to maintain payouts. Aptar’s relatively low payout ratio of just over 31% suggests it has plenty of room to keep increasing dividends while still reinvesting in the business.
Dividend Growth and Safety
For investors who prioritize dividend safety and gradual growth, AptarGroup is a solid pick. While the yield isn’t high, the company consistently increases its dividend, typically at a rate of around 5-7% per year.
Aptar has never cut its dividend, even during recessions, which is a testament to the strength of its cash flow and earnings stability. With earnings per share at $5.54 and strong free cash flow generation, dividend increases should continue in the years ahead.
The company’s balance sheet further supports this stability. With a total of $1.09 billion in debt and a manageable debt-to-equity ratio of 43.97%, Aptar is in a healthy financial position. Its operating cash flow of $643 million provides a comfortable buffer to cover both dividends and debt obligations.
Chart Analysis
AptarGroup’s (ATR) stock chart shows a clear shift in momentum over the past several months. After a strong uptrend throughout most of last year, the stock peaked near $175 before rolling over in December. Since then, it has been in a corrective phase, pulling back sharply and breaking below key support levels.
One of the most notable technical developments is the death cross—the point where the 50-day moving average (orange line) crosses below the 200-day moving average (blue line). This crossover is often seen as a bearish signal, indicating that short-term momentum has weakened compared to the longer-term trend.
The recent price action, however, suggests that ATR is attempting to find a bottom. The stock dropped to a low near $135 in February but has since rebounded, climbing back above the $145 level. The 200-day moving average is now acting as resistance, with ATR struggling to decisively move above it. If the stock can hold above this level, it could signal the beginning of a recovery, but if it fails, further downside could be in play.
Volume has been elevated in recent weeks, particularly during the sharp decline in early February. This increase in trading activity suggests that investors were actively repositioning during the downturn, possibly indicating forced selling or institutional liquidation. However, the more recent bounce has been accompanied by lower volume, which raises some concerns about the strength of the recovery. Ideally, a strong rebound should be backed by increasing volume.
Looking at the Relative Strength Index (RSI) at the bottom of the chart, ATR was in oversold territory during its February decline, dipping well below 30. Since then, RSI has started to recover but remains below the neutral 50 level. This suggests that while some momentum is returning, the stock isn’t in strong bullish territory yet. A move above 50 would indicate improving strength.
Overall, ATR is at a critical juncture. The stock is attempting to regain lost ground, but it remains below key technical levels. The next few trading sessions will be important in determining whether this recovery has legs or if it’s just a temporary bounce in an ongoing downtrend.
Analyst Ratings
AptarGroup, Inc. (ATR) has recently experienced a mix of analyst evaluations, reflecting both positive and cautious sentiments regarding its future performance. The consensus among analysts is a “Buy” rating, with an average price target of approximately $181.60, suggesting potential upside from current levels.
Upgrades:
- Raymond James: On January 7, 2025, Raymond James initiated coverage on AptarGroup with an “Outperform” rating and set a price target of $200. This positive outlook is based on the company’s strong market position and consistent financial performance.
- Jefferies Financial Group: Previously holding a “Hold” stance, Jefferies upgraded AptarGroup to a “Buy” rating on October 14, 2024, raising the price target from $155 to $215. The upgrade reflects increased confidence in the company’s growth prospects and operational efficiency.
Downgrades:
- Bank of America: On January 6, 2025, Bank of America downgraded AptarGroup from a “Buy” to a “Neutral” rating, adjusting the price target to $173 from $191. This change was attributed to valuation concerns, suggesting that the stock’s price had reached a level where further significant appreciation might be limited.
- Wells Fargo & Company: On February 6, 2025, Wells Fargo maintained an “Overweight” rating but reduced its price target from $180 to $170. The adjustment reflects a more conservative outlook on the company’s near-term performance, possibly due to broader market conditions or company-specific factors.
These mixed assessments highlight the dynamic nature of analyst perspectives, influenced by factors such as company performance, market trends, and valuation considerations. Investors should consider these insights alongside their own research and investment strategies.
Earnings Report Summary
AptarGroup recently released its fourth-quarter and full-year 2024 earnings, and the results show a company that continues to execute well. The numbers came in strong, with both revenue and earnings growing compared to last year.
Fourth Quarter Highlights:
The company posted earnings per share (EPS) of $1.52, which was better than what analysts had expected. Revenue for the quarter came in at $848 million, showing solid performance across its different business segments. Net income also saw an uptick, rising to $62 million—about a 6% increase from the same period last year. One of the biggest positives from the report was the 22% jump in adjusted EBITDA, reaching $179 million, which suggests the company is becoming more efficient and improving its profitability.
Full-Year 2024 Performance:
Looking at the bigger picture, AptarGroup brought in $3.5 billion in total revenue for the year, marking a steady 5% increase. Net income was even stronger, climbing 19% to $284 million. The company also posted an adjusted EPS of $4.78 for the full year, which is up 24% compared to 2023. These numbers highlight that AptarGroup is growing at a healthy pace, even in a challenging economic environment.
Another key takeaway from the report was the company’s strong cash flow. With operating cash flow continuing to improve, AptarGroup is in a solid position to reinvest in its business, pay dividends, and manage debt effectively.
Overall, the earnings report paints a picture of a company that’s executing well and finding ways to grow both revenue and profitability. While challenges in the broader market remain, AptarGroup’s ability to deliver consistent results suggests it’s on solid footing heading into the next year.
Financial Health and Stability
A company’s ability to sustain and grow its dividend is only as strong as its financial foundation, and AptarGroup holds up well in this regard.
Revenue for the company stands at $3.58 billion, with a net income of $374 million. While quarterly revenue growth is modest at 1.1%, quarterly earnings growth is much stronger at 61.9% year-over-year. This suggests the company has been able to improve profitability, which is always a good sign for long-term investors.
Aptar maintains a respectable profit margin of 10.45% and a return on equity of 15.57%, both of which indicate efficient operations and strong management execution. While the company does have some debt, it has enough liquidity and cash flow to handle it without issue.
Valuation and Stock Performance
AptarGroup isn’t a cheap stock, but it’s not overly expensive either. With a price-to-earnings (P/E) ratio of 26.84, it trades at a premium compared to the broader market, though this is somewhat justified given its stable earnings and strong positioning.
Some key valuation metrics:
- Price-to-Sales Ratio: 2.80
- Price-to-Book Ratio: 3.99
- Enterprise Value/EBITDA: 13.79
At its current stock price of $148.44, Aptar is trading closer to the lower end of its 52-week range, which has spanned from $135.96 to $178.03. This suggests the stock could have some upside if market conditions remain favorable.
Aptar’s beta of 0.55 indicates that it’s less volatile than the broader market. This makes it a good choice for risk-averse investors who want exposure to a steady company that isn’t prone to large price swings.
Risks and Considerations
While AptarGroup is a reliable dividend stock, there are some factors investors should keep in mind.
- Low Yield – At just over 1.2%, the dividend isn’t high enough for those who rely on significant income from their investments. Investors seeking higher yields may need to look elsewhere.
- Valuation Concerns – Trading at a relatively high P/E ratio, the stock isn’t necessarily a bargain. Future growth expectations are already priced in, so upside could be limited.
- Economic Sensitivity – While the company’s pharmaceutical segment is stable, its beauty and personal care business could see demand fluctuations in an economic downturn.
- Debt Levels – Though manageable, Aptar does carry over a billion dollars in debt. Rising interest rates could increase costs and put slight pressure on margins over time.
Overall, these risks are worth considering, but they don’t appear to pose an immediate threat to the company’s ability to pay and grow its dividend.
Final Thoughts
AptarGroup is the kind of stock that doesn’t make headlines, but quietly delivers for long-term investors. It’s not a high-yield dividend play, but it is a steady and reliable income grower.
For investors focused on dividend safety, consistent increases, and financial stability, Aptar is an appealing choice. It won’t deliver massive returns overnight, but it provides a solid balance of income and long-term appreciation potential.
If you’re comfortable with a moderate yield in exchange for long-term dividend growth and stability, AptarGroup is worth considering as part of a well-diversified dividend portfolio.
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