AMC share price in focus
Amcor designs and manufactures a wide variety of packaging solutions, including flexible packaging, rigid containers, specialty cartons, and closures.
With origins dating back to the 1860s, Amcor has grown into a global leader, operating across more than 200 sites in 40 countries.
The company prioritizes innovation in packaging to address evolving consumer preferences and regulatory requirements for sustainable solutions.
BHP shares
BHP Group (formerly known as BHP Billiton) is a diversified natural resources company founded in 1885 that produces commodities for energy use and manufacturing.
BHP’s core business lines are mineral exploration and production. BHP’s assets, operations and interests are separated into three focus areas: copper and related minerals (e.g. gold, uranium, silver, zinc, etc.); iron ore; and coal (i.e. metallurgical and energy). While these categories make up the bulk of revenue and profit, the company is also diversifying into other areas such as fertiliser.
BHP shares have long been viewed as a reliable dividend-paying investment and are a common member of Australian share portfolios. It’s also one of the largest companies in Australia so if you own an ASX 200 ETF or LIC, or even have money in superannuation, chances are you already have some exposure to BHP shares.
AMC & BHP share price valuation
We would consider AMC to be a ‘mature’ or ‘blue-chip’ business, so some of the metrics that could be worth considering include the debt/equity ratio, average yield, and return on equity, or ROE. These measures give us a sense of the company’s debt levels, their ability to generate returns from their assets, and their ability to consistently return profits to shareholders.
For FY24, Amcor CDI reported a debt/equity ratio of 187.0%, meaning the company is leveraged (it has more debt than equity). This can increase risk so it’s important that a leveraged company is generating stable returns and has sufficient cash flow to pay interest on its debts.
Over the last 5 years, AMC has delivered an average dividend yield of 4.4% per year. This is important to note if you’re looking for income from your investments.
Finally, in FY24, AMC reported an ROE of 18.4%. For a mature business you generally want to see an ROE of more than 10%, so AMC clears this hurdle.
As for BHP Group Ltd, they reported a debt/equity ratio of 45.3% in FY24, meaning the company has more equity than debt.
Since 2019 BHP has achieved an average dividend yield of 6.9% per year, and in FY24 reported an ROE of 19.7%
Keep in mind that these are only a small selection of metrics. We don’t have enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.
